Conservatives are pushing back against the possibility of the Trump administration providing federal aid to oil and gas producers grappling with a historic drop in oil prices.

"They can take care of themselves,” said Republican Sen. Mike Braun of Indiana, who co-chairs the Climate Solutions Caucus, referring to the oil industry. “Why do you overreact just when there’s a little pain? That doesn’t make sense."

White House officials, who've said they're interested in providing economic aid to sectors hurt by the spread of the coronavirus, discussed shale producers as a group that could be hit particularly hard during a lunch with Senate Republicans Tuesday, said Braun. Shale producers have been hit by the double whammy of an oil price war between Saudi Arabia and Russia and flagging demand from the coronavirus.

The White House is pushing the idea of providing low-interest government loans to shale companies, according to the Washington Post, that are already facing tough economic conditions due to pressure from Wall Street to show positive cash flow.

A collapse in oil prices and its trickle-down effects at the gasoline pump is usually good news for regular folks and oil-consuming industries. But a prolonged price collapse could harm U.S. shale oil companies in states with outsized political importance, such as Texas, Pennsylvania, and Colorado, along with reliable conservative states like North Dakota, Louisiana, and Alaska.

The potential of federal aid, which would likely have to be approved by Congress, is divisive among the oil and gas industry.

Producers in U.S. shale basins include international oil majors, big independent companies, and smaller operators with different levels of debt and strategies.

Bigger oil producers have hedged against low prices and can likely withstand low oil prices for a while, as they have during past downturns.

"We believe in the free market system and will advocate for policies that support a level playing field,” said Anne Bradbury, CEO of the American Exploration & Production Council, representing large, independent oil and gas companies.

Her comments opposing a bailout follow comments Monday from Mike Sommers, the CEO of the American Petroleum Institute, the largest U.S. trade group for oil and gas companies.

“We are not in discussions with anyone in the administration at this time on any type of program for the industry,” Sommers said in response to a question from the Washington Examiner on a press call. “We believe we shouldn’t be reacting to one day of a market downturn.”

Smaller producers, though, don’t have the same access to cheap capital and could be driven out of business or forced to consolidate with larger companies.

"People are borderline desperate for help and are reaching for a life raft," Dan Eberhart, CEO of the oil services firm Canary and a President Trump donor, told the Washington Examiner.

Eberhart said the industry is pushing for assistance other than a direct bailout, such as receiving faster approval of drilling permits and increased tax deductions for drilling expenses.

But conservative groups usually aligned with Trump administration policies are speaking out.

“It would not sit well with the free market community,” said Nick Loris, an economist who focuses on energy, environmental, and regulatory issues at the Heritage Foundation. “Not only would it potentially put taxpayers on the hook for future potential losses and bankruptcies, it would distort the risk-taking process that is so critical in making these investments.”

Loris said sustained low oil prices could “drive innovation and efficiencies” among shale producers that can drive down operating costs.

He noted the ability of the oil industry to withstand previous price plunges in 2014 and 2015.

“We’ve seen the resiliency in the industry before, and I believe we’ll see it again,” Loris said.

Kenny Stein, policy director of the free market group Institute for Energy Research, said the nature of shale production, with quick, cheap drills and short production cycles, makes the industry as a whole better positioned to weather short oil price shocks because spending on new wells can be ramped up or down relatively quickly.

“We would strongly oppose a handout for obvious free market reasons,” Stein said. “The shale industry has already weathered a major price crash and came out stronger on the other side.”

Influential energy industry players are pushing the Trump administration to act.

Trump supporter and adviser Harold Hamm, who founded the Oklahoma City-based oil and gas producer Continental Resources, told the Washington Post the administration should consider action to “protect and preserve American interests at this time from being unfairly disadvantaged by whatever government — and we’re talking governments here, whether it be Russia or Saudi Arabia.”

Hamm’s company lost more than half of its market value Monday before recovering about 8% by midday Tuesday.

Shares of companies like Marathon Oil and Apache Corporation also fell, crashing more than 40% on Monday, while Pioneer Natural Resources and Hess Corporation lost more than one-third of their stock market value.

Energy and Environment reporter Abby Smith contributed to this story.