Government Energy Plan Slowed By Trade Shifts

Falling Oil Prices and Tariffs Shake Investor Confidence

The President’s energy goals are facing pressure as oil prices fall, and investor concerns rise. Since his return to office, U.S. crude prices have dropped over 20%, now hovering near $60 a barrel—below what many producers need to stay profitable.

On January 20, President launched efforts to increase domestic oil and gas production. But by April 2, his 10% import tariff announcement, dubbed “Liberation Day,” caused widespread concern about economic slowdowns.

Ben Cahill noted, “The macro environment has gotten much worse, thanks to the tariffs and policy uncertainty. Energy dominance requires investor confidence.” 

To control Iranian oil trade and security risks, sanctions were reimposed, even targeting Chinese energy firms. While these actions briefly supported oil prices, they added to overall market instability.

Global energy outlooks have been revised downward by the EIA, OPEC, and other agencies. U.S. output projections for 2025 have been scaled back as producers slow down drilling operations.

Amid this, LNG has seen better outcomes. President reopened export approvals, helping LNG exports grow. New projects, including Woodside Energy’s $17.5 billion investment, highlight the sector’s momentum. The U.S. is expected to export 15.2 billion cubic feet per day by 2025.

Meanwhile, President’s administration has cut back support for renewable energy. He withdrew from the Paris climate agreement and halted new offshore wind leasing. Coal, once dominant, now accounts for less than 20% of the U.S. electricity mix.

David Amerikaner observed, “Federal policy now clearly favors oil, gas, and other fossil energy sources, while disfavoring renewable energy sources.”

As uncertainty continues, the energy sector’s future may rely on restoring global trust and balancing fossil and clean energy strategies.