With His Promise to Lower Prices and Expand Exploration, Trump Returns as a Defender of Fossil Fuels and Cheap Oil, but the Sector Faces Dilemmas and Uncertainties

Written by Bruno Teles

Published on 06/11/2024 at 20:03

O que muda com Trump de volta na indústria petrolífera (Imagem: Reprodução)

Be the first to react!

Trump Is Back, And With Him, The Controversies! For The Oil Industry, His Presence Is Both A Promise And A Risk. On One Hand, There Is Enthusiasm With His Unconditional Support For Cheap Oil And Unchecked Production. On The Other, The Shadow Of A Possible Negative Impact On Prices And Market Sustainability. By Asserting That He “Will Drill To The Max” And That “Energy Prices Will Fall,” The Republican Made It Clear That He Intends To Place The United States As A Leader In A New Phase Of Fossil Fuels, But With Impacts Still Difficult To Predict.

The Expectation Of The Oil Industry Is High. During The Republican Convention, Trump Promised To Bring Energy Prices Back Down And Boost Domestic Oil And Gas Production. Industry Representatives, Such As Jeff Eshelman, Director Of The Independent Petroleum Association Of America (Ipaa), Expressed Their Interest In Working Alongside The Trump Administration If He Returns To Power, In Search Of “Steady Productions” For The Country. This Scenario Represents A Sharp Turn Against The Restrictions Imposed By The Biden Administration, Which Prioritized Energy Transition Policies And Environmental Regulation.

High Oil Production And The Role Of Shareholders In Trump’s Comeback

However, Not Everything Is Enthusiasm. The Current Market Scenario Shows That Oil Companies Have Prioritized Profit Maximization For Shareholders Instead Of Increasing Their Production, As Pointed Out By Bill O’Grady From Confluence Investment Management. The Analyst Highlights That, No Matter How Much Trump Wants To “Drill To The Max,” The Final Decision Still Depends On The Market And The Financial Interests Of The Companies.

According To Stewart Glickman Of CFRA, The Oil Industry Clearly Remembers The Side Effects Of The Last Major Production Wave In The United States. In 2016, Saudi Arabia Flooded The Market In Response To U.S. Shale Oil, And The Price Of West Texas Intermediate (WTI) Crashed To $26. For Many Executives, The Experience Of Bankruptcies In The Sector Due To High Shale Exploration Costs Compared To Conventional Oil Is Still A Bitter Memory.

ARTICLE CONTINUES BELOW

Impact On Prices And The Global Economy

With The Possibility Of Trump Raising Tariffs On Products From Major U.S. Trading Partners, Such As China, The Economic Consequences Are Another Concern. Analysts From Wood Mackenzie Warn That Such A Measure Could Slow Global Economic Growth, Reducing Demand For Refined Products And Pressuring Oil Prices Downward, Exactly The Opposite Of What The Oil Industry Desires.

Finally, Climate Policy Also Comes Into Play. Trump Advocates Reversing Biden’s Energy Transition Policies, Such As Cutting Investments In Renewable Energy And Incentives For The Hydrocarbon Sector. Glickman Believes That This Setback Could, In The Long Run, Even Drive Up Oil Prices Due To A Decrease In Investments In Alternative Energies.

For The Oil Industry, Trump Positions Himself As A Defender Of Cheap Oil And Freedom Of Exploration. However, With The Sector’s Dependence On The Market And Pressure From Shareholders, Trump’s Ability To Implement His Promises May Be Limited. As An Ambiguous Blessing For The Sector, His Possible Return To The White House Puts The Industry In Front Of A Dilemma: To Take Advantage Of Political Support Or Risk A New Drop In Prices And Profits.

0 Comments

most recent

older Most voted

With His Promise to Lower Prices and Expand Exploration, Trump Returns as a Defender of Fossil Fuels and Cheap Oil, but the Sector Faces Dilemmas and Uncertainties

High Oil Production And The Role Of Shareholders In Trump’s Comeback

Impact On Prices And The Global Economy

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

Bricklayers off the scaffolding? New system uses autonomous drones to position bricks and apply adhesive in the air, creating walls with two flying robots working as a team.

Scientists from the USA have buried two seismometers in Antarctica at a depth of about 2.4 km under the ice, the deepest ever recorded, and are using the IceCube observatory structure to enhance earthquake monitoring, tsunami alerts, and nuclear test surveillance.

A photo taken by chance in the interior of Australia rediscovered a plant that the entire world had considered extinct for sixty years.

Pink lagoon of Torrevieja appears in NASA image as if it were an artificial structure, but impresses scientists by hiding a natural process formed by salt and microscopic life.

The future without human workers? China deploys humanoid robots to work in a mega postal center capable of processing up to 10 million parcels per day, while machines sort 1,200 packages per hour alongside autonomous forklifts and robotic arms.

City in India turns trash into currency: 1 kg of bottles and plastic packaging becomes a full meal at the “trash café” that has already removed 23 tons from the streets and has become a weapon against hunger, pollution, and landfills.

With His Promise to Lower Prices and Expand Exploration, Trump Returns as a Defender of Fossil Fuels and Cheap Oil, but the Sector Faces Dilemmas and Uncertainties

High Oil Production And The Role Of Shareholders In Trump’s Comeback

Impact On Prices And The Global Economy

A giant printer called the “Ferrari” of concrete has landed in Latin America and can already build a 120-square-meter house in just 48 hours, making the traditional construction site look like something from the last century.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Four times faster than the Concorde, capable of taking passengers from New York to London in less than an hour at Mach 5.5, and with an engine that switches from turbojet to ramjet mid-flight at Mach 3.5, the Hermeus Quarterhorse went from paper to its first flight in just 19 months.

Under nearly 2 kilometers of ice in Antarctica, scientists have discovered an ancient landscape sculpted by rivers up to 60 million years ago, the size of Wales, preserved as a time capsule that could help predict the advance of ice towards the ocean.

She started by collecting oyster shells from restaurants and today she has already accumulated more than 10 tons to restore reefs, recover coastal habitats, and demonstrate how a common waste can become a tool for ocean conservation.

Bricklayers off the scaffolding? New system uses autonomous drones to position bricks and apply adhesive in the air, creating walls with two flying robots working as a team.

Oil surges again after attacks and standoff between the US and Iran increase global tension

HIDDEN TREASURE AT THE BOTTOM OF THE SEA? Oil discovery nearly 20,000 feet deep challenges engineering limits off the coast of Brazil

IBS and CBS regulations change credit reimbursement and raise financial alert in the oil and gas industry

China puts into operation the largest shallow lithology offshore field in the country, with 79 wells, heavy oil, and a production of 20,000 barrels per day.

Scientists from the USA have buried two seismometers in Antarctica at a depth of about 2.4 km under the ice, the deepest ever recorded, and are using the IceCube observatory structure to enhance earthquake monitoring, tsunami alerts, and nuclear test surveillance.

A photo taken by chance in the interior of Australia rediscovered a plant that the entire world had considered extinct for sixty years.

Pink lagoon of Torrevieja appears in NASA image as if it were an artificial structure, but impresses scientists by hiding a natural process formed by salt and microscopic life.

The future without human workers? China deploys humanoid robots to work in a mega postal center capable of processing up to 10 million parcels per day, while machines sort 1,200 packages per hour alongside autonomous forklifts and robotic arms.

City in India turns trash into currency: 1 kg of bottles and plastic packaging becomes a full meal at the “trash café” that has already removed 23 tons from the streets and has become a weapon against hunger, pollution, and landfills.