U.S. Energy Executives Expect Faster Permitting Under Trump Administration, Survey Says
Energy executives in the Gulf Coast region expect faster permitting times for drilling on federal lands under President-elect Donald Trump, according to a survey by the Federal Reserve Bank of Dallas. The survey of 134 energy firms in Texas, Louisiana, and New Mexico found that the overall outlook has brightened and activity levels have increased, with uncertainty declining in the final quarter of 2024.
A third of executives polled believe the permitting process will become significantly faster over the next four years. They attribute this to Trump’s campaign promises to lower gasoline prices and speed up permitting for energy projects, under his “drill, baby drill” mantra.
Trump’s transition team is expected to roll out an energy package that will include the approval of export permits for new liquefied natural gas (LNG) projects and increased federal land and sea oil drilling. The new administration is also expected to lift regulations and stop subsidizing green energy, seeking to place more demand on natural gas.
The survey found a wide gap between large and small producers in their plans to tackle greenhouse gas emissions. Large firms plan to reduce methane by nearly two-thirds, while small firms are less likely to take action. The survey also highlighted the challenges faced by oilfield services firms, with many reporting reduced growth due to mergers and acquisitions, lower oil demand, and efficiency gains in extraction technology.
The survey also found that weak natural gas prices continued to pressure some exploration and production firms, with negative prices forcing operators to pay for their gas to be taken away, reducing oil profit margins. Despite this, respondents expect the West Texas Intermediate (WTI) oil price to rise to $71 per barrel by the end of 2025, with some estimates ranging from $53 to $100 per barrel. The survey also anticipates a Henry Hub natural gas price of $3.19 per million British thermal units over the same period.
