Trump to declare national energy emergency, unlocking new powers

Published On Jan 19, 2025, 10:35 PM

President-elect Donald Trump is planning to declare a national energy emergency to boost domestic energy production and reverse the Biden administration's climate policies. This declaration will enable new oil and gas development on federal lands and rollback Biden-era regulations. Specifically, Trump intends to lift a moratorium on LNG exports and reduce strict vehicle pollution and fuel economy standards. These measures are part of his campaign promise to meet increasing energy demands, particularly due to advances in artificial intelligence.

Stock Forecasts

XOM

Positive

The potential for increased oil and gas exploration activities due to the easing of regulations under Trump's energy emergency could lead to a more favorable environment for energy stocks. Investors might look at companies that are positioned to benefit from expanded oil and gas production, including exploration and production firms. This proactive energy stance can positively influence associated companies in the midstream and downstream sectors as well.

ICLN

Negative

The rollback of regulatory restrictions on oil and gas may negatively impact renewable energy companies as federal support shifts towards fossil fuels. ETFs focused on clean energy could experience downward pressure as investor sentiment adjusts to the new policy direction favoring oil and gas development.

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