Does Donald Trump's plan to drill more oil make sense?

01-Jun-2016

Donald Trump wants to help the slumping oil and gas industry by cutting regulation and encouraging a lot more drilling. He even promised to "save" the coal industry.

Trump laid out his vision in a speech last week, saying "America's incredible energy potential remains untapped" -- a problem that is "totally self-inflicted."

But Trump's energy plan could actually speed coal's demise, not rescue it. And it could deepen the financial stress in the oil and gas industry, already reeling with bankruptcies from a dramatic decline in prices.

Many oil and gas companies can't afford to drill anymore without losing money. They've cut back on new drilling projects -- not because of regulation but because of a glut caused by massive amounts of new supply from the U.S. shale revolution.

So it's hard to see how his proposals would be a cure-all for the industry. (by Matt Egan, @mattmegan5, CNN News)


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