The current situation of the oil and gas industry in the United States is a sign that President Donald Trump’s American energy dominance is becoming a reality. The country’s oil production has increased over the past months, imports from the Middle East and North Africa have declined, and exports have climbed by hundreds of thousands of barrels a day.
Trump’s energy dominance policy aims to take full advantage of the U.S. oil, natural gas and coal resources and increase their exports, slash reliance on imports from the Middle East and North Africa, and increase imports from Canada, Mexico and other Western Hemisphere nations instead. These would give the country an edge in its bargaining positions in its foreign policy efforts, wrote Forbes contributor David Blackmon.
The U.S. shale-drilling industry has become remarkably stable. This is partly attributed to the capital discipline shale producers are practicing. Experts have anticipated a rush in drilling activities when the price of West Texas Intermediate (WTI) crude rose. Rig count may have climbed a bit last week, but over the past six weeks, the drilling activity was essentially flat. Although independent producers still plan to increase their overall production this year, their current focus is on returning cash to their shareholders. In addition, these companies aim to maximize recoveries from their existing wells rather than drilling additional wells.
According to the International Energy Agency, the U.S. could beat Saudi Arabia and rival Russia as the world’s leader in oil production, reaching a record output of over 10 million barrels a day this year.
“The United States and its allies now have a supply cushion at a time when political turmoil in Venezuela, Libya and Nigeria is threatening to interrupt flows to markets,” The New York Times reported. Such threats would have sent crude prices soaring, but instead, they remained stable at around $60. Imports from the members of the Organization of the Petroleum Exporting Countries fell by 20 percent from late 2016 to late 2017. American oil exports have climbed to around 2 million barrels per day since 2015 when the 40-year ban was lifted.
Dan Byers, vice president of policy at the Global Energy Institute at the U.S. Chamber of Commerce, pointed out several significant progress made to achieve President Trump’s ambitious energy agenda. These include high-profile agenda like the approval of the Keystone XL and Dakota Access Pipelines, as well as the issuance of executive orders and presidential memoranda on energy that helped advance oil and gas leases, and the finalization of different energy-related regulatory and policy reforms, via The Hill. Trump has also taken steps to open more public lands and the U.S. coastline to oil and gas drilling and to rescind environmental regulations.
Meanwhile, the growth in the oil and gas production is closely linked to the global markets, which the Trump administration could not affect, according to Time. Rising prices in 2017 drove the increase in American oil and gas production. Technological advances such as fracking and horizontal drilling will further expand the industry, as they would allow access to other abundant energy resources.
Regardless of who should be credited for the growth in the U.S. oil and gas industry, the situation is looking good for the businesses and the consumers.
Gaming Startups: winning is about more than racking up a high score
It is news to no one that the gaming industry has exploded into the entertainment sector, and beyond it. Yet...
RheoDx is looking for one million euros to accelerate blood diagnostics
The Spanish startup has received $800,000 (€669,000) from the Center for the Development of Industrial Technology and will seek an...
Consumer Price Index in Spain confirms its positive path and rises 1.3% in March
In monthly rate (March over February), the CPI jumped 1%, its highest monthly rebound since October 2019, driven by the...
The Moroccan tourism sector might take a breath of fresh air
The Moroccan Ministry of Transport is willing to develop a contract-program for tourist transport, in order to respond to repeated...
Aedas Homes hires Goldman Sachs to launch green bond issue
The operation of Aedas Homes will be the third of this type that is carried out in the promoter sector...
Biotech6 days ago
Aortyx closes €1.6 million financing round to initiate clinical trials
Crypto6 days ago
US crypto exchange Coinbase had a record quarter before IPO
Cannabis5 days ago
Canopy Growth bought out its competition to consolidate leadership
Crowdfunding6 days ago
Third successful million-dollar campaign in three months for Walliance