The energy sector witnessed notable gains on Tuesday following U.S. President Donald Trump’s announcement of an aggressive energy agenda as he commenced his second term in office.
Trump’s plan, which centers on maximizing domestic oil and gas production, has drawn praise from industry stakeholders while raising concerns among environmental advocates. Key elements of the agenda include declaring a national energy emergency, easing regulatory restrictions, and exiting an international climate change agreement.
The stock market reflected immediate investor confidence in the sector. Major players like Schlumberger and Kinder Morgan saw their shares rise by 1.7 per cent and 2.2 per cent, respectively. Nuclear energy stocks also surged, with Vistra gaining 4 per cent, NuScale Power soaring 10 per cent, and Oklo Inc., a nuclear startup backed by tech investor Sam Altman, climbing 12.4 per cent .
The appointment of Chris Wright as energy secretary further bolstered market optimism. Wright, a staunch advocate for nuclear power and liquefied natural gas (LNG), reiterated the administration’s focus on diversifying energy sources while ramping up production.
However, the announcement has sparked debate. Environmental groups criticized the rollback of climate agreements and regulatory measures, warning of long-term environmental consequences. Advocates for renewable energy expressed concerns about the administration’s apparent focus on fossil fuels at the expense of cleaner alternatives.
Trump, addressing a crowd during his inaugural speech, described the strategy as essential to securing America’s energy independence and reinforcing its global leadership in energy production. “We will drill, baby, dril,” he declared, signaling an era of expanded exploration and production.
