In January, on his first day back in the White House, US President Donald Trump signed an executive order declaring a national energy emergency. The move was followed by a directive that aimed to roll back regulations on the oil and gas sector, and accelerate drilling and pipeline development.
“We will drill, baby, drill,” Trump said in his inauguration speech, adding that the US has the “largest amount of oil and gas of any country on Earth — and we are going to use it.”
Yet some industry observers have speculated that energy prices and other market forces may deter energy companies from increasing drilling, noting that the US has been the world’s top crude oil and liquefied natural gas producer for several years now. Moreover, many of the government’s directives face legal challenges from environmental groups and other opponents, creating uncertainty in the sector.
To better understand how the oil and gas sector is reacting to developments in Washington, we asked Jeff Gustavson, President of Chevron New Energies, about the efforts to scale back regulations and increase production and how the moves might impact market trends and renewable energy advancements.
Here’s what he had to say:
“We believe Chevron’s US production helps power progress. Energy demand is projected to rise from current record highs well into the future. Chevron is responding by increasing our US oil and gas production in ways that are affordable, reliable and ever cleaner. In 2024, Chevron’s US production was ~1.6 million barrels of oil equivalent per day, an increase of ~19% compared to the year prior.
“Early actions by the Trump administration to streamline permitting are encouraging, but durable policy will require action by Congress. Meaningful permitting reform should be viewed as an enabler of the energy transition to a lower carbon future. An overly burdensome infrastructure permitting process can slow critical energy projects of all types — oil and gas, and renewable infrastructure.
“At Chevron, we continue to support projects that prioritize affordability, reliability and meet environmental standards, this is what is needed to enhance our energy security and advance a lower carbon future.
“We stand ready to continue working with the White House and both parties to achieve comprehensive and meaningful permitting reform that will unlock infrastructure development, support American economic competitiveness and promote energy security for the US and allies.”
Source: World Economic Forum
