What To Expect In Energy In 2017
I believe we will look back at 2016 as the beginning of a recovery in the energy sector, but 2017 has the potential to be far more eventful. We are going to see the Trump Administration sharply change U.S. energy policy, although most impacts won’t materialize for several years.
One immediate impact will be in the support at the federal level for oil and gas pipelines. The Obama Administration implicitly encouraged opposition to high profile projects like the Keystone XL Pipeline, and more recently the Dakota Access Pipeline (DAPL). Decisions on these projects came down on the side of those seeking to block these projects.
Donald Trump has already indicated strong support for these projects. However, President Obama has put a lot of obstacles in front of him. He will have a lot of competing priorities, and there will be legal challenges at every turn. Nevertheless, I expect the DAPL to be completed and the oil to flow this year.
Oil Market Recovery Continues
I believe the recovery in oil prices that began in 2016 is likely to continue through 2017. I expect the OPEC production cuts to largely hold, which will help prop up oil prices and minimize the risk of a return to $30 oil.
Written by Robert Rapier at Forbes.com