If Joe Biden wins the presidency, it would invariably affect energy companies. It’s conventional wisdom that a Biden administration would be tougher on oil-and-gas companies than the Trump administration.
J.P. Morgan found that a Biden victory would likely have a mixed impact on energy, benefiting certain oil and gas stocks while hurting others. Indeed, energy companies have been able to expand under Democratic presidents too. Oil-and-gas companies vastly increased their production during the Obama administration, for instance, even though Obama’s policies sometimes limited their drilling activities.
“While Biden’s platform is not focused on banning hydraulic fracturing, his administration would look to restrict new permits on federal lands and waters, while activity on state lands would not be impacted,” wrote J.P. Morgan analyst Arun Jayaram.