RBN Energy Executive Chairman Rusty Braziel told CNBC’s Jim Cramer on Wednesday that President Donald Trump‘s actions to promote U.S. oil and gas production doesn’t necessarily mean companies will start drilling.
“For one thing, all the orders that came out on Monday basically do away with any kind of obstacle that would prevent somebody ‘drill, baby, drilling,'” he said. “But, to be motivated to ‘drill, baby, drill,’ I’ve got to do the right thing for my shareholders.”
Trump has already laid out an exhaustive energy agenda and reversed former President Joe Biden’s efforts to curb climate change and limit fossil fuel production. The president also declared a national energy emergency in the U.S., ordering agencies to use emergency authorities to facilitate the production and transportation of domestic energy sources and expedite new energy infrastructure projects.
According to Braziel, more oil leads to lower prices, which leads to lower dividends from large producers, so it’s unclear how everything will play out. He also suggested that the energy business largely moves together, with companies doing the same thing at the same time.
Braziel pointed out that there are limits to Trump’s power in this area, as the president’s actions are likely to be challenged in court.
“Trump can’t make the courts go away,” he said. “So, now, my view is, the courts are the problem.”
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