TRUMP'S ENERGY POLICY COULD LEAD TO SHALE INDUSTRY BANKRUPTCY

US President Donald Trump's plans to increase domestic oil production go against market trends and could lead to a wave of bankruptcies in the shale industry. This assessment was provided by The Wall Street Journal (WSJ), citing sources.

According to its information, American companies engaged in shale oil production will not dramatically increase their rate, as this could cause prices to collapse and lead to a new wave of bankruptcies. At the same time, Trump wants to force OPEC to increase oil production in order to reduce energy prices on the world market. According to the publication, Saudi Arabia, the main US ally in the organization, is unlikely to dramatically increase production.

The Trump administration believes that the collapse in oil prices will help combat inflation in the United States and lower interest rates. In addition, the head of the Washington administration intends to put pressure on Russia and Iran in this way. However, in 2020, a similar drop in the price of a barrel to $45 led to a wave of bankruptcies among shale oil producers, the publication concludes.

Earlier, Trump said that the United States intends to increase oil production. The American leader also stressed that Washington will try to get Riyadh and OPEC to reduce oil prices, including to put pressure on Russia, which is part of OPEC+. There has been no reaction from OPEC representatives to these statements. Trump also said that the United States is trying to reduce energy imports to zero.