By Jamie Martin
In President’s first 100 days of his second term, his energy dominance agenda is being tested. U.S. oil prices have dropped more than 20%, falling to around $60 per barrel—well below the breakeven mark for many producers.
President began his term with policies to boost oil and gas output, including lifting restrictions and reapproving liquefied natural gas (LNG) exports. However, trade policies, including a 10% import tariff announced on April 2, have caused global uncertainty and weakened demand.
Ben Cahill of the Center for Energy and Environmental Systems Analysis remarked, “The macro environment has gotten much worse, thanks to the tariffs and policy uncertainty. Energy dominance requires investor confidence.”
The U.S. also imposed sanctions on Iran, including penalties on Chinese energy companies, to curb nuclear activity and regional funding. While this briefly supported prices, it also increased market unpredictability. Analysts and agencies like the U.S. EIA, OPEC, and IEA have cut global oil demand forecasts.
Meanwhile, LNG is gaining ground. President policies have fast-tracked LNG approvals, encouraging investment. One such investment includes a $17.5 billion project by Woodside Energy, citing support from the administration. LNG exports are projected to hit 15.2 billion cubic feet per day by 2025.
Clean energy, however, has faced setbacks. President pulled the U.S. out of the Paris climate agreement and paused offshore wind leasing. Plans to boost coal usage may not be economically viable, as it now accounts for less than 20% of electricity generation.
“Federal policy now clearly favors oil, gas, and other fossil energy sources, while disfavoring renewable energy sources,” said David Amerikaner, a partner at Duane Morris.
As investors watch closely, the future of America’s energy dominance may depend on stabilizing markets and reducing policy uncertainty.
Photo Credit: usda
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