Pumping Rig W Texas
Introduction…While there are some specifics about President-elect Donald Trump‘s energy policy to be worked out, overall his presidency is “very bullish long term for oil and gas,” Warwick Energy CEO Kate Richard told CNBC on Thursday.
Trump has said he wants to roll back regulations and produce more energy, which he believes will create more wealth for America.
Richard thinks Trump’s economic plan could probably spur economic growth and demand for oil.
“I think the market loves Republican administrations and infrastructure is very bullish for crude and natural gas demand,” she said in an interview with “Power Lunch.”
Trump has promised a massive infrastructure spending program, saying in his victory speech early Wednesday morning he’s going to fix highways bridges, tunnels, airports, schools and hospitals — and put millions of people to work to get it done.
While Richard believes Trump’s energy policy is “interesting,” she noted the whole story can’t be put together yet.
For one, she said talk about repealing Environmental Protection Agency regulations are a little hard to understand.
“We haven’t seen a decline in drilling in this country because of EPA regulations. We’ve seen a decline in drilling in this country because of two years of low prices,” she said.
Conclusion…In Texas, the Texas Railroad Commission is primarily responsible for regulating the oil and gas industry. One could conclude it has done an amazing job of protecting the public health and promoting the industry. The primary benefit of a Trump Presidency to the industry may be not be a change in regulations. Rather the increase in economic activity and infrastructure improvement from his intitatives may drive demand for oil related products. Howevert, it is reassuring to have a President-Elect who understands that a healthy oil and gas industry is important to the overall economic health of the country,
Source: “Trump presidency bullish long term for oil and gas, energy CEO Says, CNBC, Michaelle Fox, 10 Nov 2016