to Asia. The ability to export oil will encourage both U.S. and Canadian oil production (delivered through Keystone XL), provided prices stay high enough.
Conclusion
Changes in the energy markets will continue, particularly in how oil is produced, consumed, and even exported. The Trump administration has promised significant change to U.S. energy policy; we do not doubt this intention. In other words, we may take President Trump both seriously and literally on energy policy. We continue to believe that, barring major geopolitical disruption, the upside for oil is contained, with prices unlikely to move above $60–$65 for a sustained period of time. There is simply too much untapped supply in the U.S. The Trump administration’s pro-drilling policies will serve to limit oil price increases as it gets easier for companies to bring more supply to market. However, government policy is only one factor in the energy markets. Economics, geology, and global politics will also play a part in the energy outlook.
