Trump presidency opens energy questions

Donald Trump on Wednesday secured enough electoral votes to win the White House, which leaves many in the oil and gas industry wondering what this means for the US’ energy strategy.

Trump’s ascend to the presidency will be closely followed by Iraq, whose oil resources have literally been the stuff of debate during the campaign. In September, said he would have taken Iraq’s oil had he been in charge in the aftermath of Operation Iraqi Freedom. In 2011, he made similar comments. “I would not leave Iraq and let Iran take the oil,” he told the Wall Street Journal, which also casts doubts on his position towards Iran’s efforts to reclaim lost market share.

Trump’s past and present comments on Iraqi oil beg the question whether the involvement of US troops in the fight against the Islamic State (IS) across much of northern Iraq will really come to include taking control of oilfields previously held by IS. The last two fields controlled by the militants, Shargat and Qayyarah, were reclaimed in late September.

Closer to home, the US’ neighbours will wonder what will come of the 2016 US-Canadian initiative to reduce oil and gas industry-related methane emissions. Initiated by President Barack Obama and Canadian Prime Minister Justin Trudeau in March, Mexico in June pledged to back the plans at the so-called Three Amigos meeting in Ottawa. The three countries aim to cut methane emissions by as much as 45%, as well as achieve 50% clean power generation within the next decade. Trump, by contrast, has vowed to revive the US coal industry and in September said he would work to overturn Obama’s Clean Power Plan and the Waters of the United States rule.

That same month, speaking to energy executives, Trump promised far-reaching deregulation and an end to restrictions on “untapped energy—some $50 trillion in shale energy, oil reserves and natural gas on federal lands, in addition to hundreds of years of coal energy reserves.” He also vowed to end “all unnecessary regulations, and a temporary moratorium on new regulations not compelled by Congress or public safety.”

The President-elect will most likely revive the Keystone XL pipeline. In August, his campaign said it would invite TransCanada to resubmit its proposal for the project, which was rejected by Obama in November 2015.

Trump’s top advisor on energy matters, Continental Resources CEO Harold Hamm, is tipped to become the new energy secretary. Upon the news of Trump’s electoral victory, WTI crude futures fell 4% to USD 43.07 per barrel, while Brent suck to USD 45.41 per barrel.

 

Image courtesy of The Denver Press/AP