Energy Secretary Chris Wright says Donald Trump’s administration is giving the “green light” to more US oil production, but the signal from the fracking company he used to run is flashing bright red.

Liberty Energy Inc. (LBRT), which Wright led until his appointment to Trump’s cabinet, has tumbled 43% this year, one of the most precipitous declines among US energy stocks. The value of Wright’s stake in Liberty has fallen by nearly half to about $30 million over that period.

Liberty’s rout is a warning that all is not well in America’s shale patch, despite Trump’s pledge to achieve “energy dominance.” Oil field servicers often provide the first indication of an industry downturn because they’re the ones hired to drill and frack new wells. After the trade war and OPEC’s recent decision to hike production knee-capped crude prices, investors expect US shale producers to avoid pumping more barrels into an oversupplied market.

Source: Yahoo Finance