[By Guancha Observer Network, Qi Qian] On April 17, the Financial Times published an article stating that US President Donald Trump's insistence on provoking a trade war with China has caused unease among American oil producers. Experts warned that tariffs have severely weakened the export competitiveness of American energy and pushed up extraction costs. As China expands its leading position in clean technology, it may replace the United States as the world's dominant energy superpower.

The report noted that since Trump announced the so-called "reciprocal tariff" policy at the beginning of April, US oil prices have plummeted, also stifling efforts by the Biden administration to establish a domestic clean technology industry to compete with China.

American consulting firm Wood Mackenzie pointed out in its report "Top-Down Hardship: Threats to American Energy Dominance" that tariff measures could make it more difficult for American oil producers to compete in their "most attractive export markets."

In addition, the United States is being significantly surpassed by China in lithium-ion batteries, electric vehicles, and solar cells and other technologies.

Wood Mackenzie stated in its report that despite Trump's vow to cut regulations in the energy sector and issuing executive orders to support his "drill, baby, drill" energy strategy, it is expected that US oil production will begin to decline in the early 2030s.

The report said: "Following current trends, American dominance in upstream markets will continue for some time. However, its leadership faces challenges and may eventually be weakened."

On April 8, Trump signed an executive order aimed at reviving the US coal industry Video screenshot

The Financial Times reported that Trump suspended certain energy import tariffs for 90 days. However, the uncertainty of Trump's tariff policies and the US-China trade war have sparked concerns about economic recession in the United States. In recent weeks, there has been a bearish trend in the US oil market.

Bloomberg cited data indicating that in March, China's crude oil imports from Canada surged to an unprecedented 7.3 million barrels. Meanwhile, China's crude oil imports from the United States have dropped sharply from a peak of 29 million barrels last June to around 3 million barrels.

Jason Bordoff, professor at Columbia University's Global Energy Policy Center, said: "The drop in oil prices may have a significant negative impact on the potential for continued growth in US oil production, potentially even leading to a decline, depending on how much the price falls."

Many oil executives and analysts warned that tariffs, including a 25% tax on steel imports, could also significantly increase the production costs of US shale drillers. Robert Clarke, an analyst at Wood Mackenzie, said: "Given that tariffs will affect well equipment, producers are concerned that oil costs could rise by single or double digits."

Shale oil producers warned that the sharp fall in oil prices, Trump's tariff war, and policy uncertainties mean that the industry is facing its worst crisis since the 2020 pandemic.

While Trump's policies have devastated the US energy sector, China is consolidating its dominant position in the clean technology field. American energy experts and renewable energy executives warned that Trump's hostile stance toward green energy will further enhance China's control over the industry.

Dave Brown, head of Wood Mackenzie's energy transition business, said that in the field of clean energy, "the United States will find it very difficult to catch up (with China)." Bordoff also said that building a domestic supply chain within any meaningful timeframe "is more daunting than Washington is willing to admit."

The report mentioned that just as various industries in the United States were issuing warnings, the Trump administration canceled a $5 billion offshore wind project off the coast of New York City by Norwegian Equinor on the 17th, which is his latest move to block Biden's renewable energy plans. Trump suspended the "Inflation Reduction Act," threatening to stop providing thousands of billions of dollars in loans, grants, and tax breaks to clean technology developers.

This article is an exclusive contribution by the Guancha Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7494447828908720681/

Disclaimer: The article solely represents the author's views, and you can express your opinions by using the "like/dislike" buttons below.