Drillers prepare for 25% tariffs on steel, aluminum

Oil and gas drillers are preparing for new tariffs on steel and aluminum, imposed by President Trump. The 25% import tariff aims to support U.S. industries but may lead to higher costs for drillers, though the impact is expected to be manageable. Drillers imported 40% of their steel and aluminum needs last year, but have reduced reliance on foreign sources, anticipating these tariffs. Some analysts predict costs could rise by 15%, while others estimate a smaller increase of about 2.1% in overall well costs. American steel producers are expected to benefit from the tariffs. Previous tariffs did not significantly harm the oilfield services industry, and similar outcomes are anticipated this time, with potential exemptions and adjustments to mitigate negative effects.