bluewill67
Rookie
- Sep 12, 2015
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The complete story is here-> http://www.daily-times.com/story/op...03/fine-trump-and-price-oil-and-gas/94821478/
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The most decisive presidential transition since Ronald Reagan 36 years ago is underway.
And the energy future of the country under Donald Trump is expected to abandon what went before. From alternative energy and the vision of climate change, this transition will move toward reviving American oil and gas as a traditional and long-term adjunct of national economic growth and security.
But is it too late for the Four Corners and the San Juan Basin?
Conoco-Phillips has announced it intends to sell its natural gas assets and depart in the next two years. What is the energy future of San Juan County?
With the Heritage Foundation leading the transition planning as it did for President-Elect Reagan, a regulation rollback will take place. Hundreds or more executive orders of the Obama Administration will be on President Trump’s desk within hours of the inauguration ceremony awaiting his signature for repeal. A new Environmental Protection Agency and Interior Department leadership will have been designated.
How far, if it all, the EPA administers National Environmental Protection Act expansion into climate change categories of emissions will be settled as part of the rollback. Conoco Phillips' San Juan Basin assets should have a higher value without the regulatory cost of producing natural gas.
Yet, how can oil and gas de-regulation impact on the supply and price?
If lower regulatory costs create a positive cash flow, operators will benefit. However, there is no evidence that supports a connection between less regulation and higher prices for oil and gas at the wellhead.
Energy bureaucracies are everything.
The Trump appointees in the Interior Department can abolish arbitrary and punitive royalty rate practices which partially caused at least one San Juan Basin bankruptcy. Trump EPA appointees will administer rules within narrow statutory tradition. President Trump determines the choice of new bureaucrats.
The price and supply of oil is indifferent to Washington and the White House. It is made by a complex combination of supply and demand with financial or trading expectations. As I have written before in this publication, OPEC and Saudi Arabia set the price within ranges and produce for global markets accordingly. Trade associations and some industry government representatives fail to understand this partly because of their uninformed, irrational belief in the“free trade” of oil.
What, then, could President Trump do about the price of oil?
"
The most decisive presidential transition since Ronald Reagan 36 years ago is underway.
And the energy future of the country under Donald Trump is expected to abandon what went before. From alternative energy and the vision of climate change, this transition will move toward reviving American oil and gas as a traditional and long-term adjunct of national economic growth and security.
But is it too late for the Four Corners and the San Juan Basin?
Conoco-Phillips has announced it intends to sell its natural gas assets and depart in the next two years. What is the energy future of San Juan County?
With the Heritage Foundation leading the transition planning as it did for President-Elect Reagan, a regulation rollback will take place. Hundreds or more executive orders of the Obama Administration will be on President Trump’s desk within hours of the inauguration ceremony awaiting his signature for repeal. A new Environmental Protection Agency and Interior Department leadership will have been designated.
How far, if it all, the EPA administers National Environmental Protection Act expansion into climate change categories of emissions will be settled as part of the rollback. Conoco Phillips' San Juan Basin assets should have a higher value without the regulatory cost of producing natural gas.
Yet, how can oil and gas de-regulation impact on the supply and price?
If lower regulatory costs create a positive cash flow, operators will benefit. However, there is no evidence that supports a connection between less regulation and higher prices for oil and gas at the wellhead.
Energy bureaucracies are everything.
The Trump appointees in the Interior Department can abolish arbitrary and punitive royalty rate practices which partially caused at least one San Juan Basin bankruptcy. Trump EPA appointees will administer rules within narrow statutory tradition. President Trump determines the choice of new bureaucrats.
The price and supply of oil is indifferent to Washington and the White House. It is made by a complex combination of supply and demand with financial or trading expectations. As I have written before in this publication, OPEC and Saudi Arabia set the price within ranges and produce for global markets accordingly. Trade associations and some industry government representatives fail to understand this partly because of their uninformed, irrational belief in the“free trade” of oil.
What, then, could President Trump do about the price of oil?
