The sweeping tariffs introduced by U.S. President Donald Trump are poised to raise operational expenses, strain supply chains, and slow investment growth across the oil and gas sector in 2026, according to a new report from Deloitte released on Wednesday.
Why It Matters
The energy sector’s globalized supply network makes it particularly vulnerable to trade barriers. Equipment and materials such as drilling rigs, valves, compressors, and specialized steel—all vital for production—are largely sourced from international suppliers.
According to Deloitte, new tariffs on these key inputs, including steel, aluminum, and copper, could drive material and service costs up between 4% and 40%, potentially squeezing profit margins across the industry.
The Broader Context
The United States has implemented tariffs ranging from 10% to 25% on crude feedstocks outside the United States-Mexico-Canada Agreement (USMCA) and 50% tariffs on industrial metals like steel, aluminum, and copper. Deloitte noted that these measures could fundamentally alter cost structures and inject uncertainty into feedstock sourcing strategies.
Key Findings
The report projected that inflationary pressure and financial uncertainty tied to tariffs could delay final investment decisions (FIDs) and postpone offshore greenfield developments worth over $50 billion until 2026 or beyond.
As companies grapple with mounting input costs, Deloitte expects operators to renegotiate contracts, adding escalation and force majeure clauses to mitigate volatility and share risk across the supply chain.
“This shift is significant given the United States’ reliance on imports, with nearly 40% of oil country tubular goods demand in 2024 met through foreign sources,” the report said.
What Comes Next
To cope with the tariff-driven disruptions, Deloitte said companies may prioritize supply chain resilience over cost efficiency by turning to domestic or non-tariffed suppliers, using foreign trade zones, or seeking tariff reclassification to manage additional duties.
Ultimately, while the tariffs aim to bolster U.S. manufacturing, the report suggests they could have the opposite effect for the energy sector—delaying critical projects and raising costs across every stage of production.