Now that Americans have elected Donald Trump into office, we can expect American oil and gas production to surge. Going by his campaign promises, Americans will see more fracking, more pipelines, and no carbon tax. Trump has promised to repeal the Environmental Protection Agency regulations that would curtail carbon dioxide emissions from power plants — the single biggest domestic accomplishment of the Obama administration on climate; he wants to encourage natural gas demand to reduce emissions and energy costs while increasing economic output.
Though Trump spoke about the need for America to build more nuclear power plants, nothing will change the fact that without a cost of carbon neither nuclear nor renewable can compete with natural gas.
“President-elect Trump’s victory presents an opportunity to reset the harmful energy policies of the last generation. He has laid out an energy plan that puts the needs of American families and workers first,” said American Energy Alliance president Thomas Pyle. “We were among the first organizations to endorse President-elect Trump and we’re excited to work with his administration to put forth energy policies that will deliver affordable energy to American families, invigorate the economy and create more opportunities for future generations.”
Coal stocks are already soaring, and there are strong indications that TransCanada might put the Keystone XL pipeline back on the table. Trump is on record as saying that, if elected, he would urge TransCanada Corp. to renew its Keystone XL permit application, which was rejected by the Obama administration to scorn of industry groups, particularly the American Petroleum Institute.
To ease the regulatory burden on the energy industry, Trump plans to: increase GDP by more than $100 billion annually, add over 500,000 new jobs annually, increase annual wages by more than $30 billion over the next seven years, increase federal, state, and local tax revenues by almost $6 trillion over four decades, and increase total economic activity by more than $20 trillion over the next 40 years.
The Trump victory is bad news for OPEC. More American oil will compete head-to-head with the cartel. Since President Obama signed a law last year lifting the ban, exports of American oil have surged to 700,000 bpd, as much as Qatar. He said last March that he would seek to block imports of oil from Saudi Arabia (currently about 1 million bpd) unless the Kingdom did more to fight ISIS.
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