TL/DR –
President-elect Donald Trump plans to create a National Energy Council to establish American “energy dominance” globally, focusing on boosting U.S. oil and gas drilling. The council will be led by North Dakota Gov. Doug Burgum and will have extensive authority over federal agencies involved in energy permitting, production, and regulation, with a mandate to cut bureaucracy, encourage private sector investments, and focus on innovation. However, Trump’s energy aspirations may meet real-world limits as U.S. oil production under Biden is already at record levels, and increases in production could lead to lower prices and reduced profits.
Trump to Establish National Energy Council to Foster US Energy Dominance
President-elect Donald Trump plans to form a National Energy Council to promote American “energy dominance” worldwide, signalling a shift from President Joe Biden’s climate change focus.
Energy Council Led by Doug Burgum
North Dakota Gov. Doug Burgum will lead the council, reinforcing Trump’s promise to expand oil and gas drilling to bolster energy exports.
New Council’s Mandate and Challenges
The council will oversee federal agencies involved in energy production, permitting, and regulation, aiming to cut bureaucratic red tape and encourage private sector investment. However, Trump’s goal of increasing oil production faces challenges as U.S. oil output under Biden is already record high.
Impact of Potential Tariffs on Oil Prices
Trump’s threat to apply 25% import tariffs on Canada and Mexico could increase oil prices and potentially affect national security, as both countries are significant sources of U.S. oil imports.
Energy Decisions at the White House
Energy lobbyist Scott Segal praised the idea of centralized energy decisions at the White House, following Biden’s example who appointed White House advisors to lead on climate policy.
New Energy Council’s Impact on Economy and Trade
Dustin Meyer of the American Petroleum Institute applauded the forming of the new council, stating it benefits the U.S. economy and trade. Nevertheless, he acknowledged that market dynamics will ultimately dictate energy production increases.
Trump’s Climate Change Stance
Although Trump has downplayed climate change risks and vowed to repeal unspent funds from Biden’s Inflation Reduction Act, he also pledged to halt offshore wind development.
Future of Renewables
Despite his focus on fossil fuels, Trump’s energy council mandate includes renewables. A report from Ernst & Young last year highlighted solar as the cheapest source of new-build electricity in many markets.
Energy Council’s Role in Artificial Intelligence
Trump envisions the council as instrumental in increasing baseload power to lower electricity costs, avoid brownouts, and “WIN the battle for AI superiority”. Burgum echoed this sentiment, highlighting the crucial role of AI in sectors ranging from defense to healthcare.
Renewables in the South
Despite Trump’s criticism of climate law as the “green new scam”, southern states have expressed their support for renewables, citing the creation of thousands of jobs in wind, solar, and battery power.
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