The U.S. oil and gas industry has seen a significant boom under the Biden administration, with major oil companies doubling their profits and energy shares skyrocketing by 117%. As we approach the upcoming U.S. presidential elections, the financial markets are closely monitoring how the industry might fare under different candidates.
During Biden’s tenure, the oil and gas industry flourished despite the government’s pro-renewables stance, thanks to key legislation like the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. The top 5 publicly traded oil companies experienced a 100% increase in profits, reaching $410 billion in just three years, due to the oil price rally triggered by geopolitical events.
Investors in the oil and gas sector have been handsomely rewarded, with energy shares jumping by 117% under Biden’s administration compared to a 49% decline under Trump. Analysts predict that a continuation of Biden’s policies under Harris would be favorable for the energy sector, while a potential second Trump presidency could lead to deregulation and increased production, potentially lowering oil prices.
Under Trump, renewables could face setbacks, leading to increased carbon emissions and delaying the peak fossil fuel demand. However, natural gas might benefit from these policies. It is crucial for investors to keep a close eye on the upcoming elections and how the energy sector might be impacted by the candidates’ policies.
In summary, the U.S. oil and gas industry has thrived under the Biden administration, but the future outlook remains uncertain as the elections approach. Understanding the potential impact of different policies on the energy sector is essential for investors to make informed decisions and navigate the market effectively.