Upon taking office on January 20th, President Donald Trump announced a series of executive orders, primarily concerning the energy sector, including the withdrawal of the United States from the Paris Climate Agreement. This marks the second time Washington has exited the agreement; Trump initially withdrew in 2017 during his first term, before former President Joe Biden rejoined it in early 2021. Additionally, Trump issued orders aimed at canceling electric vehicle mandates and revoking over 78 Biden-era decisions that promoted the use of clean and renewable energy. He also declared a state of emergency in the energy sector, enabling him to expedite projects without waiting for congressional approval.
Various Efforts
Trump has made substantial efforts in the energy sector since his first day in the White House, aiming to reshape American energy to reduce inflation rates experienced during Biden’s presidency. These efforts are outlined below:
- Withdrawal from the Paris Climate Agreement: Trump followed a similar path to his first term by issuing an executive order on his first day in the White House to exit the Paris Climate Agreement, which was signed in December 2015 and involves 195 countries committed to voluntarily reducing carbon emissions over the coming decades to limit the increase in global temperatures to 1.5 or 2 degrees Celsius from pre-industrial levels. Trump justified his withdrawal by questioning the scientific basis of global warming and labeling it a hoax.
- Establishment of the National Energy Council: Trump planned to create the National Energy Council, overseeing American energy dominance by reducing bureaucracy. It would manage the drilling and sale of oil and other energy sources to allies in Europe and globally, with comprehensive authority over federal agencies involved in energy permitting, production, generation, regulation, transportation, and private investment innovation.
- Enhancing American Oil and Gas Production: Trump championed the slogan “Drill, baby, drill!” vowing to expedite the permitting process for drilling, while committing to hydraulic fracturing, a technique used to extract natural gas and oil from shale formations. He issued an executive order in Alaska to ease oil and gas production conditions there, promising to expand all forms of energy production to grow the American economy. He proclaimed during his inauguration that America’s golden age begins today, suggesting that the “liquid gold” beneath American feet would help lift citizens from poverty caused by Biden.
- Dismantling Biden’s Energy Agenda: Through a series of executive orders on his first day, Trump sought to dismantle Biden’s energy policies designed to reduce fossil fuel dependency and combat climate change by relying on clean energy. He revoked Biden’s 2023 memorandum prohibiting oil drilling in approximately 16 million acres of the Arctic and signed an executive order to lift the moratorium on new liquefied natural gas export licenses, expedite pending approvals, and ended wind farm leases while banning new wind energy contracts.
- Resorting to the Federal Energy Act: Trump is likely to utilize the Federal Energy Act to issue orders for power plants to operate at full capacity, ignoring air pollution limits—a law rarely invoked since World War II. He may also issue waivers under the Clean Air Act to expedite gasoline market entry, potentially violating federal air quality standards. Notably, many past presidents have relied on such waivers when needing to keep prices in check.
- Abolishing Electric Vehicle Mandates: Trump aimed to issue an executive order to eliminate electric vehicle mandates, counteracting Biden’s initiatives to ease pollution standards as incentives for car manufacturers to sell more electric vehicles and for consumers to purchase them. He also planned to revoke Biden’s order aiming for half of all new vehicles sold by 2030 to be electric and is expected to abolish the $7,500 federal tax credit for purchasing a new electric vehicle, reflecting statements from his campaign.
- Declaring a State of Emergency in the Energy Sector: Since the beginning of his administration, Trump has worked to fulfill his campaign promises, declaring a national energy emergency to expedite his projects like drilling, new pipelines, new refineries, and even nuclear power plants during his first 100 days. This declaration allows him to avoid awaiting congressional approval while pledging to fill American strategic reserves and facilitate energy exports worldwide, alongside committing to using all necessary resources to develop vital infrastructure and encouraging energy exploration in federal lands and waters.
Potential Implications
Trump’s series of executive orders in the energy sector may have various potential implications, including:
- Increased Global Warming: The U.S. withdrawal from the Paris Climate Agreement is expected to severely undermine global climate efforts aimed at reducing carbon emissions, isolating the U.S. from the worldwide initiative to halt global warming. This could lead to significant increases in global warming rates, as the U.S. stands as the second-largest carbon polluter after China, jeopardizing the treaty’s targets.
- China’s Dominance in Electric Vehicle Production: Following Trump’s executive order to eliminate electric vehicle mandates, it is likely to create space for China to dominate the electric vehicle and solar panel markets, exporting these products worldwide at low prices, adversely affecting the U.S. economy.
- Increased Tensions with Oil-Exporting Nations: Trump’s energy policies may boost U.S. domestic oil production, increasing the supply and potentially destabilizing global oil markets while escalating tensions with oil-exporting countries striving to maintain market price stability.
- Competition with China in Mineral Production: Trump is expected to pursue policies that propel the U.S. to produce necessary minerals independently of its competitors, possibly positioning Washington as a strong contender against China in this field. He may invest efforts to give the U.S. a strategic advantage in mineral production, potentially leading to a serious interest in acquiring Greenland to bolster production capabilities.
Positive Effects
In conclusion, Trump’s energy efforts since his first day in office could positively impact the American interior, potentially leading to significant economic and energy sector recovery. This may decrease energy prices in the U.S., subsequently reducing food and housing costs and lowering unemployment rates through drilling and exploration projects that create additional jobs.
