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Released November 17, 2016 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Donald Trump's election as president was widely praised by Oil & Gas companies and trade groups, and the company trying to build the controversial Dakota Access Pipeline project predicted the president-elect would push through construction of the stalled project.
"I'm 100% sure that the pipeline will be approved by a Trump administration," Kelcy Warren, chief executive of Energy Transfer Partners L.P. (NYSE:ETP) (Dallas, Texas), which is developing the $3.7 billion project, told NBC News. "I believe we will have a government in place that believes in energy infrastructure."
Warren told the network he had not spoken to Trump, either before or after the election, and he's basing his prediction on Trump's pledge to streamline regulations and expedite construction of infrastructure projects in and out of the energy industry.
In a May 2016 speech before an Oil & Gas audience in North Dakota, Trump said, "President Obama's stated intent is to eliminate oil and natural gas production in America. His policy is death by a thousand cuts through an onslaught of regulations. ... America's incredible energy potential remains untapped. It is a totally self-inflicted wound. Under my presidency, we will accomplish complete American energy independence. ... We will get the bureaucracy out of the way of innovation, so we can pursue all forms of energy."
In that speech, and in his energy platform, Trump supported construction of the stalled Keystone XL pipeline project. He has not commented on the Dakota Access Pipeline (DAPL), which is said to be about 84% complete. Protests on the Standing Rock Indian Reservation, which straddles North and South Dakota, have delayed completion of that project. For more on the DAPL project, see November 15, 2016, article - Energy Transfer Partners Reports Progress on Dakota Access, Other Growth Projects. For more on how Trump's election might affect the Keystone XL pipeline, see November 11, 2016, article - Trump Election Raises Hopes for Keystone XL.
Harold Hamm, chairman and chief executive of Continental Resources Incorporated (NYSE:CLR) (Oklahoma City, Oklahoma), was a Trump energy adviser during the campaign, and his name is being floated as a potential energy secretary. Hamm is an unabashed supporter of energy development and fierce critic of the Obama administration's policies on energy and the environment. If selected and confirmed as energy secretary, energy interests likely would experience a much more supportive policy setting.
The stock prices of Oil & Gas companies rose modestly after Trump was elected president November 8. Continental is up about $4 a share since the election, while EOG Resources (NYSE:EOG) (Houston, Texas) and ConocoPhillips (NYSE:COP) (Houston, Texas) are each up about $2 per share.
Analysts noted that Oil & Gas production is a global commodity business driven by supply and demand fundamentals. Right now, supply is outstripping demand, though demand is rising and supply from U.S. producers is falling. West Texas Intermediate, the benchmark U.S. crude, rose a little after Trump's election. Currently trading at about $45 per barrel, WTI is up about $20 per barrel off its 2016 lows of about $26 per barrel. For Oil & Gas companies, the November 30 meeting of ministers of the Organization of the Petroleum Exporting Countries (OPEC) is seen as having a greater impact on company profitability and stock prices than a Donald Trump presidency.
Commenting on the election of Trump, the American Petroleum Association (API) (Washington, D.C.), a trade association representing all segments of the Oil & Gas industry, said Americans voted and energy won.
API polled voters on election day and found broad support for energy development, according to API President and Chief Executive Jack Gerard. "80% of voters support increased development of U.S. oil and natural gas resources, including 71% of Democrats, 94% of Republicans and 76% of Independents," he said. "Voters want a Congress and administration that works for their interests. And just as there is bipartisan voter support for energy priorities, there is an opportunity for Republicans and Democrats in Congress to work toward pro-development policies that provide economic growth, job creation and energy security."
More than 8 in 10 voters support increased development of the country's energy infrastructure, the API poll said.
API also criticized the Obama administration to unilaterally delay construction of the DAPL. "It defies logic that the Obama administration would ignore the rule of law by unilaterally delaying this critical infrastructure that would create American jobs and benefit American consumers," said API Midstream Group Director Robin Rorick. "This project went through an established, open and transparent permitting process where comments from numerous stakeholders were considered. The administration's actions to further delay this project with no legal justification contradict multiple court rulings; set a dangerous precedent for other infrastructure projects including roads, bridges and electricity transmission lines; and ignore calls to uphold the rule of law by the governors of North Dakota, South Dakota and Iowa."
Barry Russell, president and chief executive of the Independent Petroleum Association of America (IPAA) (Washington, D.C.), the trade group representing independent drillers, said this in a statement: "IPAA congratulates President-elect Donald Trump and all of the candidates who won their elections to the U.S. Senate and House of Representatives. Democrat, Republican, or Independent - America's energy priorities are not and should not be a partisan issue. Now more than ever, Washington cannot ignore the important role that clean-burning, American natural gas plays in the states and local communities throughout our country. ... Independent producers stand ready to work together with President-elect Trump and the new Congress to ensure America's energy renaissance continues moving forward."
Several Oil & Gas companies and trade groups contacted by Industrial Info Resources declined to comment on the election results. But Todd Staples, president of the Texas Oil & Gas Association (Austin, Texas), said this: "America's prosperity and security is anchored by a strong oil and natural gas industry, a vision that emerged victorious (on November 8). We look forward to federal policies that protect the environment, while putting Americans back to work and keeping our nation secure."
Ron Ness, president of the North Dakota Petroleum Council (Bismarck, North Dakota), welcomed Trump's election. "The election of Donald Trump is a positive sign to the business community and will hopefully stimulate the economy and drive investment into the energy cycle. Knowing that the federal government will not be against you is important and we can get back to focusing on business operations instead of fighting off punitive federal regulations."
Most of the Department of Energy's budget and staff are focused on cleaning up the nation's nuclear bomb-making facilities. The energy secretary post traditionally has been one of the last cabinet positions to be filled, but as the Trump campaign and nascent presidency had shown, tradition counts for little with the New York developer.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
"I'm 100% sure that the pipeline will be approved by a Trump administration," Kelcy Warren, chief executive of Energy Transfer Partners L.P. (NYSE:ETP) (Dallas, Texas), which is developing the $3.7 billion project, told NBC News. "I believe we will have a government in place that believes in energy infrastructure."
Warren told the network he had not spoken to Trump, either before or after the election, and he's basing his prediction on Trump's pledge to streamline regulations and expedite construction of infrastructure projects in and out of the energy industry.
In a May 2016 speech before an Oil & Gas audience in North Dakota, Trump said, "President Obama's stated intent is to eliminate oil and natural gas production in America. His policy is death by a thousand cuts through an onslaught of regulations. ... America's incredible energy potential remains untapped. It is a totally self-inflicted wound. Under my presidency, we will accomplish complete American energy independence. ... We will get the bureaucracy out of the way of innovation, so we can pursue all forms of energy."
In that speech, and in his energy platform, Trump supported construction of the stalled Keystone XL pipeline project. He has not commented on the Dakota Access Pipeline (DAPL), which is said to be about 84% complete. Protests on the Standing Rock Indian Reservation, which straddles North and South Dakota, have delayed completion of that project. For more on the DAPL project, see November 15, 2016, article - Energy Transfer Partners Reports Progress on Dakota Access, Other Growth Projects. For more on how Trump's election might affect the Keystone XL pipeline, see November 11, 2016, article - Trump Election Raises Hopes for Keystone XL.
Harold Hamm, chairman and chief executive of Continental Resources Incorporated (NYSE:CLR) (Oklahoma City, Oklahoma), was a Trump energy adviser during the campaign, and his name is being floated as a potential energy secretary. Hamm is an unabashed supporter of energy development and fierce critic of the Obama administration's policies on energy and the environment. If selected and confirmed as energy secretary, energy interests likely would experience a much more supportive policy setting.
The stock prices of Oil & Gas companies rose modestly after Trump was elected president November 8. Continental is up about $4 a share since the election, while EOG Resources (NYSE:EOG) (Houston, Texas) and ConocoPhillips (NYSE:COP) (Houston, Texas) are each up about $2 per share.
Analysts noted that Oil & Gas production is a global commodity business driven by supply and demand fundamentals. Right now, supply is outstripping demand, though demand is rising and supply from U.S. producers is falling. West Texas Intermediate, the benchmark U.S. crude, rose a little after Trump's election. Currently trading at about $45 per barrel, WTI is up about $20 per barrel off its 2016 lows of about $26 per barrel. For Oil & Gas companies, the November 30 meeting of ministers of the Organization of the Petroleum Exporting Countries (OPEC) is seen as having a greater impact on company profitability and stock prices than a Donald Trump presidency.
Commenting on the election of Trump, the American Petroleum Association (API) (Washington, D.C.), a trade association representing all segments of the Oil & Gas industry, said Americans voted and energy won.
API polled voters on election day and found broad support for energy development, according to API President and Chief Executive Jack Gerard. "80% of voters support increased development of U.S. oil and natural gas resources, including 71% of Democrats, 94% of Republicans and 76% of Independents," he said. "Voters want a Congress and administration that works for their interests. And just as there is bipartisan voter support for energy priorities, there is an opportunity for Republicans and Democrats in Congress to work toward pro-development policies that provide economic growth, job creation and energy security."
More than 8 in 10 voters support increased development of the country's energy infrastructure, the API poll said.
API also criticized the Obama administration to unilaterally delay construction of the DAPL. "It defies logic that the Obama administration would ignore the rule of law by unilaterally delaying this critical infrastructure that would create American jobs and benefit American consumers," said API Midstream Group Director Robin Rorick. "This project went through an established, open and transparent permitting process where comments from numerous stakeholders were considered. The administration's actions to further delay this project with no legal justification contradict multiple court rulings; set a dangerous precedent for other infrastructure projects including roads, bridges and electricity transmission lines; and ignore calls to uphold the rule of law by the governors of North Dakota, South Dakota and Iowa."
Barry Russell, president and chief executive of the Independent Petroleum Association of America (IPAA) (Washington, D.C.), the trade group representing independent drillers, said this in a statement: "IPAA congratulates President-elect Donald Trump and all of the candidates who won their elections to the U.S. Senate and House of Representatives. Democrat, Republican, or Independent - America's energy priorities are not and should not be a partisan issue. Now more than ever, Washington cannot ignore the important role that clean-burning, American natural gas plays in the states and local communities throughout our country. ... Independent producers stand ready to work together with President-elect Trump and the new Congress to ensure America's energy renaissance continues moving forward."
Several Oil & Gas companies and trade groups contacted by Industrial Info Resources declined to comment on the election results. But Todd Staples, president of the Texas Oil & Gas Association (Austin, Texas), said this: "America's prosperity and security is anchored by a strong oil and natural gas industry, a vision that emerged victorious (on November 8). We look forward to federal policies that protect the environment, while putting Americans back to work and keeping our nation secure."
Ron Ness, president of the North Dakota Petroleum Council (Bismarck, North Dakota), welcomed Trump's election. "The election of Donald Trump is a positive sign to the business community and will hopefully stimulate the economy and drive investment into the energy cycle. Knowing that the federal government will not be against you is important and we can get back to focusing on business operations instead of fighting off punitive federal regulations."
Most of the Department of Energy's budget and staff are focused on cleaning up the nation's nuclear bomb-making facilities. The energy secretary post traditionally has been one of the last cabinet positions to be filled, but as the Trump campaign and nascent presidency had shown, tradition counts for little with the New York developer.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
