From Yahoo Finance: 2025-03-26 11:28:00

U.S. oil and gas activity slightly increased in Q1 but energy executives are pessimistic due to Trump’s trade policies. Tariffs on steel and aluminum could raise drilling costs, with a 25% steel tariff leading to a 4% increase in drilling well costs. Uncertainty and pessimism among firms due to conflicting messages from the administration.

Oilfield service firm executives predict drop in demand due to Trump’s steel tariffs. Costs rose faster in Q1 2025 than Q4 2024, with one executive mentioning a 25% cost increase for casing and tubing. Executives stress need for oil prices to be $75-$80 per barrel to stimulate new activity.

Oil and gas companies expect WTI oil price to be $68 per barrel by year-end 2025 and rise to $82 per barrel by 2030. Natural gas prices forecasted to be $3.78 per MMBtu by year-end and rise to $4.83 per MMBtu in five years. U.S. crude futures currently trading at around $70 a barrel.



Read more at Yahoo Finance: US oil, gas activity rose in first quarter, but energy execs wary of tariffs, Dallas Fed says