Trump administration wants to swiftly implement measures to increase US oil and gas production – Commerzbank
According to two sources familiar with the matter, measures to increase US oil and gas production are to be taken just a few days after President-elect Trump takes office, Commerzbank’s commodity analyst Carsten Fritsch notes.
Trump admin’s measures to increase the supply of the US oil and gas
“These include increasing oil drilling off the coast and on federally owned land as well as restocking the strategic oil reserves. However, Congress must first authorize the financial resources for the latter.”
“In addition, as part of the energy policy agenda, the previous government's tax incentives for the purchase of electric vehicles are to be repealed, new power plants' environmental standards lowered and the construction of new LNG export terminals authorized.”
“These measures are likely to increase the supply of oil and gas from the USA in the medium to long term. However, as the demand for fossil fuels in the USA is also likely to increase, this does not necessarily mean that US energy exports will increase significantly.”
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FXStreet Insights Team
FXStreet
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