Election Archives

Oil And Gas Industry Buoyed By Trump Election

November 15, 2016 by Justin Williams

Forbes | November 11, 2016 | Mark Druskoff and Chad Watt

After nearly two years of depressed commodity prices and a host of regulations and activist opposition, the U.S. oil and gas industry is hopeful a Donald Trump administration can help re-ignite growth in the sector, said industry sources.

The 45th president will likely remove regulatory impediments imposed by the Obama administration that have stymied oil and gas drilling and infrastructure buildout, said Frank Murphy, managing director, RW Baird.

One area of likely change is the opening up of more federal lands to drilling activities, said Murphy. A Trump administration is also added insurance against a general ban on fracking, said a midstream investor.

Trump’s election will put more emphasis on expanding U.S. oil and gas production, an industry banker said. The banker did not see Trump as being particularly helpful in the big-ticket offshore drilling projects. Yet the Trump administration could positively impact bonding in the offshore oil and gas sector, an industry lawyer said. The amount and type of bonding companies need to operate in the arena was set to rise under Obama administration efforts and a Trump administration could change that.

Key takeaways

Industry observers believe a Trump administration represents a friendlier environment for the building of pipeline projects, which has the potential to improve the economics of numerous plays that are constrained by lack of takeaway capacity.

Both Murphy and the midstream investor believed more friendly federal agencies could benefit midstream players in the Bakken, such as Dakota Access-owner Energy Transfer Partners, said Murphy and the midstream investor. The Dakota Access Pipeline requires the input of the Army Corps of Engineers, for example, noted Murphy.

More broadly, Trump is seen as reducing the risk premium investors are imposing on midstream companies seeking to build a pipeline, said the midstream investor. In recent months, sector observers have been noting that pipe in the ground is worth more than a large inventory of organic growth projects.

Improving infrastructure will enhance economics for upstream operators like Hess Corp, which owns a substantial Bakken position, said Murphy. It could also help Hess’s plans to take public Hess Midstream, its Bakken-focused subsidiary, as an MLP, said Murphy and the midstream investor. Takeaway capacity alone will not push forward an IPO, however, and rising oil prices will play a critical role in showing the viability of Hess’s drilling, and by extension its midstream operations, said Murphy.

Read the full story here.

NOIA Congratulates Donald Trump on Election, Urges Path Forward on Offshore Development and Growth

November 9, 2016 by Justin Williams

For Immediate Release: Wednesday, November 9, 2016
Contact: Justin Williams, (202) 465-8464, jwilliams@nullnoia.org

NOIA Congratulates Donald Trump on Election, Urges Path Forward on Offshore Development and Growth

Washington, D.C. – NOIA President Randall Luthi today released the following statement on the election of Donald Trump as the next U.S. President:

“On behalf of the National Ocean Industries Association (NOIA), I congratulate President-elect Trump on his victory at the polls. The American people have spoken, and this long and contentious election is finally over. Even though it appears the political divide in our Nation has widened, now is the time to work together to promote wise energy policies that will enhance our ability to create jobs and promote energy security.

“President-elect Trump should unequivocally reestablish the U.S. commitment to ‘all-of-the-above’ energy policies. Government projections show that the demand for energy of all kinds will continue to increase in America and around the world for the foreseeable future. Offshore has the potential to be a true energy incubator, supplying both traditional forms of energy and non-traditional sources such as wind, wave and current.

“However, the fact remains that even taking growing renewable energy sources into account, traditional fuels, including oil and natural gas, are expected to supply about 80 percent of the world’s energy needs for at least the next generation. Oil and natural gas from U.S. offshore areas helps meet this demand, and contributed 16% of our domestic oil production and 5% of our domestic natural gas production in 2015. This contribution is remarkable; considering that unwise federal energy policy has kept approximately 87% of U.S. outer continental shelf (OCS) closed to exploration for over 30 years. With the right policies in place, we can produce vastly more offshore oil and natural gas, not only for U.S. consumers, but for people around the globe as well.

“A strong majority of Americans support common-sense policies that increase production of our oil and natural gas resources to meet growing energy demands. An estimated 26 billion barrels of oil and 131 trillion cubic feet of natural gas lay offshore Alaska. Lease sales in the Beaufort and Chukchi Seas included in the Proposed 2017-2022 OCS Oil and Gas leasing Program could yield a much needed source of jobs, revenue and energy security for both Alaska and the Lower 48. Including the Beaufort and Chukchi lease sales in the final leasing program would signal a strong commitment to an ‘all-of-the-above’ energy future.

“While the final decision on the Beaufort and Chukchi lease sales ultimately rests with President Obama, the President-elect can undoubtedly wield some influence in decision making the process. Many of President Obama’s own advisors have recently gone on record in support of Arctic OCS development as integral to U.S. national security, and Alaskans, including Native Alaskan communities, overwhelmingly support the lease sales. Alaskans depend on oil and natural gas development and production for their livelihoods, and their voices should not be ignored.

“NOIA looks forward to working with President-elect Trump and his administration in the coming years. Together, and with policies in place that increase, rather than decrease, access to federal offshore areas, we can further our position as the global energy leader, strengthen our economy, and keep energy affordable for American consumers.”

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ABOUT NOIA

NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises about 300 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.

Luthi: Clinton and Trump lack broad-based energy policies

August 11, 2016 by Justin Williams

Fort Worth Star-Telegram | August 10, 2016 | Randall Luthi

Presidential hopefuls Hillary Clinton and Donald Trump have wasted little time in addressing energy policy this election.

In one of his first major policy speeches, Trump outlined a plan to expand traditional fuels, including an increase in the exploration of oil and gas.

Clinton, meanwhile, released a set of proposals for boosting renewable energy productionwhile drastically restricting the exploration and development of fossil fuels.

Such positions may win the nominees political points with their respective bases. But if this presidential campaign has proved anything so far, it’s that large segments of the American public feel they’ve been economically ignored.

A more broad-based energy policy — one that embraces the benefits of fossil fuels and renewables — would deliver abundant, affordable energy while creating thousands of jobs.

Within a few short years, America has become the world’s leading producer of both oil and natural gas.

Oil imports have dropped below 50 percent, gasoline prices have plummeted, and affordable natural gas has allowed manufacturers to compete in new world markets.

This increase in production has also spurred job growth.

Fracking alone now supports more than 2 million jobs around the country. While the industry has recently cut jobs due to the current global glut of oil, there’s hope for the future.

Pro-energy policies could create an additional 1.4 million jobs by 2030, according to energy industry consulting firm Wood Mackenzie.

By 2025, the average household could see its income rise by $3,500, thanks to such energy development.

Instead of recognizing the benefits of this growing industry, Clinton has so far sided firmly with the extreme environmental community.

She promised to ban drilling off the Atlantic coast, even though such projects would create 200,000 jobs by 2035.

Read the full op-ed here.

Institute for Energy Research: Voting For Energy

June 17, 2016 by Justin Williams

Forbes | June 14, 2016 | Robert Bradley, Jr.

Despite the divisiveness of this election season, Americans from both parties share common ground. As polls show, voters want the next president to inject life into our sluggish economy.

The nation created only 38,000 jobs last month, according to the Department of Labor. Economists had expected 162,000. This continues the lackluster economic climate that has now marked most of the present century.

To turn around the U.S. economy, the next president will need to embrace free-market, consumer-driven, pro-taxpayer, policies. And when it comes to energy, that means the market’s preference for oil, natural gas, and coal. Candidates and voters take heed: the 2016 presidential contest is a referendum on energy.

A New Energy Blueprint

Ronald Reagan reversed the damaging energy policies of Jimmy Carter eight days after taking office in early 1981. The next president should promptly undo the current President’s anti-energy agenda.

A good start would be to reverse the decision to reject the Keystone XL pipeline. This project would have transported oil from Western Canada to America’s Gulf Coast,creating 42,000 jobs in the process.

“Gateway to Health and Wealth”

Fossil fuels are the lynchpin of the American economy. The oil and gas industry supports 9.8 million jobs across the country and contributes over $1.2 trillion to the U.S. economy every year. The recent shale energy revolution has saved American families and businesses an average of $1,200 a year for electricity, and $550 annuallyat the pump. But there is much more that can be accomplished.

In their new book, Fueling Freedom, Stephen Moore and Kathleen Hartnett White discuss the great untapped riches of energy resources on federal lands (including in offshore waters) that await a stroke of the presidential pen for exploration and development.

This “gateway to heath and wealth,” in their words, concerns estimated recoverable reserves of 1.5 trillion barrels of oil and three quadrillion cubic feet. At current prices, these resources represent $50 trillion dollars (yes, that is a ‘t’ and not a ‘b’). For comparison, all the gold in Fort Knox — approximately 150 million ounces — is worth less than a quarter-trillion dollars, less than 1 percent, of the nominal value of untapped energy on federal lands.

Read the full op-ed here.

Robert L. Bradley, Jr. is the founder and CEO of the Institute for Energy Research.