President Donald Trump signed an executive order this morning that would re-open negotiations with the operators of the Keystone and Dakota Access oil pipelines. If the pipelines are approved and clear existing legal entanglements, it would be the first step toward removing, what Republicans see as, the more onerous energy policies put forth by former President Barack Obama.
On the news, shares of would-be Keystone operator TransCanada (TRP) were up +3.5% along with Dakota Access’s Energy Transfer Partners (ETP), up +3.5%.
“I think we’re seeing this today because Trump is trying to show quick action on a lot of his priorities,” says Hedgeye Potomac Senior Energy Policy analyst Joe McMonigle. “This is one of many things he can do on his own without Congress having to approve something so I think we’re seeing the fruits of that action today.”
McMonigle has long held the view that the Keystone and Dakota Access Pipelines would be among the “big winners in a Trump Administration” since both would “be approved early” on in the new President’s first term (see McMonigle’s top-3 “Trump Energy Policy Agenda” items below from an interview in early December).
In the video above, McMonigle explains the legal and administrative barriers that each pipeline deal still needs to clear. He also suggests why lifting regulations related to liquid natural gas exports and removing the Federal moratorium on coal leasing on Federal lands could be next on Trump’s agenda.
