In this TV interview given to Lubna Bouza, Anchor at SkyNews Arabia, Dr Carole Nakhle discusses the impact of the US presidential elections outcome on the domestic oil industry, OPEC+ plan for 2021 and oil demand outlook.
Dr Nakhle argues that the main determinant of US tight oil production remains the price of oil. Joe Biden’s policies will surely be much ‘greener’ than Donald Trump’s, but the president-elect is unlikely to cause serious damage to the industry which has given the US significant leverage in foreign affairs in recent years. Besides, the shale revolution materialised under former president Obama, a democrat despite his dedication to the green agenda.
The outlook for oil demand will improve once the market is confident that COVID-19 is finally brought under control. However, experience from the last four decades shows that oil intensity significantly drops after a major crisis and there is no reason why this would be any different today.