How a Donald Trump Presidency Could Affect Pipeline Stocks

President-elect Donald Trump ran on an America-first platform. As such, his vision when it comes to energy is that the country will become energy independent. That means unleashing the nation's vast shale resources to push out foreign oil supplies, especially from nations hostile to America's interest. To do so, America will need a lot more pipelines to move these supplies from resource basins to market centers, which suggests tremendous growth opportunities for pipeline stocks.

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The battleground

Over the past several years, it has become increasingly difficult for pipeline companies to build interstate oil and gas pipelines. TransCanada's (NYSE: TRP) Keystone XL became a major battleground after environmental activists fought to stop the pipeline. Their opposition stemmed from a belief that the pipeline could rupture and cause environmental damage as well as increase oil output from the Canadian oil sands, which would negatively impact the environment because that oil has a higher carbon footprint than conventional sources. Those opposed to the pipeline won that battle after President Obama rejected the TransCanada pipeline project late last year, ending a seven-year debate.

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