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How Could Hillary Clinton Impact the US Energy Market?

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Nov. 20 2020, Updated 4:38 p.m. ET

Hillary Clinton and the Democratic party 

Hillary Clinton belongs to the Democratic party. Under President Barack Obama and other Democratic presidents, US crude oil production hit new highs. US stock markets performed better during Democratic presidents’ tenure. To learn more, read Part 1 and Part 2 of this series.

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Hillary Clinton and the energy policy

  • Hillary Clinton plans to generate 50% of the US electricity from renewable energy sources like solar, wind, and hydroelectricity.
  • She might cut all of the subsidies for crude oil and natural gas industries and invest in renewable energy sources.
  • She supports changes in safeguard policies and standardization in fracking.
  • Hillary Clinton is against the Keystone pipeline project.
  • She supports US natural gas production because it’s a clean source of energy. 

Impact on US crude oil, natural gas, stocks and ETFs 

Hillary Clinton’s energy proposal implementation might slow down US crude oil production activity. It would be bullish for US crude oil prices (XLE) (XOP) (USO) (UCO). Volatility in crude oil prices impacts oil producers like Chevron (CVX), ExxonMobil (XOM), Comstock Resources (CRK), SM Energy (SM), and W&T Offshore (WTI).

She also supports cleaner energy sources like natural gas. The rise in US natural gas production will have a negative impact on US natural gas prices. Volatility in US natural gas (UNG) (BOIL) (UGAZ) (FCG) prices impacts crude oil and natural gas producers such as Gulfport Energy (GPOR), Southwestern Energy (SWN), and Memorial Resource Development (MRD).

Crude oil and natural gas prices also impact ETFs such as the VelocityShares 3x Inverse Crude Oil ETN (DWTI), the iShares US Oil Equipment & Services (IEZ), the PowerShares DB Crude Oil Double Short ETN (DTO), the Guggenheim S&P 500 Equal Weight Energy ETF (RYE), the Direxion Daily Energy Bear 3x ETF (ERY), the SPDR S&P Oil & Gas Equipment & Services ETF (XES), the ProShares Ultra Bloomberg Crude Oil (UCO), and the Vanguard Energy ETF (VDE).

In the next part of this series, we’ll discuss how Donald Trump could impact the crude oil and natural gas market.

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