President-elect Donald Trump is poised to make significant moves to bolster the oil and gas industry on his first day back in office, with plans for a series of executive orders aimed at expanding U.S. fossil fuel production and rolling back climate regulations.

According to industry lobbying groups involved in shaping Trump's energy agenda, key priorities include approving new terminals for liquefied natural gas (LNG) exports and lifting restrictions on oil and gas leasing on federal lands and waters. Trump is expected to direct federal agencies to immediately resume approving permits for LNG export facilities, ending a pause instituted by the Biden administration in January 2024.

The American Petroleum Institute (API) has argued that the LNG export pause threatens U.S. energy security and competitiveness abroad while potentially costing jobs at home. However, environmental groups are likely to challenge new LNG permits in court, potentially citing a recent Energy Department study showing increased exports would raise greenhouse gas emissions.

Trump is also expected to instruct the Interior Department to revise the current five-year offshore leasing plan, which scheduled only three auctions between 2024 and 2029 – a record low compared to the 47 sales proposed during Trump's first term. The new administration aims to expand drilling opportunities in areas like the Gulf of Mexico and Alaska, including further opening the Arctic National Wildlife Refuge and National Petroleum Reserve to fossil fuel development.

Other targets for executive action include regulations encouraging the shift to electric vehicles. Trump has vowed to end what he calls the "electric vehicle mandate," though no such federal mandate currently exists. He is likely to direct the EPA and Transportation Department to review and rewrite tailpipe emissions standards finalized under Biden that were projected to boost electric vehicle sales significantly by 2032.

Additionally, Trump is expected to revoke California's waiver allowing it to set stricter vehicle emissions standards than the federal government – reprising a fight from his first term that would likely face legal challenges from the state.

While these executive actions could provide an immediate boost to the fossil fuel industry, many of Trump's energy priorities may face obstacles in Congress or the courts. Attempts to roll back climate regulations will likely be challenged by environmental groups, potentially slowing implementation. The oil and gas sector has strongly supported Trump's campaign, with industry executives, employees and PACs donating over $32 million according to OpenSecrets data.

As the energy landscape continues to evolve, traders and analysts will need to closely monitor how these potential policy shifts could impact fossil fuel production, exports, and long-term demand trends in the U.S. and globally. The interplay between executive actions, legal challenges, and market forces will shape the trajectory of the energy sector in the coming years.