Trump’s presidency could benefit Canada’s oil industry in no small way, one commodity investment adviser has told the Globe and Mail. According to Tim Pickering, Trump’s ambition to put a stop to imports from OPEC and make the U.S. self-sufficient in terms of energy is exactly what would help Canada’s struggling oil economy.
If Trump stays true to his promise for energy independence, it won’t happen overnight, and the most logical alternative to OPEC imports would naturally be Canada. The U.S.’ northern neighbor has suffered a serious economic slowdown because of the international oil price rout.
Canada’s latest GDP reading for August revealed an uptick of 0.2 percent, largely thanks to the recovery in oil prices as well as mining activity. However, it remains susceptible to further fluctuations in oil prices, which may be on the way as the OPEC meeting at the end of the month nears. Those expecting a production cut agreement are losing hope, and prices could once again take a nosedive should OPEC efforts fail.
If Trump-led America does turn to Canada for any oil it can’t produce itself, this would be good news for another industry segment as well: pipeline operators.
The president-elect said during his campaign that he would reopen the approval procedure for the controversial Keystone XL project that incumbent Obama vetoed. Right after the vote, the CEO of Energy Transfer Partners, the company behind the Dakota Access pipeline project, told Reuters Trump’s victory was “…favorable not only for our project, but for future infrastructure projects that have been vetted and reviewed as thoroughly as ours has been.”
The oil markets have already reacted to the Republican win of the presidential vote, with WTI recouping the losses sustained during voting day and settling at the highest in a week, at US$45.27 a barrel. The rise came despite another inventory build reported by the EIA.
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com:
- Oil And Gas - Huge Victors Of The Presidential Election
- Breaking The Pattern: Trump Wins, Oil Jumps
- A Seismic Shift In The Middle East: Saudi Arabia Cuts Off Egyptian Oil