Donald Trump, the US president-elect has pledged to increase oil and gas production in his country through the rollback of what he calls unnecessary regulations.
US crude oil production is the largest in the world, and it’s also biggest consumption.
Trump will likely adopt policies to increase oil and gas production in the US.
It is likely that he will also rollback several climate regulations passed during the tenure of President Joe Biden.
According to a Reuters article, Trump may introduce the following executive orders on energy after taking over at White House in January.
Climate change withdrawal
Reuters reported that Trump may order the US withdrawal from the Paris Agreement of 2015.
Signed an international agreement to combat climate change, reduce global temperature rise by cutting fossil fuel emissions.
It is vital that the US withdraws, as it is historically the largest emitter of greenhouse gases in the world and is a major driver for global climate regulation.
Gas exports increase
Trump will likely remove the memorandum imposed by Biden’s administration on the new permits for liquefied gas exports.
Biden banned the gas permits in 2024 so that a study could be conducted on the impact of US gas exports.
Since the Russian invasion of Ukraine at the beginning of 2022, exports have risen dramatically as Europe has shunned Moscow’s energy imports.
According to Reuters, the report had warned against the issuance of new gas export licenses in the US.
The report stated that Trump may wait until the end of the comment period for the study on 18th February to shield any permits from legal cases.
Declare energy emergency
Reuters reported that Trump may declare a state of national emergency in the US to pass permits quickly for the energy and power sectors.
The report states that the decision would align with Trump’s campaign promise, wherein he pledged to boost energy production in order to prepare the power industry for an increase in data centre demand.
This segment will be primarily focused on natural gas, but other sources, such as the renewable energy industry, pipeline operators, and nuclear industries, would also benefit.
However, the declaration could be questioned if Trump’s administration cannot prove the energy crisis in the United States.
Trump will reverse Biden’s ban on federal drilling for oil?
Trump will likely order his administration’s expansion of oil and gas drilling on US federal lands and water.
It’s a total reversal of the situation under Biden.
Biden, who served as the US president for four years, had prohibited drilling on federal land.
Reuters reported that it was up to Trump’s Interior Department discretion to decide on how often and what amount of land would be offered to drillers for auction.
According to the report, about one-quarter of US oil production is from federal land.
Biden used Lands Act in order to prevent oil drilling from taking place on vast regions of the Atlantic and Pacific.
Trump could limit or block imports and new offshore wind energy projects
Trump said he would stop any further offshore wind developments in the US.
The industry, he said, is not only expensive but also bad for the whales. It can cause landfill issues when decommissioned turbines end up in the dump.
Trump, in his first year as US President, was a supporter of wind energy.
He could, this time around, order the Interior Department to stop or limit new auctions of leases for offshore power within federal waters.
Trump could also impose high tariffs on imported products from Canada and Mexico, as well as all other goods.
Imports of battery components for solar vehicles and electric vehicles may also be affected.
The post Trump’s first moves in America’s Energy Policy? This post may change as new information unfolds
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