President Trump has been sharply swinging American energy policies in support of fossil fuels, but the oil and gas companies pushed them in to engage in this change in Trump's desired new drilling madness. I say not.
The petroleum industry is excited about Trump's presidential order, designed to make it easier for renewable energy companies and make it easier for the oil, gas, and pipeline business. However, regarding whether his policy will lead to more petroleum and gas production, it is one of Trump's central goals -unless the industry is rising significantly, the President is the President. He says that he does not.
Mr. Trump's purpose is to support oil and gas by maintaining competition, such as wind turbines, electric vehicles, and other low -discharge technology, by loosening the rules of fuel extraction, transportation, and exports. It's a powerful market signal, but it's not enough for companies to “drill, baby, drill”.
“You're a huge amount of aggressiveness,” said Ron Guek, the president of Liberty Energy, a liberty energy chosen by Trump to lead the energy category. “But it's too early to say that it leads to a change in the actual level of activity in North America.”
In order for excavation and flacking to be greatly picked up, the price of petroleum and natural gas must increase, and executives have Trump's goal and conflict with the goal of generating inflation by reducing energy costs. It is the result. Oil companies do not spend money on production. This is already close to a record level in the United States.
The more complicated president's efforts to increase domestic production are that the industry generally focuses on reducing spending than his first term. Wall Street companies invested in rapid growing fracking companies. Currently, investors want to support highly profitable operators.
Last week, US oil and gas companies' indexes lost about 3 % of their value last week, lower than $ 75 of the oil last week. The index lost an additional ground on Monday because the petroleum price fell below $ 73 per barrel. Natural gas prices, which are often rising in winter, have recently rapidly increased in many countries that are fighting with very cold climate.
Nevertheless, there are early signs that the market corresponds to Mr. Trump's statement and several orders.
According to Ben Dell, a managing partner of energy investment companies, KimmerIDGE, that since Trump was selected, customers have been interested in issuing long -term trading for gas exports in the United States.
“People want to be at the forefront of signing up to US products to try to try a potential tariff threat,” said Del. -Notons on the Gulf.
Trump's declaration of an emergency situation -in pair with other presidential orders -is equivalent to testing the limits of the President's power to ensure the demand for fossil fuels. This is a sharp reversal from his predecessor Agenda, mainly to drive the nation from fuel that causes climate change.
Trump instructed the energy department to allow gasport facilities reviews on the first day of inauguration. This is the process pause by President Joseph R. Biden, and the Federal Judge has later ordered the administration to suspend. The President threatened to put a wide range of trading partners, including Canada and Mexico, a close allies in the United States. (Depending on how they form, such taxes are very destructive for the very global industries that depend on imported materials and fuel. There is sex).
Mr. Trump's Proseral fuel agenda results will be revealed for several months and years. Rather, for the past decade, it reminds me that the president can support the source of different energy or do so much.
The production of US oil and gas in the United States has risen to record the height under Mr. Biden. During his first term, Trump's efforts, who support “clean and beautiful coal”, were not comparable to inexpensive natural gas, which ultimately defeated coal in the market. Federal data has shown that US coal consumption decreased by more than one -third during Trump's first term.
Mr. Trump's presidential order has laid out a roadmap to make oil and gas production easier and cheaper.
He has ordered the federal government agency to suspend the leasing and permission of all new wind power projects in which the new environmental examination is on hold. Later, the Ministry of Home Affairs has frozen 60 days to approve new solar arrays and other renewable energy projects on public land.
In another presidential order, Trump defined energy including petroleum, coal, natural gas, nuclear, geothermal, and hydroelectric power. He also told the agency that he would stop distributing the money that Congress was secured for products such as the establishment of a high -speed charging station along the highway. Legal experts have stated that the President cannot stop the provision of Congress.
However, some green energy investors have already pulled back. After Trump won the election in November, RWE, a German company, announced that it would reduce expenditures on the development of wind power off the United States, and said that the risk of new projects had increased.
Among the oil and gas, companies are especially encouraged by Mr. Trump's pledge to make it easier to build a pipeline, but the parliament needs to pass a new law, and the opposition will challenge the project. It can take years because it is likely to block projects by doing so. In court.
It is especially difficult to build a pipeline across the state line today. After the previous project faced a considerable lawsuit, after the opposition from states and local officials, companies are giving long -range pipelines in the northeast.
As a result, companies only from Apalacia, one of the most produced gas areas in Japan, to states in states, such as Pennsylvania, and only a large number of natural gases from Apallacia, which lowers local prices. I can't move. Gas is generally much more expensive in a place like Boston, hundreds of miles away.
“It is a very long -term and durable reform that we are trying to focus on the vision, and it will make it possible to build things here in a responsible way.” Natural gas pipeline operator.
Brad Plumer contributed to the report.
