Will Trump's Orders Revamp The U.S. Pipeline Industry?
Zacks Investment Research | Apr 09, 2019 10:48PM ET
In a bid to boost the U.S. oil and energy sector, President Trump is set to sign a couple of executive orders to fast-track oil and gas pipeline projects. Making good on his campaign promises, Trump is likely to overhaul some environmental permits to mitigate the roadblocks on energy infrastructural development and aid the energy companies to avoid unnecessary red tape.
Well, this is not the first time that Trump will be intervening by signing new orders to expedite the pipeline projects in the United States. He did sign executive orders in 2017, just a few days after he took upon his new administration, for smoothing the track for Keystone XL and Energy Transfer’s (NYSE:ET) Dakota Access Pipeline.
Clean Water Act Reform in the Cards?
Environmental protests and state authorities’ attempts to block energy infrastructure projects have induced intervention by Trump, who is planning to roll out orders to trim regulations and speed up interstate pipeline construction.
It is most likely that Trump will direct Environmental Protection Agency to reform the Clean Water Act, under which energy companies are supposed to obtain state approvals for the construction of pipeline projects that are green lit by the federal government. Trump’s orders will be aimed at streamlining sanctioning procedures and limiting the state’s involvement in Clean Water Act permits.
Notably, the long-stalled Constitution Pipeline project—which is jointly owned by Williams Companies (NYSE:WMB) , Cabot Oil and Gas (NYSE:COG) , Duke Energy Corporation (NYSE:DUK) and Atlas Gas —has been denied a water permit by the New York state regulators, crushing the hopes of the companies to bring the pipeline online by 2019. While Cabot sports a Zacks Rank #1 (Strong Buy), both Williams Companies and Duke Energy carry a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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