Trump’s energy strategy backfires as oil falters and renewables stall
U.S. energy firms are retreating from drilling and halting clean power projects as President Trump’s policies trigger market instability and investor anxiety.
Evan Halper reports for The Washington Post.
In short:
- Oil and gas companies are slashing investments and shutting down rigs, citing Trump’s tariffs, trade policies, and pressure on OPEC+ as major disruptors to profitability.
- Renewable energy projects, including major offshore wind farms, are being delayed or canceled following Trump’s orders to freeze clean power approvals and halt billions in federal grants.
- Despite slashing environmental rules and promising cheap gas, Trump’s policies have left the U.S. just as dependent on foreign oil and facing growing costs for energy infrastructure.
Key quote:
“This is not ‘energy dominance.’”
— Anonymous energy executive, quoted in a Federal Reserve Bank of Dallas survey
Why this matters:
The turbulence in the U.S. energy sector comes at a time when global demand, climate threats, and technological competition are colliding. Fossil fuel firms are reeling under policy whiplash and rising costs, while renewables—once on a strong growth trajectory—are now shackled by regulatory uncertainty and a hostile political climate. Trump’s moves to roll back clean energy development and impose steep tariffs are not only stalling domestic projects, but also risking long-term energy security and economic competitiveness. Paused solar and wind projects, particularly offshore, leave millions of homes without cleaner, more stable power sources as cities grow hungrier for electricity. Meanwhile, the steel and component price hikes driven by trade tensions are affecting oilfield operators. If these trends continue, the U.S. could lose ground in both energy independence and the global race for next-generation technologies — especially AI infrastructure that depends on vast, reliable power.
For more: House Republicans push sweeping fossil fuel expansion in budget bill
