Oil prices surge to four-year highs as Trump fast-tracks US drilling permits
Oil prices have hit a four-year high, pushing the US government to boost domestic production. Since President Trump returned to office in January 2025, his administration has fast-tracked new drilling permits and revived stalled projects. Yet despite political pressure, the industry remains cautious about ramping up output too quickly.
The US oil boom began in 2009, leading to record production by 2018 when America became the world's top oil producer. Growth slowed under the Biden administration, with output rising just 2.4% last year compared to gains of 5.5% to 17% during Trump's first term.
Since taking office again, Trump's team has approved 1,247 new drilling permits—842 in Texas, 256 in New Mexico, 89 in North Dakota, and 60 across other states. Last week, officials greenlit a BP project in the Gulf of Mexico and ordered Sable Offshore Corp. to restart offshore rigs near Southern California.
Energy Secretary Chris Wright announced further measures, including a coordinated release of 400 million barrels of oil with over 30 nations. The White House has blamed last year's slow growth on a backlog of 5,684 pending permit applications left by the previous administration.
Still, producers are hesitant to expand rapidly. Memories of past price crashes and uncertainty over how long high prices will last have made companies wary. The administration insists fuel costs will fall once military operations conclude and geopolitical tensions ease.
The government's push for more drilling comes as households face rising fuel costs. With permits approved and new projects underway, production could climb—but only if companies choose to act. For now, the industry's cautious stance means any major output surge remains unlikely.
