(by Paul Vivian and Rick Preckel, www.prestonpipe.com) Market Monitor – One of the challenges with President Trump’s plan to expand drilling and lower energy costs is that lower energy costs are counter to the interests of oil and gas companies. One way to increase drilling to satisfy at least that part of his plan is to expand demand. Some of the efforts he has made since inauguration are beginning to provide some clarity around his methodology and it involves pipelines. One way to increase demand is by driving up exports and by adding supplies to underserved regions. Since inauguration, he has reversed the LNG export permit pause leading to export permit extensions and approvals for Golden Pass LNG, Delfin LNG, Commonwealth LNG, and now Venture Global’s CP2 project; he has promoted the resurrection of the Alaska LNG project; and recently, President Trump has campaigned to construct the Constitution pipeline which was cancelled in 2020 after New York denied approval over water permits. On the oil side, the energy department recently approved a second offshore crude oil loading terminal (Gulf Link) which analysts say would allow continued increases of crude exports by up to 1 mmbbl/d. Further, President Trump has promoted the construction of the Keystone XL pipeline to bring more crude from Canada to US refineries. Given that US refineries are set up to process heavy crude, more imports could lead to lower prices for US consumers.
Preston Pipe Report – March 2025
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