Page 8 - NorthAmOil Week 45

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

Baúna as “a quality production asset sup- please click here for NewsBase’s MEOG Monitor .
ported by prudent funding arrangements”
and said the field “remains cash flow-positive US oil industry prepares for Biden
at current oil prices.”. The US oil and gas industry is starting to pre-
pare for US President-Elect Joe Biden to take
If you’d like to read more about the key events shaping office in January, after being declared the winner
the Latin American oil and gas sector then please click of the country’s presidential election by several
here for NewsBase’s LatAmOil Monitor . major networks on November 7. (See: Oil and
gas industry starts preparing for Biden presidency,
Middle East focus turns to US relations page 9)
With the election of Joe Biden in the US, focus Some uncertainty still remains as the incum-
has turned to Middle Eastern countries’ relation- bent, US President Donald Trump, has refused to
ships with Washington. Top of the pile is Iran, accept the result, and his campaign team is now
which has cautiously welcomed his appointment pursuing legal challenges in a number of states.
as it seeks to return from the global economic However, no evidence has been presented thus far
wilderness. of the widespread voter fraud and other irregular-
Biden’s predecessor Donald Trump pulled ities that Trump and some of his supporters have
out of the Joint Comprehensive Plan of Action alleged. The current consensus is that while the
(JCPOA) in 2018, leading to increased tensions legal challenges complicate Biden’s path to taking
with Tehran, and the Islamic Republic is hopeful office, they are unlikely to change the result.
that a change of leader will bring an end to its US oil and gas companies can now prepare for
isolation and allow international companies to 2021 with greater certainty over what to expect,
develop its world-class oil and gas assets. at least in the short term. Biden is expected to
Iran’s nemesis and a key American ally Saudi prioritise a relief package in response to the coro-
Arabia has welcomed the naming of Biden as navirus (COVID-19) pandemic, which – despite
president, though it will proceed with some trep- being potentially challenging to agree upon –
idation given the strong relationship the House could help boost oil demand. In the longer term,
of Saud had with Trump, particularly in light of Biden is likely to tighten up environmental pro-
his stance on Iran. tections and restrict oil and gas development on
In Syria, four American soldiers were killed federal land. But with the Republican Party hold-
as their vehicle came under attack in the oil-rich ing on to the Senate and the Democrats’ majority
governorate of Deir ez-Zor, near the Iraq bor- in the House of Representatives diminished, he
der. Reports have suggested that the attack was will struggle to push through dramatic changes.
carried out by Islamic State; it comes as the US Oil prices rose more than 8% at the start of
is seeking to step up its military presence in the this week on the added certainty in the wake of
region, building a new military facility just 1-2 the election result. However, the industry con-
km from the border. tinues to grapple with a high risk of market vola-
To the east, Kurdish oil flows resumed this tility as the pandemic continues to push various
week after repairs were carried out on a pipeline countries back into lockdown.
following an attack thought to have been carried In the meantime, more North American oil
out by the PKK group. and gas companies are reporting third-quarter
results, with losses piling up owing to the impact
If you’d like to read more about the key events on the pandemic on demand and prices – which
shaping the Middle East’s oil and gas sector then in turn hit production and company earnings.™

P8 www. NEWSBASE .com Week 45 12•November•2020