Oil prices plummeted on Monday as the Trump administration threatened to cut federal funding for oil exploration.
The plunge in oil prices came after Trump told the Wall Street Journal that the federal government could not afford to fund oil exploration unless the world started using “more of it.”
“It’s very difficult to have oil and gas in the United States,” Trump said.
“The countries that are drilling, they are going to use a lot of oil and we don’t have the money.
We don’t even have the funding.”
In a statement, Trump administration officials said that “the United States is not in a position to provide funding to explore for oil in the Arctic, Alaska, or offshore Atlantic Ocean.”
“The U.S. does not currently have a credible plan to sustain the use of oil for energy production,” the statement read.
“While the Trump Administration has made it clear that it will not pursue a fossil fuel tax cut, it is important to note that any plan to raise revenue to offset the impact of tax cuts would require the enactment of a new, comprehensive tax code that will help to fund essential infrastructure and other investments.
In addition, the administration is focused on reducing the nation’s debt, which is a priority for the Administration.”
Oil exploration in the US is expected to increase by more than $3.6 billion a year, according to the National Petroleum Council, a nonprofit group representing the energy industry.
Trump’s threat of a tax cut is the latest in a series of threats from the Trump presidency to cut funding for the fossil fuel industry, which he says is hurting the economy.
The president has also said that the United Nations is being taken advantage of, which has prompted international officials to warn that a climate change-induced warming of the planet is putting the planet at risk.
“They’re trying to take advantage of the fact that they’re being taken care of,” the president said at a campaign event in North Carolina in May.
“They’re taking care of them, but I don’t care what they say, they’re taking the oil.”
On Monday, Trump’s Environmental Protection Agency chief Scott Pruitt told a congressional committee that he was working on an oil drilling tax cut proposal.
Pruitt told lawmakers that he would release the plan within 60 days, but the deadline to release the proposal is November 6.
The White House has been working to craft a plan to lower the tax rate on oil exploration, according the New York Times.