Incoming 47th US President Donald Trump announced a National Energy Emergency during his inauguration address.
Sticking to commitments made in the run-up to his Presidency, he said the US has some of the largest oil and gas reserves in the world “and we are going to use it” and reaffirmed it will “export US energy all over the world”, adding that “liquid gold” will help drive its economic growth and reverse “America’s decline”.
Under the list of priorities, the US will withdraw from the Paris Climate Accord.
“We need a reliable, diversified, and affordable supply of energy to drive our nation’s manufacturing, transportation, agriculture and defense industries,” the National Energy Emergency document states. “Without immediate remedy, this situation will dramatically deteriorate for energy and natural resources to power the next generation of technology.” Key orders include accelerating drilling in Alaska and stopping leases on windfarms.
Unleashing Alaska’s resource potential
Under the ‘Unleashing Alaska’s Extraordinary Resource Potential’ executive order, the US will maximise the development and production of natural resources; expedite permitting and leasing of energy and natural resource projects; and prioritise the development of Alaska LNG potential, including all necessary pipeline and export infrastructure, and the sale and transport of LNG to other regions of the US and allied nations within the Pacific region.
The Alaska LNG Project, designed to deliver North Slope natural gas to Alaskans and export LNG to UUS allies across the Pacific, was authorised by President Trump’s administration in 2020, reauthorised by President Biden’s administration in 2022, and is the only federally permitted LNG export facility on the US West Coast, offering direct, canal-free shipping via uncontested waters to Asian markets.
Frank Richards, President of the Alaska Gasline Development Corporation (AGDC), said Alaska LNG is broadly supported at federal, state, and local levels because of this project’s significant strategic, economic and environmental benefits.
“Alaska LNG will annually strengthen the US balance of trade by approximately $10bn, create thousands of jobs, and eliminate up to 2.3 billion tonnes of carbon
emissions over the project’s 30-year authorisation.”
Another clause relates to additional leasing through the Coastal Plain Oil and Gas Leasing Program within the Arctic National Wildlife Refuge.
The order relating to wind energy will see the US ‘withdraw from disposition for wind energy leasing all areas within the Offshore Continental Shelf’ but does not extend to oil and gas.
Unleashing American Energy
The ‘Unleashing American Energy’ order aims to encourage energy exploration and production on Federal lands and waters, and lead on ‘non-fuel minerals’ including rare earth minerals.
The Secretary of Energy is directed restart reviews of applications for approvals of LNG export projects as expeditiously as possible, consistent with applicable law.
In assessing the ‘Public Interest’ to be advanced by any particular application, the Secretary of Energy shall consider the economic and employment impacts to the US and the impact to the security of allies and partners that would result from granting the application.
The Order also stipulates ending the Green New Deal and eliminating the electric vehicle mandate.
All agencies shall ‘immediately pause’ the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act, including but not limited to funds for electric vehicle charging stations made available through the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program.
The calculation of the “social cost of carbon” is marked by logical deficiencies, a poor basis in empirical science, politicisation, and the absence of a foundation in legislation, the order states.
According to The White House website, “During President Trump’s first term, our nation became the number one producer of oil and natural gas on earth and achieved American energy independence. Delivering low energy costs for oil, gas, and electricity to the American people is a priority and he will achieve this by encouraging domestic energy production.”
The new administration has thrown its full weight behind traditional energy and fossil fuels at a time when many countries are going in the opposite direction, embarking on Net Zero and decarbonisation strategies.
It is unclear, both legislatively and practically, how much of the Inflation Reduction Act will be reversed, but the new President’s initial comments leave little doubt about where his energy priorities now lie.
The ‘tide of change’ was reflected by the ceremony being held indoors at Capitol Rotunda on account of the cold weather.
In other eye-catching moves, President Trump pledged to send astronauts to Mars and renaming the Gulf of Mexico, the Gulf of America.
