In the long term, increased U.S. oil production “could soften OPEC+’s power to control global oil markets,” Surana said. “Increasing U.S. exports could also displace OPEC+ supplies in some markets. This would not only soften prices, but also, more importantly, This may lead to readjustment.”
At his inauguration ceremony on Monday, Trump outlined his energy priorities. “We will lower prices and export American energy around the world,” he said.
Oil prices fell by about $2 to $79 per barrel in two days. Executives said an expected drop in oil prices will lead to cost savings for refiners, but may not immediately translate into cheaper gasoline and diesel at the pump, leading to lower retail prices. It added that this would only occur if international interest rates were low for an extended period of time.
Trump’s inauguration speech, in which he described himself as a “unifier,” has some industry executives believing the war in Ukraine could soon end. If Russian gas were allowed to flow to Europe as before the war, LNG prices would rise significantly. An executive at a gas sales company said this in the fall. Some Indian refining and gas marketing executives predict that oil and LNG prices could fall by as much as 20% once the war ends. Lower oil prices will also benefit domestic gas consumers, as most of India’s long-term LNG imports are oil-related. Mr. Trump said he would “end the Green New Deal” and “rescind the electric vehicle mandate,” but Mr. Biden said these are the centerpiece policies of his administration. How other countries react to this will be critical to the evolution of the green energy sector, industry executives said.
“Expanding drilling and increasing production are only the supply side of the equation. An equally important factor is demand, and demand will be influenced by how EVs and other oil alternatives penetrate the energy space. I will take it,” Surana said. “Ultimately, the balance between supply and demand will be determined by market forces, national priorities, policy initiatives, and technological advances in competing sectors.”
As a result of the pandemic and war, there will be a global energy crisis from 2021 to 2023, with lower energy prices and the transition to climate change reducing investment in the oil and gas industry, which had been deprived of capital investment in the previous year. It attracted attention again. Friendly policy across several countries.
