Staff Reports
President-elect Donald Trump is back, and this time he’s been busy whipping up plans for a National Energy Council, aiming at establishing American “energy dominance” once again. Clearly casting aside President Joe Biden’s obsession with climate change, Trump is swinging for the fences to ramp up U.S. oil and gas production. His ultimate goal? Drill more, sell more, and show the world who’s boss when it comes to energy.
At the helm of this new council will be North Dakota Governor Doug Burgum, a pick which surely indicates that the forthcoming energy strategy will have a firm pro-drilling stance. Trump has his eyes set on a major push to “drill, drill, drill,” with a focus on exporting U.S. oil to eager allies in Europe and beyond. The council promises to wield substantial authority over federal energy-related agencies, with ambitions to cut through the notorious bureaucratic red tape that has been the bane of energy producers.
Donald Trump's call for 'energy dominance' is likely to run into real-world limits. And his call for tariffs would raise gas prices.
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— Matthew Daly (@MatthewDalyWDC) November 29, 2024
However, reality check alert: Trump’s lofty energy ambitions may run into some serious obstacles. Despite his enthusiasm, U.S. oil production is reportedly at record levels under the Biden administration, and good luck trying to mandate companies to drill for more oil against their will. It’s a classic case of wanting to impose will on market dynamics, which traditionally do not bend easily to political whims. The drilling boom may come, but it will depend on the private sector’s decisions, weighed against the intricate balance of supply and demand globally.
There’s a bit of a conundrum brewing in Trump’s energy plan, too. His threat to impose tariffs on oil imports from Canada and Mexico, who happen to be major suppliers to the U.S. market, could trigger a price hike instead of a decrease in gas prices that many citizens are eagerly awaiting. Experts have raised the alarm that these tariffs would hurt the very consumers Trump needs on his side—talk about shooting oneself in the foot.
Despite the backdrop of skepticism, some industry insiders are optimistic about the new energy council. There are voices suggesting Trump’s administration might actually take a more beneficial approach for the energy sector as opposed to the regulatory-heavy strategy of the previous administration. Others are cautiously pointing out that any gains in oil production will rely heavily on the ever-important, bottom-line-focused energy market. And while there’s chatter about boosting renewables, it appears the emphasis lies just as much on traditional energy sources, likely ensuring plenty of interest from both conservatives and, believe it or not, some Republican leaders in states that have been hustling to embrace clean energy jobs.
With promises to push gasoline prices down—perhaps to unreasonably low figures—Trump’s grand vision may still have a long way to go before turning into reality. While the more cautious commentators hope for a sharp focus on renewables such as solar and wind, Trump has a different agenda where maintaining energy security and economic growth reign supreme. This mixed bag of traditional and renewable energy ambitions makes for an interesting political landscape, where the divide between vigorous fossil fuel support and the climate agenda is tighter than ever. Whether the ambitious goals for the energy council find their footing will depend on how well they navigate the complexities of the market, while striving to avoid the pitfalls of tariffs and regulations that seem to be lurking around every corner.
