The EU is considering replacing Russian liquified natural gas imports with US shipments — a move that could hit President Vladimir Putin’s war chest. Contributor/ Getty Images
- Trump’s presidency may pressure Russia’s oil and gas industry.
- The EU is thinking about replacing Russian LNG with US shipments, potentially affecting trade dynamics.
- Trump’s energy policies could boost US oil production, impacting global energy markets.
Russia’s lucrative oil and gas industry could come under greater pressure when US President-elect Donald Trump takes office.
Domestically, Trump is championing the US oil and gas industry and encouraging production — which is likely to underscore America’s position as an oil and gas giant.
Meanwhile, the European Union said it could consider buying more US liquefied natural gas in a deal with Trump that would address a trade deficit. The EU doesn’t have to burn bridges to negotiate with Trump, because the bloc still imports LNG from Russia.
“We still get a lot of LNG from Russia, and why not replace it with American LNG, which is cheaper for us and brings down our energy prices,” European Commission President Ursula von der Leyen told reporters on Friday.
“We will drill, baby, drill,” Trump said.
While Trump’s pledges to loosen energy regulations in the US are seen as a boost to the industry, it could increase oil supplies — a negative for prices.
For consumers, lower energy prices translate to lower pump prices and electricity bills.
However, it would also pressure energy company profits and, in turn, discourage more production — which is at record levels in the US.
But there could also be other moving parts in Trump’s second term, including potential sanctions on oil supplies from Iran, Venezuela, and Russia — all of which could tighten global supplies and support prices.