SCO short ETF on tomorrow's watchlist on Biden killing oil industry?
- Thread starter KCalhoun
- Start date
Didn’t watch the debate, but announcing to your opponent your strategy of your plans to kill them isn’t exactly the strategy acme of a Sun Tzu general.
Possibly his statement may more likely help mark the bottom for the energy sector akin to “Death of Equities” magazine covers.
Possibly his statement may more likely help mark the bottom for the energy sector akin to “Death of Equities” magazine covers.
Everybody knows 90-percent of the campaign promises the scumbag politicos make, never materialize. It is all in the markets already. Plus the sector is beaten up so badly. I say we rally then take profits for it is Miller time, (Friday)
Just remember where you'd be if you bought coal companies based on Trump's promises to bring back coal in 2016...11 bankruptcies and counting.
And just to clarify, I was referring to the bankruptcies of coal companies, not the bankruptcies of the companies Trump ran into the ground.
Biden said that the transition would be gradual, and that he wanted to move to net-zero emissions in energy production by 2035. With or without Biden, most of the oil industry will go the way of the coal industry by 2035. Natural gas, which is much cleaner, should stick around much longer.
If he "kills fracking", that's when you go long crude and oil companies, because oil will go back above $100/bbl. Fracking is the only reason we've been able to become a net exporter.
Except he's very specifically said he doesn't intend to "kill fracking" and all of his plans are about eliminating demand for oil by replacing it rather than banning it. Which, back to basic econ class, leads to an oversupply and a crash in prices. At the end of the day it still "kills oil" it just does it in the opposite way you're thinking and with the corresponding opposite impact on oil prices and the fortunes of oil companies who don't see the writing on the wall and diversify to become energy companies instead of oil companies.