New Oil and Gas Investors Enter the Market Thanks to Trump Policies

Monday, June 9th, 2025 and is filed under New Mexico Oil and Gas Investing, Oil and Gas Current Events, Permian Basin Oil News, Texas Oil and Gas Investing

A wave of fresh capital is sweeping into the U.S. oil and gas industry, fueled by the renewed pro-energy policies of President Donald J. Trump. As Trump’s second term begins to take shape, both new oil and gas investors as well as seasoned investors are responding decisively to the administration’s commitment to revitalizing the U.S. energy sector.

Confidence in domestic oil and gas exploration is soaring again, largely due to the regulatory rollbacks, tax incentives, and policy stances that prioritize American energy dominance. For the first time in years, exploration and production companies are seeing an influx of capital not only from institutional sources but also from individual accredited investors seeking stable, inflation-resistant returns and powerful tax advantages.

A Welcome Environment for Oil and Gas Investors

Throughout his political career, President Trump has championed energy independence and sought to eliminate barriers to domestic production. His return to the White House has reaffirmed those priorities, offering a stark contrast to previous regulatory-heavy energy agendas.

Among actions taken under Trump’s renewed administration were executive orders aimed at slashing bureaucratic red tape and reinstating leasing activity across federal lands. BLM reports that new leases on federal lands fell from 1,841 in 2019 to 205 in 2024, bottoming out in 2022 with only 120 new leases issued that year. According to a May 2025 announcement, the Department of the Interior announced a “Bureau of Land Management policy update designed to expedite the oil and gas leasing process on public lands,” reversing policies from the prior administration that curtailed federal land leases.

This return to pro-development leasing is a significant driver behind the optimism in the sector. For new investors, the move represents a government commitment to stable, long-term energy production. For veteran investors, it’s a signal that the window of opportunity has reopened, especially before the year’s end when certain tax benefits become more advantageous.

Regulatory Rollbacks Fuel Optimism for Oil and Gas Investors

Trump’s administration has targeted major environmental and permitting regulations for revision or repeal. Key among these is the revision of the Waters of the United States (WOTUS) rule, which many in the energy sector viewed as overly broad and restrictive. The previous Trump-era definition limited federal jurisdiction, providing greater certainty and clarity to landowners and operators. Plans are underway to review the current Biden-era definition and provide a more streamlined definition, which would reduce permitting delays and litigation risks for oil and gas operators.

Another area seeing renewed attention is NEPA—the National Environmental Policy Act. The Trump administration had previously implemented reforms to streamline the NEPA review process and set strict deadlines for environmental impact assessments. His team has announced intentions to reintroduce and expand these reforms to accelerate permitting timelines for new drilling and infrastructure projects.

Investors view these moves as critical to unlocking new development projects and improving returns by reducing project delays and legal uncertainties.

Tax Benefits and Capital Incentives

One of the strongest forces drawing investors—especially those new to the industry—is the favorable tax treatment of oil and gas investments under U.S. law. Trump has repeatedly signaled his intention to protect and enhance these tax advantages, which include:

These incentives can substantially reduce an oil and gas investor’s tax liability in the year of investment and provide ongoing benefits throughout the life of a producing well. As talk grows of Trump pushing for broader energy-specific tax credits and accelerated depreciation schedules across multiple sectors, many investors are eager to move quickly and take full advantage of these breaks while they are on the table.

Institutional and Retail Confidence Rebounding

It isn’t just independent or first-time investors taking notice. Large funds and private equity firms that had paused or divested from fossil fuel holdings are quietly re-entering the market, sensing an administration that will resist ESG pressures and promote the free flow of private capital into traditional energy sectors.

This shift is reflected in the performance of oil and gas indices and the rapid uptick in drilling permit applications nationwide. In Texas, Oklahoma, and North Dakota, production companies are reporting increased interest from capital partners, with many citing the Trump administration’s energy-first stance as the catalyst.

What’s on the Horizon: Proposed Policy Targets

Even beyond implemented actions, the Trump administration is laying the groundwork for future policies that continue to excite investors. Among the most closely watched is the proposed repeal of methane emission regulations that were reinstated in 2023. Trump officials argue that the previous rollback provided operational flexibility without compromising safety, and they aim to return to that framework.

In addition to the repeal of methane emission regulations, Congress disapproved the Biden EPA’s methane tax rule which was to be implemented under the Inflation Reduction Act. The Joint Resolution of Disapproval prohibits the Waste Emission Change rule’s tax implementation.

Export Terminal and LNG Infrastructure Expansion

Also under discussion is the expansion of export terminals and LNG infrastructure. Trump’s team has expressed support for fast-tracking LNG projects to boost American exports and reinforce energy ties with allies in Europe and Asia. This initiative would not only enhance geopolitical leverage but also open new revenue streams for U.S. producers and their investors.

Additionally, industry advocates are urging for permitting reform seeking expedited approval of interstate pipeline development and infrastructure projects as a national security priority. A coalition of industry advocates reported that the average time from infrastructure permitting to operation more than doubled from two years in 2000 to over five years in 2021. Trump’s previous attempts to accelerate pipeline permitting, including projects like Keystone XL and Dakota Access, demonstrated the administration’s willingness to push through political and legal obstacles in favor of energy infrastructure.

Conclusion: A New Era of American Energy Investment

Thanks to President Trump’s pro-energy policies, the oil and gas industry is enjoying a new era of optimism—and investors are responding in kind. From tax advantages and deregulation to renewed access to federal lands and export markets, the groundwork is being laid for substantial long-term growth.

Newcomers are entering the market with enthusiasm, drawn by the promise of strong returns and a supportive regulatory environment. Meanwhile, seasoned investors who had stepped back during uncertain times are once again funding exploration and production—recognizing that the tide has turned in favor of American energy.

As the Trump administration’s “drill, baby, drill” philosophy continues to prioritize oil and gas development, the momentum is likely to build. For those with the foresight to seize it, the current market offers a uniquely favorable landscape—one that’s deeply rooted in policy, profitability, and the long-term promise of American energy independence.

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