Donald Trump has been declared the winner of the 2024 U.S. presidential election, defeating Kamala Harris. This victory, confirmed by the Associated Press, marks Trump's return to the White House, raising questions about the future of U.S. energy policy.
What Happened: Trump's presidency is anticipated to pivot U.S. energy policy back towards oil and gas production, Reuters reported on Wednesday. However, experts suggest this shift will not significantly hinder the ongoing growth of renewable energy. The Inflation Reduction Act, enacted during the Biden administration, offers substantial subsidies for solar and wind projects, making it challenging to repeal.
Carl Fleming from McDermott Will & Emery noted that while Trump's administration might slow progress by limiting federal budgets and offshore wind leasing, the momentum remains strong.
"You could see a new administration come in and they can very quickly begin to cut budgets or restrict budgets or restrict the freedom of agencies to do certain things that are tied to funding," he said.
"But I think that's a smaller subset of the larger renewables market that's really relying on those, so I don't think it would have a shocking effect."
Trump's allies, benefiting from clean energy investments, may resist drastic policy changes. Tony Dutzik from Frontier Group suggested Trump could favor fossil fuel extraction on public lands, potentially impacting offshore wind projects. Despite potential policy shifts, the U.S. is expected to maintain its status as a leading oil and gas producer.
Why It Matters: The 2024 election was a closely watched contest between Trump and Harris, with Trump emerging victorious. This victory comes amid a backdrop of cautious market sentiment, as investors remained wary ahead of Election Day.
The energy sector outperformed, with solar stocks rising, indicating strong investor confidence in renewables. Trump's previous administration prioritized fossil fuels, but the ongoing clean energy boom, bolstered by federal incentives, suggests that the transition to renewables is resilient. As lessons from 2016 indicate, Trump's policies may influence energy markets, but the momentum towards clean energy appears robust.
Price Action: On Wednesday, during pre-market hours, Benzinga Pro data revealed that energy ETFs were trading higher. Energy Select Sector SPDR Fund (NYSE:XLE) was up by 2.58%, Alerian MLP ETF (NYSE:AMLP) was trading 1.24% higher, and Vanguard Energy Index Fund ETF (NYSE:VDE) was moving up by 2.92%.
- Haley Tells Pennsylvania Voters To Put Emotion Aside And Rally Behind Trump
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Flickr
