Hours after Republican presidential candidate Donald Trump sealed his victory, energy industry watchers are wondering what a Trump presidency will look like for the oil and gas sector.
During his campaign, Trump promised to prioritize domestic energy production and rebuff attempts to strengthen environmental protection laws.
In an energy policy speech delivered in May, Trump promised to lift moratoriums on energy production in federal areas, cancel the Paris Climate Agreement and stop all payments of U.S. tax dollars to U.N. global warming programs within his first 100 days in office.
North Dakota Representative Kevin Cramer, a Republican and top Trump energy adviser, told S&P Global Platts that more access to oil plays will provide a “diversity of opportunities for producers.”
Analysts told S&P Global Platts that it is “impossible to determine” how large of an impact Trump’s administration may have on domestic oil and gas supply due to a number of factors, especially commodity prices.
Trump has also said he would either dismantle or dramatically overhaul the Environmental Protection Agency and has called science on climate change into question.
Cramer also told S&P Global Platts that Trump believes the EPA needs to focus on its core mission of protecting clean water and clean air and be given less leeway in how the agency interprets legislation.
During the second presidential debate in October, Trump said the EPA “is so restrictive that they are putting our energy companies out of business.”
“And all you have to do is go to a great place like West Virginia or places like Ohio which is phenomenal or places like Pennsylvania and you see what they are doing to the people, miners and others in the energy business. It’s a disgrace,” Trump said during the debate.
Trump has also said that he will support investment and growth in the infrastructure and transportation sector.
According to S&P Global Platts, Trump has said he would take advantage of low-interest rates and “at least double” what Democratic contender Hilary Clinton planned on spending on energy infrastructure.
In his energy policy speech earlier this year, Trump said he would ask TransCanada to renew its permit application for Keystone XL pipeline, but he believes that the United States should be compensated for the project.
Head of oil and gas at Alphavalue Alexandre Andlauer told the Wall Street Journal Trump’s victory is likely to be a win for the energy sector.
During his campaign, Trump was a vocal critic of a deal reached by the Obama administration to lift sanctions on Iran and allow foreign firms to invest in energy development.
An unnamed executive at a European energy firm told the Wall Street Journal that the energy sector is take a “wait-and-see” approach on the future of energy development in Iran.
In a note from energy consultancy firm JBC Energy seen by the Wall Street Journal, the Trump administration is likely to be “the antithesis of the current administration’s.”