Oil prices hovering between $60 and $70 have put American shale producers under pressure. Chief executives are increasingly vocal about bearing the brunt of the pain. But Doug Burgum, US Interior Secretary and chairman of President Donald Trump’s National Energy Dominance Council, is not concerned.
Appearing in On The Record with Hadley Gamble, Mr Burgum says: “We’re helping them two ways: we're driving up global demand, we're driving up domestic demand because of all of the AI factories, because we're going to be producing more electricity, and we're lowering their break-even point by cutting the red tape.
"I'm bullish on the future of the shale producers in this country because what they have everybody wants … I tell the shale producers, if they're feeling down, go talk to a hyper scaler, because if you've got energy that can be produced into electricity, they want to buy it from you, and they're willing to pay more for that electricity than ever before.”
As China races ahead on electricity production, Mr Burgum says the US is going “gangbusters” to catch up, hoping to cash-in on the “tech guys” leading the demand.
“The biggest challenge we have right now is electricity. We do not have enough electricity to win the AI race,” Mr Burgum says. “The tech guys ... are becoming the biggest customers in the world for energy. And it will only get bigger.”
That is why he remains “bullish on the energy business”, he says, despite a glut of oil on the market pushing prices lower and uncertainty over how the US will meet Europe’s energy needs.
"I would look at the macroeconomics: a robust US economy, a strategy around US energy dominance and selling energy to our friends and allies,” Mr Burgum says. "AI demand is going to do more for driving energy prices.”
This week, Mr Trump signed the biggest trade agreement in US history with the EU, a commitment that includes $750 billion worth of energy over the next three years, but with scant detail on just how the US can achieve that level of production.
"I think the first step is obviously increasing supply,” Mr Burgum says. "And when you see this kind of demand signal coming from a trade deal, [it’s] very encouraging for companies to say we're going to continue to invest in the US.”
Mr Burgum believes it is time to develop America’s natural resources. “The President’s mantra is ‘drill, baby, drill’ but it’s also ‘map, baby, map’. Just recalculating and remapping what’s in the Gulf of America, the numbers nearly doubled,” he says.
“The estimate is there’s $28 trillion of oil and gas assets just in the Gulf of America alone … so we’re talking about $100 trillion to $200 trillion of natural resources … on our balance sheet that could be developed.”
But American energy dominance does not mean putting other producers out of business, Mr Burgum says, quite the contrary. The demand picture means both US and Opec producers win.
"Opec, Opec+, the Middle Eastern countries, the United States are in a position to be the major suppliers of energy to the world. Two billion people that don't have enough energy, 666 million people that don't even have electricity. Take AI demand,” Mr Burgum says. "This is going to be a good business to be in for the decades to come.”
The man in charge of securing America’s natural resources says now is the time to put them to work.
MATCH STATS
Wolves 0
Aston Villa 1 (El Ghazi 90 4' pen)
Red cards: Joao Moutinho (Wolves); Douglas Luiz (Aston Villa)
Man of the match: Emi Martinez (Aston Villa)
MATCH INFO
Fulham 0
Aston Villa 3 (Grealish 4', Hourihane 15', Mings 48')
Man of the match: Jack Grealish (Aston Villa)
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
