Donald Trump’s tariffs and drive to slash oil prices are “kneecapping” the US shale sector, chilling investment and risking reprisal against the industry, executives have warned.

Immediately after entering the White House, the president declared a “national energy emergency”, pledging to “drill, baby, drill” and pass on lower energy costs for consumers.

But bosses told a survey by the Federal Reserve Bank of Dallas that the administration’s support for low prices, levies on crucial goods and chaotic decision-making is scaring off investors and increasing costs. The report is often a source of surprisingly frank assessments of US energy policy because executives are allowed to provide responses anonymously.

“The noise and chaos is deafening! Who wants to make a business decision in this unstable environment?” wrote one exploration and production executive.

The government “operate[s] with little understanding of shale economics”, said another. “They’ve effectively aligned with Opec — using supply tactics to push prices below economic thresholds, kneecapping US producers in the process.”

Since January the price of West Texas Intermediate, the benchmark for US crude, has declined 18 per cent. Respondents said drilling becomes a money-losing proposition below $60 a barrel.

“The administration is pushing for $40 per barrel,” said one executive. “Drilling is going to disappear.”

Trump’s trade policy featured heavily among concerns because of 50 per cent tariffs placed on steel and aluminium since June. A boss in the oil and gas support services sector said it was suffering from “increased cost[s] due to tariffs”.

Another responded that the subsector was “bleeding”.

The report showed activity declined 6.5 per cent in the third quarter, a slight uptick from the previous quarter’s dip of 8.1 per cent.

However, negative outlook nearly tripled, slumping 17.6 per cent among the 139 companies that responded