The days of geopolitical premiums in the crude markets have faded as the world wide glut continues. As global declines are starting to set in, the geopolitical argument may becoming more relative again.
During a speech at Decker Auditorium in Fort Dodge, Iowa, Trump said he would go after ISIS-controlled oil fields and “bomb the s— out of ’em,” to loud applause.
“ISIS is making a tremendous amount of money because they have certain oil camps, certain areas of oil that they took away,” Trump said.
He continued: “They have some in Syria, some in Iraq. I would bomb the s— out of ’em. I would just bomb those suckers. That’s right. I’d blow up the pipes. … I’d blow up every single inch. There would be nothing left. And you know what, you’ll get Exxon to come in there and in two months, you ever see these guys, how good they are, the great oil companies? They’ll rebuild that sucker, brand new — it’ll be beautiful.”
An aggressive campaign like this will drive oil prices way up. Still waiting to see what his domestic energy program will be. Keystone pipeline plus improved industry metrics may be just of a few. The lack of investment is creating a future shortage again as declines set in over next couple years which combined with geopolitical tension or events will create a strong value proposition for the oil industry.
When asked about his strategy to defeat ISIS in Syria, Trump said the approach of fighting the terror group and the country’s President Bashar Assad simultaneously is “madness, and idiocy.”
“Our far bigger problem than Assad is ISIS, I’ve always felt that,” he said. “Assad is, you know I’m not saying Assad is a good man, ‘cause he’s not, but our far greater problem is not Assad, it’s ISIS.”
Watch Donald Trump’s follow up interview with CNN below.