Amid Donald Trump‘s recent pledge to boost U.S. oil production significantly, questions arise about the necessity and impact of such a move. Vikas Dwivedi, a global energy strategist at Macquarie Group, has expressed skepticism regarding the need for an additional 3 million barrels per day.
Addressing Trump’s ambitious energy policy, Dwivedi questioned the necessity of increasing U.S. oil production.
“The real challenge is: does the world need that much oil? And if the U.S. did grow 3 million barrels a day during the Trump Administration, that’s like 750,000 a day over four years,” he explained
“I think the right question to ask energy executives is are you okay with $40 oil because I think that’s what you would end up with and are you okay with trying to figure out how to maintain production and um you know still be able to do the dividends and the share buybacks that are now not as discretionary as they used to be.”
Furthermore, Dwivedi highlighted the geopolitical risks associated with a rapid U.S. withdrawal of support for Ukraine. He warned that if Ukraine feels cornered, it might target Russian oil infrastructure, which could further impact the global oil supply.
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