Page 9 - NorthAmOil Week 44 2020

NorthAmOil COMMENTARY NorthAmOil

Uncertainty for oil and gas

as US awaits election result

Democrat Joe Biden was narrowly in the lead as of November 5, but the

outcome of the US presidential election remained uncertain

US TENSIONS were running high in the US this election result. A Biden presidency is expected
week as results came in from the presiden- to result in additional oversight of the industry,
WHAT: tial election but remained inconclusive. As of potentially including restrictions on hydraulic
The result of the US November 5, Democrat Joe Biden was narrowly fracturing on federal land.
presidential election is in the lead, with polling data showing that he had While federal land only accounts for a tiny
still being awaited as of won between 253 and 264 of the 270 electoral proportion of the fracking operations in the
November 5. college votes required to win, depending on US, this has led to jitters among shale drillers.
which polling data source is used. Republican Indeed, consultancy Rystad Energy reported
WHY: Donald Trump, meanwhile, was trailing with this week that drilling and fracking activity
Votes are still being 214 electoral college votes. had accelerated ahead of the election, likely
counted and the Counting was still being completed in six peaking in October at around 780 started
campaign of incumbent states, and the result in four states – Georgia, frack jobs.
Donald Trump has Nevada, Wisconsin and Pennsylvania – is set to This would have also been driven by rela-
launched legal action to be a deciding factor at this stage. tively stable oil prices and activity rebounding
contest the result. However, even if a Biden victory is declared, from the lowest point of the industry down-
as looks increasingly likely, this will not neces- turn earlier this year. However, it is thought
WHAT NEXT: sarily be the end of the story. Trump’s campaign that some drillers were accelerating their work
As of November 5, the launched legal challenges demanding better programmes to fit in more work ahead of any
implications for the oil access to locations where ballots were being regulatory changes that could potentially come
and gas industry also counted in Pennsylvania and Michigan and has during a Biden presidency.
were still unclear. asked for a recount in Wisconsin. Trump has In a separate note, Rystad commented that
alleged that the result is marred by fraud, though Biden’s approach to foreign relations would
he has not presented any evidence to back up also have implications for the oil industry on a
these claims. global basis. The consultancy said a Biden vic-
tory “carries supply risk as he may ease relations
Oil and gas uncertainty with Iran and Venezuela, which in turn could
The US oil and gas industry is among those unleash 2+ million [barrels per day] of oil to the
awaiting further clarity on the implications of the market as early as 2021”.

Joe Biden (right)
had edged ahead of
Donald Trump as of
November 5 but crucial
results were still being
finalised.

Week 44 06•November•2020 www. NEWSBASE .com P9