{"id":843535,"date":"2025-04-25T17:12:12","date_gmt":"2025-04-25T22:12:12","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/25\/diamondback-energy-calls-white-house-for-clarification-in-high-stakes-shale-game\/"},"modified":"2025-04-25T17:12:12","modified_gmt":"2025-04-25T22:12:12","slug":"diamondback-energy-calls-white-house-for-clarification-in-high-stakes-shale-game","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/25\/diamondback-energy-calls-white-house-for-clarification-in-high-stakes-shale-game\/","title":{"rendered":"Diamondback Energy Calls White House for Clarification in High-Stakes Shale Game"},"content":{"rendered":"
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\"Charles<\/p>\n

Charles Kennedy<\/p>\n

Charles is a writer for Oilprice.com<\/p>\n

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By Charles Kennedy<\/a> – Apr 07, 2025, 2:00 PM CDT<\/span><\/p>\n

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Diamondback Energy, Inc. (NASDAQ: FANG) President Kaes Van\u2019t Hof is demanding answers from the Trump administration as to how he plans to balance the economic destruction of tariffs with a stated plan to increase American shale output.\u00a0<\/span><\/p>\n

Van\u2019t Hof took to social media to publicly call for clarification from the White House, suggesting that the shale industry\u2019s contribution to the U.S. economy and its status as a global oil powerhouse deserves to know what the risk is. <\/span>
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<\/span>For America\u2019s shale producers, it\u2019s been a highly volatile and uncertain year where it\u2019s difficult to see which end is up. The industry has been busy making multi-billion-dollar acquisitions in order to consolidate and take advantage of what was perceived as a seismic federal policy on oil\u2013one that would benefit shale tremendously.\u00a0<\/span><\/p>\n

But so far, it\u2019s been a double-edged sword. At the same time, Trump\u2019s sweeping tariffs, creating panic over a slump in oil demand and a global economic downturn.<\/span><\/p>\n

For shale producers who might have jumped the gun on optimism, the stakes are now higher than before. Just in February, Diamondback cut a <\/span>~$4-billion deal<\/span><\/a> to acquire Double Eagle IV Midco, increasing its footprint in the Midland Basin and the Permian.\u00a0<\/span><\/p>\n

Experts caution that the persistent uncertainties surrounding global trade, along with OPEC+’s production strategies, have the potential to destabilize international markets even more.\u00a0<\/span><\/p>\n

If the intensifying global trade dispute, launched by Trump\u2019s tariffs, continues for any significant length of time, analysts fear we would be looking at an economic downturn that would crimp demand and put more downward pressure on prices.\u00a0<\/span><\/p>\n

Tariffs will take effect later this week, with JPMorgan warning that it will \u201clikely push the U.S. and possibly global economy into recession this year\u201d. JPMorgan now has the odds of a recession this year at 60%, an upgrade from its earlier projection of a 40% chance of recession. <\/span>
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<\/span>On Monday at 3:03 p.m. ET, <\/span>Brent crude<\/span><\/a> was trading at $64.41, just four dollars more than the average break-even price for some in the American shale patch, <\/span>CNBC<\/span><\/a> quoted Carlyle\u2019s Jeff Currie as saying on Squawk Box on Monday. \u201cIf you go down below 55, you\u2019re now below the economics of the Permian,\u201d he said, noting an oversupplied market.<\/span><\/p>\n

By Charles Kennedy for Oilprice.com<\/span><\/p>\n

More Top Reads From Oilprice.com<\/strong><\/p>\n