Executives from two energy companies recently stated that the tariffs imposed by the U.S. administration’s trade policies are increasing costs throughout the energy production chain and influencing future investment choices.
Speaking at the Energy Intelligence Forum in London:
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Patrick Pouyanne, CEO of TotalEnergies, noted that steel tariffs—which were raised to
in June—are driving up costs for liquefied natural gas (LNG) projects.
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Lorenzo Simonelli, CEO of Baker Hughes, estimated that tariffs would add $100 million to $200 million to his company’s costs this year, though likely toward the lower end of that range, calling it an “incremental pressure point.”
In contrast, Darren Woods, CEO of ExxonMobil, downplayed the effect of any single U.S. administration’s policies on his company’s long-term investment strategy. Instead, he pointed to Europe’s environmental regulations as a factor discouraging investment. Woods argued that Europe’s attempt to “micromanage and instruct” the industry on achieving decarbonization is problematic because regulators “don’t have the expertise.”
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