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OIL AND GAS
What oil and gas look like under Trump
by Daniel J. Graeber
Washington DC (UPI) Jan 20, 2017


Trump signals big shift on energy, climate policies
New York (AFP) Jan 20, 2017 - US President Donald Trump signaled a sharp break on energy and the environment policy Friday, announcing plans to undo climate policies and promote domestic energy development as part of his "America First" agenda.

A statement on the White House website, posted shortly after Trump took the oath of office, said he was "committed to eliminating harmful and unnecessary policies such as the Climate Action Plan" advocated by his predecessor Barack Obama.

Trump also will focus on removing hurdles to domestic energy development that he argues will make the US independent of foreign oil.

"The Trump Administration will embrace the shale oil and gas revolution to bring jobs and prosperity to millions of Americans," the statement said.

"President Trump is committed to achieving energy independence from the OPEC cartel and any nations hostile to our interests. At the same time, we will work with our Gulf allies to develop a positive energy relationship as part of our anti-terrorism strategy."

Trump also aims to "revive America's coal industry, which has been hurting for too long," the statement said.

The website makeover was part of the transition of power to the new administration.

During his two terms, Obama made the environment a cornerstone of his policies, including the landmark Paris climate agreement in December 2015 signed by nearly 200 countries, and policies to encourage renewable energy through actions to limit emissions and promote investment in new technology.

Trump during the campaign dismissed climate change as a "hoax" perpetrated by China. But since the election he and his cabinet designees have sent mixed signals on climate policies and the Paris accord.

The White House acknowledged that protecting the environment also was a priority and said the administration would "refocus" the Environmental Protection Agency on "its essential mission of protecting our air and water."

The statement drew sharp criticism from the environmental group Friends of the Earth.

"This is just the beginning. Trump has announced his intentions. If we let him get away with it, what's next? Gutting the EPA? Drilling for oil on our public lands in the Arctic?"

Despite Donald Trump's vocal support for the U.S. oil and gas industry, it's market and global factors that have influence, sector analysis finds.

Trump from the campaign trail and through his penchant for Twitter has vowed to put the U.S. oil and gas sector at the forefront of his economic agenda, while taking a hawkish tone on geopolitical issues from China to Iran.

Trump said he'd reconsider a multilateral deal with Iran that saw Tehran forfeit some of its nuclear ambitions in exchange for relief from sanctions. That sanctions relief brought renewed interest in Iran from some of the largest energy companies in the world and, through a production arrangement penned in November, the country is the only member of the Organization of Petroleum Exporting Countries with room for expansion.

Paul McConnell, a research director at Wood Mackenzie, said there's not much a President Trump can do to contain Iran on the energy stages.

"A re-assessment of U.S. support for lifting Iranian sanctions could thus materially impact oil markets," he said in a report sent to UPI. "But the sanctions deal was a global one, and it is doubtful a Trump administration will have the clout to kill it."

On the domestic front, Trump's pressure on the U.S. automotive industry in the wake of the November election may be the hallmark of his administration's style, though McConnell said it's unclear how the broader U.S. market will evolve beyond short-term victories. On energy, Olivier Jakob, oil market analyst at Petromatrix in Switzerland, said in an emailed noted that two of the world's leading economies were showing expansions in their energy sectors before Trump was elected.

"Both the U.S. and China have shown a strong drop of production after the price collapse of the first quarter of last year," he said in an emailed note. "Both the U.S. and China are showing some recovery in production after the price recovery of the second and third quarter."

From the campaign trail, Trump pledged to make the United States energy independent and push forward with the Keystone XL pipeline, denied by the Obama administration on environmental grounds. McConnell said some of the issues related to oil and gas infrastructure could be advanced in the Trump administration, but gains elsewhere may be out of his hands.

"Oil prices will be the primary incentive rather than fiscal measures," he said.


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