Trump Creating "Chaos" For U.S. Energy, Quantum Capital Founder Warns

Wil VanLoh, founder and CEO of Quantum Capital Group—one of the largest private equity investors in shale oil—warned that President Donald Trump’s administration is creating “a lot of chaos” for the U.S. energy sector and the broader economy.

A recent U.S. order requires at least one company to apply for a license to export ethane to China, a major buyer. I Photo: Hart Energy

He added that this could potentially fuel inflation, David Wethe reported for Bloomberg News.

Speaking at the Energy Capital Conference in Houston, VanLoh cited disruptions in the ethane market, which is critical for plastic manufacturing. He pointed to a recent U.S. order requiring at least one company to apply for a license to export ethane to China, a major buyer.

“Obviously, the president didn’t check to see that ethane is a byproduct of all that shale oil we’re producing in the Permian,” VanLoh said. “If we can’t sell it, how are we going to keep producing?”

While much of the U.S. oil industry backed Trump’s re-election, some executives are now voicing concerns over the consequences of his trade and regulatory policies.

Equipment costs are rising, crude prices have dropped about 20% since his inauguration, and OPEC’s recent output surge is further straining U.S. producers. VanLoh warned that the next few years could be economically “choppy.”