US oil production could be up for a significant shake-up after the presidential election in November, according to an industry expert.
Energy provider Platts said the election in November could mean the difference between a boost or a drop by 500,000 barrels of oil per day depending on whether there’s a Republican or Democrat win.
Brian Scheid, senior oil editor at Platts, was speaking at the Platts Crude Oil Summit in London when he made the comments.
He said: “This election is going to have a major impact on the direction of US and possibly, global oil supply.
“Maybe the most significant impact of any election in US history. Essentially a one million barrel per day swing depending on the result of a single election. This is a relatively major difference in supply, equal to nearly the amount of crude the entire state of North Dakota now pumps each day.”
Scheid said other major events such as a coordinated OPE output cut and Libya starting to export large amounts of crude again could also have a big influence on the market.
He said how Democrat nominee Hilary Clinton deals with fracking in the US oil industry would be “the biggest concern” for the sector.
Trump’s recent comments regarding a Saudi oil ban, he said, meant the “skies the limit” for the businessman’s energy policy.
Scheid added: “Who wins in November may dictate if the US shale renaissance peaked last year or if this year has been a dip ahead of a new high.”
Recommended for you
