Additionally, as you can see in the next chart, U.S. gasoline demand is forecast to drop significantly in the coming years. Updated Corporate Average Fuel Economy (CAFE) regulations that were put into effect under former President Obama will drive gasoline demand down as newer models of vehicles enter the market over the next several years.
As countries like China and India require more and more gasoline to fuel their ongoing transportation booms, we’ll need to make a greater move toward oil and gas exports. We expect the Trump administration to push for policies – like the potential “border-adjustment tax” – that punish imports and promote American exports. That could make crude oil imported from the Middle East and other locales more expensive. But exporters would likely receive a boost. Excess light sweet crude oil produced from shale formations would go up in value. And in turn, exporters would look to increase their shipments as quickly as tankage, pipeline, and port capacity would
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