President Trump touted his administration’s energy dominance agenda, including a new initiative to have tech companies mitigate the rise of electricity prices, during a marathon State of the Union address.
The President also formally announced a new “ratepayer protection pledge” program that he described as an “obligation” for major tech companies to provide their own power for the energy-hungry data centers fueling the AI boom.
The rise in data centers has caused an explosion in gas-fired power demand, with the administration taking regulatory action to speed the development of power plants and extraction projects across the nation.
President Trump’s address also showcased a few key O&G victories for the administration such as falling gas prices and booming fossil fuel production. With President Trump making special mention of the fact that oil production rose by 600,000 b/d during 2025, the first year of his second term, and that Venezuela has sent over 80 million b/d to U.S. refiners.
“American natural gas production is at all time high because I kept my promise to drill baby, drill,” noted President Trump.
According to the EIA, monthly figures through late 2025 showed production fluctuating between 13.2 and 13.8 million b/d due to market conditions and shale output.
EIA’s short-term energy outlook data indicates U.S. crude production remains near historic highs, largely driven by output from the Permian Basin in Texas and New Mexico. The U.S. first crossed the 13 million b/d threshold in 2023 and has since gradually maintained output above that level.
Oil production and gas prices were not the only wins for the petrochemical sector as the President noted that “Big Beautiful Bill” has led to increases in domestic manufacturing and refining. By streamlining the approvals process, the administration has lowered capital expenditures typically required of domestic manufacturing projects.
Another critical part of the administration’s energy plan mentioned was the increase in available land for O&G development. Utilizing the “Big Beautiful Bill”, the administration has taken steps to unleash Alaska’s extraordinary resource potential and expand O&G development in Alaska’s National Petroleum Reserve. By ending the requirement to prepare environmental impact statements for approximately 3,224 O&G leases across 3.5 million acres in seven Western states, Trump has given the petrochemical sector regulatory relief amid the country’s growing energy demand. The administration has also updated the rules for commingling oil or gas from multiple sources for more efficient measurement and processing to aid refiners nationally.
O&G leases, overseen by the Bureau of Land Management, have risen steadily and in 2025 alone, totaled nearly half a billion in revenue. These leases reflect the administration’s larger goal of not only strengthening the U.S.’ energy infrastructure but cementing the U.S. as the dominant global force in energy production.
