Donald Trump’s shock win in the US election may have a significant impact on the global oil and gas industry, a new report says.
According to energy market specialist GlobalData, policies set out by the president-elect on the campaign trail could have major implications on regulation, tax and investment opportunities in the sector.
GlobalData senior oil and gas analyst Will Scargill said: “The lack of detail of his platform and absence of a track record in public office cast uncertainty over the policies that will be enacted and the effects they will have, but the tone of the campaign suggests a priority on domestic energy policy over international.
“Domestic energy policy statements during the election campaign suggest a positive outlook for the oil and gas sector.
“This is supported by reports that his adviser Harold Hamm, CEO of (US oil and gas company) Continental Resources, is in the running for energy secretary.”
Mr Scargill added: “Although the prospect of infrastructure projects moving forward is positive for the oil and gas sector, the inherent contradictions between his (Trump’s) support for business and his protectionist trade position may untangle as policy is realised.
“A focus on US energy independence and opposition to broader trade deals could create direct or indirect hurdles for the industry in the US and abroad.”
“Outside the US, Trump’s election may have profound effects on international oil and gas investment opportunities.”
Mr Scargill said the president-elect’s past opposition to a deal which removed sanctions on Iran and opened up the Middle East country’s upstream sector “places a cloud over investment” there, while Mr Trump’s “seemingly more favourable” view towards Moscow may improve prospects for business opportunities in Russia.
Meanwhile, producers’ cartel Opec said yesterday its output hit a record high in October.
Opec nations pumped 33.64million barrels per day last month, up by 240,000 from September, underlining the cartel’s challenge in seeking to restrain supplies and raising the prospect of a bigger-than-expected global surplus next year.
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