On June 29th, 2017, CTH drew attention to the advanced U.S. energy policy as it was being announced, and the media avoided coverage. At the time our headline was: “Stratospheric in Consequence – Trump Policy: Unleashing American Energy Independence”.
The bottom-line was simple. It was clearly visible that POTUS Trump had a plan to unleash the U.S. energy sector as part a much larger larger economic and national security strategy. The concept was so radical, and the potential ramifications so consequential, it was stunning how no financial media were putting the dots together.
Trump’s geopolitical energy strategy actually underpinned the national security interests with Russia, China, Iran and North Korea. Additionally, the same energy policy was one of the four corners of the MAGAnomic trade policy; currently becoming more visible.
Check out today’s headline from Reuters, and think about how outside-the-box thinking has brought about these results:
From the article: MOSCOW/LONDON (Reuters) – As OPEC’s efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits – and flooding Europe with a record amount of crude.
Russia paired with the Organization of the Petroleum Exporting Countries last year in cutting oil output jointly by 1.8 million barrels per day (bpd), a deal they say has largely rebalanced the market and one that has helped elevate benchmark Brent prices close to four-year highs.
Now, the relatively high prices brought about by that pact, coupled with surging U.S. output, are making it harder to sell Russian, Nigerian and other oil grades in Europe, traders said.
“U.S. oil is on offer everywhere,” said a trader with a Mediterranean refiner, who regularly buys Russian and Caspian Sea crude and has recently started purchasing U.S. oil. “It puts local grades under a lot of pressure.”
U.S. oil output is expected to hit 10.7 million bpd this year, rivaling that of top producers Russia and Saudi Arabia. (more)
Yes, that article is describing exactly what you think it does. U.S. oil exports are countering the coordinated activity of OPEC and Russia. This trade strategy greatly diminishes the geopolitical influence of Russia and Iran who are dependent on oil exports to leverage policy of dependent nations.
Because economies of Russia and Iran are so heavily dependent on oil revenue to subsidize military expansion, any alternative by the U.S. reduces the militaristic ability of our geopolitical adversaries.
2017: “Let me be clear about one crucial point. The United States will never use energy to coerce your nations, and we cannot allow others to do so,” President Trump said at a press conference flanked by European leaders. “You don’t want to have a monopoly or a monopolistic situation.” (NBC article link)
President Trump and Energy Secretary Rick Perry, together with EPA Secretary Scott Pruitt and Interior Secretary Ryan Zinke, are doing something with energy independence that was long discussed but never acted upon. Forget the Paris Climate Treaty, this Trump action on energy development is in a stratosphere thought almost unimaginable.
Together the entire cabinet has studied, formulated and instituted an executive American energy policy platform to go beyond mere energy independence, and actually start using energy resources as an export commodity for economic growth.
Pause for a moment and consider just how monumental that approach actually is; and also overlay the independent national security ramifications therein. The intensely consequential outcome is a visible representation of ‘America-First’ principles applied to deliver MAGA level shifts in the future of our nation. Massive possibilities for wealth creation at local and state levels; and simultaneous national security interests. Win – Win – Win… And yet stunningly this result is only in one sector of national security and national economics.
Lastly, not only does the U.S. go beyond energy independent into being an energy export nation…. but, also remember how GDP growth is factored?
GDP is the combined value of all U.S. goods and services, minus our imports. The less we import the less is deducted from our GDP growth. The more we export, the more we add to the GDP growth and/or offset any imports. Beyond the consequential geopolitical value, exporting oil means we gain massive domestic economic value.
This is winning BIGLY.
President Trump 2017 Speech on Energy Independence.
President Trump 2017 Roundtable Discussion on Energy Development.
President Trump 2017 Energy Discussion during Three-Seas Summit.