Oil and gas producers poised to see multitude of benefits if Trump is elected
(WO) — Oil, gas and coal producers stand to gain from a Trump victory in myriad ways and could do even better if Republicans also win control of Congress. Clean-energy producers would benefit under Harris and Democrats, with offshore wind under particular threat if Trump is elected.
Trump has promised to reverse a Biden administration pause on new licenses needed to widely export liquefied natural gas. More than a dozen projects costing billions of dollars, including Venture Global LNG Inc.’s upcoming CP2 project in Louisiana, are waiting for permits. More export capacity would boost prices and sales volume for U.S. natural gas producers, the Energy Information Administration forecasts.
Likewise, Trump says he would “terminate” Biden regulations limiting CO2 emissions from coal- and gas-fired power plants, extending the life of more fossil fuel-burning plants. Biden’s measures to force oil and gas companies to spend more to limit climate-warming methane emissions are also vulnerable, and Trump would look to reduce overall regulatory burdens on energy companies, lowering their costs.
Trump is unlikely, however, to convince American oil producers to “drill, baby, drill” and significantly escalate production. U.S. oil output is already at a record high, and investors would resist entreaties to spend money to pump more at the expense of dividends and stock buybacks.
While the Biden administration has rushed to get funding from his signature climate law out the door, Trump is likely to try to curtail the reach of the law’s subsidies and tax credits by rewriting regulatory rules, said Kevin Book, managing director of the Washington consulting firm ClearView Energy Partners LLC.
The former president has been especially hostile to offshore wind power. Proposed projects risk having needed approvals denied, and even already-approved projects could face jeopardy.
