Title: Embracing "Drill Baby Drill": Why Schlumberger Could Shape the Energy Sector by 2025
In the limelight once more, the iconic phrase, "Drill Baby Drill," resonates once again as Donald Trump steps back into the Oval Office. His vision for American energy dominance is coming to life, and no one embodies this vision better than Chris Wright, his pick for Energy Secretary.
A passionate advocate for fossil fuels, Wright, 60, titled his Senate confirmation hearing "Unleashing American Energy at Home and Abroad." He made it clear that previous administrations have looked at energy as a liability, but to him, it was a massive national asset that needed to be harnessed. His appointment signals a seismic shift from existing energy policies, with a laser-like focus on expanding domestic production across various sectors.
As the CEO of Liberty Energy, Wright is no stranger to the energy world. He advocates vigorously for expanding energy production, including commercial nuclear and liquefied natural gas, and lowering energy costs for Americans. His stance starkly contrasts that of the current administration, which has paused LNG export approvals and curtailed federal land drilling.
Joining Wright in his quest for energy expansion is his counterpart, Doug Burgum, who is tipped to be the next Interior Secretary. During his confirmation hearing, Burgum emphasized the importance of maximizing energy production from U.S. public lands and waters as a matter of national security. This is a dramatic departure from the current administration's efforts to limit drilling through reduced lease auctions and offshore development restrictions aimed at addressing climate change.
Wright extends his vision beyond traditional energy sources. Trained as an engineer at MIT, he supports the development of small nuclear power reactors and geothermal energy. He acknowledges the potential of solar and wind energy but remains skeptical about their ability to meet the world's demands. Wright's pragmatic approach to energy transition aligns with Trump's broader energy independence agenda.
For those looking to capitalize on this energy policy shift, SLB (formerly Schlumberger) could be an attractive investment. The company saw a 6% surge in its stock price on Friday following better-than-expected Q4 earnings. With a strong market position, a global presence, robust demand for its technology, and a unique focus on digital and integration, SLB appears poised to capitalize on potential US energy policy changes.
In conclusion, the Trump administration, this time around, is pursuing an aggressive energy policy, primarily focused on increasing domestic energy production and relying heavily on fossil fuels. Whether this approach will yield sustainable results remains to be seen. Its impact on conservation, public lands management, and the environment is a topic of intense debate. In any case, this is a significant turning point in American energy policy.
- Under President Trump's administration, the Department of Energy is expected to significantly shift its energy policy, with Chris Wright, formerly of Liberty Energy, appointed as Energy Secretary.
- During his confirmation hearing, Doug Burgum, named as the potential next Interior Secretary, emphasized the importance of maximizing energy production from U.S. public lands and waters.
- In response to these changes, investors might consider SLB (formerly Schlumberger) as a potential 2025 stock pick, given its strong market position, global presence, and focus on digital and integration solutions.
- Wright, an MIT-trained engineer, supports the development of various energy sources, including small nuclear power reactors and geothermal energy, aligning with Trump's broader energy independence agenda.
