Following President Barack Obama's reelection for a second term, some in the energy industry are expecting to face tougher restrictions as he continues to tackle climate change.
A Washington Post blog reported Obama's second term could have significant implications for energy and climate policy, and the bigger initiatives taken during the last four years are not likely to be repealed. This includes strict fuel economy standards on automobiles as well as regulations on coal-fired power plants.
According to Bloomberg, coal stocks in the United States took a hit after Obama was reelected Tuesday, November 6. Peabody Energy Corp. and Alpha Natural resources fell by 9.6 percent and 11 percent, respectively. Arch Coal Inc., Consol Energy Inc., James River Coal Co. and Walter Energy Inc. also reported declines.
An analyst told Bloomberg that many see another Obama term as a negative for the coal industry, as the Environmental Protection Agency increased its regulatory oversight on the industry under the president's first term.
The day of the election, the EPA approved a five-year permit for the last coal-fired power plant in Connecticut. The Bridgeport Harbor Generating Station has been in operation since 1961 and generates 529 megawatts of energy, enough to supply electricity to 530,000 homes.