Trump Win a Huge Boost For US Oil Sector; Hamm Says Energy Independence Now a Genuine Possibility

Big oil views the Trump victory as a major win for a sector

Despite the months of fear-mongering by analysts and media pundits who believed a Donald Trump presidency would send markets crashing and investors scurrying, Tuesday's election results caused U.S. financial markets to bounce back after a Brexit-style slide, with Brent and West Texas Intermediate settling up 31 cents at $46.35 and 29 cents at $45.27 respectively.

Additionally, shares of coal producer Peabody Energy skyrocketed more than 49 percent on Wednesday, on the strength of Trump's criticism during the presidential campaign that Hillary Clinton's renewable energy schemes would put miners out of business.

More importantly, big oil views the Trump victory as a major win for a sector bogged down by regulations and protocol. Allan Jeffers, spokesman for Exxon Mobile Corp., said, "We intend to work constructively with the president and his administration."

Marathon Petroleum Corp. said it looks forward to working with the Trump administration, as did ConocoPhillips; cumulatively, shares of companies focused primarily on U.S., shale patches such as Oasis Petroleum and Whiting Petroleum spiked about 5 percent.

Ron Ness, head of the North Dakota Petroleum Council trade group, remarked, "Trump is bullish on the economy; he's bullish on energy; he's got the wherewithal to make it all happen."

Amongst Trump's many promises to industry is the approval of the Keystone XL Pipeline and the elimination of the Environmental Protection Agency's Clean Water Rule, which is viewed in many circles as a not-too-thinly veiled attempt to regulate fracking; Scott Segal, co-head of the federal government relations practice at Bracewell LLP, summarized the sentiments of many of his colleagues by saying, "I believe this administration will rely heavily on corporate America to understand the issues."

The 24 hours since the Trump win has seen more excitement expressed about the energy sector than in the eight years under Barack Obama's rule: Christopher Helman, staff writer for Forbes, opined that "With control of the White House and Congress, President Obama's coal-killing Clean Power Plan is likely history; the EPA will be declawed; the U.S. will not ratify the Paris climate accord, and there will be no chance of a federal carbon tax or cap-and-trade regime."

It has been rumoured that Trump may even revoke the nuclear agreement with Iran: "If so, oil prices would presumably rise," said Commerzbank in a note.

To which billionaire oilman Harold Hamm, famous for recently remarking that the Organization of the Petroleum Exporting Countries has become irrelevant, added, "On day one, he will commence by undoing the onerous regulations placed on every industry in the past eight years; we can now look forward to a reliable supply of affordable energy."

He added, "America will thrive during a Donald Trump presidency; I can tell you now that we will be energy independent."

The underdog Republican winner also has a sharp eye on oil producers overseas: earlier this year he said that if he becomes president, he will strongly consider halting U.S. purchases from Saudi Arabia and other Arab allies who to date have been unwilling to send in group troops against ISIS.