On July 3, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBBA) into law, marking a pivotal shift in U.S. energy policy. This landmark legislation, passed with thin Republican majorities in Congress, aligns closely with the Trump administration’s energy and climate agenda, aiming to bolster domestic energy production and reduce reliance on foreign supply chains. The OBBBA offers a reset for traditional energy sectors—oil, gas, and nuclear—while scaling back subsidies for wind and solar from the 2022 Inflation Reduction Act (IRA). Drawing from David Blackmon’s analysis in The Daily Caller, this article explores how the OBBBA reshapes the energy landscape, with a focus on its implications for oil, gas, and nuclear industries.
Is Oil & Gas Right for Your Portfolio?
A Transformative Opportunity for Oil and Gas
The OBBBA is a lifeline for the oil and gas industry, which faced significant regulatory constraints during the Biden administration. As Blackmon notes, industry leaders like Tim Stewart, President of the U.S. Oil and Gas Association, see the bill as a “transformative opportunity to enhance domestic production”. The legislation unlocks opportunities for investment, opens new lease sales, and expands access to oil and natural gas development. API CEO Mike Sommers echoed this sentiment, calling the OBBBA “historic legislation” that ushers in a “new era of energy dominance”.
Key provisions in the OBBBA encourage rapid expansion of gas power generation, a scale not seen in two decades. This push aligns with the administration’s goal of prioritizing reliable, dispatchable energy sources to meet growing power demands, particularly from data centers and industrial re-shoring. The bill also facilitates streamlined permitting processes, addressing long-standing bottlenecks that have hindered exploration and production. For instance, the Trump administration’s earlier move to reopen 13 million acres in the National Petroleum Reserve-Alaska for leasing, as noted in a separate Daily Caller piece, complements the OBBBA’s deregulatory thrust.
However, the oil and gas sector faces intense pressure to capitalize on this “do-over.” Blackmon warns that failure to “grab this brass ring” could mean missing a rare second chance to cement its role in America’s energy future. With public and governmental expectations high, the industry must balance rapid development with environmental stewardship to maintain political and social license.
Nuclear Power: A Renaissance on the Horizon
The OBBBA positions nuclear energy as a cornerstone of America’s energy strategy, projecting it as one of the bill’s “biggest winners” according to FTI Consulting’s analysis. The legislation supports the rapid development of next-generation nuclear technologies, such as small modular reactors (SMRs), which promise safer, more cost-effective power generation. This focus addresses the urgent need for reliable, low-carbon baseload power to complement intermittent renewable energy sources and meet escalating electricity demand.
The bill’s emphasis on nuclear comes at a critical juncture. As Blackmon highlights in another Daily Caller article, U.S. atomic energy has faced challenges due to reliance on foreign uranium supplies, particularly from Russia and, increasingly, China. The OBBBA indirectly supports efforts to bolster domestic uranium enrichment and fuel production, reducing dependence on adversarial nations. Energy Secretary Chris Wright has been vocal about the need for urgent action in this area, emphasizing the role of nuclear energy in energy security.
The OBBBA’s nuclear provisions also align with broader policy shifts under Trump’s second term. For example, Wright’s “all of the above” energy philosophy, which explicitly includes coal, underscores a pragmatic approach to power generation. By prioritizing nuclear alongside fossil fuels, the administration aims to create a diversified, resilient grid capable of supporting industrial growth and energy independence.
The Coal Comeback: A Surprising Beneficiary
While oil, gas, and nuclear take center stage, the OBBBA also opens the door for a potential coal revival. Blackmon notes that the bill provides a “probable chance to permit and build new coal capacity soon”. This marks a significant departure from recent decades, during which coal faced steep declines due to environmental regulations and market competition from natural gas and renewable energy sources.
The inclusion of coal in the OBBBA reflects the administration’s focus on reindustrialization and energy reliability. Energy Secretary Wright has signaled an end to the “war on coal,” advocating for its role in an “all of the above” energy mix. However, coal’s resurgence will likely face scrutiny from environmental groups and requires advanced technologies, such as carbon capture and storage, to align with public expectations for cleaner energy.
Navigating the Wind and Solar Rollback
The OBBBA’s most controversial aspect is its phased reduction of wind and solar subsidies from the IRA, a move that sparked high drama in the Senate. A deal brokered by Majority Leader John Thune and Alaska Senator Lisa Murkowski softened the original timeline, allowing projects that “commence construction” by July 4, 2026, to retain incentives, rather than requiring them to be operational by 2027. This compromise has spurred a rush among developers to initiate wind and solar projects, potentially leading to a short-term boom in renewable construction
Despite this, FTI Consulting projects that the phase-out will dampen long-term growth in wind and solar, with battery storage emerging as a surprising beneficiary due to its role in grid reliability. Critics argue that the subsidy rollback undermines clean energy progress, but supporters, including Blackmon, view it as a correction of market distortions created by the IRA’s “Orwellian” incentives. Energy Secretary Wright has also criticized over-reliance on intermittent renewables, arguing they weaken grid performance during peak demand.
Challenges and Opportunities Ahead
The OBBBA’s passage, with Vice President JD Vance casting the tie-breaking Senate vote, underscores its political fragility. Many House Republicans remain dissatisfied with the Senate’s amendments, particularly the softened rollback of the IRA subsidy. This tension highlights the challenge of maintaining bipartisan support for energy policy in a polarized Congress.
For the oil, gas, and nuclear industries, the OBBBA is a call to action. The bill’s deregulatory measures and investment incentives provide a rare window to expand capacity and innovate. However, as Blackmon emphasizes, these sectors must deliver results under intense scrutiny. Public and political support could wane if projects falter or environmental concerns mount.
Moreover, the OBBBA’s focus on traditional energy sources must navigate global market dynamics. For instance, Blackmon’s analysis of oil markets suggests that geopolitical events, like Israel’s assault on Iran, have not triggered expected price spikes, indicating complex supply-demand balances that the U.S. must account for. Similarly, nuclear power’s reliance on domestic fuel supply chains requires urgent investment to counter China’s growing influence.
Conclusion: A Bold Reset for American Energy
The One Big Beautiful Bill Act is a bold recalibration of U.S. energy policy, prioritizing oil, gas, and nuclear as pillars of energy security and economic growth. By streamlining regulations, expanding access, and supporting next-generation technologies, the OBBBA offers these industries a chance to reclaim prominence in America’s energy mix. However, the bill’s success hinges on the ability of these sectors to deliver reliable, affordable energy while addressing environmental and geopolitical challenges.
As David Blackmon aptly concludes, “Second chances like this do not come around often. If these great industries fail to grab this brass ring and run with it, it may never come around again”. For oil, gas, and nuclear, the OBBBA is not just a policy reset—it’s a mandate to lead America into a new era of energy dominance.
I am confirming an interview with Jay Yu, Founder of Nano Nuclear, to discuss the OBBBA as it pertains to nuclear and investments.
Sources:
- Blackmon, David. “The OBBBA Resets The Energy Policy Playing Field.” The Daily Caller, July 5, 2025.
- Blackmon, David. “Senate Passage Of The OBBBA Involved High Drama Around IRA Subsidies.” The Daily Caller, July 2, 2025.
- Blackmon, David. “Trump Keeps Focus On America’s Energy Dominance.” The Daily Caller, June 4, 2025.
- Blackmon, David. “Key Trump Cabinet Nominees Face A Daunting Energy Policy Mess.” The Daily Caller, January 18, 2025.
- Blackmon, David. “Trump’s Energy Secretary Wasting No Time In Declaring End To Biden’s War On Coal.” The Daily Caller, February 15, 2025.
- Blackmon, David. “The Oil Price Spike That Didn’t Happen.” The Daily Caller, June 27, 2025.