With the world still up in arms over Donald Trump winning the United States election, more than ever, it’s time to understand where are the next, great energy investments under an entirely different energy philosophy. US Presidents make a difference, and with a stroke of a pen, President-elect Trump could usher in a new era of for fossil fuels while making it more difficult for renewable energy to thrive.
Forecasting what Trump will and won’t do is going to make energy investing
EPA restrictions on coal will be rolled back and could even be sacked altogether, along with the emission-restrictive Clean Power Plan. It is not a question of if, but rather when these Obama-era regulations will be negated, with solar and wind power sure to have a
President Obama led the world in promoting alternative energy sources such as wind and solar, and while both have grown, neither is ready to make the leap away from taxpayer largess to support their industries. Lucrative financial incentives are the linchpin for renewables to continue their growth, and without Trump wholeheartedly supporting continued tax dollars going their way, it is difficult to see a future where renewables grow at a sustainable rate,
If Trump puts pro-fossil fuel, anti-climate change officials in charge of the EPA, and U.S. Department of Interior, which seems
Renewables will keep
While Trump’s approach to energy is vexing and now possibly misleading with his new interpretation of climate change, it still doesn’t change the fact that he will usher in one of the most deregulated eras for U.S. oil and gas in decades. Wind and solar, like electric vehicles, don’t have a chance at real growth unless government subsidies worldwide continue; even
Further, no one truly knows what will happen if the Trump administration halts or severely curtails research and development for wind and solar. The questionable long-term viability for wind, solar, and biofuels without solid taxpayer and governmental assistance may mean that renewables will have a tough time building investor confidence.
There are still factors against renewables fizzling out in the U.S. and around the world. It can’t be stated enough that, according to the
New U.S. shale discoveries recently announced by the United States Geological Survey (USGS) as the largest technically recoverable
The final reason to cautiously invest in renewables is the
Donald Trump’s election will affect all sectors of the global economy, but nothing like the oil and gas sector. Depending on how it’s measured, the United States has the world’s largest reserves of oil and natural gas, only rivaled by Saudi Arabia, Russia and Venezuela. And while all three countries desperately want to continue exploration, neither country can match the U.S. in terms of technology, drilling expertise, and infrastructure to bring their reserves to the market.
Moreover, the U.S.
Depending on how you
By Todd Royal for Oilprice.com
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