Republican Donald Trump’s election as U.S. president promises relief for U.S. coal miners, a boost for American oil players and fresh uncertainty for Western energy companies’ plans to return to Iran, as he seeks to undo eight years of Obama administration energy policy.
Mr. Trump was often vague on specifics on energy policy but his aim was clear. He said he would pull back regulations that weighed on coal and petroleum sectors, end U.S. participation in global efforts to curb climate change and review a deal to lift sanctions on oil-rich Iran
Mr. Trump’s energy ideas are “basically the antithesis of the current administration’s,” said consultancy JBC Energy.His surprise election sent energy stocks down on Wednesday morning, as BP PLC fell 1.5% in London trading, while Royal Dutch Shell declined by 1% PLC. The FTSE 350 oil and gas index fell 1.2% in early trading.
Mr. Trump’s victory should be viewed as positive for U.S. oil companies, said Alexandre Andlauer, head of oil and gas at Alphavalue. The president-elect has promised to ease regulations, lift limits on mining and drilling on federal land and promote the construction of energy-related infrastructure such as controversial oil and gas pipelines.
“In relative terms, the oil and gas industry is a clear winner with the new president. Pipeline players and suppliers first, then all shale players, followed by the conventional ones” said Mr. Andlauer. “U.S. oil companies have a better future today than yesterday.”
For the rest of this article, click here: http://www.wsj.com/articles/oil-coal-seen-as-winners-with-trump-victory-1478693338