July 14, 2017 Read More →

‘Markets Will Dwarf Policy’ for Exporting U.S. Oil and Gas to Europe

Georgi Kantchev and Lynn Cook in the Wall Street Journal:

President Donald Trump is touting his policies to boost energy production and exports as a bulwark against Russia.

But some industry observers say the U.S. shale boom—which reshaped world markets for crude oil and natural gas before Mr. Trump took office—has only limited impact on Russia’s standing as a major energy provider to Europe and Asia.

In a televised interview Wednesday on the Christian Broadcasting Network, Mr. Trump said the U.S. shale boom was helping to keep global energy prices low and countervailing the influence of Russian President Vladimir Putin.

“We’re going to be exporting energy; he doesn’t want that,” Mr. Trump said.

While a boom in U.S. oil-and-gas production is keeping a lid on prices and spurring exports, it’s largely a function of market factors far from Washington’s control. Because global oil and gas markets are already glutted, moves by the Trump administration to boost drilling and exports can only play a marginal role.

“Easing regulation can help output on the margins, but markets will dwarf policy in determining the outlook for U.S. domestic energy production and exports,” said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University and a former energy official in the Obama administration.

Russia dominates the European natural-gas market, and many on the Continent remember a time several years ago when Mr. Putin threatened to cut off countries, including Poland and Germany. It’s a tall order to compete head to head with Russia, which operates an extensive network of pipelines into Europe.

Full article:  $ U.S. Boost to Oil Drilling Will Barely Dent Russia’s Energy Monolith



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