U.S. President Trump has fulfilled his campaign promise to establish a new energy policy department to advance his policy of returning to traditional energy. U.S. President Trump signed an executive order to establish the National Energy Commission, and Trump ordered the commission to take quick action to increase the already record domestic oil and gas production. U.S. federal agencies are expected to cancel Biden-era regulations that suppress oil demand and increase production costs.
The Secretary of the Interior Will Serve as Chairman
The National Energy Commission will be chaired by Secretary of the Interior Doug Burgum and Secretary of Energy Chris Wright will serve as vice chairman. The National Energy Commission was established to develop energy policy for the federal government and help coordinate the licensing, production and distribution of oil, natural gas, electricity and other resources. The report mentioned that the commission is under the Executive Office of the President, which means it will play a key role. According to some people familiar with the matter, White House officials have been discussing in recent weeks how much power the new energy commission should have in making policies.
After winning the election last year, Trump announced on social media that a new National Energy Board would be established, led by Doug Burgum, who was nominated as the Secretary of the Interior. He will have broad powers to promote the vision of “drill, baby, drill” that Trump constantly promoted during the campaign.
In the executive order, Trump said that the National Energy Board is a newly established department that will be involved in the licensing, production, generation, distribution, regulation and transportation of all forms of energy in the United States. The board will achieve the long-term goal of the United States’ energy dominance by reducing procedures, strengthening private sector investment in various economic sectors, and by focusing on innovation and eliminating long-standing but unnecessary regulations. The National Energy Board will coordinate energy policies across federal government agencies and simplify the licensing, production and distribution of various energy sources. This is in line with Trump’s campaign promise to increase domestic oil and gas production and overturn the policies of former President Biden’s administration on carbon emissions or climate change impacts.
First New LNG Exports Approved in Over a Year
On the day of signing the establishment of the National Energy Board, Trump said that the government had conditionally approved the issuance of an export license to the federal liquefied natural gas project in Louisiana. This is the first time that new liquefied natural gas exports have been approved since former President Biden suspended consideration of liquefied natural gas exports a year ago. In addition, Trump said that about 2.57 million square kilometers of federal offshore waters are now open for oil and gas development, ending Biden’s ban on new offshore oil and gas drilling.
In early 2024, former US President Biden ordered a suspension of approvals for new liquefied natural gas export projects. But Trump ordered the lifting of the ban on natural gas export licenses on his first day in office this year. At the same time, Trump also declared the country to be in an “energy emergency”, increased traditional energy extraction, suspended funding approval and spending for the Inflation Reduction Act, ended the Biden administration’s “Green New Deal”, and withdrew from the Paris Agreement. Drastic energy policy reforms are already underway, and senior officials in the Trump cabinet announced a series of action plans to promote the flow of oil and natural gas in the United States last Friday.
U.S. Transportation Secretary Sean Duffy said he would advance the GulfLink deepwater port project aimed at promoting the transportation of U.S. crude oil. Wright said he conditionally approved a liquefied natural gas export license for a project in Louisiana. Trump said he would meet with state governors to try to advance a long-stalled natural gas pipeline project in the Northeast. Kevin Hassett, director of the White House National Economic Council, hinted that more policies may be introduced soon. The above actions highlight Trump’s commitment to increase U.S. energy production, especially fossil fuels such as oil and natural gas, and eliminate regulatory barriers that may slow energy production.
AI Factories Will Require at Least Twice as Much Electricity as Now
Trump has said that the United States will dominate the energy sector, and this does not even include the electricity that the United States will produce for all AI (artificial intelligence) factories, which will require at least twice as much electricity as they do now. Doug Burgum said that the United States is in an AI competition with China, and the only way for the United States to win is to (produce) more electricity.
In the executive order, Trump said, “We must expand all forms of reliable and affordable energy production to reduce inflation, grow the economy, create high-paying jobs, rebuild America’s leadership in manufacturing, and lead the world in artificial intelligence.” The National Energy Council will make strategic recommendations on how to produce more energy to make the United States an energy-dominant country.
In his new term, Trump’s core propositions continued the tone of his first term, with new changes in increasing deregulation, repealing Democratic policy bills, and focusing on nuclear energy. Trump hopes that the United States can leverage its strengths in the field of traditional energy, from “energy independence” in his first term to “energy dominance” in this term, to help achieve its own economic and political goals. However, this strategy will inevitably lead to more competition than cooperation with other major energy producers.
