Trump’s Oil and Gas Math Fails to Add Up
The incoming administration’s "drill, baby, drill" demand will fall on deaf ears unless rising prices encourage more production.
Looking for a price signal.
Photographer: Luke Sharrett/Bloomberg
There is a certain mental model of the US energy system that envisions a giant valve hidden beneath the Resolute Desk. The notion that the president can smoothly dial energy flows and prices up and down is of course absurd — and seemingly a belief within the incoming Trump administration.
We’ve been treated to a couple of jarring statements on energy from the president-elect and his appointees this week. The first was a proposed “plan” from Donald Trump’s pick to lead Treasury, Scott Bessent, for 3% economic growth, a 3% federal deficit and an extra 3 million barrels of oil equivalent of production a day. The second was Trump’s Monday night threat to slap 25% tariffs on “ALL products” imported from Canada and Mexico.