Oil executives candidly criticize Trump’s tariffs and “drills, babies, drills” in an anonymous investigation

Oil executives warn that President Donald Trump’s tariffs and his “drills, babies, drills” message have created uncertainty in the energy market, which is already affecting investments.

Executives protected by anonymity frankly criticised Trump in their responses to a survey conducted by the Federal Reserve Bank of Dallas from March 12 to March 20th.

“The administration’s disruption is a disaster for the commodity market,” said one executive. “The “drill, baby, drill” is nothing more than a rallying cry of myths and populists. Customs policies are impossible to predict and do not have clear goals.

Several executives said Trump’s steel tariffs are increasing costs, making it difficult to plan future projects.

“In the past quarters, all uncertainty has risen sharply,” another executive said. “Depending on new developments is very difficult right now due to uncertainty regarding steel-based products.”

They also criticized the proposals of White House advisers such as Peter Navarro, saying Trump’s “drill, baby, drill” agenda aims to push oil prices down to $50 a barrel to combat inflation.

“The administration’s threat to oil prices of $50 has reduced our capital expenditures in 2025 and 2026,” the executive said. “The ‘drill, baby, drill’ won’t work at $50 per barrel oil. Rigs will decline, employment in the oil industry will decrease, and US oil production will decrease during Covid-19. ”

CNBC has contacted the White House for comment.

The Dallas FED Energy Survey is conducted every quarterly, with approximately 200 companies responding. The study focuses on operators in Texas, southern New Mexico and northern Louisiana.

The scathing criticism in the Dallas federal government investigation contrasted with public comments from major oil companies at the industry’s large energy conference held earlier this month in Houston.

Executives mostly praised Trump’s energy team during the event, and welcomed the administration’s focus on increasing leases and reducing deficits around permits.