United States President Donald Trump signed an executive order on Friday establishing a national Energy Dominance Council to boost US fossil fuel production. The plan to create the council was first mentioned last November, saying it would be responsible for coordinating energy policy and regulation across the federal government. In addition, Trump signed a Commonwealth LNG export license, further expanding the US role in global energy markets. The president also took the opportunity to repeal Biden’s ban on 625 million acres of offshore land, opening it up to energy exploration.
Nick Note This is a great example of the dangers of doing things by decree which is basically what executive orders are. Trump is opening up the National Dominance Energy Council to boost us fossil fuel production. The oil market got excited. Price dropped as we expected. Giving us further buying opportunities. But the devil’s always in the details . They approve a pending permit for an LNG plant. That will take 3 to 5 years to build. They opened up a lot of the government lands that Biden took out of the reach of us oil drillers. And in three years wells in those blocks will come into production. Finally Anwar in Alaska is open for oil leases. Which trump ballyhooed correctly has as much as if not more oil than Saudi Arabia. Those wells when drilled will produce a lot of oil 5 years from now. In the meantime the market faces several crisis including the war in Ukraine which again despite all the brocalls with Putin has not been resolved. The crisis with Iran looms large on the radar screen. They may have to be sanction or bombed into submission. They’re not cooperating and he hasn’t convinced them yet he is serious.
So the little boys and girls at the algo trading desks have not yet grasped reality. Sanctions are still on AND no new oil supplies have made it to market yet. So at this point drill bobby drill is still a campaign slogan
And OPEC will continue to hold 3 million barrels a day of oil off the market.