Donald Trump's election win has worried many around the world, given his reputation for impulsive and unpredictable decision-making. Foremost among the causes of unease are worries over the economic direction his administration will likely take over the next four years and its impact on global growth rates and trade relations.
In the Gulf and the Middle East, attention is centred on developments affecting energy and oil markets and the economies that depend on them. It is well known that Trump has little sympathy for environmental activists calling for reductions to carbon emissions to fight global warming.
His administration appears unlikely to support policies for clean or alternative energy sources. Instead, it will allow oil companies to move toward exploiting reserves of traditional fossil fuels in protected areas, such as Alaska’s wildlife refuges, which were shielded under President Joe Biden’s administration.
Boosting US oil production
But now, it seems that America's energy policy will be focused on expanding the country's shale oil production. Trump’s initial cabinet appointments reflect his administration’s priorities. Chris Wright, the chief executive of Liberty Energy, has been nominated for energy secretary. He is known for his strong support of shale oil and gas extraction through hydraulic fracturing—a technique opposed by environmentalists, who say it is harmful.
Since the advent of shale oil extraction, US oil production has soared, triggering a sharp decline in oil prices in 2014. Today, production stands at approximately 13 million barrels per day (bpd). The International Energy Agency (IEA) anticipates an increase to 13.67 million bpd in the coming year, with the possibility of even greater growth spurred by Trump’s policies encouraging domestic oil and gas production.
