Will Harris Ban Fracking After All?
Promised No in 2024, But Said She Would in 2019. Potential Policy Reversal Could Disrupt Energy Markets
During her 2024 presidential campaign, Kamala Harris was clear - she would not ban fracking if elected. "As president, I will not ban fracking," Harris told CNN. This reassured energy investors who have benefited from the U.S. fracking boom driving record oil and gas production.
However, Harris sang a very different tune just a few years prior in 2019 when she stated outright, "There's no question I'm in favor of banning fracking." This apparent flip-flop on such a crucial industry issue has markets wondering - which stance will President Harris actually take?
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The Fracking Boom Fueling America
The implications of Harris' fracking policy could be huge for energy markets and investments. Hydraulic fracturing has unlocked vast oil and gas reserves trapped in shale rock, propelling the United States into a global energy leader.
Fracking now accounts for over half of U.S. crude oil production and two-thirds of natural gas output. This fracking-driven renaissance has transformed America into an energy exporter, boosted domestic investment, created jobs, lowered costs for consumers and businesses, and enhanced national security.
Anti-Fracking Policies Would Roil Markets
If President Harris reverses her recent campaign position and moves to restrict or phase out fracking through tight regulations, it could devastate investments across the oil and gas sector. Reduced domestic production would crush revenues and profits, likely forcing significant asset write-downs. An exodus of investor capital from the energy space could follow.
Higher production costs would also inevitably raise prices for gasoline, diesel, heating oil, natural gas and electricity - squeezing household budgets and hurting energy-intensive industries. Some renewable energy investments could get a boost, but the sudden loss of fossil fuels could leave widespread energy shortfalls before enough clean power comes online.
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Energy Independence At Risk
Perhaps most concerning, limiting fracking could reverse America's hard-won energy independence after two decades of growth in the domestic sector. With limited production, the U.S. would be forced to rely more heavily on foreign imports of crude oil, natural gas, and refined products once again.
This could renew geopolitical risks, exposure to global supply shocks, siphon cashflows away to producer nations, and ultimately undermine America's newly secured energy security and influence.
For these reasons, investors will be highly focused on the Harris administration's fracking policies and regulations once in office. Any major pivot from the stated position of allowing fracking could destabilize multiple energy industry segments, spark market volatility, and threaten investments tied to the U.S. fracking revolution.
With so much at stake, Harris' fracking stance - and whether she maintains it or reverts to her previous opposition - has the potential to be a major market mover in 2025 and beyond. Energy investors would be wise to pay close attention.
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