Impact of the election on energy prices

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Impact of the election on energy prices

Post by dan_s »

The US presidential election in November presents a stark contrast for the next four years of US oil policy that could shape supply/demand dynamics domestically and abroad, with implications for shale, sanctions, trade and OPEC relations. The greatest domestic impact could come from a promise by Democratic nominee Joe Biden to stop issuing drilling permits for federal lands and waters, which would shrink US oil production by up to 2 million b/d by 2025, primarily from New Mexico's Delaware Basin and the Gulf of Mexico, according to S&P Global Platts Analytics.

Full article: https://www.spglobal.com/platts/en/mark ... -sanctions

My opinion is that promises to ban fracking and other attacks on oil & gas companies by the Democrats are just empty promises to say what their base wants to hear. Cutting off access to federal lands and banning fracking would send gasoline and electricity prices through the roof and that will piss off a lot of voters. On a good day, Biden knows this. Actually, if Biden wins it will be good for companies like our Sweet 16 that have a lot of proven reserves on private lands. Banning fracking on private lands will generate a lot of fees for lawyers because of all the lawsuits.

While some US oil executives have warned of bleak times for the industry if Biden wins, Platts Analytics does not expect anti-fossil fuel measures to top the new administration's early agenda.

"I don't believe for a moment that his first year will be marked by him taking on the oil and gas sector at a time when they're all struggling," said Chris Midgley, Platts global head of analytics. "That would be suicide. He needs to make sure he's sustaining the momentum of the economy. < But what happens when Ms. Harris takes over as president?
Dan Steffens
Energy Prospectus Group
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