Big Oil Warned Trump Team China Trade Deal Was Unrealistic
Industry leaders privately warned the Trump administration that the U.S. will struggle to produce the oil, gas and other energy products that China has committed to buy in a new trade deal, raising additional questions about one of the president’s signature economic achievements.
The “phase one” deal signed by President Donald Trump on Jan. 15 calls for China to purchase an additional $52.4 billion in liquefied natural gas, crude oil, refined products and coal over the next two years. To do that, China would have to import an additional 1 million barrels per day of crude oil, 500,000 barrels per day of refined products and 100 tankers full of liquefied natural gas, the American Petroleum Institute cautioned last month in a closed-door meeting with the Energy Department.
Those amounts would strain shipping infrastructure and production capacity and would require China to purchase more crude oil than the federal government has predicted the U.S. would add in new production by 2021, the oil industry lobbying group said.
“The United States’ ability to expand its exports of crude oil and other liquids would likely become a binding constraint,” API said in its briefing for the Energy Department. And “even if production is available, logistical challenges remain with marine shipping and the Panama Canal.”
https://www.msn.com/en-us/money/markets/big-oil-warned-trump-team-china-trade-deal-was-unrealistic/ar-BBZWvJX?li=BBnbfcN&ocid=hplocalnews
Coming soon. More fracking and higher domestic fuel prices.
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