DAVID BLACKMON: Trump’s ‘Drill, Baby, Drill’ Agenda Set for a Major Transformation

By David Blackmon |

President Donald Trump, both during his campaign and after taking office, has reiterated his commitment to revitalizing the “drill, baby, drill” policy that defined his first term. However, the landscape of the domestic oil industry has shifted significantly over the past eight years, complicating the potential impact of his agenda.

Currently, the upstream sector is experiencing strong profitability, driven by strategic capital discipline and technological advancements. Leading companies such as ExxonMobil and Oxy have succeeded in enhancing production within the major shale regions without reverting to a traditional drilling boom approach. The focus remains on maintaining stable operations rather than pursuing aggressive new drilling initiatives.

Many established shale fields, including the Permian Basin and Bakken Shale, have entered long-term development phases, typical of the natural lifecycle of resource plays. Unless significant new oil or natural gas formations are discovered, the likelihood of a new drilling surge remains low.

Nevertheless, a sustained increase in crude oil prices could prompt operators to activate more rigs quickly. Industry giants possess the capability to respond swiftly to favorable market conditions. However, recent trends indicate an oversupply in the global crude market, with OPEC+ having to delay planned production increases multiple times due to persistent low prices.

Despite skepticism about a robust response from the domestic oil sector, there are indicators that Trump’s policies to alleviate regulatory hurdles may foster significant infrastructure development. Efforts to expedite permitting for energy projects could lead to the establishment of new natural gas pipelines, power plants, and LNG export terminals.

Far from merely extending the “drill, baby, drill” doctrine, Trump’s policies are setting the stage for a decisive “build, baby, build” phase for energy infrastructure. A telling example is Venture Global, which launched the largest energy IPO in U.S. history shortly after Trump’s inauguration. With multiple LNG export projects underway in Louisiana, the company aims to establish itself as a key player in the burgeoning LNG market.

Additionally, just before taking office, Trump’s influence was already being felt; the Alaska Gasline Development Corporation secured a deal to advance the $44 billion Alaska LNG project, targeting gas delivery by 2031.

The oil and gas industry has shown resilience, producing record levels even as rig counts decline. The next challenge lies in expanding its infrastructure to support growing output. Thus, Trump’s push for deregulation may pave the way for a transformative period focused on infrastructure development rather than solely drilling.

Originally published by the Daily Caller News Foundation.

David Blackmon is an energy writer and consultant based in Texas, with 40 years of experience in the oil and gas sector, specializing in public policy and communications.