Trump has signed a decree on expanding production of oil and gas offshore

Donald trump has canceled the decree of Barack Obama on the restriction of mining operations on the shelf. According to analysts, his decision will not affect oil prices

Photo: Craig Lovell / Global Look Press

The President of the United States Donald trump signed a decree that extends the production of oil and gas in areas of the Atlantic, Pacific and Arctic oceans and the Gulf of Mexico. About it reports Reuters.

Mining in these areas has been banned the former us President Barack Obama after the oil spill in the Gulf of Mexico in 2010.

“Today we are opening the way for the supply of American energy sources and create thousands of high-paying jobs for Americans,” trump said after signing the document.

The US President, speaking about the actions of his predecessor, said that Obama “has deprived the country of thousands of potential jobs.”

According to the government, referenced by Reuters, from 2012 to 2017 oil company lost more than 75% of the money that they spend annually to purchase the right to rent fields in the Gulf of Mexico.

According to the Ministry of internal Affairs of the States, in 2008, Federal budget revenues from the lease deposits amounted to $18 billion, while in 2016 this figure reached $2.8 billion.

From populism to pragmatism: what’s in 100 days changed to Donald trump

However, according to senior analyst of Sberbank CIB Valery Nesterov, oil on the continental shelf of the Gulf of Mexico in the last two years has grown rapidly and will continue to rise after the decision of trump, if companies begin to invest in these projects funds (now investment grow mainly in shale production).

By 2018, production on the continental shelf of the Gulf of Mexico could rise to 95 million tonnes per year at existing fields, says Nesterov. Thus after allowing the tramp to prey on new offshore areas from production will not start: they are still in need of additional exploration of oil and gas. The analyst explains that this is an expensive process, as most of these sites belongs to the deepwater projects that require technologies and large investments that only large companies, such as Exxon and Chevron.

While a number of offshore projects, where the US allowed mining, refers to a low-margin because of low oil prices in the world, explains Nesterov. Most of the new fields that you plan to lease, will be released on production in approximately 10 years.

According to analysts, this decision — rather in contrast to the policy of its predecessor trump, Barack Obama. The world prices for oil in the medium term will not affect it.

Agrees with him and Raiffaisenbank analyst Andrei Polishchuk. He notes that offshore projects in the United States are long-lasting: they will require further exploration of oil and gas reserves. Depending on the degree of scrutiny to expect there production in the period from 5 to 20 years from now.

The expert recalled that Rosneft was interested in access to the offshore Gulf of Mexico, however, while sanctions are unlikely to get the opportunity to work there. However, if restrictions will be lifted after 10 years, it can fall into such projects, gained as a partner of the American company ExxonMobil, said Polishchuk.

Authors:
Natalia Kondrashova, Lyudmila Podobedova

Tags:

oil production

,
the decree

,
Donald Trump

The main thing

The Ministry of Finance and Exxon agreed to resolve a dispute about $637 million without a trial

Business

Materials

The U.S. Treasury will not allow ExxonMobil to work with Rosneft

Policy

The US has earmarked for oil and gas production is 300 thousand square kilometers of continental shelf

Business

Media reported about the plans of Rosneft to compete for the Mexican shelf

Business

Be the first to comment

Leave a Reply

Login: