Oil and gas stocks surged on Tuesday following President Donald Trump’s announcement of a sweeping energy agenda at the onset of his second term.
Trump’s strategy focuses on maximizing domestic oil and gas production, a move that has already stirred global markets and ignited debate about its implications for the energy sector.
In a series of executive orders signed on his first day in office, Trump declared a national energy emergency, citing the nation’s “inadequate and intermittent energy supply.” He pledged to ramp up fossil fuel production, streamline permitting processes, and expedite the development of energy infrastructure.
The announcement caused an immediate ripple effect, boosting shares of major oil companies and energy service providers.
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Schlumberger, one of the world’s largest oilfield services firms, saw its stock rise by 1.7%, while pipeline operator Kinder Morgan gained 2.2%.
The nuclear energy sector also benefited, with companies like NuScale Power and Oklo Inc. recording gains of 10% and 12.4%, respectively, after Trump appointed Chris Wright as energy secretary. Wright vowed to expand nuclear energy and liquefied natural gas (LNG) production as pillars of the administration’s energy strategy.
Central to Trump’s agenda is the reversal of climate-focused policies enacted by the previous administration. He called for expanding oil drilling in coastal waters, revoking restrictions on LNG exports, and fast-tracking fossil fuel projects in Alaska.
While critics argue that Trump’s policies undermine global efforts to combat climate change, supporters applaud his commitment to energy independence and economic growth. “We will drill, baby, drill,” Trump proclaimed during his inaugural address, underscoring his administration’s focus on securing America’s energy future.
The surge in energy stocks reflects investor optimism about the administration’s pro-fossil fuel stance. However, with legal challenges and market conditions likely to influence the trajectory of these policies, the long-term impact on the energy sector remains uncertain.
