Barclays discusses Europe impact after Trump signs order declaring National Energy Emergency

Investing.com -- An Executive Order declaring a National Energy Emergency in the US has been signed by President Trump. According to Barclays (LON:BARC ), from a European analyst's viewpoint, it seems probable that there will be a rise in infrastructure investment, particularly in LNG, along with quicker permitting.

The Executive Order describes the current identification, leasing, development, production, transportation, refining, and generation capacity of energy and critical minerals in the United States as "far too inadequate" to cater to the needs of the country.

The order's definition of "energy" or "energy resources" encompasses crude oil , natural gas , lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals. Significantly, intermittent renewables are not mentioned outside of biofuels.

A sense of urgency is evident in the order, with sections such as the one on the Endangered Species Act Emergency Consultation Regulations requiring responses within 30 days of the order's date. This suggests that the administration is keen to expedite approvals for energy projects by cutting down on bureaucratic processes.

The order also hints that the EPA might consider issuing emergency fuel waivers to allow the year-round sale of E15 gasoline to address any temporary gasoline supply shortfalls nationwide. This could potentially increase demand for locally-produced ethanol.

It's worth noting that E15 is usually cheaper than E10 due to its higher ethanol content, as ethanol is less expensive than regular gasoline. However, questions remain about the fuel's seasonal performance and the availability of the necessary infrastructure.

The order also directs agencies to expedite the completion of authorized and appropriated energy, environmental, and natural resources infrastructure projects.

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Source: Investing.com