India is likely to witness a continued momentum of increased cooperation in the energy sector from the US under Donald Trump’s second presidency, industry experts believe. For the global oil market, Trump 2.0 would mean continued oil and gas supply given Trump’s focus on increasing the US oil production which should keep oil prices under check, benefitting India.
“A second Trump administration might focus on increasing US oil production by rolling back environmental regulations and expanding offshore and federal lands leasing opportunities, according to S&P Global Commodity Insights.
After falling during the first Trump administration, production in Iran and Venezuela has recovered under Biden, as the focus of sanctions has shifted to Russia. S&P noted that growing US crude production has posed a significant challenge for OPEC+ in recent years, exerting downward pressure on prices, threatening the bloc’s market share and prompting massive output cuts.
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“The US election results do not change the fact that India and the US will continue to be key strategic partners. With Donald Trump in power, India can count on continued oil and gas supply to ensure its developmental needs since the US is a net exporter of fuels now. Between 2017 and 2024, the US became the fifth-largest liquified natural gas (LNG) and crude oil supplier to India,” said Arunabha Ghosh, CEO of the Council on Energy, Environment and Water.
Under Trump’s first presidency, India’s Petronet LNG Ltd had signed a $7.5-billion memorandum of understanding with Tellurian Inc, American natural gas company, wherein Petronet and its affiliates intend to negotiate the purchase of as much as 5 million tonnes of LNG per year from the Driftwood project. The signing of the MOU had coincided with the visit of Prime Minister Narendra Modi to Houston and a public event with Trump back in 2019.
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