The energy industry could be one of the biggest benefactors of President-Elect Donald Trump’s election to the country’s highest office.
American trade deals, pipelines and the environment are all on the table for Trump. Energy analyst Barbara Shook believes even if Trump delivers on his promise to boost U.S. natural gas and coal production by rolling back regulations, growth here at home could take time.
“Companies aren’t going to dismantle factories they’ve build in Mexico,” Shook said. “It’s just not going to make any difference in the short term.”
Long term, Shook thinks brining energy companies back to the U.S. may come down to simple economics.
“People are not going to go out and drill just because the president says ‘drill baby drill,’” Shook said.
But already, Trump’s election has had an impact in the energy business. One Wednesday, Dallas-based, Energy Transfer Equity L.P. saw its stock jump 18 percent. That’s the company behind the hotly protested Dakota Access Pipeline; which Trump supports but has been stalled by the Obama White House.
“The Trump administration may take a dead view to their actions and eliminate their actions and say ‘go build,’” Shook said.
During his campaign, Trump invited Transcanada Corporation to reapply for the Keystone XL Pipeline project previously rejected by the Obama administration.
“It (Keystone XL Pipeline) would have some positive impact on Houston because it would be exported through the Port of Houston,” Shook said.
To Shook, it’s worth noting the Keystone XL Pipeline largely benefits Canada, because that’s where the production would come from.
The Texas Alliance of Energy Producers congratulated President-Elect Trump on winning the election. In a release the company said, “The Alliance’s officers and staff look forward to working with the Trump Administration and the members of the U.S. Senate and House of Representatives to ensure that future regulations are based on good science and hard facts.”
(© 2017 KHOU)