President-elect Donald Trump has selected Chris Wright, a prominent figure in the fracking industry and a generous donor, to lead the Department of Energy.

What Happened: As per a report by The Hill, Trump lauded Wright's vast experience in the energy sector. Wright, who is the CEO of Liberty Energy Inc. (NYSE:LBRT), a company specializing in fracking and oilfield services, will require Senate approval to take up the position of energy secretary.

Trump said that Wright will be a part of the National Energy Council that will be headed by Interior Secretary-designate Doug Burgum, who is currently the governor of North Dakota. The council's main objective will be to cut down regulations and increase investments to boost oil and gas production.

In a video uploaded to LinkedIn last year, Wright said, "There is no climate crisis, and we're not in the midst of an energy transition either."

Despite the U.S. setting oil production records under the Biden administration, Trump has expressed his desire to ramp up drilling activities once he assumes office. He has also been a vocal supporter of the fracking industry.

Why It Matters: The nomination of Wright, a key player in the fracking industry, signals Trump's commitment to boost oil and gas production. The move could potentially lead to increased drilling activities and a greater focus on fracking, despite the U.S. already setting oil production records. The implications of this decision could be far-reaching, impacting both the energy sector and the nation's environmental policies.

Liberty Energy's stock closed at 16.9 USD on November 15, 2024, down 2.02% from the previous close. The company reported an earnings per share (EPS) of 0.450 USD for Q3 2024, falling short of the estimated EPS of 0.580 USD.

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