Coral Davenport

In the first Trump administration, they similarly tried to roll back a clean car rule. That took all four years. They didn't finish that until 2020. It was one of the last things that they did. So it's difficult. It takes time. But ultimately, they can do it without Congress. They have the legal authority. I would fully expect them to see a rollback of that regulation.

In the first Trump administration, they similarly tried to roll back a clean car rule. That took all four years. They didn't finish that until 2020. It was one of the last things that they did. So it's difficult. It takes time. But ultimately, they can do it without Congress. They have the legal authority. I would fully expect them to see a rollback of that regulation.

Exactly.

Exactly.

You know, automakers don't like regulation, but what they hate even more is this uncertainty. They really hate this back, forth, back, forth, back, forth. One reason for this is that automakers have to plan what cars are going to be in showrooms like five or six years from now.

You know, automakers don't like regulation, but what they hate even more is this uncertainty. They really hate this back, forth, back, forth, back, forth. One reason for this is that automakers have to plan what cars are going to be in showrooms like five or six years from now.

If all these laws and rules go away, then it's really difficult for them to have invested all this money into cars that there may be no demand for. So this is a challenge for automakers. Here's another really big challenge for automakers. The global market is already moving towards EVs. In China, more than half the new cars sold are now EVs.

If all these laws and rules go away, then it's really difficult for them to have invested all this money into cars that there may be no demand for. So this is a challenge for automakers. Here's another really big challenge for automakers. The global market is already moving towards EVs. In China, more than half the new cars sold are now EVs.

And American automakers really want to get in that market and compete. They want to be selling their EVs to China. And so, interestingly, as much as they really don't like tough regulations, the automakers have been going to Trump and saying, look, please don't do this. Don't ratchet this all the way back. The market is already transitioning. Like, the horse is out of the barn.

And American automakers really want to get in that market and compete. They want to be selling their EVs to China. And so, interestingly, as much as they really don't like tough regulations, the automakers have been going to Trump and saying, look, please don't do this. Don't ratchet this all the way back. The market is already transitioning. Like, the horse is out of the barn.

Probably not the best metaphor, but like, I don't know, the electric car is out of the garage, whatever, like it's happening. And the U.S. auto industry needs the government to help push it along in the same direction as the rest of the global market, because if it doesn't, it's not going to be able to compete.

Probably not the best metaphor, but like, I don't know, the electric car is out of the garage, whatever, like it's happening. And the U.S. auto industry needs the government to help push it along in the same direction as the rest of the global market, because if it doesn't, it's not going to be able to compete.

Well, in terms of the policies that he would follow, this is one where he really does have a ton of executive authority. The executive branch can open up a lot of federal land and waters for more drilling. They can streamline and ease a lot of the regulatory requirements. And to be clear, the oil companies are delighted with this. They love it. They want to have all that access.

Well, in terms of the policies that he would follow, this is one where he really does have a ton of executive authority. The executive branch can open up a lot of federal land and waters for more drilling. They can streamline and ease a lot of the regulatory requirements. And to be clear, the oil companies are delighted with this. They love it. They want to have all that access.

Here's what they don't necessarily want to do. They don't necessarily want to do a whole bunch of new drilling now. Why is that? Yeah, so that's like sort of the thing that Trump has been calling for. Unleash, unleash, drill, baby, drill, etc. With a lot more production online, prices go down. That's not really what the companies want. They would like to keep prices in a nice medium range.

Here's what they don't necessarily want to do. They don't necessarily want to do a whole bunch of new drilling now. Why is that? Yeah, so that's like sort of the thing that Trump has been calling for. Unleash, unleash, drill, baby, drill, etc. With a lot more production online, prices go down. That's not really what the companies want. They would like to keep prices in a nice medium range.

And here's the other thing is like Trump can't direct publicly traded companies what to do in this space. They are going to respond to the market. There is not a button or a lever that Trump can press to cause more drilling to take place. The United States is not a petro state. They're not Russia or Saudi that can sort of flick a switch at the government level. Exactly.

And here's the other thing is like Trump can't direct publicly traded companies what to do in this space. They are going to respond to the market. There is not a button or a lever that Trump can press to cause more drilling to take place. The United States is not a petro state. They're not Russia or Saudi that can sort of flick a switch at the government level. Exactly.

But Petro State can do that. The United States can't. And so what we hear from companies is love all this, but like, are we going to start drilling a whole bunch more right now? No.

But Petro State can do that. The United States can't. And so what we hear from companies is love all this, but like, are we going to start drilling a whole bunch more right now? No.