Continued from (1), (2), (3), (4), (5), (6), (7), (8) and (9)
"Drill, baby, drill" is one of Mr. Trump's most popular mottos. With this colorful formula Mr. Trump designates his plans to increase gas and oil production that will allow him to increase exports and reduce the trade deficit and, in addition, the budget deficit. In normal politicians, what they say must be seen cum grano salis. What does Mr. What Trump says must be seen cum multum salis.
In the case of shale oil, the best wells are already being explored, so the increase in production will be carried out at increasing costs and will only be profitable if oil prices increase enough. On the other hand, as the largest economies are growing little or moderately, global demand is not expected to increase significantly, also because a transition to electric vehicles is underway.
Also increasing gas production faces some obstacles starting with the prices needed to justify new investments to increase production, prices that are not expected to increase enough because new operators such as Australia and Qatar are entering the market.
In conclusion, once again, Mr. Trump´s statements are like the news of Mark Twain's anticipated death - greatly exaggerated.
[Source: How much oil can Trump pump?]
(To be continued)
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