Trump says EU must buy $350B of US energy to get tariff relief

[mystery-ak]

 Trump says EU must buy $350B of US energy to get tariff relief

Brussels’ zero-for-zero tariff offer not enough, U.S. president says, but indicates he’s open to a deal if the bloc commits to closing the trade deficit in goods.


April 8, 2025 3:21 am CET
By Zoya Sheftalovich

The European Union will have to commit to buying $350 billion of American energy to get a reprieve from Donald Trump's sweeping tariffs, the U.S. president said late Monday, dismissing Brussels' offer of "zero-for-zero" tariffs on cars and industrial goods.

Trump's comments at a White House press conference were in response to European Commission President Ursula von der Leyen saying earlier Monday that the EU had offered to drop the bloc's tariffs to zero on cars and industrial goods imported from the U.S. if Trump reciprocated.

Asked by a reporter whether the offer was enough for him to back down, Trump said: "No, it's not."

more
https://www.politico.eu/article/donald-trump-says-eu-must-buy-350b-of-us-energy-to-get-tariff-relief/

[IsailedawayfromFR]

After decades of monitoring the energy world, I have serious doubts the US would ever have that amount of energy to supply the EU. We will need it ourselves so will be unavailable for export.

I call Trump's call for this hyperbole.

[DefiantMassRINO]

That's inflationary to domestic US natural gas prices.

Domestic natural gas is most efficiently used to generate cheap electricity to provide competitive cost advantage to US companies.

[catfish1957]

After decades of monitoring the energy world, I have serious doubts the US would ever have that amount of energy to supply the EU. We will need it ourselves so will be unavailable for export.

I call Trump's call for this hyperbole.

If we unleash another 4 or 5 LNG  import/export fractionation projects on the east and west coast, I can see us being behemoth in that market.  On the crude side, there is no doubt a production deficit.

[catfish1957]

That's inflationary to domestic US natural gas prices.

Domestic natural gas is most efficiently used to generate cheap electricity to provide competitive cost advantage to US companies.

See above post...   If we import and process most of the waste gas from the ME, we can effectively flood the market.  That won't be inflationary.

[mystery-ak]

Trump Shuts Down EU Tariff Offer, Demands Bloc Buy More U.S. Energy to Avoid Trade War

U.S. President Donald Trump shot down the European Union’s offer of a zero-tariff trade relationship on some goods, demanding that the bloc do more to rectify the significant trading imbalance, such as purchasing more American-produced energy.

https://www.breitbart.com/europe/2025/04/08/trump-shuts-down-eu-tariff-offer-demands-bloc-buy-more-u-s-energy-to-avoid-trade-war/

[IsailedawayfromFR]

That's inflationary to domestic US natural gas prices.

Domestic natural gas is most efficiently used to generate cheap electricity to provide competitive cost advantage to US companies.

While natural gas is the consummate cheap and clean electricity producer, that line of reasoning is the same as Carter's which set us back decades in natural gas production.  He was flat wrong then and it is wrong now.

[Timber Rattler]

[IsailedawayfromFR]

If we unleash another 4 or 5 LNG  import/export fractionation projects on the east and west coast, I can see us being behemoth in that market.  On the crude side, there is no doubt a production deficit.

You do realize don't you that most of the GC LNG plants are loaded with gas produced from oil wells in the Permian and Eagle Ford?  As they decline, that natural gas will decline.

Having said that, there is just not enough natural gas capacity on the production side to load those forecasted LNG plants to the amount Trump is quoting.

Trump keeps saying 'drill baby drill' but this country is running into a geologic problem in having sufficient productive horizons to do all that he wants to do over a longer term.

[catfish1957]

You do realize don't you that most of the GC LNG plants are loaded with gas produced from oil wells in the Permian and Eagle Ford?  As they decline, that natural gas will decline.

Having said that, there is just not enough natural gas capacity on the production side to load those forecasted LNG plants to the amount Trump is quoting.

Trump keeps saying 'drill baby drill' but this country is running into a geologic problem in having sufficient productive horizons to do all that he wants to do over a longer term.

Unlimited supply from Saudi and Qatar.  In fact, that's where a lot of the capacity feedstock is coming from.

[Weird Tolkienish Figure]

Trump would be better off dropping import tariffs and putting export tariffs on our natural resources... and only dropping them if countries negotiate.

[IsailedawayfromFR]

Unlimited supply from Saudi and Qatar.  In fact, that's where a lot of the capacity feedstock is coming from.

I thought you were referring to US LNG sales to EU.  Trump certainly is.

I have complete faith that the world will have natural gas for many generations, but current natural gas production must radically change (read price)to supply a lot more from here.

[IsailedawayfromFR]

Trump would be better off dropping import tariffs and putting export tariffs on our natural resources... and only dropping them if countries negotiate.

would never work as other countries would undercut our pricing in the fungible resource market.

[Bigun]

I thought you were referring to US LNG sales to EU.  Trump certainly is.

I have complete faith that the world will have natural gas for many generations, but current natural gas production must radically change (read price)to supply a lot more from here.

Until a very few years ago natural gas was treated as a waste product and I'm not sure that has entirely come to an end.

A few years ago, I was involved in a project that gathered and processed about 7Billion CF per day of associated gas, and you could fly over the country at night and be unable to tell a flare had been put out.

[Weird Tolkienish Figure]

would never work as other countries would undercut our pricing in the fungible resource market.

Our own domestic manufacturers could get our resources for cheaper then, as well as our consumers.

[IsailedawayfromFR]

Until a very few years ago natural gas was treated as a waste product and I'm not sure that has entirely come to an end.

A few years ago, I was involved in a project that gathered and processed about 7Billion CF per day of associated gas, and you could fly over the country at night and be unable to tell a flare had been put out.

that had to be an international project unless it was early days of the Permian finding out about horizontal drilling. Those wells were much, much higher in GOR than vertical wells made and there were few NG pipelines available to capture AG during the investigation of horizontal drilling.

Other than Permian,
Or some in Eagleford,  decades since that has happened here in U S.

Still, was your comments on LNG sales to EU about US production or worldwide?

A very big difference.

[Smokin Joe]

Until a very few years ago natural gas was treated as a waste product and I'm not sure that has entirely come to an end.

A few years ago, I was involved in a project that gathered and processed about 7Billion CF per day of associated gas, and you could fly over the country at night and be unable to tell a flare had been put out.

It still is a byproduct of oil production, but has become more economically desirable, especially in areas where raw wellhead gas contains a lot of NGLs. Out this way (Williston Basin, Powder River, and down through the Rockies), I can only recall working a handful of wells out of over 300 I have worked that were targeting gas, and some of those were deep, tight gas sands below known oil producing zones, taking advantage of a tight gas sand tax break.
A colleague made bank working coal bed methane wells in the Powder River Basin, but that play was relatively short-lived.

[Bigun]

that had to be an international project unless it was early days of the Permian finding out about horizontal drilling. Those wells were much, much higher in GOR than vertical wells made and there were few NG pipelines available to capture AG during the investigation of horizontal drilling.

Other than Permian,
Or some in Eagleford,  decades since that has happened here in U S.

Still, was your comments on LNG sales to EU about US production or worldwide?

A very big difference.

Sorry I didn't make it clear that I was talking about the start-up of a new division of ARAMCO. Gas Operations to be precise. @IsailedawayfromFR

[catfish1957]

IN this era, of flexibility with LNG, nimble barge coordination, ......   there is no reason that there should ever be a NG shortage, full capacity is there.   And the ability to even flood the market?  Easily done with more grass roots facilities. 

[IsailedawayfromFR]

Sorry I didn't make it clear that I was talking about the start-up of a new division of ARAMCO. Gas Operations to be precise. @IsailedawayfromFR

That's a different place altogether.

My understanding is that Trump was talking about the EU being forced to take the LNG from US sources, and the amount he mentioned exceeds the capacity of the US to deliver, in my estimation.

Hyperbole is in play during these negotiations, as well as believing he can increase substantially US production at falling oil prices.  The only way that will work is to attack costs.  He could get rid of a myriad of OSHA and EPA requirements that could shave off up to a quarter of all costs on the production and processing of oil and gas.