The election of Donald Trump as the next US President could have a profound effect on the global oil and gas industry.
Some of the policies laid out during his election campaign contain elements that could have notable impacts on regulation, tax and investment opportunities in the sector.
An analysis by Will Scargill, GlobalData’s senior oil and gas analyst says that Trump’s domestic energy policy statements during the campaign suggest a positive outlook for the oil and gas sector.
He has indicated that he would approve the Keystone XL pipeline project, which President Obama denied a presidential permit for in 2015, if the operator reapplies for approval.
Scargill says it could improve supply side economics on heavy crude for US refiners by increasing supply capacity from Alberta, where production is expected to increase by approximately 500,000 barrels per day by 2020.
This would also suggest strong prospects for the North Dakota Access pipeline, which provides additional lower cost takeaway capacity from the Bakken, as federal agencies have requested a construction pause.