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Trump wants to support America's oil and gas producers

2020-04-05T12:09:47.287Z


The United States is now the world's largest oil producer. However, the companies there cannot produce as cheaply as the exporters in Saudi Arabia. Now President Trump wants to help the industry.


The United States is now the world's largest oil producer. However, the companies there cannot produce as cheaply as the exporters in Saudi Arabia. Now President Trump wants to help the industry.

Washington (dpa) - Given the recent drop in prices, the US government wants to support the American oil and gas industry with all available means. If necessary, new tariffs on oil imports could also be considered, President Donald Trump said in the White House.

Thousands of jobs are now at stake in major industries in the United States. "I'll do whatever it takes," he promised. "I'm a big fan of our big energy business," said Trump. "We will take care of our energy business," he added.

The oil price has dropped dramatically recently. The main reasons were a conflict between oil producers Russia and Saudi Arabia and the global drop in demand due to the coronavirus pandemic.

Trump had received the heads of major US oil companies, including Chevron and Exxon Mobil, at the White House on Friday. Even then, he promised support to the industry representatives. "I support you 1000 percent," said the President.

According to the US Energy Agency (EIA), the United States has been the largest gas producer before Russia since 2009 and has now overtaken Saudi Arabia as the largest oil producer. This is also of great strategic importance for Washington due to the lower reliance on producers in the Middle East.

The US owes the boom in its domestic oil and gas business primarily to the relatively expensive method of producing fracking. Gas or oil is extracted from rock layers using pressure and chemicals. However, according to analysts, most American producers cannot produce profitably at current market prices. Unlike in Russia and Saudi Arabia, most oil producers in the United States are independent of the state, which is why they should soon cut production if losses continue.

Leading representatives of the Opec cartel as well as other major producing countries such as Russia want to discuss on Thursday in a video section of the so-called Opec + and coordinate their further strategy to stabilize the oil market. Several producers want to reduce production so that the price increases again.

Source: merkur

All news articles on 2020-04-05

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