In this two-part video series, Rob Freedman discusses how a Trump administration could impact energy and infrastructure – industries at the center of the election discussion.
The Power Generation Mix
Taking an early look at how a Trump administration could affect the US energy sector shows that unless market forces change, the mix of power generation may very well stay similar to what it is today. Renewable energy is good business, and in particular, a bipartisan business. For oil and gas, the current economic reality could keep new drilling activity low as there is already a glut of supply brought on by the shale revolution and the OPEC nations’ past decisions to keep production at higher levels. While a Trump administration may tweak policy around oil and gas and an expansion of coal, the industry could still be more driven by macro-economic forces.
Infrastructure and Transportation
Trump’s initial statements on infrastructure, and the prevalent bipartisan view in favor of infrastructure improvement to spur job growth, could result in a significant increase in private investment opportunities in the sector – particularly public-private partnerships (or P3s). However, while it is unlikely to see government supplanting private investment in this area, whether that private investment will occur depends in part on the needs of state and local governments.