Trump’s steel tariffs threaten U.S. energy dominance - stainless steel natural gas grill
Crude oil production has just soared to fullTime high of 11.
3 million barrels per day.
Natural gas production has also hit a record.
The energy boom is creating tens of thousands of new jobs and dramatically reducing American gasoline and utility bills, while boosting New Mexico's economy to become the country's third-largest oil producer. (Texas is No. 1).
Unfortunately, the energy boom will soon collapse.
As the Trump administration imposed tariffs on steel and aluminum, it became very expensive to build new pipes and Wells.
Without continued investment in energy infrastructure, the United States will never be able to achieve energy independence.
Now is the time for the government to cancel these counter-productive taxes.
President Trump imposed a 25% tariff on imported steel and a 10% tariff on imported aluminum.
S. energy companies are hit hard by taxes.
A recent survey by the Dallas Federal Reserve found
Steel tariffs have had a negative impact on third energy companies.
This is because steel accounts for about 10-15% of the cost of oil or natural gas wells.
Nearly 80% of pipelines and other products used by oil and gas companies are made of highly customized imported steel that cannot be purchased domestically.
Houston, for example-
All US pipelines located in Plains handle 5 million barrels of crude oil and natural gas liquids per day, and steel tariffs are expected to increase the price of new pipeline systems in the Permian Basin region by $40 million.
The lack of pipeline capacity makes it more difficult for oil and gas to be processed or exported from the second stack and other parts of the domestic market or along the Gulf Coast.
At the very least, rising costs for energy companies mean an increase in revenue for US steel and aluminum companies, not actually.
According to CEO Willie Chiang, all Americans in the plains are looking for domestic suppliers, but "American factories either have no bids" or "have submitted alternative specifications that do not meet the standards ".
In other words, tariffs do not necessarily increase revenue for domestic steel and aluminum companies.
In fact, some of the country's largest producers of aluminum and steel, such as Newcastle and the United StatesS.
Steel lost value in the stock market this year.
The tariff did not show a clear sign of work as expected.
Tariffs not only hurt companies.
This is bad news for ordinary Americans, who end up paying for increased metal costs at higher energy prices.
Rob Tumer, general manager, energy company
Investment firm Tortoise explained that oil and gas companies can only afford higher metal costs for a long time.
Ultimately, "these costs are likely to be consumed by consumers.
Workers are also prepared to suffer.
The oil and gas industry supports about 10.
More than $1 contribution for 3 million jobs.
3 trillion of the American economy.
Increasing energy exploration and production costs means reducing new jobs.
Tariffs make the United States more dependent on foreign energy producers and even undermine national security.
The United States recently overtook Russia as the world's largest oil producer.
We have been ahead of the world in gas production since 2009.
But if investment in new energy infrastructure becomes too expensive, the United States will lose its dominant position in the global oil and gas market.
The Trump administration's tariffs are contrary to expectations.
It's time to undo them and provide much-needed relief to US energy producers and consumers.