Q: Would you be able to provide some insight to why the tariffs are having such a dramatic impact on the Oil & Gas industry.
President is pushing for "drill-baby-drill" but the US and CDN segments are being negatively impacted?
Your great service is much appreciated. Ted.
President is pushing for "drill-baby-drill" but the US and CDN segments are being negatively impacted?
Your great service is much appreciated. Ted.
5i Research Answer:
We think it is a bit of a two-fold issue. On one hand, increased supply (more drilling) would bring oil prices down in theory. On the other hand, if some other policies lead to a recession or economic slowdown, this would mean less demand for oil (and lower prices). Then, if both were to happen in some sort of combination (increased supply and lower demand) that would also lead to lower oil prices.