The Impact of Trump's Energy Policy on the US Oil Industry
The policy includes the reopening of Keystone XL and Dakota Access pipelines to ensure more oil production. The focus of Trump's administration was on the production of oil by the companies bestowed with the mining responsibility. Trump targeted the creation of jobs as well as wealth using maximum mining production of oil. The result confirms that Trump’s policy on energy has affected the oil industry both positively and negatively. Trump's policy on oil includes the creation of additional land for leasing by the extraction companies. Very huge companies drill over 70% of America natural gas as well as shale oil. Their aim is to ensure that they are able to expand returns to investors and shareholders. Most of the companies’ operators are already returning cash to the shareholders.
The companies are benefiting from the policy of Donald Trump by ensuring maximum extraction hence high turnover for the individual companies. The Federal Government plans to sell federal land under Trump Administration. There are oil cartels from the oil reach companies like Saudi Arabia, who has also pushed the oil cut after the push by Trump administration. The American investors have gone ahead and advised both the gas and shell oil producers to concentrate more on ensuring that they are making maximum profits rather than focusing on more production of the products (Trump 23). This move by the investors is aimed at creating the value in the oil and gas rather than ensuring maximum production that might be a big blow to the market.
This is an indication that the policy might ruin the market for the oil company since in case the cartels also reduce the oil prices the oil fields will be overexploited with little gain by the oil industries. It is the concern of the oil company that the oil demand remains stagnant for a long period. The emission of carbon by the industry was viewed as a threat to global warming issues (Guttmann 73). Dakota Access pipeline, on the other hand, had been stopped from operating by the previous administration since it also had a bad impact on the environment. Even though this move by Trumps administration is a boost to the oil industry, it is an environmental threat. The government of US through President Donald Trump is reducing royalty rates for oil and gas lease sale.
The administration has termed the move as a way to encourage drilling when the oil price is low (Trump 22). Many see Trump's policy as the oldest energy policy. Among the moves such as the coal lurks in Trump's policy. The rival nations claim that availability of fossil fuel is very important. According to Trump, cheap and abundant domestic energy is in fossil fuels. Trump tried to maximize on these programs to ensure that there is an availability of fuel. This move is meant to counter the clean power plan that was created during the Obama era. The coal will emit more greenhouse gases like carbon dioxide. According to Konschnik and Sarah (15), Trump seems not to be moved by climate change, as he does not care about global warming issues.
Trump aims at replacing the clean power plan as he is pushing for the coal to be used. This move by Trump has created different reactions from different groups due to the concern for environmental protection (Konschnik and Sarah 15). Some of the above documents were accessed through the internet as well. In order to gain more information on the issues at first hand, I visited one of the companies related to the transportation and of oil. Upon visiting the industry, six people were interviewed by the company and result of the interviews noted. The company that was visited is Dakota Access pipeline. Among the people interviewed were the human resource manager, operations manager and four other employees from the company. Later the results were compiled so as to get the results from the whole process.
Results and Discussion After obtaining information, the decision was to focus only on the area of much importance for the research paper. The Atlantic, as well as the Arctic, were realized to be doing well since the president’s administration allowed them to resume their operations. The companies were making huge drills that were good (Marie and Ross 52). It was noted that with these huge drills the market available for the oil could not manage to take all the oil. A drop in fuel prices followed this. The oil cartels from Saudi Arabia also threatened to reduce their oil prices further, which was a real threat to the world market. This process influenced negatively the oil industry since they had to use many resources and make sales at low prices.
There was a failure on the administration to create value for oil produced in America. Trump's administration creating a reduction in royalty rates for oil and gas was a step that helped to make the oils affordable and available. The government also worked on other plans to ensure that it maximized on the availability of oil as well as the creation of jobs for the Americans. Among the actions the government undertook was to ensure that, federal regulations were flexed so that the hiring power in the industries increased. The administration has also encouraged the use of fossil fuel to expand on their energy agenda. The government is also working on ways to enact their rules on coal-fired power plants. This is aimed at being a replacement of Obama’s clean power plan.
The administration of president Donald Trump has also worked on offering alternative options like coal and shell to be used in helping solve the fuel problems. The government in helping to solve the fuel issue has also created some problems that might be a problem at the moment as well as in the future. Among the problems that have risen from the opening of the two pipelines of Dakota Access pipelines and Keystone XL is on the issues of environmental concern. The pipelines are known to have been shut down by the previous administration due to energy-related issues, a health concern that Trump gave a blind eye. The other issue was on the coal fuel that is also hazardous to the environment.
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