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It also described Baúna as “a quality pro- North America: Preparing for Biden
duction asset supported by prudent funding The US oil and gas industry is starting to prepare
arrangements” and said the field “remains cash for US President-Elect Joe Biden to take office in
flow-positive at current oil prices.” January, after being declared the winner of the
country’s presidential election by several major
If you’d like to read more about the key events shaping networks on November 7.
the Latin American oil and gas sector then please click Some uncertainty still remains as the incum-
here for NewsBase’s LatAmOil Monitor. bent, US President Donald Trump, has refused
to accept the result, and his campaign team is
Mideast: Focus turns to US relations now pursuing legal challenges in a number of
With the election of Joe Biden in the US, focus states. However, no evidence has been presented
has turned to Middle Eastern countries’ relation- thus far of the widespread voter fraud and other
ships with Washington. irregularities that Trump and some of his sup-
At the top of the pile is Iran, which has cau- porters have alleged. The current consensus is
tiously welcomed the promise of a new president that while the legal challenges complicate Biden’s
as it seeks to return from the global economic path to taking office, they are unlikely to change
wilderness. the result.
Biden’s predecessor Donald Trump pulled US oil and gas companies can now prepare for US oil and gas
out of the Joint Comprehensive Plan of Action 2021 with greater certainty over what to expect,
(JCPOA) in 2018, leading to increased tensions at least in the short term. Biden is expected to companies can
with Tehran, and the Islamic Republic is hopeful prioritise a relief package in response to the coro- now prepare for
that a change of leader will bring an end to its navirus (COVID-19) pandemic, which – despite
isolation and allow international companies to being potentially challenging to agree upon – 2021 with greater
develop its world-class oil and gas assets. could help boost oil demand.
Iran’s nemesis and a key American ally Saudi In the longer term, Biden is likely to tighten certainty over
Arabia has welcomed the naming of Biden as up environmental protections and restrict oil
president, though it will proceed with some trep- and gas development on federal land. But with what to expect,
idation given the strong relationship the House the Republican Party holding on to the Senate at least in the
of Saud had with Trump, particularly in light of and the Democrats’ majority in the House of
his stance on Iran. Representatives diminished, he will struggle to short term
In Syria, four American soldiers were killed 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 shaping If you’d like to read more about the key events shaping
the Middle East’s oil and gas sector then please click the North American oil and gas sector then please click
here for NewsBase’s MEOG Monitor. here for NewsBase’s NorthAmOil Monitor.™

P10 www. NEWSBASE .com Week 45 11•November•2020