Well, it’s Monday friends, and if you thought energy policy was about to get boring, boy do I have some news for you. On Friday, our homeboy Presidenté threw a Molotov cocktail of fossil-fueled enthusiasm into the mix by signing an executive order to create the National Energy Dominance Council. The mission, you ask? Drill, export, and deregulate like there’s no friggin’ tomorrow.
(Source: Giphy)
And if that wasn’t enough to get the D.C. tree-huggers hyperventilating in their bags, Trump also greenlit a massive liquefied natural gas (LNG) export project in Louisiana—ordered the Interior Secretary to body bag Biden’s offshore drilling ban. Oh, and he pledged to resurrect a canceled natural gas pipeline from Pennsylvania to New York, claiming it’ll cut energy costs in the Northeast by 70% (bigly, if true). Which means if you listened closely over the weekend, you could practically hear every oil executive lining up at their local strip clubs for a “Honey I’m working late” party.
For more context, Trump's intention behind this move is due to the fact that he calls America’s energy reserves “liquid gold under our feet”---all while making it clear that the U.S. is about to start exporting fossil fuels like it’s the new crypto boom.
(Source: AP)
Meaning, the new National Energy Dominance Council is basically a red-tape-slashing task force designed to fast-track energy projects. Headed by Interior Secretary Doug Burgum, this council will have sweeping authority over permitting, production, distribution, and regulation—or, in Trump’s words, cutting out “totally unnecessary regulation.” Translation: If you’ve got an oil well, a pipeline, or a natural gas project, congratulations—your pockets just got fatter.
But, but, but… the big deal here is that LNG exports are open for business again. For those who are just catching up here, Sleepy Joe hit pause on the new LNG export approvals last year, citing environmental concerns. However, Trump just hit control-alt-delete on that decision, granting conditional approval for a 9.5-million-ton-per-year LNG facility in Louisiana. Energy Secretary Chris Wright summed it up nicely: “We’re unpausing the pause.” (Great branding, honestly.)
(Source: Giphy)
Naturally, this is yuuuuge for the natural gas industry, which has been salivating over the chance to sell more LNG to Europe and Asia—especially as Russia’s war in Ukraine keeps reshaping global energy markets. The biggest benefactor though is Commonwealth LNG, a.k.a. the company behind the Louisiana project, which now expects to reach a final investment decision by September and start exporting by 2029.
So in addition to this LNG reopening, and the fact that Trump is going in guns a blazin’ to reverse Biden's offshore drilling bottleneck, what's next? Well, simply put, expect a flood of new energy projects and a ton of political backlash. More specifically for investors, since this order took place on Friday, we could see Oil & Gas stocks pop this morning as the markets price in a friendlier regulatory environment and ramped-up exports.
(Source: Reuters)
Meaning, if you’re HODL’ing in the energy sector, you may just get the action you’ve been hoping for. On the other hand, if you’re in renewables? Well…good luck. In the end, Trump is making it clear that America’s resources are the most valuable in the world—and at the end of the day, whether you love him or hate him, it’s bound to benefit us in some way shape or form.
For now, keep an eye on the energy sector and place your bets accordingly, friends. As always, stay safe and stay frosty! Until next time…
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Stocks.News does not hold positions in companies mentioned in the article.
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