Following President Donald Trump’s inauguration speech, in which he reiterated the phrase “Drill baby drill,” energy markets saw a surge on Tuesday.
Trump’s declaration of a national energy emergency to expedite oil and gas permitting prompted purchasing in energy equities, but oil prices declined Tuesday due to the possibility of additional supply.
In addition, he issued an order to leave the Paris Agreement, an international coalition to fight climate change.
“We will drill, baby, drill,” Trump declared. “We will bring prices down, fill our strategic reserves up again right to the top, and export American energy all over the world.”
Schlumberger Ltd. (SLB) was one of the stocks that increased by 1.3%. Halliburton Co. (HAL), a rival, fell 0.3%.
Kodiak Gas Services Inc. (KGS) remained constant, whereas Oneok Inc. (OKE) increased 1.4%.
KLX Energy Services Holdings (KLXE) increased 4.5%, TechnipFMC (FTI) increased 0.1%, and Ranger Energy Services Inc. (RNGR) increased 2%. Flotek Industries (FTK) saw a 2% increase, while Archrock Inc. (AROC) saw a 1.5% increase.
NCS Multistage Holdings Inc. had a 0.5% increase.
Uranium Energy Corp. (UEC), a mining business, increased 4.7%, while uranium specialist Cameco Corp. (CCJ) increased 2.5 percent.
Trump’s goal, according to TS Lombard chief economist analyst Steven Blitz, is to “resurrect the old economy” of abundant, inexpensive fossil fuel, but there are still obstacles to overcome, such a higher dollar.
“The new and old economies intersect most clearly in energy, and this is where Trump’s ‘national emergency’ comes into play,” Blitz wrote in a study. “If energy deregulation is unleashed, the biggest beneficiaries….could be data center buildout, with implications for U.S. leadership, both in next-generation technologies and economic dominance over the coming generation.”
Constellation Energy Corp. (CEG) increased 2.2%, Entergy (ETR) advanced 2.1%, and power provider Exelon Corp. (EXC) increased 2.2%.
