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Trump’s team is crafting an extensive energy initiative for immediate implementation upon his potential return to office, focusing on expanding LNG exports and increasing domestic oil production, according to individuals familiar with the proposal.
The initiative aligns with Trump’s campaign promises, positioning energy policy alongside immigration as central priorities for his potential administration.
Trump is gonna use US LNG as a geopolitical bargaining chip 🇺🇸 🚢
🇪🇺 Ursula von der Leyen, president of the European Commission, said they floated the idea of replacing Russian LNG with US LNG
📈 The US is the world’s top LNG exporter, and production will double by 2030 pic.twitter.com/rVzc1VLt3l— Stephen Stapczynski (@SStapczynski) November 8, 2024
The plan includes dismantling several of Biden’s climate initiatives, including eliminating electric vehicle tax incentives and regulations aimed at reducing coal and natural gas usage.
A key focus would be reversing Biden’s recent suspension of LNG export permits and expediting pending applications. The strategy also emphasizes accelerating drilling permits on federal lands and expanding offshore drilling opportunities through revised lease sales.
The proposal includes reviving the Keystone Pipeline project, though any company interested would need to begin the process anew since previous arrangements with landowners have expired.
“The American people can bank on President Trump using his executive power on day one to deliver on the promises he made to them on the campaign trail,” Karoline Leavitt, Trump’s transition spokesperson, said in a statement.
While many proposals would require congressional or regulatory approval, Trump intends to declare an energy emergency to potentially expedite these changes.
The plan includes seeking congressional support to restore the Strategic Petroleum Reserve, which was depleted during Biden’s tenure to address price volatility caused by global events.
Trump’s team also aims to reform the International Energy Agency, potentially leveraging funding to shift its focus away from emissions reduction toward more oil-friendly policies.
“I have pushed Trump in person and his team generally on pressuring the IEA to return to its core mission of energy security and to pivot away from greenwashing,” said Dan Eberhart, CEO of oilfield service firm Canary.
Biden’s January freeze on LNG export permits has delayed several major projects, including developments by Venture Global, Commonwealth LNG, and Energy Transfer in Louisiana.
The U.S., currently the world’s leading natural gas producer and LNG exporter, achieved this status in 2022 as Europe sought alternatives to Russian energy following the Ukraine invasion.
TRUMP'S TEAM GOES MINING FOR "LIQUID GOLD": His Interior and Energy secretaries promise expansive energy policies. #JER pic.twitter.com/wGygYNxB2H
— JER on FOX News (@JERonFNC) November 23, 2024
Five LNG export facilities with FERC approval await Department of Energy permits, though environmental reviews may still be necessary for legal compliance.
Regarding federal land drilling, permit processing times increased to 258 days under Biden compared to 172 days during Trump’s term. However, Biden’s administration has approved more onshore permits on average than Trump’s.
Federal lands and waters currently contribute approximately 25% of U.S. oil production and 12% of gas output, with both reaching significant production levels in 2023.