What Could Change in Energy After Trump's Win?

Here's a balanced analysis of potential changes in the energy landscape following the election (written as of April 2024):

Oil & Gas Sector:

• Anticipated deregulation of drilling operations and expanded access to drilling sites

• Natural gas positioned favorably, particularly in power generation

• Potential market pressure if Russian energy returns to global markets

• LNG exports likely to see increased support

Electricity & Renewables:

• Electric vehicle growth could face headwinds despite Musk relationship

• Power generation likely to shift back toward traditional fuels

• Renewable energy sector faces multiple challenges:

  • Potential reduction in federal incentives

  • Increased equipment costs due to tariff policies

  • However, growing demand for grid resilience could provide opportunities

Nuclear Sector:

• Competitive challenges likely due to:

  • Cost advantages of natural gas and coal alternatives

  • Tariff impact on international supply chain for Small Modular Reactors (SMRs)

Financial Implications:

• Tariff policies may drive inflationary pressures

• Corporate tax reductions could benefit major energy corporations

• Market response indicates:

  • Broad market: Positive outlook

  • Oil sector: Modest upside

  • Utilities: Slight negative pressure

  • Clean energy: Significant downside risk