Woodside Energy Group Ltd (ASX: WDS) shares are outpacing the wider market today.
Having closed in the red for the past four trading days, shares in the S&P/ASX 200 Index (ASX: XJO) energy stock are up 1.1% at the time of writing on Thursday, changing hands for $23.94 apiece.
That's well ahead of the 0.4% gains posted by the ASX 200 at this same time. And it also outpaces the 0.7% gains on the S&P/ASX 200 Energy Index (ASX: XEJ).
So, what's lifting Woodside shares?
Woodside shares marching higher
Well, we can rule out any big uptick in global oil prices.
Brent crude oil is trading for US$72.22 per barrel, which is right about where the oil price stood yesterday. That's down from recent highs of US$80.93 per barrel on 8 October.
However, investors with a longer-term horizon may be buying Woodside shares with an eye on the changing of the guard in the United States.
On 20 January, Donald Trump will move back into the White House following a resounding US presidential election victory. His Republican party now also holds the majority in both houses of Congress.
This could impact energy prices and Woodside shares if Trump decides to increase US military pressure on Iran, Hezbollah and Hamas in the ongoing conflict embroiling Israel. A more hawkish US military stance in the oil-rich Middle East could potentially cause oil prices to rise sharply.
On the flip side, Trump's pro-fossil fuel policies, encapsulated by his slogan, "drill baby, drill", could lead to even higher output from the US, already the world's top oil producer. This could keep oil prices subdued.
But with Woodside's large and growing footprint in the United States, the ASX 200 energy stock could directly benefit from easing regulations on oil and gas exploration and production in the world's top economy.
In the last two years alone, Woodside has committed to investing approximately $30 billion in North America.
What else is happening with the ASX 200 oil company today?
Woodside shares could enjoy ongoing support from the company's operated Trion development project, situated offshore in Mexico.
Woodside is developing Trion in a joint venture with Mexico's state-owned petroleum corporation PEMEX. The project is more than 15% complete.
This morning, Woodside announced that it had passed a major milestone after starting steel fabrication for the project's semi-submersible floating production unit (FPU).
Hyundai Heavy Industries is carrying out the steelwork in South Korea.
Commenting on the progress at Trion, Woodside CEO Meg O'Neill said, "The steel-cutting ceremony kicks off a multi-year construction campaign for the Trion FPU, which is the critical path for the development as we progress towards targeted first oil in 2028."
Woodside shares have come under pressure in 2024, down 24% year to date.