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Last year was definitely tough for energy stocks. Of course, the main reason was the pandemic. But it’s important to keep in mind that there were other major energy-related problems as well in 2020. For instance, there was an oversupply of oil because of aggressive production from companies like U.S. shale producers. There were also ongoing disputes among members of the Organization of the Petroleum Exporting Countries (OPEC). Yet, despite all these problems, the traditional energy industry has been able to pull off a restructuring. The result? As the world economy begins to normalize, there will probably be a nice rebound in profits. It’s true that the incoming Joe Biden administration will take a tougher stance on the industry. However, this probably will not be too big of a factor. Mohammad Niamat Elahee, a professor in the Department of International Business at Quinnipiac University, notes: “Given Biden’s governance style and history of working across the aisle, it can be safely predicted that a Biden administration will not take any drastic actions that could disrupt the economy […] While Biden promised during his campaign to not allow new fracking on federal lands, his administration will not ban fracking and oil […]
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