BNO - President Biden Follows Through On His Promise (Implications On Energy Markets Going Forward)

• President Biden is following through on his promises of axing Keystone XL and a 60-day moratorium on oil and gas leases/permits on federal lands, minerals, and waters.
• Goldman notes following the actions that the longer-term implications are bullish for the energy markets. Shale names that are most impacted are EOG, DVN, XEC, COP, OXY, and MUR.
• Our take is that the moratorium has no bearing on near-term supply and demand, but it will play a profound impact on the way producers think about capex spending.
• Platts estimated that this impacts long-term US shale oil production by ~1.1 mb/d and ~4 Bcf/d of gas.
• Given these anti-energy policies, we are likely headed for a major supply crisis on the horizon.

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