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Clearview Energy Partners managing director of research Kevin Book on how four more years of Obama will impact the energy industry.
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Yeah a -- -- the sell -- today energy sector is among the biggest declining sectors coal stocks in particular obviously Romney was -- -- of the industry.
Check that out Peabody Energy consul energy alpha natural all -- being weight lower you've got Arch Coal Walter energy.
Down almost double digits Arch -- for sure off 13% so what is four more years of President Obama mean specifically for the coal industry joining us.
Kevin book managing director of research at clear view energy partners thank you so much for joining us.
-- -- right that Ronnie didn't pick up coal states like Ohio Virginia Pennsylvania.
Well it suggests that what was going on in those -- wasn't about energy those states are big coal producers.
The one that's been the most adversely affected by the Obama administration's policy has been West Virginia.
Romney did winning and if you look at the history Democrats there there's probably some sentiment that came across because of opposition to Obama's policies sort of -- -- -- -- industry now.
Boy you know -- the problem with the -- district right now is that they're getting hit on the supply and the demand side.
On the supply side you've had a direct impact of the mine mouth eastern -- particularly have faced higher costs from regulation from EPA now that's not going away.
But on the west coaster of a different problem and then that's we've seen it in some of those numbers.
The future -- that western coal market is really exports to Asia.
150 million -- year westbound export capacity is depend on two things local regulation but also federal support.
The Obama administration four more years that means that could be slow down a lot.
And how the rise of the natural gas industry an interest in fracking and -- the explosion of this industry impacting call.
Well it's at a big impact on the demand side but I would I would caution here a little bit of that the changes that you get from regulation.
Have mostly happened already because of price sensitivity on the part of generators there's about four billion cubic feet a day of gas is being used down the power sector.
I have about five that would be used if you turn off all the coal plants you're gonna turn off -- 2016.
So we're about 80% of the -- -- that switch OK so given the steep declines today do you see any buying opportunities which -- stocks are healthiest.
Well we don't pick stocks that are firm but I would say that as a sector it's also not the sector you'd want to pick.
I you've -- global economic headwinds he got significant exposure on both the western and the eastern.
Probably best to stay away from coal stocks for a little while.
Our thoughts -- -- I have little extra time here with you Kevin the overall energy policy you're going forward.
Well perhaps under appreciate -- the fact that -- administrative effort and a regulatory effort that's been largely on hold.
EPA is coming out of its cage for the first two years of the administration especially he expects the a lot of actors and then after -- never to move ahead.
The greenhouse gas regulations of existing coal fired power plants an effort to move ahead with regulating potentially refineries greenhouse gas emissions regular so.
If you're actually looking at a resumption of the 2009 agenda I don't think a lot of people expect that because of course the administration has been selling senator.
Centrist positions try to get reelected.
Kevin book with clear view energy partners not a stock picker but played nonetheless they.
