Posted on 01/18/2017 10:35:01 PM PST by 2ndDivisionVet
A leading Wall Street investment expert claims that Donald Trump could make the US a world leading “energy powerhouse” during his presidency.
Joseph Grinkorn, chief executive officer of Morris Group, believes the presidential elect could force global oil prices as low as $25 dollars a barrel by tapping into America’s reserves.
Mr Grinkhorn, a New York-base entrepreneur that specialises in finance, claims that the Republican’s first 100 days in office could be a “game changer” for the global energy industry.
Both OPEC and non-OPEC member countries have already agreed to cut production for the first six months of this year – just as the president is sworn into office.
And Mr Grinkhorn said he thought Mr Trump’s “unconventional” approach could see him try to take advantage of the situation to fulfill his campaign promise to “make America energy independent”.
He said: “Trump is a very intriguing president. He’s breaking the mold from past presidents and he’s taken the country in a totally different direction. We know he is very boisterous and sometimes unpolitically correct. But he’s made it very clear that he’s putting the US and it’s citizens first.
“We’ve seen before he even takes the presidency is what he’s doing with all the car makers.
“He’s saying to them if you are going to make cars in Mexico and try to sell them to us then you’re going to pay a huge tax.
“GM and Ford and others are now falling in line, saying that they are not going to build plants in Mexico, they’ll build them in the US and they’ll create thousands of jobs and invest millions of dollars here.
“That makes me think he will follow-up on all of his promises to really make the US an energy leader in the world.
Mr Grinkhorn added: “He could really open up the gates to an energy revolution here in the US. Over the next three to five years we could be the number one exporter for energy – oil, gas, everything.
“OPEC has been faced with challenges over the last few years, both internally and externally. This new deal with all the non-OPEC members, I don’t see that holding for very long.
“There’s a reason why these countries are not members of OPEC. Some of these places are so dependent on oil sales that I can’t see the deal holding too far down the road.
“Countries like to have their independence and like to do what’s best for them.”
All eyes will be on the president’s first 100 days in office.
And with his key energy policy on the campaign trail being to “unleash America’s $50trillion in untapped shale, oil, and natural gas reserves”, Mr Grinkhorn said current world energy leaders have reason to be concerned.
Mr Grinkhorn said one of the key decisions that could be made during Mr Trump’s first year in office could be overturning the Obama administration’s decision not to complete the fourth stage of the Keystone Pipeline.
If completed the fourth stage of the oil pipeline would connect oil rich Alberta, Canada, directly with mid-western American refineries
Mr Grinkhorn said: “I don’t think people realise how much we have in capabilities. There’s the Keystone Pipeline which I think he will approve.
“That alone will create thousands of jobs and bring millions of barrels of oil back into the US – either for us to keep here or for us to export.
“When you look at some of the numbers Trump has laid out for his first 100 days in office, it’s really surprising how much in energy reserves and potential that the US has.
“He’s been using numbers like $50trillion in the likes of untapped shale, oil and natural gas reserves.
“If you follow Trump’s footprint, even if he’s only half right, you’re still talking about trillions of dollars of energy that is going to be created in the US.
“And it really looks like he’s going to go through with this as he’s following up so far that he plans to do – and he’s not even president yet.”
Mr Grinkhorn, whose New York office is just around the corner from Trump Tower described the mood in New York as “pretty good” despite the state getting reliable Democratic support in recent years.
“There are still a lot of people protesting outside of Trump Tower.
“Our office is just around the corner from there so everytime we drive by there’s traffic for 15 minutes just on those two streets.
“But generally the mood is pretty good.”
Now we’re getting somewhere!!!
I’ve read that they’ve really ramped up their military equipment sales, but to whom?
Putin is a smart guy. He’s got to be looking past oil as the country’s savior.
If not, then he is not nearly as clever as I thought.
First off, Putin is much smarter than u give him credit for. The war in Syria is simply about the pipeline from SA to Europe cutting off Russian exports to them. It’s all about the money.
Watching Lindsey Graham almost hyperventilating on Tucker last night, I was struck that it never dawn on this dummy that the way to punish Russia was to kill the oil market. We all know Trump is very well aware of this and knows by forging ahead with his energy plans of “All of the above” to energy independence, dropping oil prices would go a long way to bringing Russia to its knees economically but also on that list will be Iran, Venezuela and the rest.
Hey Vlad, nothing personal, its just business.
Could even bring back full service at the gas station. With uniforms and hats.
$25 oil will make a big, big dent in the Saudis monetary reserves.
Good. They’ll have less to spend on promoting jihadism.
“$25.00 oil will devastate Houston and bankrupt Russia.”
The price will be driven by cost. Being that oil is pretty much a fungible commodity, world wide aggregate cost will determine what that will be. U.S. shale and fracking producers have shown remarkable ingenuity in driving down their cost. Right now in the Permian Basin breakeven is about $50 per barrel give or take. It’s a long way to $25 but we shall see....
I want to see Saudi Arabia get ####ed to the wall!!
They still have the blood of 3000 fellow NYers on their hands.
Yeah and that means the clowns in DC will increase Foreign Aid payments to 'fill the dent'......
I believe your analysis of the economics of oil extraction costs and oil pricing are correct. So thanks for posting.
Unfortunately you are preaching to the normally astute Freepers who seem to have deaf ears on this subject. IMHO Trump wants energy independence and $60 (or so) oil and a few years free of Obama-Restrictions should deliver it.
Trump understands that calculation. So I expect him to pull it off. Sorry Saudi Arabia, you are just going to have to look elsewhere for customers.
These days, 8 is like the old 12....get you from here to there quicker than a cop can write a ticket.
You just kind of watch and see what happens.You are a FR conservative and so you know that markets don’t work and the government has to fix everything for things to work. Yall say you want that “less government control” but government interference in the markets is the essence of government control.If the government gets out of the business of business we prosper explosively. If it tries to make fair markets and everybody play nice then we continue to stagnate.
They have been through this before. They rebounded.American industries will recover. They may change hands through bankruptcy proceedings but the industry will recover.
Nonsense. Nobody can make money producing oil that’s selling for $25.
$25 oil would stop ALL U.S. oil production.
” “To keep shale busy and active and growing, you need to have $65 a barrel,””
http://www.ibtimes.com/oil-prices-plunge-layoffs-foreclosures-are-slamming-us-boomtowns-2267874
” Since the end of 2014, operating costs have fallen 31 per cent at its oil-sands business, helped by laying off almost a third of the company’s work force – all with the goal of being able to “make money” at $50 (U.S.) a barrel oil” (Oct. 01, 2016)
Oil prices need to be high enough to allow for profit, exploration and development, and produce many high paying JOBS!
We need refining capacity to process our light crude oil and many more trained workers in the fracking field.
We can be energy independent and RICH, but not on $25 oil.
Thanks to lower cost leases, the default of high priced producers and increased efficiencies $45 - $50 oil is the new price point (from all that I have heard). Please do an Internet search for the article “U.S. shale’s message for OPEC: above $40, we are coming back” as one example.
'98 Chevy Silverado
'07 Ford E-250 van
'13 Chevy Silverado
Those are my current vehicles - all V-8s. I probably owned a half dozen other American V-8s before that.
I did once own a Datsun B-210. It was a four cylinder manual shift, but man that booger was fast. Loved that thing.
I love Vettes. If things turn out like I think they will during the Trump years, I’ll finally own one.
Wow.
Well, it's the neocons who always kept energy prices artificially high by insisting we "save ours and use up theirs first" for geopolitical reasons, so now that they have been effectively denied a seat at the table, Trump is free to push a strategy like this.
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