New Mexico’s San Juan Basin, a historic oil and gas hub, is struggling as Trump’s tariffs raise costs and dampen drilling prospects.
Local driller Sean Dugan notes pipeline costs soaring from $80,000 to $120,000 due to Asian import tariffs, squeezing margins in a region already hit by low natural gas prices post-2008.
Low oil prices, below the $ 65-per-barrel threshold needed for profitable drilling, and tariff-driven economic fears are stalling new projects in this historic region.
“You know, drill baby drill and lower oil prices are not simpatico,” explained George Sharpe, investment manager for Merrion Oil and Gas, one of the San Juan Basin’s oldest drillers.
“I think the whole tariff thing is going to backfire on Trump.”
Despite hopes for gas pipeline exports to Mexico, most local jobs now focus on servicing or decommissioning wells, not new drilling.
