Donald Trump’s transition team is preparing to make energy a top priority, aiming to implement a comprehensive energy package shortly after he takes office. According to sources familiar with the plan, Trump’s agenda will focus on boosting natural gas exports, expanding oil drilling opportunities, and rolling back several climate-related regulations introduced during President Biden’s administration. The plan is poised to reshape U.S. energy policy, putting a significant emphasis on oil and gas production right from day one.
Expanding LNG Exports and Domestic Drilling
Trump’s proposed energy strategy includes lifting Biden’s recent pause on new export permits for liquefied natural gas (LNG). By moving quickly to approve pending permits, Trump hopes to position the U.S. as a leading energy exporter, capitalizing on its status as the world’s top natural gas producer. Sources indicate that this push will also expedite drilling permits on federal lands, and Trump will reopen the five-year drilling plans to include more lease sales off the U.S. coast.
A major point of focus for Trump’s plan will be LNG export projects that were put on hold under Biden. Several projects, including Venture Global’s CP2, Commonwealth LNG, and Energy Transfer’s Lake Charles complex in Louisiana, are in limbo as they await federal approvals. Trump’s team has emphasized that LNG exports are a “lay-up” issue, and they plan to push forward vigorously to increase U.S. LNG output, meeting the rising global demand, particularly in Europe.
Reversing Biden’s Climate Measures
Another major element of Trump’s energy agenda involves rolling back Biden-era climate policies. Trump plans to repeal regulations such as tax credits for electric vehicles and new clean power plant standards aimed at reducing emissions from coal and natural gas. Additionally, Trump will look to restore the Keystone Pipeline project, which became a symbol of the environmental debate after Biden revoked a crucial permit on his first day in office. While the pipeline project will need to start from scratch, Trump’s move to greenlight the project is seen as a strong gesture in support of oil and gas development.
Trump is also expected to use his executive power to declare an energy emergency, which would help fast-track some of these changes. His administration intends to bypass congressional and regulatory barriers to implement the changes as quickly as possible. Part of this effort includes urging Congress to allocate funding to replenish the Strategic Petroleum Reserve, which was significantly depleted during Biden’s tenure to curb energy price spikes amid geopolitical tensions.
Focus on Energy Security
In addition to expanding domestic energy production, Trump’s team has signaled a desire to pressure the International Energy Agency (IEA) to return to its original mission of ensuring energy security. Trump’s advisors have voiced concerns that the IEA’s current focus on reducing emissions could hinder energy reliability. Some members of Trump’s inner circle, including Dan Eberhart, CEO of Canary, an oilfield service company, have pushed for a more pro-oil stance from the IEA.
Trump’s energy plan will also aim to improve efficiency in permitting processes. Under Biden, the average wait time for drilling permits on federal and Indian lands increased to 258 days, up from 172 days during Trump’s first term. Trump hopes to streamline the process, expedite approvals, and hold lease sales more frequently. His administration aims to prioritize land that is likely to yield productive wells, making it easier for energy companies to invest in new projects.
Boosting Production to Meet Growing Demand
Trump’s renewed emphasis on fossil fuels comes as the world still heavily relies on oil and natural gas for energy. Despite efforts to transition to cleaner energy sources, demand for hydrocarbons remains strong. Trump’s administration is focused on boosting short-term oil production by replenishing the Strategic Petroleum Reserve and approving more drilling permits, with the goal of encouraging U.S. producers to ramp up their output.
The Trump administration’s energy agenda highlights a significant pivot from the climate-focused policies of the Biden administration, placing an emphasis on expanding traditional energy sources to enhance U.S. energy independence and security. For the oil and gas industry, this approach could mean more opportunities for growth, as well as a potential shift in global energy dynamics, with the U.S. playing a larger role as an energy exporter.
