On day one, Trump unveiled a comprehensive energy plan with several significant actions.
- Through a series of executive orders, President Donald Trump has presented a comprehensive energy plan.
- Trump is shifting his focus from climate change initiatives in the Biden administration to promoting fossil fuel projects.
In his first hours in office, President Donald Trump launched a comprehensive attack on energy policy, enacting a series of executive orders to increase the production of fossil fuels and reverse the United States' pledges to combat climate change.
The CEOs of ExxonMobil and Chevron have stated that oil and gas production levels are determined by market conditions and are unlikely to significantly alter in response to Trump's goal of increasing drilling. Despite being the world's largest oil and gas producer for several years, some of Trump's orders may be contested in court.
The president has made a clear political statement that the U.S. is abandoning the Biden administration's focus on combating climate change by transitioning to cleaner energy sources.
Trump is prioritizing fossil fuel projects to maintain the United States as a dominant global energy leader. Here are the key actions Trump has taken on energy so far.
1. Declares energy emergency
The U.S. faces a "precariously inadequate and intermittent energy supply, and an increasingly unreliable grid," according to Trump, who has declared a national energy emergency.
The retirement of coal plants at a faster rate than the addition of new capacity to the grid could result in electricity shortfalls for PJM Interconnection, the largest grid operator in the U.S., as demand for electricity from data centers supporting artificial intelligence and domestic manufacturing increases in the coming years.
Trump instructed federal agencies to utilize any legal emergency powers they can to speed up the production, transportation, refining, and generation of domestic energy sources, as well as to expedite new energy infrastructure projects.
2. Rolls back climate commitments
Trump instructed the US to withdraw from the Paris climate agreement, which aims to restrict global temperature increase to 1.5 degrees Celsius above pre-industrial levels.
According to the treaty, a country can leave the agreement one year after giving notice of withdrawal. However, Trump's executive order specifies that the U.S.'s withdrawal will be effective immediately upon receipt of written notice by the U.N. Secretary-General.
The Biden administration's ambitious goals for electric vehicles, a carbon-free electric grid, and net-zero emissions have been abandoned by Trump.
3. Expand drilling, natural gas exports
Biden's ban on oil and gas drilling in most U.S. coastal waters has been revoked by Trump through an order. However, it is uncertain whether Trump possesses the necessary authority to do so, and the order may face legal challenges. A federal court previously invalidated a similar order issued by Trump during his first term, which aimed to reverse President Barack Obama's decision to safeguard Arctic and Atlantic waters.
Trump issued an order Monday to prioritize the development of liquefied natural gas projects and expedite permitting and leasing of energy projects in Alaska, with the aim of maximizing the production of natural resources in the state.
Trump instructed the energy secretary to expedite the review of new liquefied natural gas export facilities.
4. Rolls back clean energy incentives
Trump instructed all federal agencies to halt the distribution of funds under the Inflation Reduction Act, a Biden-era climate law that supports clean energy.
The president instructed his administration to stop funding for electric vehicle charging stations and to evaluate the possibility of ending policies that support electric vehicles.
Trump issued an executive order targeting wind energy by temporarily suspending new or renewed leases for offshore and onshore wind projects, and halting the leasing of wind power projects in the outer continental shelf.
Markets
You might also like
- Delinquencies are on the rise while a record number of consumers are making minimum credit card payments.
- U.S. economy state weighs on little changed treasury yields.
- European markets predicted to sustain positive growth.
- Trump hints at imposing a 10% tariff on China starting in February.
- David Einhorn believes we are currently in the "Fartcoin" phase of the market cycle.