It is not Clear How Donald Trump’s Energy Proposal is Going to Help the Industry
Last week, the Republican presidential hopeful, Donald Trump put forward his vision in a speech where he said "America's incredible energy potential remains untapped", which is a problem he calls "totally self-inflicted."
However, the energy plan Trump laid out could put more pressure on the already ailing coal industry, rather than lending it a helping hand. Additionally, it could further deepen the oil and gas industry's financial woes which is already pushing many businesses towards bankruptcies due to the long lasting drop in oil prices.
In reality, several of the oil and gas companies right now cannot shell out more money for new drilling without losing money. Moreover, the U. S. shale revolution has also added to the oversupply and is difficult to understand how his proposals aim to cure the problems that the industry is facing.
An energy analyst at Bloomberg Intelligence, Gurpal Dosanjh said, "They've been so successful with drilling that it's depressed prices. The problem isn't the amount of drilling. It's the glut."
Trump spoke about the need to drill more for oil in the U. S, which was extracting oil and gas at close to record levels last year, at an average of 9.43 million barrels of oil per day. That amount to almost double of 2008 and the highest since 1972. The massive output added to the supply glut and crude prices dropped close to seventy five percent in February to a thirteen year low.