President-elect Donald Trump has announced plans to establish a National Energy Council aimed at advancing American “energy dominance” on the global stage as he seeks to boost U.S. oil and gas drilling and move away from President Joe Biden’s focus on climate change.
The energy council, which will be led by North Dakota Governor Doug Burgum—Trump’s nominee for Secretary of the Interior—will play a central role in fulfilling Trump’s promise to “drill, drill, drill” and sell more oil and other energy sources to allies in Europe and around the globe.
The new council will be granted sweeping authority over federal agencies involved in energy permitting, production, generation, distribution, regulation and transportation, with a mandate to cut bureaucratic red tape, enhance private sector investments and focus on innovation instead of “totally unnecessary regulation,” Trump said, as reports suggest.
Trump’s energy agenda may face practical challenges. U.S. oil production under President Biden is already at record highs, and the federal government cannot force companies to increase drilling, and any increase in production could drive down oil prices and reduce profit margins for producers.
“Whether Trump achieves energy dominance, however, he defines it — comes down to decisions by private companies, based on how they see supply-demand balances in the global marketplace, don’t expect an immediate influx of new oil rigs dotting the national landscape,” said Book, managing partner at ClearView Energy Partners, a Washington research firm.
Trump’s efforts to increase oil supplies and reduce U.S. prices are complicated by his recent threat to impose 25% import tariffs on Canada and Mexico, two of the largest sources of U.S. oil imports.
Trump, in his statement, said he wants to dramatically increase baseload power to lower electricity costs, avoid brownouts and “WIN the battle for AI superiority.”
He has downplayed the risks of climate change and vowed to eliminate unspent funds from the Inflation Reduction Act, President Biden’s landmark climate and healthcare legislation. He has also pledged to halt offshore wind development if he reclaims the White House in January.
