A general view of oil drilling equipment on federal land near Fellows, California, U.S., April 15, 2023. REUTERS/Nichola Groom/File Photo

Trump Transition Team Prepares Comprehensive Energy Policy for Early Rollout

The transition team for former President Donald Trump is crafting a broad energy policy package aimed at significant regulatory changes and project approvals. The plans, aligned with Trump’s campaign promises, are expected to focus on boosting oil and gas production and revising energy-related regulations, according to sources familiar with the preparations.

Prioritizing Energy Initiatives Alongside Immigration

The energy policy is set to feature prominently in Trump’s early agenda, ranking alongside immigration reform. Key objectives include expanding liquefied natural gas (LNG) exports and increasing drilling activities on federal lands and offshore. The plan also involves repealing select climate-related regulations introduced during the Biden administration.

Export Permits for LNG Projects

One immediate priority involves reversing President Joe Biden’s freeze on new LNG export permits, imposed earlier to assess environmental impacts. Trump aims to expedite approvals for several pending projects, including Venture Global’s CP2, Commonwealth LNG, and Energy Transfer’s Lake Charles facility in Louisiana.

The United States, a leading natural gas producer and the world’s top LNG exporter as of 2022, has seen delays in projects critical to energy infrastructure. Pending permits with the Department of Energy (DOE) and halted environmental reviews under Biden’s administration are expected to receive swift action under Trump’s proposed directives.

Increased Drilling on Federal Lands and Offshore

The Trump administration plans to accelerate the approval process for drilling permits on federal lands and waters. Permit processing times, which increased under Biden’s administration, are expected to be reduced significantly. Trump’s energy team also intends to reopen five-year offshore drilling plans to expand lease sales.

Federal data indicates that Biden’s administration approved more onshore drilling permits annually than Trump’s first term, with federal oil output reaching record levels in 2023. However, the new administration seeks to expedite both approvals and sales to further boost production.

Revisiting Keystone XL Pipeline and Strategic Petroleum Reserve

In a symbolic move, Trump’s team aims to greenlight the Keystone XL Pipeline, halted by President Biden on his first day in office. However, any reconstruction would require starting anew, including renegotiating easements and other approvals.

Additionally, Trump plans to prioritize replenishing the Strategic Petroleum Reserve (SPR), which was depleted during Biden’s term to stabilize energy prices amidst inflation and geopolitical crises. This measure aims to stimulate short-term oil demand and encourage increased domestic production.

Addressing International Energy Policies

Trump’s advisers propose pressuring the International Energy Agency (IEA) to refocus on energy security rather than policies promoting emissions reduction. Some advisors suggest withholding U.S. funding unless the IEA adopts a more pro-oil stance.

Implementation Challenges and Legislative Processes

While many elements of the plan require Congressional action and regulatory review, Trump has indicated he may declare an energy emergency to expedite key changes. The feasibility of such actions remains uncertain, given potential legal and administrative barriers.