ExxonMobil is also developing green hydrogen and carbon capture technologies. (Photo: iStock)
Upon taking office, U.S. President Donald Trump immediately announced the withdrawal from the Paris Agreement, rejecting the obligations set by the United Nations for carbon reduction.
However, some oil and gas industry leaders have expressed concerns that this move does not help their push for clean energy investments, highlighting the misalignment between policy and industrial development during the energy transition.
Oil firms: Trump’s exit risks unbalanced regulatory environment
According to Reuters, multiple industry representatives voiced concerns, with major oil companies believing that Trump's exit from the international climate agreement would only reduce the U.S.'s influence in the global energy transition, placing businesses in an unbalanced regulatory environment.
Marty Durbin, president of the U.S. Chamber of Commerce's Global Energy Institute, stated that energy companies under the organization hoped Trump would keep the U.S. in the agreement. He emphasized that while developing necessary solutions, businesses are also striving to address climate challenges in response to the growing global demand for energy.
Similarly, companies involved in oil and gas exploration echoed this sentiment. Anne Bradbury, CEO of the American Exploration and Production Council (AXPC), argued that U.S. participation in global climate discussions is crucial, noting that "any conversation about addressing climate change must be global, and also recognize that America is the world leader in both energy production and emissions reductions."
ExxonMobil warned about policy uncertainty
Amid the global energy transition, many large oil and gas developers, including ExxonMobil, have started investing in green hydrogen and carbon capture technologies. ExxonMobil secured a $331 million grant from the U.S. Department of Energy for carbon reduction projects and has partnered with French company Air Liquide to build the largest low-carbon hydrogen facility in Texas.
Before this, ExxonMobil CEO Darren Woods had warned Trump at the UN Climate Summit (COP29) about the risks of another U.S. withdrawal from the climate agreement, fearing that policy reversals could create significant uncertainty.
Wynne Lawrence, a climate risk expert at Clyde & Co law firm, believes the U.S. exit would make regulations opaquer and more complex, complicating the ability of companies to navigate multinational corporate transformations and supply chain shifts, potentially leading to legal disputes.
ExxonMobil partners with French company Air Liquide to build the largest low-carbon hydrogen facility in Texas. (Photo: Air Liquide)
Wind energy sector faces setbacks
On the other hand, Trump's executive order to suspend leasing federal lands for wind farms has had a severe impact on related stock prices, with Danish wind giant Ørsted's shares plunging 17% on January 21. Jacob Pedersen, an analyst at Sydney Bank, pointed out that Ørsted’s seabed leases issues in the U.S. might be linked to Trump's administration. If leasing progress is blocked, the company's assets could lose significant value.
Italian cable manufacturer Prysmian also announced on the same day that it would abandon plans to build a factory in the U.S., causing its stock price to drop by 1%. Prysmian is one of the world’s top cable manufacturers and has completed the only two underwater cable projects deeper than 2,000 meters.
The wind energy sector has been facing challenges over the past two years due to soaring costs, interest rate hikes, and supply chain issues, forcing many wind development projects to be delayed or canceled. With Trump back in the White House, the U.S. wind energy industry could see further difficulties.
Source: Reuters(1), (2), (3), Utility Dive
