President Donald Trump, in his first remarks to reporters after taking office Monday, reiterated his demand for the European Union to increase its purchases of American oil and gas, warning of potential tariffs if the bloc fails to comply, Bloomberg reports.
“The one thing they can do quickly is buy our oil and gas,” Trump said at the White House. “We will straighten that out with tariffs, or they have to buy our oil and gas.”
Trump’s comments come as the EU and some Asian nations are reportedly considering boosting their imports of energy from the United States, the world’s largest producer of crude oil and exporter of liquefied natural gas (LNG). Last year, European Commission President Ursula von der Leyen suggested that increased US LNG imports could replace the bloc’s reliance on Russian supplies.
However, the feasibility of a rapid increase in US LNG exports is questionable. Current US capacity for increased shipments is limited in the short term. Moreover, LNG is typically sold through long-term contracts, meaning that diverting cargoes to Europe would require existing buyers to agree to the change. This action would not necessarily increase the total amount of gas exported by the US.
To secure long-term supply, European buyers could potentially enter into long-term agreements with US LNG projects, though such projects would take years to build and become operational.
President Trump has made it clear that he intends to aggressively pursue American energy development. Immediately after his inauguration, he declared a national energy emergency and signed executive orders revoking offshore oil and gas leasing bans, effectively opening up vast areas of US coastal waters to drilling. He also lifted a Biden-era freeze on approvals of new LNG export facilities.
“We are going to make a lot of money from energy,” Trump said, highlighting his administration’s focus on energy independence and trade. “We have more than anyone else.”
