On energy, the President continued to be enthusiastic about American oil and gas production. He bragged that American energy independence has been unleashed, leading to record high exports and record low imports. He was no doubt referring to the boom in American natural gas and crude oil exports hitting all-time records. In particular, the Marcellus and Utica shale plays in our region have helped make the U.S. a major player in world natural gas markets.
On infrastructure, Pres. Trump touted his work on bolstering pipeline construction. He said major oil transportation pipelines like Keystone XL and Dakota Access were “dead projects” until he came into office. He noted that he almost immediately approved the pipelines and he said that helped create 48,000 jobs. He said the pipelines were better for the environment as well. The funny thing is, he said, as soon as the projects were approved the protesters left. He said he expected a commotion after the approvals, but things went smoothly. He was optimistic about additional pipelines being built, and his support could be important for projects in this region.
The oil and gas industry is of course very supportive of getting new pipelines built to get new production to market as efficiently as possible. There has been a bit of concern about Pres. Trump’s tariffs, though. He said in the speech that he’s “redone” trade deals to “level the playing field on steel” and other products. Most industry analysts are skeptical that the tariffs will do anything but drive up costs for American oil and gas producers. In fact, pipelines could be 3% to 5% more expensive under the tariffs.
So far, gas production in our region appears to be continuing to boom regardless of any potential tariff costs. If your company would like to explore in the region, just contact Cimmaron Land at (412) 212-7517.