Energy

We need a stronger energy policy, commodities researcher Jeff Currie says

Currie: We do need strong energy policy
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Currie: We do need strong energy policy

Commodities researcher Jeff Currie told CNBC on Tuesday Donald Trump's administration needs to produce a stronger energy policy.

Currie, head of commodities research at Goldman Sachs, explained on "Power Lunch" that the policy should focus on producing natural gas.

"If you actually have a commitment behind the ability to produce gas, then you'll see the investment on the downstream or demand side to actually consume the gas," he said. "Without that commitment behind shale gas, you don't get that commitment for the consumption."

Currie said he isn't concerned about oil production rising under a Trump administration despite the president-elect intending to pick oil-man Rex Tillerson as secretary of state and Rick Perry as Energy secretary. Currie said the secretary of state for one will be focused on more broader goals. Instead, he said, the administration will champion gas.

"One of the key reasons we would argue that is if you see the Trump administration back away from climate agreements, back away from renewables, from a cost perspective, natural gas wins against all other fuels," he said. "If you think about what the shale revolution really generated, it generated enormous reserves of gas."

Currie added that in the new year the perfect price for oil might sit between $50 to $55. He explained OPEC's deal to slash crude production will ease higher inventory levels that were once weighing on the market.

"Now that we are able to see a deficit in sight, markets are trading close back up to that $55," he said.