Trump's Big Energy Speech Could Clarify His Approach To OPEC
Presumptive Republican presidential nominee Donald Trump is expected to clarify his energy platform in a major speech on Thursday at the Williston Basin Petroleum Conference in North Dakota, Reuters reported. Trump has taken a very nationalistic approach to trade policy in campaign speeches, threatening to impose tariffs on foreign manufacturing, which would put extreme pressure on the economies of Mexico, China and other U.S. trade partners.
Trump On Energy
According to two energy advisors for the Trump campaign, Trump could choose to take a similarly nationalistic approach to OPEC.
“We have to look at the global playing field and see which of our partners — OPEC, Iran, Russia — are playing fair in the global marketplace,” Trump advisor Congressman Kevin Cramer explained.
In the past, Trump has suggested that the United States discontinue purchasing Saudi oil unless the country contributes troops to help fight Islamic militants in Syria and Iran.
Trump’s Thursday speech could provide some critical insight for voters and investors about the specifics of his energy policies. Trump has previously stated that he believes global warming is a hoax, he intends to renegotiate the UN global climate accord and he pledges to revive the U.S. coal industry, but he has given very few details about his policy approach.
Cramer Advised Trump To Be Critical Of OPEC
Cramer said he has advised Trump to criticize OPEC in his speech for its role in the oil crash. He also suggested Trump consider easing energy regulations and streamlining the corporate tax code to give the U.S. energy sector a shot in the arm.
Investors will have to wait until Thursday to see whether Trump will adopt those suggestions.
So far this year, the WisdomTree Coal Fund (NYSE: TONS) is up 13.1 percent, the United States Oil Fund LP (ETF) (NYSE: USO) is up 8.2 percent and the PowerShares WilderHill Clean Energy (ETF) (NYSE: PBW) is down 18.1 percent.
Disclosure: The author holds no position in the stocks mentioned.
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