Trump is officially taking office on January 20th, and the energy landscape is poised to head in a new direction under the president-elect’s administration. With promises of “American energy dominance,” a new National Energy Council, and a renewed effort to meet ever-growing energy demands, a Trump presidency is sure to change American energy prospects over the next four years.
While the president-elect has not withheld his views on the energy sector in his campaign or in his pre-office communications, what does it mean for everyday Americans? Here’s what we know about the energy prospects for 2025 under a Trump Administration.
Shifting the Focus Back to Fossil Fuels
“Drill, drill, drill!” has been a pillar of Trump’s previous policies and his campaigns leading up to the election. The president-elect has been far from shy about his intentions to increase oil and natural gas production in the U.S., leading to “American energy dominance.”
Naturally, lowering gas prices has also been a cornerstone of the president-elect’s campaign promises. Increasing oil and gas production and developing a more favorable system for oil and gas companies promises to be the linchpin in the plan to lower gas prices and allow Americans to keep more in their pocket.
A New National Energy Council
The incoming president announced Doug Burgum as the new National Energy Council leader. According to Politico, “The position will oversee the “drill, baby, drill’ effort that Trump made a centerpiece of his presidential campaign that sharply criticized President Joe Biden’s climate policies as stifling energy output and forcing allies to rely on U.S. rivals for energy.”
The National Energy Council “will consist of all Departments and Agencies involved in the permitting, production, generation, distribution, regulation, transportation, of ALL forms of American Energy,” Trump said.
The National Energy Council would be among the first initiatives rolled out by the new administration, establishing a precedent for Trump’s eagerness to initiate sweeping energy reform right out of the gate.
Additionally, the Council will help reduce governmental bureaucracy and delays in energy permitting for US oil and natural gas production. This move will streamline and simplify energy production efforts.
The Tariff Question
One of the soon-to-be president’s key strategies for establishing American energy dominance lies within leveraging new tariffs against imported goods, including oil and gas. While some argue that tariffs could “threaten global trade,” Trump and his allies argue that a 25% tariff on all imported goods would “help protect US manufacturing, bring new companies to the US, and deliver billions in federal revenue,” according to CBS News.
Additionally, Trump notes that the proposed tariffs could help reduce the flow of drugs and illegal immigration from our neighboring countries of Canada and Mexico. If all goes according to the president-elect’s plans, the tariffs would have multi-functional properties, boosting American energy development and aiding situations at the border.
Renewables Under a Trump Presidency
Although Trump’s rhetoric primarily focuses on oil and gas within the energy sector, renewables are likely not going anywhere. As an integral part of the American energy mix, renewable energy sources, like wind, solar, and battery technologies, represent a significant investment and job in the renewable energy sector.
In his announcement of the National Energy Council, the incoming president noted that his ambition was to increase all forms of US Energy production, not just oil and gas, leading many to believe that the president-elect intends to allow renewable energy production to increase alongside fossil fuels.
Part of Trump’s motivation to create a superior American energy system lies in the increasing demands posed by AI and the energy-sapping data processing centers it requires. Trump claims that having a superior energy sector is directly linked to national security as other nations continue to advance their AI technologies and capabilities.
Challenges & Hurdles
Naturally, the energy proposals have been met with mixed feelings and sentiments on both sides. While some praise the incoming president for his focus on American manufacturing and energy production, others claim his bold moves could be hazardous for the global economy and environmental risks. However, the opposition has not swayed the president’s drive or discouraged his motivation to pursue American energy dominance.
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