Fracking or No Fracking? Kamala's Stance Leaves Energy Investors Uneasy
During the 2024 campaign trail, Democratic presidential candidate Kamala Harris made a point to clearly state she would not ban fracking if elected. "As president, I will not ban fracking," she told CNN's Dana Bash. This stance provided reassurance to energy investors who have witnessed years of robust U.S. oil and gas production thanks largely to the fracking revolution. However, Harris had stated the opposite position in 2019 when running for the Democratic nomination, saying at the time that she would "absolutely ban" fracking.
Political watchdogs are now sounding the alarm that Harris's pro-fracking position for 2024 could be simply campaign rhetoric. If she reverses course as president and pursues severe restrictions on fracking, it could tank energy investments across the board.
Sponsor
Elon Musk: America to run out of energy by 2025? Full Story >>
Fracking Feeds U.S. Energy Boom
The importance of fracking to the U.S. energy industry cannot be overstated. Hydraulic fracturing has unlocked vast oil and gas reserves trapped in shale formations across the country. Fracking now accounts for over half of U.S. crude oil production and two-thirds of natural gas output.
This fracking-driven energy renaissance has transformed the U.S. into a global energy exporter rather than relying on foreign imports. It has boosted energy investment, job growth, manufacturing competitiveness and even national security interests.
Anti-Fracking Policies Would Disrupt Markets
If President Harris goes back on her word and makes fracking "much harder to do" through aggressive new regulations or outright bans, it would reverberate through energy markets.
Reduced oil and gas output would shrink domestic supply, driving up prices for gasoline, diesel, heating oil, natural gas and electricity. These higher energy costs would raise expenses for households, businesses and industries alike.
Further, investment in U.S. oil/gas exploration, production, pipelines and related infrastructure could dry up if fracking becomes unfeasible or is phased out over time. Energy companies would be forced to write down assets and investor capital could rapidly exit the sector.
On the other hand, some renewable energy investments could receive a boost if Harris doubles down on climate policies to rapidly transition away from fossil fuels. But overall economic impacts would likely be negative in the near-term.
Sponsor
Will this energy discovery swing the election? Watch Now >>
Energy Independence at Risk
Perhaps most concerning, aggressive anti-fracking policies that choke U.S. energy production could reverse America's hard-fought energy independence. With limited domestic supply, the U.S. would be forced to rely more heavily on foreign imports of crude oil, natural gas, refined products and others.
This could renew geopolitical risks, exposure to global supply shocks, and siphon dollars away to energy-producing nations instead of recirculating that cash through the U.S. economy. Energy security would be undermined after two decades of growth in the domestic sector.
For these reasons, energy investors will be watching the Harris administration's fracking policies very closely. A flip-flop from her campaign stance could destabilize multiple segments of the energy industry and markets. Investments predicated on the U.S. fracking boom could be particularly vulnerable in a policy reversal scenario.
YOU NEED TO READ THIS NEXT
Will this strange discovery decide the 2024 election?
Energy is life…
And this year, it could also decide the 2024 election.
Hidden in America's forgotten towns, a groundbreaking energy discovery is emerging.
And it could shape the next four years of American life more than the border, tax cuts or gender politics.
This urgent new documentary reveals how this new tech could solve America’s energy crisis, with details on the one company with a virtual monopoly on it.