WASHINGTON — Following his election win, President-elect Donald Trump is planning to establish a National Energy Council, aimed at achieving “energy dominance” for the United States on the international stage. This move seeks to ramp up domestic oil and gas drilling while stepping away from President Joe Biden’s emphasis on climate change initiatives.
The new energy council, which will be chaired by North Dakota Governor Doug Burgum—Trump’s nominee to lead the Interior Department—will play a crucial role in fulfilling Trump’s vow to “drill, drill, drill.” The council aims to facilitate the sale of increased U.S. oil and energy outputs to allied nations in Europe and beyond.
The National Energy Council is set to wield significant authority over various federal agencies involved in energy management, including permitting, production, regulation, and transportation. The objective is to reduce bureaucratic obstacles, encourage private investment, and foster innovation while minimizing what Trump calls “unnecessary regulation.”
Nonetheless, Trump faces practical obstacles in his quest for enhanced energy production. U.S. oil output has already reached unprecedented levels under Biden’s administration, and it’s not within the federal government’s jurisdiction to mandate drilling. Any increase may lead to lower oil prices, which in turn could squeeze profit margins for companies involved.
According to energy analyst Kevin Book, the call for energy dominance represents a “chance, not an obligation” for the oil sector to pursue drilling opportunities under conditions likely to be more favorable compared to Biden’s policies. However, whether this goal is realized hinges on decisions made by private companies, evaluated through the lens of global supply-demand dynamics.
Trump’s initiative to enhance oil supplies and reduce domestic prices faces further complexity due to his recent consideration of imposing a 25% tariff on oil imports from Canada and Mexico, two of the U.S.’s largest oil trade partners. Industry representatives have cautioned that such tariffs could elevate prices and potentially jeopardize national security.
According to Scott Lauermann, a spokesperson for the American Petroleum Institute, it is essential to maintain free energy trade with Canada and Mexico for the security of North American energy and consumer interests. Similarly, the American Fuel & Petrochemical Manufacturers has voiced opposition to tariffs, emphasizing that American refineries rely heavily on crude oil from these neighboring countries to supply affordable fuel to consumers.
Scott Segal, a former official during the Bush administration, noted that Trump’s approach to energy policy parallels Biden’s strategy of appointing a select group of White House advisors focused on climate issues. Segal described Burgum as a capable leader with experience in both fossil fuels and renewables.
In contrast to Biden’s team of climate advisors, who operate without Senate confirmation, Burgum will likely assume his role through Senate approval as a Cabinet member. Dustin Meyer from the American Petroleum Institute, expressed confidence that the establishment of the energy council could benefit the U.S. economy and trade by fostering better coordination across agencies.
However, Meyer also emphasized that market dynamics will play a vital role in determining any potential growth in energy production. Jonathan Elkind from Columbia University remarked that “energy dominance” remains an ambiguous concept, particularly when the market is already saturated with oil.
While Trump has pledged to bring gasoline prices below $2 per gallon, experts view this goal as improbable unless crude oil prices drop significantly. As of now, national gas prices average around $3.07 a gallon, down from $3.25 a year prior.
Several experts argue for an expanded focus of the new energy council beyond traditional oil production, advocating for the exploration of renewable energy sources, including solar, wind, and geothermal power, which do not contribute to climate change.
Elkind stressed the importance of addressing climate change, calling it an existential threat with significant consequences, as evidenced by the numerous weather-related disasters causing billions in damages and loss of life this year.
Trump has largely dismissed the dangers associated with climate change, indicating plans to cut unspent funds from the Inflation Reduction Act—Biden’s significant climate finance legislation—and halt offshore wind projects upon taking office.
Nonetheless, in his statement about the energy council, Trump promised to enhance all forms of energy production to support economic growth and job creation.
Safak Yucel, a professor at Georgetown University, pointed out that while the council’s mission is centered on achieving U.S. energy supremacy, there is nothing more American than harnessing domestic renewable resources like solar and wind. Reports have shown solar energy is one of the most economically viable forms of new electricity generation.
Trump voiced ambitions to significantly boost baseload power to decrease electricity rates and reduce the likelihood of brownouts, while also emphasizing the need to stay competitive in the artificial intelligence sector. Addressing reporters, Burgum noted the growing electricity demands driven by AI technology and expanding data centers.
Despite Trump’s criticisms of the climate legislation, many experts believe it is unlikely he will completely overturn it due to the substantial investments and job creation it has facilitated, particularly in Republican-held districts.
Recent trends indicate that Republican states have also significantly invested in renewable energy, emphasizing that as long as renewables remain economically viable, their growth will likely persist.