The US oil and gas companies are increasing the likelihood that President Trump is likely to be confused with the business and imposes a 25 %tariff on Canada and Mexico’s products.
The United States is the world’s largest oil producer, but the refinery in this country is designed to convert various types of oil into fuel such as gasoline and diesel. About 60 %of US imports from Canada and about 7 %in Mexico. Many refiners are set to use imports and cannot be easily converted to oil in other places.
Analysts are not sure how Trump’s tariffs can be spread through the petroleum market, and who will pay extra. The cost may not be important if the tariff is temporarily or the executive can easily obtain the exemptions that can continue to purchase Canada or Mexican crude oil without paying additional costs.
Trump said the tariffs will take effect on Saturday. On Thursday, he suggested that he would exempt oil.
The oil and gas industry were one of Trump’s biggest supporters in the 2024 election, offering more than $ 75 million in his campaign, and the president helped consumers’ industries and lowered energy costs.
If Trump does not exempt fossil fuel, it is likely to be hit. Fossil fuel is a refinery in the Midwest, where Canadian oil producers, US refiners, especially many Canadian oil, and lack of prepared alternatives. US consumers in areas that depend on oil in Canada can see a slightly high price in the pump if they respond by responding by reducing production, especially by fuel manufacturers. TOM KLOZA, the global energy analysis officer of oil price information services, said that the price of gasoline in the Midwest can go up to 15 to 20 cents.
Clawa said that if Trump goes on tariffs, it will be “very messy.” “We did not deal with this in modern times.”
Already oil refining is a more difficult business than a few years ago.
The profit margin of the fuel making weighs on the fourth quarter of the largest oil company in the United States, which reported on Friday.
Exxon’s last three months of profits increased from $ 7.6 billion to $ 7.66 billion from the previous year. Production growth in the same region, such as West Texas, helped offset more difficult markets for refining. The company’s results exceeded the prediction of analysts surveyed by FactSet.
Kathy Mikells, the chief financial officer of EXXON, said, “We have been trying to ensure competitive advantage, which we will take on us in all market environments.
CHEVRON’s four -quarter profits were $ 32.4 billion, up 43 % year -on -year, less than Wall Street’s expectations.
According to AAA, a motor club, the average price of general gasoline was $ 3.11 per gallon nationwide last Friday. Gasoline in the midwest is usually cheaper than the national average.
President Trump repeatedly aroused the threat of tariffs he took in the first two weeks. Some policy analysts say threats are used as a negotiation tool for the state to spur the state as they want. Last weekend, he announced a 25 %tariff on Colombia’s other allies after accepting US military plane accepting exiled immigrants. In a few hours, Colombia obtained and President Trump overturned the course.
The American Petroleum Institute, a major trade group in the oil and gas industry, urged the administration to exempt fossil fuels from all tariffs.
“Targets for crude oil, natural gas, or refined products will directly damage the energy economy and availability of consumers, and will be weakened in Korea and around the world, dominating the competitiveness of the US oil and natural gas industry.”
Most of the oil produced in the United States is similar to light beer in terms of industry experts, and crude oil imported from Canada and Mexico is similar to thick molar. Ceries are generally installed to create gasoline, diesel and other products with two combinations: diesel and heavy oil.
KLOZA of OPIS said US fuel manufacturers seemed to have not been stocked by Canadian oil.
Valero Energy, one of the largest oil refining companies in the United States, plans a wide range of scenarios, and many refiners are along the Gary Simmons, Gary Simmons, near the port that can import oil from all over the world. It has flexibility. The chief operating officer told the financial analysts on Thursday.
In the end, however, if you buy heavy oil, such as types produced in Canada and Mexico, the company may need to reduce production, Simmons added.
Chevron also said that on Friday, he recognized $ 755 million in severance pay for the last three months, and the horizontal signal was cut.
Mike Wirth, the chief executive of the company, said in an interview, “You can see the restructuring of the organization. Chevron did not disclose how many employees could be affected.
The employment of the US oil industry has decreased by about 25 % over the last decade, and even though the petroleum and gas production has reached the highest level.
