Page 11 - FSUOGM Week 45

FSUOGM NRG FSUOGM

Major networks have
declared Joe Biden
the winner of the US
presidential election,
although Donald Trump
has disputed the result.

supported by prudent funding arrangements” US oil industry prepares for Biden
and said the field “remains cash flow-positive The US oil and gas industry is starting to prepare
at current oil prices.”. for US President-Elect Joe Biden to take office in
January, after being declared the winner of the
If you’d like to read more about the key events shaping country’s presidential election by several major
the Latin American oil and gas sector then please click networks on November 7.
here for NewsBase’s LatAmOil Monitor . Some uncertainty still remains as the incum-
bent, US President Donald Trump, has refused
Middle East focus turns to US relations to accept the result, and his campaign team is
With the election of Joe Biden in the US, now pursuing legal challenges in a number of
focus has turned to Middle Eastern coun- states. However, no evidence has been presented
tries’ relationships with Washington. Top of thus far of the widespread voter fraud and other
the pile is Iran, which has cautiously wel- irregularities that Trump and some of his sup-
comed his appointment as it seeks to return porters have alleged. The current consensus is
from the global economic wilderness. that while the legal challenges complicate Biden’s
Biden’s predecessor Donald Trump pulled path to taking office, they are unlikely to change
out of the Joint Comprehensive Plan of Action the result.
(JCPOA) in 2018, leading to increased ten- US oil and gas companies can now prepare for
sions with Tehran, and the Islamic Republic 2021 with greater certainty over what to expect,
is hopeful that a change of leader will bring at least in the short term. Biden is expected to
an end to its isolation and allow international prioritise a relief package in response to the coro-
companies to develop its world-class oil and navirus (COVID-19) pandemic, which – despite
gas assets. being potentially challenging to agree upon –
Iran’s nemesis and a key American ally Saudi could help boost oil demand. In the longer term,
Arabia has welcomed the naming of Biden as Biden is likely to tighten up environmental pro-
president, though it will proceed with some trep- tections and restrict oil and gas development on
idation given the strong relationship the House federal land. But with the Republican Party hold-
of Saud had with Trump, particularly in light of ing on to the Senate and the Democrats’ majority
his stance on Iran. in the House of Representatives diminished, he
In Syria, four American soldiers were killed will struggle to push through dramatic changes.
as their vehicle came under attack in the oil-rich Oil prices rose more than 8% at the start of
governorate of Deir ez-Zor, near the Iraq bor- this week on the added certainty in the wake of
der. Reports have suggested that the attack was the election result. However, the industry con-
carried out by Islamic State; it comes as the US tinues to grapple with a high risk of market vola-
is seeking to step up its military presence in the tility as the pandemic continues to push various
region, building a new military facility just 1-2 countries back into lockdown.
km from the border. In the meantime, more North American oil
To the east, Kurdish oil flows resumed this and gas companies are reporting third-quarter
week after repairs were carried out on a pipeline results, with losses piling up owing to the impact
following an attack thought to have been carried on the pandemic on demand and prices – which
out by the PKK group. in turn hit production and company earnings.

If you’d like to read more about the key events If you’d like to read more about the key events shaping
shaping the Middle East’s oil and gas sector then the North American oil and gas sector then please click
please click here for NewsBase’s MEOG Monitor . here for NewsBase’s NorthAmOil Monitor .™

Week 45 11•November•2020 www. NEWSBASE .com P11