Trump’s Energy Reset
During his first hours as the 47th president of the United States, Donald Trump took immediate action to reshape the country’s energy policy. This new agenda seeks to enhance domestic energy production, fortify energy security and cut onerous red tape hamstringing capital intensive projects. This strategic pivot emphasizes domestic energy independence and the expansion of infrastructure.
Among Trump’s energy executive orders was the U.S. withdrawal from the Paris Agreement under the United Nations Framework Convention on Climate Change. Trump characterized the Paris Agreement as “one-sided,” and his decision to withdraw will help level the international playing field. In the order, Trump said the country had joined international agreements that do not reflect “our country’s values or our contributions” to the pursuit of economic and environmental objects, and that these agreements steered “American taxpayer dollars to countries that do not require, or merit, financial assistance,” in line with the interests of the American people. Although a controversial move, the order emphasizes the administration’s focus on domestic economic and environmental interests with regards to global climate policy. In 2023, China’s Xi Jinping said the country would decide its own path to reduce emissions, and not follow other nations’ goals.
In addition to the withdrawal from the Paris Agreement, Trump declared a ‘National Energy Emergency.’ The administration lifted restrictions on drilling in Alaska’s Arctic National Wildlife Refuge, tapping into the plethora of domestic resources beneath our feet. The Biden administration’s pause on liquified natural gas (LNG) exports was also lifted, allowing for capital intensive projects to move ahead, and for more LNG exports across the globe. The need for more modern infrastructure to meet increased energy demand–especially regarding artificial intelligence–was also addressed through a review of burdensome regulations that long delay infrastructure projects. Natural gas is positioned to bridge the gap between wind and solar, which are struggling to keep pace.
These policies set the stage for a dramatic enhancement in economic growth and technological innovation in the energy sector. As the global market evolves, the United States is leveraging its vast energy resources to be at the forefront, reinforcing its role as the leader in meeting both domestic and international demand.