by E.B. Tucker, International Man:

Donald Trump is flipping one of the most important U.S. industries on its head.

If you understand what’s happening, you can save your portfolio from huge losses in the coming years. You can even profit from this new trend.

I’m talking about the massive transformation happening in the oil industry right now.

Let me explain…

Trump Is Good for the Oil Business… but Bad for the Oil Price

Obama was just the opposite. He and the Environmental Protection Agency (EPA) barely let the ink dry on regulations before churning out the next batch. In fact, under Obama, the EPA created 3,900 regulations.

That and other factors meant U.S. crude oil traded for over $100 per barrel in four of Obama’s eight years running the country. In late 2014, the price started falling. Today, two and a half years later, a barrel costs $47.

There’s an old saying in the commodity business: “The cure for high prices is high prices.” It means that when the price of a commodity keeps rising, companies rush out looking for more. The profit incentive is sky-high.

Before long, fresh new supplies of the commodity hit the market. Eventually, too much supply hits the market. That’s when prices fall.

And that’s the case with oil today.

The supply of oil increased much faster than the demand for it. And it all happened during Obama’s time in office.

We’re likely to see less regulation for energy companies over the next four years—not more.

We’ll see the government pave the way for U.S. energy production instead of standing in its way.

All of That Means More Supply… and Lower Prices

Trump installed the former CEO of Exxon to run the State Department. He placed Rick Perry, the governor of Texas, as energy secretary. His EPA administrator has environmentalists seething. It’s obvious that Donald Trump’s agenda is good for U.S. energy producers and consumers.

Energy analytics firm Rystad agrees with our take. Recently it came out and said $35 per barrel is the new breakeven price for U.S. shale production (that means, even with low production prices, U.S. energy companies can profit handsomely). That’s down from $80 per barrel in 2013.

With oil trading at $47 today, producers have plenty of incentive to keep pumping. If energy companies can make money producing oil as cheap as $35 per barrel, the price isn’t going up anytime soon.

In fact, we bet the oil market will get flooded and stay that way for a few years.

Read More @ InternationalMan.com