David Feldman

Three Things to Know in Energy This Week – 9/19/2016

Blog Post created by David Feldman Champion on Sep 19, 2016

1. Trump is scheduled to discuss energy in Pittsburgh.

With Western Pennsylvania and neighboring areas in Ohio and West Virginia becoming a center point in this election cycle, Donald Trump has announced he will be speaking at the annual Shale Insight conference in downtown Pittsburgh on Thursday. The event is expected to draw approximately 1,500 industry professionals, and focus on shared economic, environmental, and national security topics.  Hillary Clinton was also invited, but is unable to attend due to prior scheduling conflicts. 

To this point the Republican nominee has positioned himself as a strong supporter of the American energy industry, stating in his newly released economic policy proposal that he plans to “lift unnecessary restrictions on all sources of American energy.” While his proposal doesn’t spell out which restrictions he would lift, it did clarify his support of coal production, safe fracking, energy production in “appropriate areas”, and offshore energy production.  We will look to this speech to further clarify his policy and stance on variance energy related topics.


2. Energy Sector continues to lead the charge as Federal Reserve meeting looms.

Crude oil rebounded today helping to push the markets upward. The S&P 500 was up 0.52%, the Dow Jones Industrial Average increased 0.6%, and the Nasdaq improved 0.4%.  West Texas intermediate crude oil is up 2.1% to $43.92 a barrel.

It can be generally assumed that the boost in crude oil comes after Venezuelan President Nicolas Maduro said a deal between Organization of Petroleum-Exporting Countries and non-OPEC countries to curb output was “close”.

This is all coming before the upcoming Federal Reserve's September meeting. The Federal Open Market Committee (FOMC) will be meeting for two days (9/20 – 9/21), and is expected to hold press conference from Fed Chair Janet Yellen on Wednesday afternoon.

There is a variety of opinions regarding the outcomes of the meetings. Weak retail, industrial and inflation data for August have most thinking the Fed will err on the side of caution and hold rates flat. However, the markets are preparing themselves for the possibility of a rate increase – if not this week, perhaps by the end of the year. 


3. General Motors is moving to 100% renewable energy by 2050.

General Motors just declared they are setting out on an ambitious plan to power all of their global operations with 100% renewable energy within the next 35 years. This includes power for its 350 operations in 59 countries, and the energy will be generated from wind, sun and landfill gas.  GM Chairman and CEO Mary Barra stated, “This pursuit of renewable energy benefits our customers and communities through cleaner air while strengthening our business through lower and more stable energy costs.”