Washington (AP) In an effort to increase U.S. oil and gas production and shift away from President Joe Biden’s emphasis on climate change, President-elect Donald Trump plans to form a National Energy Council that he claims will cement American energy dominance globally.
Trump’s commitment to drill, drill, drill and sell more oil and other energy sources to allies in Europe and throughout the world will be largely influenced by his choice of the Interior Department and the energy council, which will be headed by North Dakota Governor Doug Burgum.
With a mandate to reduce bureaucratic red tape, increase private sector investments, and prioritize innovation over needless regulation, Trump said the new council will have broad authority over federal agencies involved in energy permitting, production, generation, distribution, regulation, and transportation.
However, the president-elect’s energy goals are probably going to encounter practical constraints. First, under Biden, U.S. oil production is already at all-time highs. Companies cannot be forced to drill for more oil by the federal government, and higher production could result in lower prices and fewer earnings.
According to energy analyst Kevin Book, Trump’s call for energy dominance—a phrase he also used during his first term as president—is an opportunity rather than a mandate for the oil industry to proceed with drilling projects on terms that are probably more advantageous to the sector than those Biden is offering.
Book, managing partner at ClearView Energy Partners, a Washington research firm, stated that private enterprises’ decisions, based on their perceptions of supply-demand balances in the global marketplace, will determine if Trump achieves energy dominance as he understands it. “Don’t anticipate a sudden surge of new oil rigs popping up all over the country,” he said.
Trump’s warning this week to put 25% import duties on Canada and Mexico, two of the biggest suppliers of U.S. oil imports, complicates his attempt to increase oil supplies and cut U.S. prices. U.S. The energy sector cautioned that the tariffs might cause price increases and potentially compromise national security.
According to Scott Lauermann, who was speaking on behalf of the American Petroleum Institute, the leading lobbying organization for the oil business, Canada and Mexico are our top trading partners for energy, and preserving the free movement of energy goods across our borders is essential for North American energy security and American consumers.
The group that represents American refineries, American Fuel & Petrochemical Manufacturers, is also against possible tariffs, stating in a statement that American refiners rely on crude oil from Canada and Mexico to supply the reasonably priced, dependable fuels that consumers rely on on a daily basis.
According to Scott Segal, a former official in the Bush administration, Biden’s appointment of three White House aides to spearhead climate policy is an example of how energy choices should be centered in the White House. Burgum is a steady hand on the tiller with experience in renewable energy and fossil fuels, according to Segal, a partner at the law and policy firm Bracewell.
Additionally, Segal stated that John Podesta and Ali Zaidi Burgum, in contrast to Biden’s climate advisers Gina McCarthy and Gina McCarthy, will most likely assume his White House position as a Senate-confirmed Cabinet member.
The new energy council is beneficial for the U.S. economy and trade, according to Dustin Meyer, senior vice president of policy, economics, and regulatory affairs at the American Petroleum Institute. According to him, it makes a lot of conceptual sense to have as much synchronization as possible.
However, Meyer stated that the key to any possible growth in energy production will always be market dynamics.
“It’s hard to see how (Trump) can push more oil into an already saturated market,” said Jonathan Elkind, a senior research scholar at Columbia University’s Center on Global Energy Policy, who referred to energy dominance as a purposefully nebulous idea.
Trump has pledged to lower gas costs below $2 per gallon, but analysts say that is extremely improbable because a significant decline in crude oil prices would be required to meet that target. As of Wednesday, the average national gas price was $3.07, down from $3.25 a year earlier.
According to Elkind and other experts, they expect the new energy council would prioritize nuclear and renewable energy sources like wind, solar, and geothermal power instead of just oil. Climate change-causing greenhouse gas emissions are not produced by any of those energy sources.
According to Elkind, a former assistant energy secretary in the Obama administration, failing to recognize climate change as an existential threat to our planet is a serious worry that results in a major loss of American lives and property. According to federal records, there were two dozen weather-related disasters this year that each caused damage above $1 billion. There were 418 fatalities in all.
Trump has downplayed the severity of climate change threats and promised to take back any unused funds from Biden’s historic climate and health care package, the Inflation Reduction Act.When he returns to the White House in January, he also promised to halt the development of offshore wind.
Nevertheless, he stated in his Energy Council speech on November 15 that he will increase ALL energy output in order to boost our economy and provide well-paying employment.
Safak Yucel, an associate professor at Georgetown University’s McDonough School of Business, stated that renewable energy is part of that.
He questioned, “What’s more American than American solar and American wind?” The Energy Council’s mandate is U.S. dominance worldwide. According to a survey from Ernst & Young last year, in several areas, solar was the most affordable source of electricity for new construction.
In order to reduce electricity bills, prevent brownouts, and win the fight for supremacy in artificial intelligence, Trump stated in his announcement that he wants to significantly boost baseload power.
Burgum mentioned a similar objective in remarks to reporters prior to his appointment to the energy position, pointing out that rapidly expanding data centers and artificial intelligence, or AI, were driving up demand for electricity. Defense, healthcare, education, and national productivity are all impacted by the AI war, according to Burgum.
According to Yucel and other experts, Trump is unlikely to overturn the climate law, despite his mocking of it as the “green new scam.” One explanation is that the majority of its jobs and investments are located in Republican congressional districts. House Speaker Mike Johnson has been pushed by Republican members of Congress to keep the bill in place, given it was approved with just Democratic votes.
Yucel said that Republican-led states had created thousands of jobs in wind, solar, and battery power in recent years, adding that many Southern states are telling Trump, “We actually like renewables.”
He went on to say that renewable energy will persist if it makes financial sense.
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