What the Election Could Mean for Oil and Gas
By: So what will the election mean for two of the most important resources we have: oil and gas?
Here's the quick and dirty.
I like to look at crude oil and gasoline together, because the factors that determine price movements affect the two commodities more or less equally. And in terms of the election, the outcome could help settle three key issues: production on private versus government land, pipelines and refinery regulation.
(Read More: Election's Final Stretch: Will Market Get What It Wants?)
If President Barack Obama wins, we can expect more delays in the development of public lands for energy exploration (forget about private, that's not on the table in my opinion). The Keystone Pipeline would still be in question, and future pipelines and refineries would face more regulation.
A victory by challenger Mitt Romney might mean an expansion of private and public land production, mainly because fear of regulation will be lifted. Most importantly, the Keystone deal would be pushed through. But that will not be enough to stem the rise in energy prices.
(Read More: Obama, Romney Are Near Even.)
Bottom line: Whoever wins, oil and gas are likely going higher. The real question is at what rate? The world is growing, and there simply isn't enough capacity to satisfy global demand. But if Romney wins, prices at the pump won't rise as fast as his policies could lead to more production.
Either way, no matter who wins Tuesday, I'm buying crude and gas on the dips.
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