How the oil and gas industry hopes to benefit from Trump's administration and what measures the administration may take to fulfill their requests.

• The oil and gas industry's top priorities for Trump's second term are to increase liquified natural gas exports and lease more federal land for drilling.
• The National Energy Council is being established by the president-elect with the objective of achieving "U.S. energy dominance."

President-elect Donald Trump has a "to do" list for the oil and gas industry.

The American Petroleum Institute has requested that Trump quickly approve the export of liquefied natural gas, increase drilling on federal lands, simplify pipeline permit procedures, abolish stringent vehicle emissions and fuel efficiency standards, and maintain current corporate tax rates.

The industry interprets Trump's "drill, baby, drill" slogan as a five-point roadmap for concrete policy, with Trump promising to sign executive orders on energy when he takes office on Jan. 20, but providing no further details.

Trump is establishing a National Energy Council to oversee the path to U.S. energy dominance by reducing bureaucracy. North Dakota Governor Doug Burgum, Trump's choice for interior secretary, will lead the council and also serve on the National Security Council.

Trump appointed Burgum to lead the council, which comprises all federal agencies responsible for energy permitting, production, generation, distribution, and regulation, Burgum stated in a statement.

The Energy Council should prioritize ensuring sufficient infrastructure and production to safeguard U.S. energy security for the next 25 years, as per API President Mike Sommers' vision for the incoming administration.

The president-elect's selection of Burgum and Wright suggests that the administration plans to significantly reduce regulations, according to Kevin Book, managing director of ClearView Energy Partners, an energy research firm.

According to Book, smaller, independent oil and gas companies, such as Burgum and Wright, prefer deeper deregulation because compliance is a heavier burden for them compared to larger players.

Burgum leads a state where fossil fuel production is a significant portion of its GDP, and many of the oil and gas operators are smaller companies, according to Book.

Burgum likely agrees with Book's assessment that Chris Wright, as energy secretary, would likely have a more independent voice in the oil and gas industry and a deeper deregulatory bent as a consequence.

More LNG exports, drilling

Despite the mission of Trump's council to achieve energy dominance, the U.S. has been leading the world in oil production for six consecutive years, and it was the largest exporter of natural gas in 2023, according to DOE data.

The Trump administration is attempting to increase the U.S.'s share of the global oil and gas market by challenging OPEC and other producers.

What can this council do to enhance its market share and strengthen its competitive position in the global hydrocarbon market?

On his first day in office, the API is urging Trump to lift the pause on new LNG export projects and expedite the processing of pending applications to export LNG. The Biden administration had put a hold on LNG exports to assess their environmental and economic effects.

The group requests that the incoming administration increase federal leases for oil and gas exploration in New Mexico, the Gulf of Mexico, and Alaska.

Under a plan by the Biden administration, the fewest offshore oil and gas leases were offered in U.S. history, with companies allowed to drill in a maximum of three new areas exclusively in the Gulf of Mexico through 2029, as per the Interior Department.

"Sommers stated that the company requires 30- to 40-year production leases in order to maintain inventory and ensure future production."

Increasing the number of leases for production may lead to an increase in supplies over the long term, but investment decisions in the oil market are determined by supply and demand fundamentals, according to Bob McNally, who served as an energy advisor to President George W. Bush.

McNally stated that presidents can hinder production by making poor policy decisions, but they have limited options to boost output rapidly.

McNally stated that the amount invested in production is largely determined by the price of oil, which is beyond the president's control.