How will Trump’s energy policy affect global oil market?
By Trend
The ability of Donald Trump as the US president to influence the
oil market will not be concentrated in the US but in three other
places - Libya, Venezuela and Russia, Gal Luft, co-director of the
Institute for the Analysis of Global Security (IAGS), a Washington
based think tank focused on energy security, and a senior adviser
to the United States Energy Security Council, told Trend on
November 10.
“Trump will re-engage with Libya and bring about to its
reconstruction. This will mean, among other things, restoring
Libyan production which alone could easily bring one million
barrels a day to the market,” he said.
The expert pointed out that Trump administration will work to
expedite the fall of the Venezuelan government and this will
trigger turmoil in the short run, but a rebound of the country some
years later.
Regarding the US-Russia relations, Luft said that the improvement
in the relations with Russia will result in lifting of the
sanctions and reopening of the Russian oil sector.
Further, he noted that on the demand side, Trump administration
will emphasize greater utilization of natural gas and its products
as automotive fuel which will lead to greater diversification of
the fuel supply and reduction in domestic demand for gasoline and
diesel.
The US held presidential election November 8. Republican
presidential nominee Donald Trump won the election.
Given Trump’s pledge to open all federal land and waters for fossil
fuel exploration, there are prospects of increased US oil
output.
Trump’s energy policy includes the following goals: declare the
country’s energy dominance a strategic economic and foreign policy
goal; become, and stay, totally independent of any need to import
energy; encourage the use of natural gas and other US energy
resources that will both reduce emissions and the price of energy
and increase its economic output.
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