Partner John Melko is quoted in a Law360 article, “Trump’s Steel Tariffs May Worsen Permian Pipeline Crunch,” about the possible effects of President Trump’s steel tariffs on the current pipeline logjam in the oil-rich Permian Basin of West Texas.
Melko, who does restructuring work in the oil and gas sector, said the tariffs represent a lose-lose proposition for oil and gas producers in the basin, who will either have to absorb the additional costs of constructing new pipelines or face higher transportation costs if new pipelines aren’t built because the tariffs make them economically unviable. “If they can’t get pipelines built, then they’re going to be stuck with production they can’t get to market, or will be suffering a significant discount due to increased transportation costs,” he said. “It will definitely have an effect on upstream producers, especially those who have higher acquisition and drilling costs.”
Melko, who does restructuring work in the oil and gas sector, said the tariffs represent a lose-lose proposition for oil and gas producers in the basin, who will either have to absorb the additional costs of constructing new pipelines or face higher transportation costs if new pipelines aren’t built because the tariffs make them economically unviable. “If they can’t get pipelines built, then they’re going to be stuck with production they can’t get to market, or will be suffering a significant discount due to increased transportation costs,” he said. “It will definitely have an effect on upstream producers, especially those who have higher acquisition and drilling costs.”
People
Related News
June 11, 2025
In the News
Foley Named Top US Firm for IP Lateral Hires by ManagingIP
Foley & Lardner LLP was named the top United States firm for intellectual property lateral partner hires in April and May 2025 based on data from ManagingIP's Talent Tracker.
June 10, 2025
In the News
Lynn Gandhi Sheds Light on Supreme Court Tax Ruling
Foley partner Lynn Gandhi commented in the Bloomberg Tax article "High Court’s Catholic Charities Case to Go Beyond Unemployment," sharing insight on the implications of a recent Supreme Court ruling in a tax case.
June 10, 2025
In the News
James McFall Joins Iconic Athletes and Leaders in Launch of Stanford Football Alumni United
Foley & Lardner LLP is proud to announce that partner James Carlos McFall is a founding member of Stanford Football Alumni United (SFAU), a newly formed coalition of former players and leaders committed to supporting Stanford Football’s continued growth and national competitiveness.