The energy giants will have to face various challenges to drill on federal land
President-elect Donald Trump is set to take office in a matter of days, which will mark an end to the Obama administration. Eyes of energy giants, such as the Chevron Corporation (NYSE:CVX), are on the policies of the new administration and the fact that the president-elect has said that he will allow them to drill for oil in the federal land.
Donald Trump has said that he will open up these territories as a part of his efforts to stimulate the energy sector. The move is set to create an outcry and severe opposition. This is because as much of the 500 million acres of land has national parks and wildlife refuges along the Native American tribal territories.
Energy companies are looking forward to tap into huge amounts of oil, gas, coal, and uranium reserves in these lands. However, they are likely to face various challenges for this goal. There are various entities, such as the environmental and conservation groups and local communities, which may likely file lawsuits and lobby against it.
It can also be taken as a positive sign for many of the people living in these areas as the companies will bring about more jobs. Many of them have their job prospects stripped and will welcome these companies. The companies can become a support for the local communities and contribute towards the development of the area as well.
There is still a long way to go as any amendment can still face much opposition in the house. Donald Trump may even strip his plan of such moves. In an interview in his campaign trail, he has said that he was unwilling to pass control of federal lands to the states as they may even sell them off in financial trouble, which should not be allowed to happen.
The move, if agreed by all the concerned groups, will prove to be a beneficial for Chevron. The company would be able to tap into new reserves and benefit from it massively. Share prices for the energy giant gained 0.2% as the stock closed on $116.16 in yesterday’s session.