WASHINGTON —
President-elect Donald Trump is gearing up to create a National Energy Council, with the objective of positioning the United States as a frontrunner in global energy production. This initiative signals his plan to increase oil and gas drilling activities while moving away from President Joe Biden’s focus on climate change initiatives.
The council is anticipated to be led by North Dakota Governor Doug Burgum, whom Trump has nominated for the Interior Department. This group is expected to be instrumental in fulfilling Trump’s “drill, drill, drill” commitment, targeting enhanced energy exports to allies in Europe and beyond.
This new body will wield significant power over federal agencies involved in energy operations, overseeing aspects such as permitting, production, and regulation. Trump has made it clear that the council’s mission will be to remove bureaucratic obstacles, attract private investments, and emphasize innovation over what he views as overreaching regulations.
However, Trump’s aspirations for energy supremacy may encounter real-world obstacles. Under Biden’s administration, U.S. oil production has already hit unprecedented levels. Additionally, the federal government does not have the authority to compel companies to increase drilling, and any uptick in production could result in lower prices and reduced profit margins.
The notion of energy dominance, which Trump also promoted during his first presidency, is regarded by some analysts as more of an opportunity than a directive for the oil sector. Energy analyst Kevin Book suggests that companies might be encouraged to engage in drilling projects under more favorable conditions compared to those imposed by Biden’s policies.
Ultimately, whether Trump can realize his vision of energy dominance will hinge on decisions made by private companies, influenced by their assessment of global supply and demand, according to Book, who is managing partner at ClearView Energy Partners. An immediate influx of new oil drilling operations nationwide is not anticipated.
Trump’s plans to boost oil availability and lower domestic prices are further complicated by his recent threats to impose a 25% import tariff on Canada and Mexico, which are two of the largest oil suppliers to the U.S. The oil industry has warned that such tariffs could lead to increased prices and potential risks to national security.
“Canada and Mexico are our primary energy trade partners, and facilitating smooth energy exchanges across borders is vital for North American energy security and U.S. consumers,” remarked Scott Lauermann from the American Petroleum Institute, the leading lobbying organization for the oil sector.
Likewise, the American Fuel & Petrochemical Manufacturers, which represents U.S. refineries, expressed opposition to the proposed tariffs, highlighting that American refiners depend on crude oil from Canada and Mexico to produce affordable fuels for consumers.
Scott Segal, a former official from the Bush administration, observed that the decision to centralize energy policies in the White House mirrors Biden’s strategy, where he appointed a team of advisors focused on climate policy. He described Burgum as “a steady hand on the tiller,” given his experience in both fossil fuels and renewable energy sectors.
In contrast to Biden’s climate advisors—Gina McCarthy, John Podesta, and Ali Zaidi—Burgum is expected to serve as a Senate-confirmed Cabinet member.
Dustin Meyer, senior vice president of policy, economics, and regulatory affairs at the American Petroleum Institute, noted that the establishment of the new energy council is “a positive development” for the U.S. economy and trade, advocating for better coordination across energy sectors.
Nevertheless, Meyer emphasized that “market dynamics will always be the key factor” for any potential increase in energy production.
Jonathan Elkind, a senior research scholar at Columbia University’s Center on Global Energy Policy, referred to the idea of energy dominance as a “deliberately vague concept.” He expressed doubts about Trump’s ability to boost oil production in an already saturated market.
Trump has claimed he would bring gasoline prices down to below $2 a gallon, but experts consider this goal unrealistic without a substantial drop in crude oil prices. As of Wednesday, national gas prices were averaging $3.07, down from $3.25 a year earlier.
Elkind and other experts hope that the new energy council will also prioritize renewable energy sources like wind, solar, and geothermal, as well as nuclear power, since these options do not emit greenhouse gases that contribute to climate change.
“Ignoring climate change, which poses a grave threat to our planet, is a serious concern and could lead to significant losses in American property and lives,” Elkind warned. He pointed to federal data indicating that this year alone, over two dozen weather-related disasters caused damages exceeding $1 billion each and resulted in 418 fatalities.
Trump has downplayed the risks associated with climate change and pledged to eliminate unspent funds from the Inflation Reduction Act, Biden’s key climate and healthcare legislation. He has also expressed intentions to halt offshore wind development upon resuming his role in the White House in January.
Despite this, his announcement on November 15 regarding the energy council underscored a commitment to “expand ALL forms of energy production to boost our economy and create high-paying jobs.”
This statement also hinted at a recognition of renewable energy, as noted by Safak Yucel, an associate professor at Georgetown University’s McDonough School of Business.
“The council is tasked with ensuring U.S. dominance globally, but what could represent American values more than solar and wind energy?” he questioned, referencing a report from Ernst & Young that identified solar energy as the most cost-effective new source of electricity in numerous markets.
Trump has indicated he aims to significantly enhance baseload power to lower electricity costs, prevent blackouts, and “WIN the battle for AI superiority.”
Before his appointment to the energy role, Burgum highlighted a similar goal, noting the increasing demand for electricity driven by artificial intelligence and rapidly growing data centers. “The AI competition impacts everything from defense to healthcare to education to national productivity,” Burgum stated.
While Trump has derided the climate law as the “green new scam,” experts believe he is unlikely to fully dismantle it. One reason is that a significant portion of its investments and job creation occurs in Republican districts. GOP lawmakers have urged House Speaker Mike Johnson to maintain the law, which was passed solely with Democratic support.
“Many Southern states are advising Trump that they actually favor renewables,” Yucel noted, highlighting that Republican-led states have seen substantial job growth in wind, solar, and battery sectors in recent years.
If renewables continue to prove economically viable, he concluded, “they will endure.”