Oil prices fell to negative numbers on Monday amid the COVID-19 pandemic.
Trump on Tuesday said that the United States "will never let the great U.S. Oil & Gas Industry down."
"I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future," he added in a social media statement.
Steven Muchin, the Treasury secretary, has helped formulate plans in recent weeks that saw millions in government funds go to airlines, restaurants, and other businesses.
"The feds now collect about $6 billion a year in royalties. Canceling those payments would be a small price to pay to save an industry that employs several million workers. Under federal law, the president has the executive authority to take this action," he wrote.