Despite the promise of fewer regulations, rising production under Trump could lead to falling commodity prices, creating uncertainty for oil and gas companies in the long run.
Trump's administration likely promotes increased oil and gas drilling on federal lands, but this could result in a decline in market prices challenging profit margins for companies.
Steve Pruett, CEO of Elevation Resources, recognizes the risk of declining oil prices under Trump, but argues that easier access to international markets may justify the risk.
As traders reacted to Trump's election, U.S. oil prices fluctuated, yet domestic oil and gas stocks jumped over 5%, indicating investor optimism about the sector's future.
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