Former President Donald Trump’s re-election victory is being celebrated by Wyoming’s oil and gas industry, as many leaders in the field express optimism that his administration will bring renewed support for fossil fuel production across the state and the nation, Cowboy State Daily reports.
Trump’s remarks during his victory speech emphasized his commitment to bolstering the US oil and gas industry, signaling potential changes for Wyoming’s energy sector.
Wyoming’s oil and gas industry faced significant challenges under the Biden administration, including the delay of federal oil and gas leases, increased environmental regulations, and financial disclosure requirements. Kirkwood Resources, a Wyoming-based oil company, paid for oil and gas leases on federal land in 2020 but has faced prolonged delays in obtaining those leases due to ongoing litigation. Steven Degenfelder, a landman with Kirkwood, expressed hope that Trump’s return to office might expedite the lease approval process.
“It’s quite an injustice. As far as I’m concerned, anybody who buys something and pays for it and doesn’t get it, counting on now near four years, something is wrong with the bureaucracy,” he said.
In his victory speech, Trump reaffirmed his dedication to oil production.
“We have more liquid gold than any country in the world… We have more than Saudi Arabia. We have more than Russia,” he stated.
Industry advocates, like Petroleum Association of Wyoming Vice President Ryan McConnaughey, welcomed these remarks, viewing them as an indication that the new administration will prioritize domestic energy production.
“A Trump presidency and a Republican-led Senate should be good news for Wyoming’s oil and gas industry,” McConnaughey stated.
He noted the potential easing of restrictions on federal leases, a critical issue for Wyoming, where federal lands constitute about 75% of the state’s mineral estate.
Wyoming’s oil and gas sector also anticipates Trump’s administration could roll back several regulations imposed by Biden. These include the EPA’s recent emissions rules, which required costly compliance measures, and SEC climate disclosure requirements intended to limit fossil fuel capital. During his previous term, Trump’s administration had implemented policies to streamline permitting for energy infrastructure and reduced regulatory hurdles for oil and gas projects.
Rob Godby, an energy economist at the University of Wyoming, noted that while Trump’s policies could encourage growth in Wyoming’s oil and gas sector, the industry will still have to contend with market dynamics. Market forces, he noted, remain a powerful influence in the energy sector regardless of regulatory policies. For example, while coal advocates in Wyoming’s Powder River Basin may hope for favorable leasing terms, coal faces competitive pressures from alternative energy sources, including natural gas—a substitute for coal in electricity production that could gain further ground under a Trump administration.
Godby added that while the Trump administration will likely take a different approach to climate policy, it remains uncertain how specific policies will develop. Some measures to address greenhouse gas emissions may still be required under the Clean Air Act, depending on legal interpretations.
