New Age of Oil: Exxon and Chevron Set to Flourish Under Trump’s Drill, Baby, Drill Plan

Major oil corporations like Exxon Mobil (XOM) and Chevron (CVX) may soon find themselves flourishing, as a new era of oil exploration, fondly dubbed ‘Drill, Baby, Drill’, is initiated under the leadership of the newly elected U.S. President, Donald Trump.

The day marked an important step forward as the U.S. Department of the Interior initiated a public consultation process for devising its upcoming five-year plan focused on offshore oil and gas leasing.

Anticipated in this blueprint are fresh drilling areas spread across the vast geographical swathes of the Arctic, Atlantic, and Pacific coasts, extending into the Gulf of America/Mexico.

The cold, resource-rich frontiers of Alaska might also come under consideration for further expansion of drilling activities.

Ever since asserting his leadership, and even during the numerous campaign rallies he led, Mr. Trump consistently championed the slogan ‘Drill, baby, drill’. This steadfast stance offers a beacon of reassurance for oil and gas companies.

However, this comes at the expense of those in the renewable energy sector, with Mr. Trump’s policies flicking the off-switch for its proponents.

In his most recent measures, President Trump has put a halt on all new permits for offshore wind farms and rolled back previously granted incentives fostering green energy.

As per a Reuters report, President Trump instructed various governmental departments to brainstorm avenues to elevate the production of oil and gas in the U.S., currently at unprecedentedly high levels. He contended that earlier regimes had unjustifiably restricted drilling efforts, purportedly to mitigate climate change.

The Department of the Interior reiterated that the drills planned for the forthcoming years in the Gulf area by the preceding administrative bodies would carry on as per their initial scheduling.

According to the department, the earnings derived from offshore leases comprise nearly 14% of the U.S. total crude oil yield.

This development could serve as an opportune moment for Exxon Mobil and Chevron, both of which have witnessed a slump in their stocks, down 10% and 6% respectively in the preceding half-year.