Shale boom have made US power stronger

Washington Examiner:
Oil CEO and Trump donor Dan Eberhart says the shale boom gives Trump an edge

But I think it speaks to the long-term success of U.S. shale. I think the increase in U.S. production is what gives us the ability, for instance, to put sanctions on Iran, or to have a more robust foreign policy and worry a little bit less about production. I also believe that the ability to export oil has been a resounding success for the U.S. industry, and gives us more economic gains from trading oil worldwide.

Washington Examiner: Is there anything specific to energy that [Mulvaney] focused on? He is focused on deregulation. Is there something to take away from that side of the argument?

Eberhart: He thinks that the deregulation that’s happened under the Trump administration has had more of an impact than the tax cuts or any other legislation they’ve passed in the administration.

I’ll also add, a few weeks ago I was with Rick Perry. And he was really talking about how the administration is focused on reducing the red tape on the pipeline infrastructure problem.

We’ve got a pipeline deficit in West Texas in the Permian Basin. And then we also have a coming shortage of export terminals to export crude. And I think the administration is focused on reducing red tape and trying to move those projects along as quickly as feasible.

Washington Examiner: Could you elaborate on the coming oil export terminal shortage?

Eberhart: Sure. From 2015 we’ve gone from zero to 2.2-2.5 million barrels a day being exported. The thought process is somewhere in the 2.7 to 3 [million barrels per day range], we’re going to hit an infrastructure deficit, or a problem with the amount we can export. So, that’s going to limit the growth in the oil exports probably starting some time next summer, depending on the price.

So, the thought process is ‘we really need to get a lot more capacity,’ so that does not limit our ability to grow that source of income for U.S. companies.

Washington Examiner: Is that a concern for what you do, and your company?

Eberhart: It is in the medium term. A more pressing concern is really the lack of pipeline infrastructure in the Permian, [which] is really impacting growth for the industry. We’ve heard from a lot of companies that would like to add [drilling] rigs, and the problem is really that bottleneck and the takeaway capacity.
There is more.

It seems clear that the Obama energy policies were a huge mistake that made the US more vulnerable to despots and others who did not have our interest at heart.  The freeing up of the energy market also gives the US a strategic advantage in dealing with teh Russians in Europe if the Europeans are wise enough to take advantage of it and decrease their dependency on Russian energy supplies.  So far the Eastern Europeans have been much smarter than those elsewhere in Europe on this issue.  Germany has been mismanaged on energy and made many of the same mistakes Obama did especially in wasting money on alternative energy projects that are less dependable.


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