The Trump administration’s crackdown on renewable energy, push for lower crude prices, and continued tariffs on products such as steel are deepening pessimism among domestic oil and gas executives.

A quarterly survey released by the Federal Reserve Bank of Dallas on Wednesday revealed that executives are blaming regulatory changes and trade uncertainty for falling production levels and market chaos that continues to put downward pressure on prices.

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It marks the third quarterly survey this year in which oil and gas executives have slammed the administration, which promised to support and bolster fossil fuel production, after it was discouraged during the Biden administration.

According to the new survey, there is limited optimism about advancing President Donald Trump’s “drill, baby, drill” agenda, as several executives fear the president’s own policies are “kneecapping” the domestic drilling industry.

“The uncertainty from the administration’s policies has put a damper on all investment in the oilpatch,” one exploration and production firm executive warned. “Those who can are running for the exits.”

Some criticized the Trump administration for targeting renewable energy sources, warning that using the executive branch to stymie wind and solar development will likely backfire on the fossil fuel industry through harsher methane regulations, permitting restrictions, or additional environmental reviews.

Many also blamed the slowed production levels on the combination of dropping prices for their products and the increasing supply chain costs, brought on by Trump’s tariffs.

If these market conditions continue, oil and gas executives warned, operators will be forced to reduce workforces further.

“A vibrant oilfield services sector is critical if and when the U.S. needs to ramp up production,” one executive said. “Right now, we are bleeding.”

Compared to the second quarter survey released in July, executives hold much more bearish views on where prices will stand in the coming months, forecasting that West Texas Intermediate will be in the low $60s.

Previously, executives said they expected WTI to be priced around $68 per barrel before hitting the $70s again in two years. Now, executives anticipate crude prices will remain in the $60s through 2027.

The Trump administration and Republicans in Congress have taken actions directly aimed at increasing production levels, including lowering federal royalty rates and increasing the amount of land available for leasing. Those policies alone may not be enough to boost the market.

Only a small number of executives believe this will substantially increase crude and natural gas production over the next five years. More than 50% believed it would result in a “slight increase,” but more than 30% said they thought it would result in no change.

Trump and his Cabinet have championed themselves as allies of the fossil fuel industries, advocating increased financing on the global stage for oil and gas projects.

The president himself has also repeatedly urged the members of OPEC+ to increase their production levels to bring down prices worldwide.

Domestic producers, however, are warning that this tactic will do more harm than good for drillers in the United States.

OIL EXECUTIVES SAY ‘DRILL, BABY, DRILL’ ISN’T HAPPENING, AT LEAST NOT THIS YEAR

In the third quarter survey, one executive accused the Trump administration of “finishing the job” started under former President Joe Biden to vilify and bury the domestic oil and gas market.

“Guided by a U.S. Department of Energy that tells them what they want to hear instead of hard facts, they operate with little understanding of shale economics,” the executive said. “Instead of supporting domestic production, they’ve effectively aligned with OPEC — using supply tactics to push prices below economic thresholds, kneecapping U.S. producers in the process.”