Amid all the discussion of Donald Trump’s infamous 2005 Access Hollywood tape, audience members actually did ask the candidates some policy questions at Sunday’s debate.
One voter specifically asked Hillary Clinton and Donald Trump what each would do to bring back American energy jobs.
Here’s a look at what the candidates said (and didn’t say) about energy policy at the debate.
Donald Trump: Make the Coal Industry Great Again
When Donald Trump responded to the debate question, he focused primarily on the role coal and natural gas should play in the future of U.S. energy.
“There is a thing called clean coal. Coal will last for 1,000 years in this country. Now we have so many more things, including natural gas,” Trump noted.
At the same time, Trump acknowledged that alternate energy sources, such as wind and solar, should also play a big role. However, the policy Donald Trump outlines on his website clearly focuses on eliminating regulations on fossil fuels and making the most of the resources we have.
At the debate, Trump said that the Environmental Protection Agency (EPA) is responsible for the suffering in the U.S. energy industry. His top priority as president would be to remove restrictive regulations. These regulations include a moratorium on new coal leases on federal land and a regulation protecting streams from coal mining.
Hillary Clinton: Global Leadership Opportunity
Instead of focusing on lost fossil fuel jobs, Hillary Clinton wants to create new clean energy jobs.
“I support moving toward clean, renewable energy as quickly as we can, because I think we can be the 21st century clean energy superpower and create millions of new jobs and businesses,” Clinton said at the debate. She added that natural gas can serve as a relatively clean bridge fuel in the transition from fossil fuels to clean energy.
On her website, Hillary Clinton pledges that the U.S. can and will reach 140 GW of solar installations by 2020.
Axiom analyst Gordon Johnson is skeptical of the aggressive 140 GW goal, considering the U.S. currently has only around 24 GW of solar installations. However, he is bullish on solar stocks under a Clinton presidency. Trump, however, is an entirely different story.
“If he is elected, it will be a negative for our short-term positive solar thesis,” Johnson concluded.
Which Energy Stocks Will Win in November?
If Donald Trump is elected, it will be good news for coal stocks. Cloud Peak Energy Inc. (NYSE:CLD) is one of the few top U.S. coal stocks that hasn’t succumbed to bankruptcy. CLD stock is up 166% in 2016 thanks to surging coal prices. If Trump wins in November, CLD stock could see an even bigger bounce in 2017.
If Clinton is elected, First Solar, Inc. (NASDAQ:FSLR) will likely get a big boost. According to Standpoint Research, FSLR stock is not as risky as many other solar stocks. Standpoint also believes FSLR stock offers “superior value.” FSLR stock currently trades at a reasonable forward PE of only 15.9.
If you’re still undecided, natural gas stock EOG Resources Inc (NYSE:EOG) might be the best choice. Both candidates specifically discussed the role natural gas will play in the years ahead. Barclays recently named EOG stock its top natural gas investment idea. EOG stock offers both a valuation discount to natural gas peers and strong long-term growth projections.
The bottom line is that CLD stock is a vote for Donald Trump, and FSLR stock is a vote for Hillary Clinton. However, EOG stock could be the perfect bipartisan energy stock, no matter who wins the election.
As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities.
