Blog

News, views, opinions and general musings from across the Fifth Ring world.

OTC Houston 2017 - Insider’s Guide: iFly

by Haley Ruddle
18 Apr
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Topics: Energy Insight

OTC Houston 2017 - Insider’s Guide: CRÚ

by Stephanie Black
14 Apr

 

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Five tips for surviving OTC

by Andrew Bradshaw
12 Apr

With hopes high that the international oil and gas industry may have seen the worst of the current downturn in commodity price, it’s anticipated that this year’s Offshore Technology Conference in Houston, Texas, (May 1-4) will attract an increased number of visitors.

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What OTC will tell us about the state of international oil and gas

by Andrew Bradshaw
27 Mar

With a growing optimism that the three-year downturn in the fortunes of the international oil and gas industry may be improving, all eyes will be on this year’s Offshore Technical Conference (OTC), which runs from May 1-4 in Houston’s NRG Park.

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Spring Budget; a step in the right direction for oil and gas industry

by Andrew Bradshaw
08 Mar
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Global hub may be the future of oil and gas industry

by Andrew Bradshaw
14 Feb

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The future of the energy industry under President Trump: part 5

by Scott Segal
18 Jan

Key Questions

With President-elect Trump’s inauguration tomorrow, we are concluding our five-part blog series with two key questions. Over this series, Scott Segal, partner at Policy Resolution Group, has shared what impact he thinks the Trump presidency will have on the energy industry, policies, and overall performance in the market. In this final instalment, Mr Segal gives his thoughts on two critical questions: what foreign oil and gas companies operating in the US should be aware of, and if we will see $100 oil again in the next four years.

What should foreign oil and gas companies operating in the US market be aware of under the new administration, and will there be an impact on them in particular?

There is little reason to suspect that as a general rule the US will become a less hospitable place for foreign energy corporations to do business. The generally light touch that can be expected from the new administration, coupled with reduced tax burdens, might even improve circumstances for foreign interests looking to do business here. 

Foreign press accounts after election day seemed to favour the notion that European energy majors and oil field service companies might even seek to strengthen ties to the US market under the Trump Administration. The Spanish press pointed specifically to Repsol SA’s activities in Alaska as a particular beneficiary. 

But the balancing act may come down to how far the new administration will push its protectionist rhetoric and its distrust of international agreements like Paris. If taken too far, such activities could create the basis for international retaliation against the US. This could make US markets less open, and could reduce foreign market availability to US goods and services. 

Will we see $100 oil again under the Trump Administration?

Governmental regulation is not as dispositive regarding the price of oil as is demand. Of course, if governmental policy can stimulate economic growth, and therefore demand, then you are on the road to higher commodity prices. As noted above, while markets are reacting quite positively to the prospects of a Trump Administration, the potential for protectionism or near-term overheating of the economy could reduce economic growth as the administration continues. Hopefully, appropriate reading of the macroeconomic tea leaves will keep the next administration from this dangerous course.

Experts in the field look at international trends – from growth to demographics – and conclude that conditions that might produce $100 oil seem unlikely in the near term. But stimulating economic growth, decreasing production costs, and helping to establish new markets overseas are important elements to a strategy that would help restore value to oil and gas commodities.


President-elect Trump’s inauguration is within view and the energy industry is keen to see what changes his administration will bring.

Catch up on the rest of our insight series before tomorrow. Read Potential positive policies hereTaking a look at both sides of the coin here, What will become of President Obama’s environmental legacy? here and Taking a look at personnel safety here.

Scott Segal is a partner with Policy Resolution Group. He has over two decades of experience across a broad range of policy and communications issues, with particular experience dealing with energy, the environment, and natural resources. Other areas of experience range from healthcare to financial services to trade and manufacturing issues. A practising lawyer, Scott assists clients with effective participation in the legislative and regulatory processes. Read his full bio here.  

 

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The future of the energy industry under President Trump: part 4

by Scott Segal
18 Jan

Taking a look at personnel safety.

President Trump’s inauguration is this Friday and as the US gets ready for its next president, we have asked Scott Segal, partner at Policy Resolution Group, for his insight on what he thinks the Trump presidency will have on the energy industry, policies, and overall performance in the market.

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Topics: Energy Insight

The future of the energy industry under President Trump: part 3

by Scott Segal
16 Jan

What will become of President Obama’s environmental legacy?

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Topics: Energy Insight

The future of the energy industry under President Trump: part 2

by Scott Segal
12 Jan

Taking a look at both sides of the coin.

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Topics: Energy Insight