Earlier this year, MLPs strengthened after President Trump took steps to advance the Keystone XL and Dakota Access pipelines, revealing the new administrations looser constraints on the oil industry, Bloomberg reports.
The shift in policy on U.S. energy pipelines is a major departure from the Obama administration, which previously rejected TransCanada Corp.’s Keystone Proposal in 2015 and kept the Dakota Access blocked since September. The policy change will be a boon for the oil industry, allowing companies to expand infrastructure and ease transportation bottlenecks.
“If you’re looking for income and believe oil isn’t set for another major decline, and that we’re still in the middle of a market recovery for oil and MLPs, then this is a good time to consider the Alerian MLP ETF. If you buy the ETF, you will have to be patient, but you can take solace in the fact that you will receive high income. If your objective is steady long-term growth, then this type of investment is not for you,” according to MarketWatch.
For more information on master limited partnerships, visit our MLPs category.