The Obama backlash in coal and energy stocks

President Obama’s re-election win sparked a sharp sell-off in coal, gas and oil stocks Wednesday.

During the presidential campaign, Republican challenger Mitt Romney said Obama had waged a war on the coal industry during his first term. The reality is more nuanced. Coal production has dropped swiftly, but that’s due to a mix of factors, including a U.S. natural gas boom that’s made gas a compelling energy alternative. The recession has also dampened demand.

The coal industry will see more regulations take effect in 2015, but many of those rules were written before Obama took office. A second Obama term will likely make coal exploration and combustion more expensive over the next four years, as experts expects he will be even tougher on the coal industry.

Investors had been holding out hope that a Romney win would be a boon for the industry, since many felt he would try to find a way to untangle some of those regulations.

“Romney was quite clear about the need for coal use and coal exploration, while Obama is viewed as more friendly toward environmental regulations,” said Dan Greenhaus, chief global strategist of BTIG.

Read more at CNN Money. By Maureen Farrell.

Comments

  1. 4 more years of this and we will be in a depression not a recession.special interests have bought the country.the EPA is a monster without any controls or over sight.I drive by several coal fired powerplants every day,they have spent millions of dollars on scrubbers to clean their exhaust and it works.the air is clean ,the operation is clean but our electricity is costing more and more,thank you Obama and the EPA.the jobs being lost cause ripples in the economy,miners lose their jobs,trucks haul less,there is less money in the publics hands.for every mining job lost 5 others lose their job too.power runs the economy and this country.

  2. And I suppose to feel sorry for OHIO. Didn't they vote odumbo in office? Live with it now. It's good for you. The only bad thing about this is you idiots are forcing the rest of America to live by your liberal votes.

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