All eyes will be on US permitting reform, but the election results may be most striking at the state level for energy. Democrats' landslide midterm win is expected to ripple through the sector in the months ahead. Many Americans voted angry about energy prices, not just gasoline, which has surged during the Iran war, but also power costs pushed higher in part by the data center boom.
Green energy stocks rallied worldwide on expectations that Democratic control of the House and Senate will act as a brake on the Trump administration and its assault on renewables. The next key step is a Senate vote on permitting reform, a potentially consequential energy bill that aims to speed federal approval of projects ranging from pipelines to power lines. A first procedural vote is scheduled for Monday. Emboldened by the results, Democrats may seek to renegotiate the legislation, which could further delay a bill long sought by both fossil fuel and renewable lobbies.
At the state level, Georgia, a hub for the data center buildout, will see Democrats take control of the state's utility regulator for the first time in decades, driven by voter frustration over rising electricity bills. Texas followed a similar pattern. Gina Hinojosa ousted longtime Texas Governor Greg Abbott, accusing developers of "raising our utility rates and depleting our water." Citigroup Inc. analysts said her administration now has a mandate for strong protections, likely slowing approvals of the AI campuses that have flocked to the state.
Elsewhere, Brent crude fell below $100 a barrel for the first time since early October as Trump played down the prospect of Iran strikes. Democrat Jon Rosenthal also won a seat on the panel overseeing the $200 billion Texas oil industry, the first member of his party to do so in 36 years. Gold topped $4,000 an ounce on speculation the result could constrain Trump's fiscal agenda.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing