America’s president-elect is set to introduce a series of new energy-focused policies, rolling back regulatory red tape introduced by the Biden administration. Energy stocks, including a handful of drilling and exploration companies, rallied on the stock market following Trump's victory on November 5.
Trump's plans will mean rolling back climate-focused efforts, including those under the Inflation Reduction Act (IRA), removing exportation restrictions for liquefied natural gas (LNG), bolstering exploration on federal land, and increasing off-shore production. The new policy package would form part of Trump's "drill baby drill" campaign while emphasizing domestic production and exportation of non-renewables.
By aligning key promises made during his campaign, Trump's fossil fuel agenda could help ignite the energy sector following years of conservative performance. The last couple of years have seen investors turning cold on the energy sector and instead focus more on high-yielding tech stocks.
