The San Juan Basin, one of the oldest drilling areas in the US, has struggled for a decade due to major companies leaving and taking their rigs with them. Today, only smaller independent drillers like Dugan Production are remaining.
Local drillers believe that the region still holds significant potential, particularly with the growth of computer data centers needing cheaper gas-powered electricity. However, the cost of doing business is already high and President Trump’s trade war is exacerbating the issue.
Many oil and gas executives initially celebrated Trump’s return but now fear a recession will tank oil prices, making drilling unprofitable. The US trade war with Asian markets has increased costs for companies like Dugan, who faces higher pipe imports from $80,000 to up to $120,000.
Despite this uncertainty, some industry leaders still hope that Trump’s “build baby build” energy policies will facilitate new pipeline construction and stimulate growth in the region.
Source: https://www.npr.org/2025/04/24/nx-s1-5369429/oil-companies-boom-times-trump-tariffs-100-days