What does a President Trump mean for the energy sector
Posted: Mon Nov 14, 2016 3:18 pm
Raymond James new Energy Industry Brief focuses on what Trump may do for the energy sector. Below is the conclusion. If you would like the full report, send me an e-mail ( dmsteffens@comcast.net ). After reading it, my take is that the big near-term winners are the frac sand companies. - Dan
As the embers of the Trump protest fires die down, it is time to dig deeper into the implications of a Trump presidency on the various
energy subsectors. In our view, the clear winners include the following: 1) the U.S. economy – more jobs and economic growth; 2) U.S.
consumers – lower long-term energy prices for U.S. auto drivers and energy-intensive industries; 3) U.S. E&P companies – more access,
lower costs and more growth; 4) U.S. oilfield service companies – no fracking ban and more activity; 5) U.S. refiners – streamlined
regulations and lower costs (e.g., RINs); 6) U.S. midstream companies – fewer regulatory pipeline impediments; and 7) U.S. coal –
carbon regulation at the federal level is off the table. For U.S. renewable power companies, risks to existing policies are overblown, but
the EPA’s Clean Power Plan will not be implemented nationwide, likely slowing the long-term growth curve.
As the embers of the Trump protest fires die down, it is time to dig deeper into the implications of a Trump presidency on the various
energy subsectors. In our view, the clear winners include the following: 1) the U.S. economy – more jobs and economic growth; 2) U.S.
consumers – lower long-term energy prices for U.S. auto drivers and energy-intensive industries; 3) U.S. E&P companies – more access,
lower costs and more growth; 4) U.S. oilfield service companies – no fracking ban and more activity; 5) U.S. refiners – streamlined
regulations and lower costs (e.g., RINs); 6) U.S. midstream companies – fewer regulatory pipeline impediments; and 7) U.S. coal –
carbon regulation at the federal level is off the table. For U.S. renewable power companies, risks to existing policies are overblown, but
the EPA’s Clean Power Plan will not be implemented nationwide, likely slowing the long-term growth curve.