Trump's 2025 tariff package spared energy imports but lifted industry costs, creating a split-screen effect across the U.S. oil and gas sector: crude and fuel flows remain uninterrupted, while the gear and metals needed to drill, pipe and refine are getting pricier. (reuters.com)
On April 2, 2025, the White House excluded oil, natural gas and refined products from sweeping new import tariffs anchored by a 10% baseline rate, a move aimed at avoiding fuel-price spikes and refinery disruptions. Markets still wobbled as the broader trade fight dimmed demand expectations for commodities. (reuters.com)
The pressure is landing upstream and midstream. A Deloitte analysis cited by Reuters says higher levies on industrial inputs — notably steel, aluminum and copper, with some rates as high as 50% — could push material and service costs up by 4% to 40% across the oil and gas value chain. Deloitte sees 4% to 40% cost increases, with companies heavily exposed to imported OCTG, valves, compressors and other specialized kit. (reuters.com)
The report warns investment timelines could slip as inflation and uncertainty bite — more than $50 billion in offshore greenfield projects and final investment decisions may shift to 2026 or later. More than $50 billion in projects could slip, and operators are already exploring ways to blunt the hit. (reuters.com)
Exempting energy barrels preserves the delicate economics of U.S. refineries, many of which are configured for imported medium and heavy crudes. Keeping oil and fuels out of the tariff net helps stabilize pump prices and utilization — but it doesn’t insulate producers and pipeline builders from pricier steel and components. Energy imports were exempted on April 2, 2025, yet the industry’s supply chain remains tariff‑exposed. (reuters.com)
Companies are reworking contracts with escalation and force‑majeure clauses, shifting toward domestic or non‑tariffed suppliers, and using tools like foreign‑trade zones and tariff reclassification to manage duties. With nearly 40% of oil country tubular goods demand met by imports in 2024, sourcing strategies are set for a rethink — and project economics will hinge on how long the current tariff regime lasts. (reuters.com)