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Newsom, DeSantis join forces to blast ‘idiotic’ push to allow oil drilling off coasts of California, Florida

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The Trump administration announced on Thursday new oil drilling off the California and Florida coasts for the first time in decades, advancing a project that critics say could harm coastal communities and ecosystems, as President Donald Trump seeks to expand U.S. oil production.

The oil industry has been seeking access to new offshore areas, including Southern California and off the coast of Florida, as a way to boost U.S. energy security and jobs. The federal government has not allowed drilling in federal waters in the eastern Gulf of Mexico, which includes offshore Florida and part of offshore Alabama, since 1995, because of concerns about oil spills. California has some offshore oil rigs, but there has been no new leasing in federal waters since the mid-1980s.

Since taking office for a second time in January, Trump has systematically reversed former President Joe Biden’s focus on slowing climate change to pursue what the Republican calls U.S. “energy dominance” in the global market. Trump, who recently called climate change “the greatest con job ever perpetrated on the world,” created a National Energy Dominance Council and directed it to move quickly to drive up already record-high U.S. energy production, particularly fossil fuels such as oil, coal and natural gas.

Meanwhile, Trump’s administration has blocked renewable energy sources such as offshore wind and canceled billions of dollars in grants that supported hundreds of clean energy projects across the country.

The drilling proposal drew bipartisan pushback in Florida, where a spokesperson for Republican Gov. Ron DeSantis said the Trump administration should reconsider and Republican Sen. Rick Scott said the state’s coasts “must remain off the table for oil drilling.” California Democratic Gov. Gavin Newsom, a frequent Trump critic, called the administration’s plan “idiotic.”

Tourism and access to clean beaches are key parts of the economy in both states.

Plans to allow drilling off California, Alaska and Florida’s coast

The administration’s plan proposes six offshore lease sales between 2027 and 2030 in areas along the California coast.

It also calls for new drilling off the Florida coast in the Gulf of Mexico at least 100 miles from shore. Drilling leases would be sold in the newly designated South-Central Gulf region, adjacent to the central Gulf’s thousands of wells and hundreds of drilling platforms.

The new designation distinguishes the targeted area from the Eastern Gulf where drilling is prohibited under a moratorium Trump signed in his first term. Industry representatives said the change was aimed at addressing concerns from Florida officials who oppose drilling near their tourism-friendly coasts.

The five-year plan also would compel more than 20 lease sales off the coast of Alaska, including a newly designated area known as the High Arctic, more than 200 miles offshore in the Arctic Ocean.

Interior Secretary Doug Burgum said in announcing the sales that it would take years for the oil from new leases to get to market.

“By moving forward with the development of a robust, forward-thinking leasing plan, we are ensuring that America’s offshore industry stays strong, our workers stay employed, and our nation remains energy dominant for decades to come,” Burgum said in a statement.

The American Petroleum Institute called the new plan a “historic step” toward unleashing more offshore resources. Industry groups point to California’s history as an oil-producing state and say it already has infrastructure to support more production.

Opposition from California and Florida

Scott, a Trump ally, helped persuade officials in Trump’s first term to drop a similar offshore plan in 2018 when Scott was governor. Scott and Florida Republican Sen. Ashley Moody introduced legislation this month to maintain the drilling moratorium from Trump’s first term.

Newsom, who often touts the state’s status as a global climate leader, said in response to Thursday’s announcement that California would “use every tool at our disposal to protect our coastline.”

California has been a leader in restricting offshore drilling since an infamous 1969 Santa Barbara spill helped spark the modern environmental movement. While no new federal leases have been offered since the mid-1980s, drilling from existing platforms continues.

Newsom expressed support for greater offshore controls after a 2021 spill off Huntington Beach and has backed a congressional effort to ban new offshore drilling on the West Coast.

A Texas-based company, with support from the Trump administration, is seeking to restart production in waters off Santa Barbara damaged by a 2015 oil spill. The administration has hailed the plan by Houston-based Sable Offshore Corp. as the kind of project Trump wants to increase U.S. energy production.

Trump signed an executive order on the first day of his second term to reverse Biden’s ban on future offshore oil drilling on the East and West coasts. A federal court later struck down Biden’s order to withdraw 625 million acres of federal waters from oil development.

Environmental and economic concerns over oil spills

Lawmakers from California and Florida warned new offshore drilling would hurt coastal economies, jeopardize national security, ravage coastal ecosystems, and put the health and safety of millions of people at risk.

“This is not just a little bit offshore drilling. This is the entire California coast, every inch of Alaska, even the eastern Gulf of Mexico,” said California Rep. Jared Huffman. “Basically, everywhere Big Oil has been salivating to drill for decades.”

Rep. Jimmy Patronis of Florida led a group of Republican lawmakers who asked Trump in a Thursday letter to withdraw some parcels off the Florida coast from leasing. They warned that oil exploration could interfere with a training area for nearby military airbases. Allowing the parcels to go forward “would have a chilling effect on the military’s ability to test new munitions, including hypersonic and counter drone weaponry,” they wrote.

The state is also still recovering from the environmental and economic havoc caused by the 2010 Deepwater Horizon spill, which fouled coasts across the Gulf, said Florida Democratic Rep. Kathy Castor.

A Santa Barbara group, the Environmental Defense Center, formed in response to the 1969 California spill, said the plan puts at risk the Santa Barbara Channel off Southern California, an important feeding ground for endangered blue, humpback, and fin whales.

“There is no way to drill for oil without causing devastating impacts,” said Maggie Hall, deputy chief counsel at the advocacy group. “The risk is unacceptable.”

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Brown reported from Billings, Mont.

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With contributions from Associated Press reporters Julie Watson in San Diego, Sophie Austin in Sacramento, Calif., and Kate Payne in Tallahassee, Florida.



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The rise of on-demand leadership in the AI economy

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A quiet but consequential shift is underway in the executive labor market. Companies are rethinking how they access senior judgment in the AI era. 

Rather than defaulting to full-time executive roles that command lofty salaries and long-term overhead, companies are increasingly turning to experienced consultants, strategists, and advisors to provide leadership on a limited and targeted basis.

This is not a dilution of leadership, but a recalibration of where experience delivers the most value.

According to LinkedIn’s latest Jobs on the Rise report, the fastest-growing roles in the U.S. economy sit at the intersection of AI and strategy. AI engineers claimed the top spot, while AI consultants and strategists ranked No. 2 overall. Strategic advisors and consultants also placed in the top 10. Together, the data show that as execution becomes cheaper, human judgment becomes more valuable.

The underlying driver is the implementation gap. After years of AI experimentation, organizations are struggling to convert tools into returns. While they do not lack models or software, many lack orchestration. Companies are increasingly turning to AI consultants and strategists to align technology with business realities, governance, and incentives, work that requires credibility, cross-functional fluency, and the kind of judgment typically associated with senior leadership roles.

The labor market now reflects a clear division of labor. Demand is rising simultaneously for full-time technical AI talent and for senior professionals who can translate those capabilities into business outcomes. As companies scale internal AI teams, they are increasingly relying on external advisors and consultants to provide the judgment required to direct that work at critical moments.

The supply side of this shift is shaped by organizational reality. Executives continue to make daily decisions, but AI has concentrated risk into fewer, more complex, and higher-impact choices around operating models, capital allocation, and governance. Rather than expanding permanent headcount, companies are bringing in experienced external leaders to guide those decisions when the stakes are highest.

The economics reinforce the model. Although senior advisors and consultants often command higher hourly rates, their total annual cost is typically a fraction of a comparable full-time executive role because they are engaged for a limited scope and time. Just as important, this approach allows organizations to draw on multiple forms of expertise rather than binding themselves to a single permanent hire.

The talent profile filling these roles is equally telling. Many of these advisors are former founders, CEOs, and COOs. Experience functions as a filter. LinkedIn’s data shows that many of the fastest-growing strategic roles carry a median of eight or more years of experience. These are not entry-level positions, but mid- or second-act careers for professionals with deep industry context.

The rise of founders and independent consultants on the Jobs on the Rise list also signals that this shift is driven by talent behavior, not just employer demand. Senior professionals are increasingly opting for career paths that offer autonomy, variety, and the opportunity to leverage their skills rather than committing to a single organization in an uncertain environment.

As AI automates and cheapens execution, the market value of human judgment, strategy, and accountability rises. As a result, pricing power shifts from doing the work to deciding what work should be done and how it should scale.

In this environment, experience is the moat. What is often described as “fractional leadership” is better understood as the unbundling of executive judgment from full-time roles. Over time, this model is likely to become not a stopgap but a structural response to the redistribution of value, risk, and expertise in the AI economy.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.



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Trump finds a ‘solution’ to Greenland crisis, backs off on 10% tariff threats

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President Donald Trump seems to have found a “solution” to the Greenland crisis following talks with NATO leadership on Wednesday. He said he will back away from the threat to impose 10% tariffs on eight European allies — an announcement that had sparked a mass sell-off on Tuesday — that were set to take effect on Feb. 1.

The reversal came only hours after Trump walked back an earlier threat to use force to secure Greenland during his World Economic Forum speech in Davos, Switzerland.

“We have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote on Truth Social, adding that the plan would be “a great one for the United States of America, and all NATO Nations.” He said the tariffs would be shelved “based upon this understanding.”

The announcement followed a meeting with NATO Secretary General Mark Rutte, who has been seeking to defuse growing tensions between Washington and its European allies as Trump escalated rhetoric over Greenland’s strategic importance. Trump also said on Truth Social that additional discussions were underway concerning what he called the “Golden Dome” initiative related to Greenland, without providing details.

Markets reacted sharply to the apparent de-escalation. The S&P 500 rose 1.5% in afternoon trading, while long-term U.S. Treasury yields fell, signaling investor relief after days of volatility. Despite this pullback potentially confirming yet another instance of the “TACO trade,” or “Trump Always Chickens Out,” major questions remain over the substance of the framework. 

Trump has repeatedly said that anything less than controlling all of Greenland is “unacceptable.” It’s unclear, and seems unlikely, that the outline discussed with NATO leadership satisfies that particular condition, given that Denmark reiterated that it would not give up Greenland’s sovereignty after Trump’s speech on Wednesday. 

In his Truth Social post, Trump said Vice President JD Vance, Secretary of State Marco Rubio, and Special Envoy Steve Witkoff would lead negotiations going forward and report directly to him.The announcement also comes after the EU suspended trade negotiations with the U.S. and suspended the trade agreement they have had in place since August. CATO scholar Kyle Handley, in a statement provided to Fortune, wrote that the suspension should have never been seen as a “dramatic breakdown,” because “there was never a real deal to begin with.”

“What’s unraveling now was a fragile, politically convenient set of press releases that papered over fundamental disagreements and was always vulnerable to executive-level tariff threats.”



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Trump says Europe does one thing right: drug prices

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President Donald Trump told an audience of thousands of executives and global leaders at the World Economic Forum that European countries have taken a turn for the worse. Trump said his friends who visit the continent tell him they don’t recognize the region—and “not in a positive way.”

“I love Europe, and I want to see Europe go good,” Trump said on Wednesday at the Davos, Switzerland, meeting. “But it’s not heading in the right direction.”

But the president conceded that Europe is doing one thing better: keeping its drug prices low. 

“A pill that costs $10 in London costs $130. Think—it costs $10 in London, costs $130 in New York or in Los Angeles,” he said to murmurs from the crowd. 

Europe may not be recognizable to Trump’s friends, but Trump said he has other friends returning from London, remarking on the affordability of medication there. Indeed, a 2024 Rand study found that across all drugs, U.S. customers paid on average 2.78 times higher prices than in 33 other countries, including France, Germany, and the United Kingdom, in 2022.

The president has adopted a “most favored nation” policy meant to both lower drug costs for Americans while pushing other countries to pay more. Trump made a concerted effort in his second term to address astronomical drug costs, including minting a deal with 17 pharmaceutical companies to slash U.S. prices to match medication costs overseas. The move followed a sweeping executive order issued in May to introduce the most-favored-nation policy. On Wednesday, Trump alluded to an executive order he signed last week, pledging to lower drug prices by up to 90%.

Fallout with France

Trump said pharma companies did not initially believe countries would be willing to change prices. Trump noted in his remarks that he first approached French President Emmanuel Macron about increasing drug prices, but Macron refused.

“I said, ‘Emmanuel, you’re going to have to lift the price of that pill,” Trump said.

Trump said that threatening a 25% tariff on French goods, including wines and champagne, sealed the deal. Macron’s office disputed Trump’s assertion that he pressured the French president into lowering drug prices. 

“It’s being claimed that President @EmmanuelMacron increased the price of medicines. He does not set their prices. They are regulated by the social security system and have, in fact, remained stable,” Macron’s office said in an X post. “Anyone who has set foot in a French pharmacy knows this.”

Included in the post was a gif of Trump with animated “Fake news!” text overlaid on the image.

Health policy experts say drug prices in the U.S. are so high because of a system structured differently from other countries that allow companies to negotiate with individual insurance companies or pharmacy benefit managers, giving them more leverage to raise prices than in other countries’ systems, where there is one regulatory agency negotiating drug prices for a population.

Efficacy of Trump’s efforts to lower drug costs

Industry leaders think Trump’s efforts to lower drug costs could pay off. Vas Narasimhan, CEO of pharmaceutical giant Novartis, told Fortune’s Jeremy Kahn at a USA House session in Davos on Wednesday that Trump identified a valid issue in the high cost of U.S. drugs.

About two-thirds of new drugs on the market over the last decade have come from the U.S., a result of its highly developed research and development (R&D) infrastructure. Some argue that other countries benefit from U.S. innovation without paying their fair share to support the industry’s growth.

“When you look at what underpins R&D in our industry, it’s been primarily in the United States,” Narasimhan said. “The United States is the source of more than half the profits of the industry, and without the United States, you wouldn’t have all of these innovations, all these incredible medicines.”

Narasimham emphasized the need for a “more balanced approach” to funding R&D, implying that other countries should pay more for U.S.-produced pharmaceuticals. He pointed to Trump’s deal with the 17 drug companies as a “reasonable” solution.

Early signs, however, suggest drug prices have not come down. A January report from drug price research firm 46brooklyn found drug companies, including 16 firms with which Trump made deals since September, raised drug prices for at least some of their drugs in the first two weeks of 2026. The median increase of the 872 brand-name drugs with hiked prices was about 4%, the same rate as the year before.

Reuters similarly reported earlier this month, citing data from 3 Axis Advisors, that those 17 drug companies had raised the prices of 350 medications. Public health experts attributed the rise to the behind-the-scenes nature of the deals between drug companies and insurers.

“These deals are being announced as transformative when, in fact, they really just nibble around the margins in terms of what is really driving high prices for prescription drugs in the U.S.,” Dr. Benjamin Rome, a health policy researcher at Brigham and Women’s Hospital in Boston, told the outlet.

The Department of Health and Human Services did not immediately respond to Fortune’s request for comment.



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