Commodities market participants see Donald Trump’s victory in the U.S. presidential election as having a mixed impact, according to one CEO who says he is bullish on the outlook for liquified natural gas.
Bloomberg News reported Thursday that a Republican victory sets the stage for a shake up in U.S. energy and environmental policy, which will have impacts across things like oil production, offshore wind development and EV sales. Abaxx Technologies Founder and CEO Josh Crumb said in an interview with BNN Bloomberg Thursday that based on conversations with other market watchers, there are mixed sentiments on Trump’s return to the White House.
“I think at the overall macro level, certainly there’s a fear of escalation in tariffs and what that can do for trade wars,” he said.
“At the real trading level, I think the takeaway is really a lot of more of the same, we’ve already seen a lot of balkanization supply chains. And really, I think people are looking for Trump’s first 100 days and the executive orders to come out.”
Given the current backdrop, Crumb said he is bullish on liquified natural gas.
“The one thing that’s going to happen regardless of the tariffs is the U.S. has a lot of LNG to sell, and particularly in Asia, right now we’ve had some project delays but demand is actually quite soft but if you look out to 2030 we’re looking at probably another doubling of U.S. export capacity,” he said.
Crumb also highlighted that LNG Canada is scheduled to come online next year, contributing to the larger amount of supply that will soon be available.
“And particularly the U.S. is going to very much… need to be in sales mode of growing those markets. So, I think that is one area that we’re going to see likely a lever in some of the negotiations because there’s a lot of gas to sell,” he said.
He added that there is still a large investment cycle ahead for the global gas market.