An American presidential election year always brings questions about how the election outcome will impact business. This is especially true for the oil and gas industry, as political interests often affect rules and regulations as well as foreign policy. 2020 has already been a unique year in terms of impacts on the oil and gas industry and the world at large due to the Coronavirus Pandemic. How will the outcome of the presidential election on November 3, 2020 impact the industry going forward?
Looking Ahead: How Will the Next President Likely Affect the Oil and Gas Industry?
Oil demand is up but is still not nearly where it was when compared with 2019 consumption. Many industry experts believe we won’t see demand as high as it was in 2019 until 2022 due to the long-reaching effects of the pandemic. How will the outcome of the 2020 United States Presidential election impact business?
A Decisive Donald Trump Win
A decisive win by President Donald Trump will likely be welcome by most in the business. Stacey Morris, director of research at index provider Alerian says of a Trump win that it would, “Lead to more of the same and be more friendly” to oil and gas. Morris went on to say that the president would likely continue to focus on “loosening regulations for the industry and expediting the permitting process for new infrastructure.” While the president may not be able to help improve global travel and decreased demand for oil, his policies have generally favorited the O&G industries.
A Decisive Joe Biden Win
If Joe Biden enjoys a decisive win, a Goldman Sachs analyst wrote, “Headwinds to oil and gas production would rise further,”. This is likely in response to many statements by the Biden campaign that suggest his administration would support regulations that would increase regulations and shale production costs. In the last debate, Biden even made statements that called into question his support of fracking which has many in the industry nervous about a Biden win.
A Contested Presidential Election
If the election result is close and either candidate contests the outcome, the industry may struggle. The O&G markets are notorious for responding to uncertainty. The stock market will likely see a loss if the outcome is unknown for several days. Only time will tell who wins and the impact the win will have on the O&G industry.
MSI is Happy to Provide Industry Insights and Information
2020 has been a unique year for the world and the O&G industry. The market is always changing and MSI enjoys providing our clients with industry insights. We hope you’ll continue to allow MSI Pipe Protection Technologies to position your company for success by protecting your assets even in the most uncertain times. Speak with one of our experts toll-free at 877-276-9208.