The US election has ended and Donald Trump has won. Everybody was in shocked. Especially the media publications that have majorly predicted Hillary Clinton is the next president. From campaigns the golden haired president of United States 2016-2020 has shown his preference over fossil fuel, he is more heavy to support the non-renewable energy compared to Hillary Clinton.
He believed 75% of current US rules and regulation are limiting the extraction industry. He also promised that US energy should be free from international markets, yet at the same time he wants to import oil from another country.
Another take on extractive industries, Trump claimed that coal is dying largely because of cheap wind energy and natural gas, as well as falling demand from foreign. He did mention that coal can be more competitive and much cheaper if there is less regulation.
Then speaking of renewables energy sources, He said we would utilize it, but they are terrible. Such as Solar that took 30-years payback time and wind power that is uneconomical without subsidy.
However, from the tone and the way he talks there is indecisiveness toward policing of managing natural resources. This was during press conference and speech in North Dakota, May 2016.
Although it is still early we are cautious on how will the new President elected plan out and take action on the fossil fuel as well as the renewables.
Again still on the Donald Trump’s surprise victory. It fanned expectations in the energy industry that he would clear the path for new pipelines, end U.S. participation in global climate change pacts and undo environmental regulations to boost American coal mining. This could cause some setbacks on the global advancement of cleaner and environment friendly resources.
Fossil fuel energy resources companies seems enjoying Donald Trump winning moment. Which are ConocoPhillips, BP, Chevron and Exxon Mobil gain modest rise. While bankrupted coal company Peabody Energy skyrocketed over 47% within the day of election result.
Donald Trump’s surprise victory stirring expectations in the United States energy industry. He would do whatever it takes to clear the path for new pipelines, terminate U.S. participation in global climate change pacts and undo environmental regulations to boost American coal mining.
He viewed global warming, climate change as a “hoax”. He wants to scrap Obama’s Clean Power Plan, the signature effort to combat global warming. Resulting investors to buy more fossil fuels shares meanwhile renewable shares such as wind and solar firm prices are tumbling down. Solar industry, having a major decrease. SolarCity, Elon Musk solar company plunged nearly 6%. First solar down 3% and SunPower Corporation plummeted almost 15%.
Many Indonesian government officials already declared that it won’t have many affect or changes. KADIN (Indonesia Chamber of Commerce) have discussed with United States Chamber of Commerce, and they claimed the Republicans now controls from the Senate, the Parliament, and the President. The president’s policies will be supported.
Hence, what will happen next when he sits in the White House. We may not know yet. Will it affect US-Indonesia energy industry relation? Will he bring down the Oil price? Cut Saudi Oil imports to US? The question remains. Whatever policy taken hopefully it will bring something better to the industries not chaos.