Incoming President Donald Trump is reportedly going to make major changes to the U.S.’ energy plans when he takes office in January. That includes lifting restrictions on oil and natural gas companies put in place by President Biden’s administration. This could result in a renaissance for the stocks in this sector over the next four years.
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Among Trump’s planned changes is ending a pause on liquid natural gas permits. The government will undo these halts and seek to approve pending permits, allowing for the export of the energy source.
In a similar vein, Trump wants to increase the amount of drilling done locally. Sources claim that the incoming President wants more offshore drilling in the U.S. He’s also reportedly seeking to increase the amount of drilling on federal land.
Oil Stocks Have Two Years to Rally Under Trump
It’s easy to understand how these changes could put oil stocks back in the limelight. More exports, more drilling, and less red tape would all benefit the sector. Adding to this is the unchallenged power Trump will hold during his first two years in office. That’s thanks to Republicans securing the House and Senate, alongside the Presidency, in the latest elections.
The next major elections will take place in 2026. That will have several House and Senate seats up for grabs. If Republicans can continue to dominate the political discourse, it could result in another two years of benefits for oil stocks. However, there could be trouble for the sector if Democrats take back some of those seats.
What Oil Stocks Are Worth Buying?
Using TipRanks’ Top Analyst Stocks tool provides some potential oil and energy stocks investors may want to buy ahead of Trump’s presidency. Among these are Chord Energy (CHRD), Worley Limited (WYGPF), BKV Corp (BKV), NexGen Energy (NXE), Coterra Energy (CTRA), and Denison Mines (DNN). Among these, CHRD stock has the highest upside potential at 42.47%, according to analysts.
