Written by Arate Somasekhar
Houston (Reuters) -The world’s energy industry leaders meet in Houston next week, as oil prices have decreased to large oil to reduce thousands of jobs even while the US -supporting US administration encourages them to pump more.
US President Donald Trump I distinguished 47 days in his position with a rapid reform of the government and politics, including collective workers and the opposite of many of the previous administration policies.
The industry has repeatedly urged “drilling, child, drilling”, and command government agencies to cut the red strip to increase oil and gas output to the maximum – at record levels before he takes power. It has ended a temporary stop in the approvals of the new gas export project and a ban on drilling in federal waters.
However, Trump’s policies on trade and foreign policy threatened to raise the cost of millions of oil barrels that our American norms need from Canada and Mexico. Its rapid axis in foreign policy with Russia can increase global oil flows and reduce the European oil and gas market, if the United States reduces Russian energy sanctions in the event of an agreement to end the war in Ukraine.
His end to the license that allowed the export of Venezuelan oil to the United States and threats to threaten Iranian oil exports to zero all domain turmoil in global oil flows.
“It is a revolution in energy policy that reveals … this industry is trying to breathe its breath,” said Dan Yerinjin, a Politzer Prize -winning author and Vice President of Conference Presidents.
“I don’t think there was any degree of disturbances and calibration that occurs.”
It will be the resetness of the energy industry in the foreground and the center at the Cereweek conference, where it will meet more than 8,000 delegates. Among the participants and speakers are US Energy Secretary Chris Wright and Energy Ministers of OPEC members+ Nigeria, Libya and Kazakhstan, and the CEO of Saudi Aramco, Chevron, Shell, BP and Totalenergies.
Raw prices have reached a minimum level of three years to less than $ 70 a barrel this week after the organization of the oil -exporting countries and its allies (OPEC+) agreed to move forward in increasing the April planned production.
Even before that, the decrease in oil prices in 2024 and the high costs of equipment and services have pressured the energy companies. The large oil suffers from coercion, as it is clear from the discounts in comprehensive jobs and investment.
Chevron, US oil producer No. 2, said it would rest up to 9,000 employees, while SLB oil servers said it is cutting jobs as part of the restructuring.
Meanwhile, investor Elliot Investment managed the major risks at the main BP company and US Philips 66 to pay for the fundamental work to transform its performance.
The growth of global demand for oil demand was lukewarm over the past year, partly due to the fact that China has many new electric cars on the road to the extent that the demand for fuel on the engines had reached a plateau.
The profit margins decreased in improving the results of the oil company in 2024 and are expected to do so again in 2025.
American crude exports can decrease this year with a tariff of Chinese definitions.
“This is no longer an excess B equal to C anymore. There are like nine equations here. There are a lot of things that happen immediately to pull a series, you don’t know where you will be the other side of the series,” said Dan Beckering, chief investment employee in Beckering Energ Partners.
LNG has been a bright point in recent months. The United States is already the largest source of liquefied natural gas in the world, and producers are plans for massive expansion. Trump’s reflection of former President Joe Biden stopped in new projects means that producers are likely to start approving these expansions soon.
Wright and Interior Minister Doug Burgum toured the export facility at Venture Global Global in Louisiana on Thursday, when she irrigates US energy and natural gas. The company is scheduled to expand the production capacity of the factory with an additional investment of $ 18 billion.
Careful producers
The average futures for Global Benchmark will be $ 74.50 a barrel this year and $ 66.46 a barrel next year, according to the US Energy Information Administration (EIA), a decrease of $ 80 a barrel last year.
In the low price environment, there are little signs that oil investment and production will grow. Oil companies focus on capitalist discipline, improving productivity and shareholders ’returns, rather than drilling.
“The costs are much higher and that affect profitability,” said Josh Young, chief investment official in Bisson.
“I started seeing the producers retreating from their capital. It is the opposite of what the president wants.”
High costs in aging rock fields also represent a challenge. The US oil output is scheduled to grow 380,000 barrels per day this year, much less than the growth of one million barrels per day in some recent years.
Products are expected to grow, on average, 2025 production by 1 % with 4 % decrease in capital spending, according to Morgan Stanley research.
Beckering said: “The shareholders say that capitalist discipline, and they return money to shareholders, then you have the most powerful man in the world, says, drilling, child, drilling – I think you pay the lip service to the president, and follow the desires of the shareholder.”
(Participated in Arthhy Somasekhar reports in Houston, edited by Liz Hampton, Simon Web and Margareta Choi)
