Following President Obama’s reelection, a number of fossil fuel stocks sold off based on the belief that Obama’s policies would prove harmful to the fossil fuel industry. But will the President manage to push through tough new regulations that raise the cost of production for fossil fuel companies?
Although President Obama often took an antagonistic position with respect to the fossil fuel industry during his first term, the industry actually fared pretty well. U.S. oil production and gas production were both sharply higher during President Obama’s first term, but coal production fell slightly.
To be clear, the production increases for oil and natural gas were not the result of President Obama’s energy policies. Rather, it was due to persistently high oil and gas prices during the latter part of the last decade, which led to record investments by oil and gas companies into the development of new projects.