Hathaway, serving as a director at Lawyers for Good Government, a legal nonprofit focused on progressive advocacy, commented that the new regulations appear to primarily benefit extractive industries such as drilling and mining. Solar and wind projects, which have faced opposition from the current administration—illustrated by the withdrawal of offshore wind leases and construction halts—are notably excluded from projects eligible for expedited timelines. This ironic stance adds to the uncertainty for fossil fuel producers under the Trump administration.
Prior to Liberation Day disruptions, the oil industry faced challenges despite support for the president’s election. The shale oil boom of the early 2010s, which promoted increased production, resulted in an oversupply and subsequently decreased oil prices during the first Trump administration. After prices fell during the pandemic, investors began exercising caution regarding unchecked production.
Clayton Seigle, a senior fellow at the Center for Strategic and International Studies, noted that restrictions on production growth in the U.S. are influenced more by Wall Street than by government regulation.
The early 2020s energy crisis, exacerbated by Russia’s invasion of Ukraine, temporarily bolstered the industry, although investors remained vigilant about price fluctuations. Despite President Joe Biden’s climate initiatives, the U.S. emerged as the leading crude oil producer worldwide in 2023, reaching a production peak of 13.4 million barrels per day. The Trump administration faces the challenge of balancing profitability with the president’s energy objectives, particularly given the target of reducing oil prices to $50 a barrel—considered unprofitable by industry standards.
The Federal Reserve Bank of Dallas regularly publishes regional reports on the oil and gas industry in Texas, Louisiana, and New Mexico. These include anonymous feedback from executives. Recent comments have highlighted dissatisfaction with the White House policies, with one executive pointing out the contradiction between achieving “US energy dominance” and maintaining $50 per barrel oil. Another executive referred to the phrase “Drill, baby, drill” as merely a populist slogan.
Additionally, the Interior Department announced policy changes regarding offshore drilling in the Gulf of Mexico, which could potentially increase daily production by up to 100,000 barrels. The department is also reportedly preparing to open public land fossil fuel deposits for production.
