US oil industry representatives meet Trump for the first time

Senior representatives of the US oil industry met with Donald Trump for the first time since he took office as president. Trump said during his election campaign that he wanted to increase US production by as much as 3 million barrels of oil per day (bpd), while also lowering energy prices. As these two statements may at least partly run counter to each other, the discussion focused in particular on permitting processes, as reported by international outlet Oilprice.

Oil industry representatives met with President Donald Trump for the first time last week to discuss the production outlook and the future of the US market. They first voiced concerns over the impact of tariffs imposed by the president on Canada and Mexico, and also stressed that higher oil prices are needed to increase domestic production.

However, Doug Burgum, the US interior secretary, told reporters after the meeting only that there was "essentially no discussion about the price", as it is determined by the market based on supply and demand. Energy Secretary Chris Wright added that negotiations on tariffs are still ongoing.

The discussion was therefore expected to focus primarily on streamlining existing permitting processes. According to Burgum, permitting processes take longer than construction itself, increasing the cost of new projects during the preparation phase.

However, expectations of lower global oil demand, partly as a result of US tariffs, and a possible increase in oil production by the OPEC cartel, which has driven the recent fall in prices, may in turn lead to the postponement of final investment decisions for already permitted projects or to production curtailments should prices fall further.

The cost of producing shale oil in the US has historically averaged around 54 USD/bbl. The price of Brent crude is currently around 73 USD/bbl, while US WTI stands at 69 USD/bbl.