Global energy industry leaders are gathering in the southern U.S. metropolis of Houston as CERAWeek, the most influential annual forum in the industry, unfolded its agenda on Monday amid rising uncertainties facing the energy market and transition.

"We gather at a time of great change, opportunity and unpredictability in energy and in global affairs," said the forum's organizer, S&P Global, in its welcome remarks.

Oil prices went down 1 percent on Monday after hitting a three-year low below 70 U.S. dollars a barrel last week, driven by uncertainty over U.S. tariffs and concerns that President Donald Trump's policies are disrupting global trade flows.

With the theme of "Moving Ahead: Energy strategies for a complex world," the 43rd forum will address pressing challenges related to energy security, supply, and climate ambitions, as well as developments in markets, infrastructure, policy direction, and technological innovations -- particularly those powered by artificial intelligence (AI), according to the forum's agenda.

Tariffs have emerged as a major topic of discussion, with experts debating whether a new nexus of "tariffs, trade, and competition" will shape energy markets and policy, potentially replacing the long-standing global priorities of "security, affordability, and sustainability."

"The energy industry is at a crossroads," S&P Global said in a report, citing hovering high inflation, weak economic growth, and rising energy costs among drivers of global uncertainty, which deepen the dilemma of energy transition.

The U.S. energy policy is also under intense scrutiny. In a keynote address on Monday, U.S. Energy Secretary Chris Wright reaffirmed the Trump administration's commitment to maximize the country's fossil fuel production while dismantling the climate policies of former Democratic President Joe Biden, which he described as "not effective."

"The Trump administration will treat climate change for what it is, a global physical phenomenon that is a side effect of building the modern world," Wright told the CERAWeek audience.

"The cure was far more destructive than the disease," he said of Biden's policies to combat global warming, including those to promote electric vehicles (EVs), and solar and wind power in the country.

During his 2024 presidential campaign, Trump repeatedly urged the U.S. energy industry to "drill, baby, drill." However, the country's oil and gas producers are unlikely to increase spending this year, according to Lorenzo Simonelli, chairman and CEO of Baker Hughes, who spoke at the forum on Monday.

Simonelli noted that the recent decline in oil prices could prompt producers to scale back drilling efforts, adding that while large producers have not yet signaled changes to their capital spending plans, smaller firms are likely to respond more quickly to price fluctuations. Some oil giants, including Chevron, have already announced workforce layoff.

Hours after the forum began, more than 100 protesters marched through downtown Houston and rallied outside the CERAWeek venue, denouncing oil and gas companies and demanding climate justice. Witnesses said several demonstrators were detained by the police.

"From the Permian Basin to the Gulf Coast and beyond, we're uniting to confront S&P Global's oil and gas conference, CERAWeek," Future Generations, one of the organizers, announced on its website, calling for "an end to the burning of fossil fuels for the sake of short-term profits" to ease the world's climate crisis.

CERAWeek this year convenes over 450 C-Suite executives, 80 ministers and top officials, with more than 10,000 participants from over 2,050 companies across 80 countries and regions around the world, according to S&P Global.

Alongside energy industry leaders, policymakers, and experts, executives from major technology firms including Microsoft, Amazon Web Services (AWS), and Google will also share their insights on innovation and the future of technology in the energy sector.

Under the CERAWeek Innovation Agora program, which focuses on emerging transformational technologies, more than 250 startups will showcase their work on AI, decarbonization, low-carbon fuels, cybersecurity, hydrogen, nuclear energy, mining and minerals, mobility, automation, and other fields.

The forum will conclude on Friday.