US can reduce trade deficits by exporting more energy, says EQT chief

Natural gas producer ready to start exporting to international markets, starting with Asia in 2030

EQT president and chief executive Toby Rice is bullish about natural gas demand amid the AI boom. Chris Whiteoak / The National

The US can reduce its trade deficits around the world by exporting more oil and gas, according to the president and chief executive of a major US-based natural gas producer.

“The Trump administration has been doing a lot of work on tariffs trade deals and we think energy is going to be one of the most impactful tools we have to help balance these trade deficits,” EQT Corporation chief Toby Rice told The National at Adipec in Abu Dhabi.

“We are the largest exporter of natural gas in the world. We should be using that to balance trade deficits. We are the largest producer of oil in the world. We should be using that influence to bring some balance.”

The US has become a major producer of oil and gas as a result of shale boom, which began in the early 2000s. It produced a record 13.2 million barrels of crude per day last year, according to the data from Energy Information Administration (EIA).

In 2024, the US produced a record amount of energy, with total production crossing 103 quadrillion British thermal units, a one per cent increase from the previous record set a year earlier, the data shows. Natural gas accounted for 38 per cent of total energy production last year, while crude oil's share was 27 per cent.

US President Donald Trump announced sweeping tariffs on countries around the world in April, with a minimum of 10 per cent levy on all imports. Mr Trump said the move was made to compensate for trade deficits the US has with other countries. Since then it has been negotiating trade deals.

EQT, which is listed on the New York Stock Exchange, is active in Appalachian basin, a gas rich region, that extends from New York to Alabama in the south. The company, with a gross production of about 8 billion cubic feet per day, produces about 6.5 billion cubic feet of gas per day (net), which is equivalent to one million barrels of oil, with 100 per cent of that going to the domestic market.

It plans to raise production over the next five years and start exporting to international markets, according to Mr Rice. He said the focus will be on exporting to Asia from 2030 as demand for low carbon fuel picks up amid green transition efforts and the AI-spurred boom.

“We’ll have about 10 per cent of our volumes supplied to international markets,” Mr Rice said. “At EQT, we sit on a leasehold position of over almost 2 million acres, over 4,000 drilling locations that we can use to grow our production volumes to sustainably meet this demand that's taking place.”

Big tech meets big oil as AI takes centre stage at Adipec

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Global demand for liquefied natural gas (LNG) is forecast to rise by around 60 per cent by 2040, largely driven by economic growth in Asia; emissions reductions in heavy industry and transport; and the impact of artificial intelligence, according to a report by Shell in February.

More than 170 million tonnes of new LNG supply are set to be available by 2030, helping to meet stronger gas demand, especially in Asia, it added.

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc's managing director and group chief executive, highlighted growing demand for energy and the requirement of massive investment of $4 trillion.

“We need massive capital investment. We are talking about more than $4 trillion annually to cover grids, data centres and all sources of energy supply,” Dr Al Jaber said in his opening address at Adipec.

Echoing Dr Al Jaber's comments, Mr Rice said the future for natural gas “has never been more exciting”.

He added: “The world needs to know that we have a tremendous amount of this resource. We can meet their energy needs and keep it cost effective and reliable. And when this energy is used to replace the alternative, which is coal, it's going to be a much cleaner alternative and help lower global emissions.”

Mr Rice believes Mr Trump’s policies, like freeing federal land for exploration, will help oil and gas industry in the long run.

He believes political will is needed to support oil and gas production and meet rising demand. “The market is screaming for more reliable clean energy,” Mr Rice added. “The market is screaming for more natural gas. It's going to require infrastructure. It's going to require their support to help create a regulatory environment that allows us to let the market forces meet demand.”