US election looms large for energy in 2020
What we see now is a pendulum swing back towards more regional, more national, less global and shale just plays into those trends. The US does not have to play global cop anymore. As long as they depended on oil imports they also needed to make sure those supply lines don’t get disturbed. It’s clear that once those supply lines are not needed anymore, a readjustment must follow. Shale developers are very susceptible to price upticks. Just imagine the US introduces a border adjustment tax for oil imports and pushes the gasification of its transport sector up a notch or two. This would drive new innovation – innovation it can sell to the world. The US does not need to make money on O&G exploration and Production like most OPEC+ members.
