One Big Beautiful Bill Signed into Law
It’s important to understand the context here. The One Big Beautiful Bill (OBBBA), which President Trump signed on Friday, aligns well with his energy and climate priorities. Critics have raised concerns about Majority Leader John Thune’s impact on projects in Alaska, yet the OBBBA instead smooths the path for the rollback of wind and solar subsidies from the 2022 Inflation Reduction Act—something often touted as a part of Trump’s energy revolution.
Leaders in the oil and gas sectors have taken every chance to criticize the Biden administration but seem to welcome this bill as a way to reconnect with the more prosperous times of the past. Tim Stewart, the President of the American Oil and Gas Association, indicated that for these industries, this legislation represents a transformative chance to boost domestic production.
API CEO Mike Sommers praised the OBBBA as a significant step forward, stating it could usher in a new phase of energy leadership by enhancing investment opportunities and increasing access for oil and natural gas exploration. It’s quite a shift, though, especially given the ongoing geopolitical tensions in the Middle East, which always loom over energy markets.
While industry leaders might temper their excitement in public, it’s hard to ignore how much Thune and House Speaker Mike Johnson have reshaped the GOP landscape. Oil and gas have traditionally been easy targets for Democrats, and for years they felt overlooked by Republican administrations. But now, there seems to be a palpable shift.
Still, it’s worth noting that many Republicans, especially in the House, have expressed dissatisfaction with the Senate’s revisions related to the IRA’s grant rollbacks. To maintain party unity in the House’s slim majority, Trump has promised strict adherence to new administrative restrictions and hinted at working closely with Congressional allies on a major deregulation initiative before the midterms in 2026.
Nonetheless, the OBBBA also includes numerous energy and environmental regulations. A quick analysis by FTI Consulting suggested that natural gas and nuclear energy could emerge as the biggest beneficiaries of the bill’s effects. Interestingly, it appears battery storage may advance more quickly in the coming years, even as wind and solar struggle due to the phase-out of IRA subsidies.
The deal brokered by Thune and Murkowski may lead to substantial investments in wind and solar projects, as developers rush to initiate construction by July 4, 2026. Earlier wording of the bill would have required projects to be operational by that date. While this adjustment softens requirements, it is likely to spur investment in wind and solar after the deadline, especially since many projects have relied heavily on government funding.
Ultimately, the OBBBA has shifted federal energy and climate policy back towards traditional power sources and away from renewables and electric vehicles, reminiscent of the pre-pandemic landscape of 2019. It was a time when the U.S. had achieved energy independence for over fifty years and was on the verge of being an “energy dominant” nation, a goal close to Trump’s vision.
Trump’s endorsement of the OBBBA offers oil, gas, nuclear, and even coal industries a rare opportunity for renewal. However, they face considerable pressure from both government and public spheres. This moment could lead to a swift increase in gas power generation, accelerated advancement in next-generation nuclear technology, and possibly even the revival of new coal projects.
This window of opportunity is not something that comes around often. If these key industries let this chance slip through their fingers, they might not see another one like it. It’s time to act.
