U.S. President Donald Trump has promised to boost the U.S. fossil fuel industry and create more jobs by opening more areas to drillers, but there will be little real impact on the market in the short term, an energy consultant said on Wednesday.
"Opening up the environmentally sensitive areas that Obama had closed could make a difference that could increase conventional fuel production by 1 million barrels per day (bpd) or more, but that would take five to seven years, so in the short-term, there's no impact," said FGE founder and chairman, Fereidun Fesharaki.
The shale industry is likely to see just marginal benefits from any tax relief passed by the Trump administration, he added. Talk has swirled about a possible border tax of as much as 20% on imports including crude, which if passed could lead to aid domestic producers over supplies from abroad.
As well, last week Trump signed executive orders advancing both the controversial Keystone XL Pipeline and the Dakota Access Pipeline, based on approvals. Additionally, he signed orders expediting environmental review and approval process for high-priority infrastructure projects.
The president's moves have sparked hopes and spurred expectations that a number of other oil and gas projects that were languishing will be resurrected.
"There's all sorts of good, positive news for the oil business but no real impact on oil production; certainly nothing in next year or two," Fesharaki added to CNBC's Squawk Box.