WASHINGTON — President-elect Donald Trump is poised to create a National Energy Council, with the goal of positioning the United States as a frontrunner in global energy production. This move highlights his plan to accelerate oil and gas drilling initiatives, while moving away from President Joe Biden’s focus on climate change policies.
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 critical in realizing Trump’s pledge to “drill, drill, drill,” aiming to enhance energy exports to allies in Europe and beyond.
This newly formed council will wield significant power over federal energy-related agencies, impacting permitting, production, and regulations. Trump has emphasized that the council’s purpose will be to cut through bureaucratic red tape, entice private investments, and favor innovation over what he views as excessive regulatory measures.
However, Trump’s aspirations for energy supremacy could encounter real-world obstacles. Under Biden’s administration, U.S. oil production has already soared to unprecedented levels. Additionally, the federal government does not possess the authority to force companies to ramp up drilling, and any increase in production could potentially result in lower prices and reduced profits.
The notion of energy dominance, which Trump previously advocated during his first term, is perceived by some analysts as an opportunity rather than a directive for the oil industry. Kevin Book, an energy analyst, indicates that the industry might be motivated to pursue drilling initiatives under conditions that are likely to be more favorable than those under Biden’s administration.
Ultimately, whether Trump can attain energy dominance will hinge on the decisions made by private companies, which will be shaped by their assessments of global supply and demand, according to Book, managing partner at ClearView Energy Partners. A rapid increase in oil drilling activities across the nation is not anticipated.
Trump’s ambition to enhance oil availability and decrease U.S. prices is further complicated by his recent warning of a potential 25% import tariff on Canada and Mexico—two of the U.S.’s largest oil suppliers. The oil industry has warned that such tariffs could result in higher prices and jeopardize national security.
“Canada and Mexico are our key energy trade partners, and facilitating the smooth exchange of energy products across borders is vital for North American energy security and American consumers,” remarked Scott Lauermann from the American Petroleum Institute, a leading oil industry lobbying group.
Similarly, the American Fuel & Petrochemical Manufacturers, representing U.S. refineries, expressed their opposition to the proposed tariffs, underscoring that American refineries depend on crude oil imports from Canada and Mexico to produce affordable fuels for consumers.
Scott Segal, a former official from the Bush administration, pointed out that the plan to centralize energy policies at the White House mirrors Biden’s strategy, who appointed a team of climate policy advisors. He characterized Burgum as “a steady hand on the tiller,” given his extensive experience in both fossil fuels and renewable energy sectors.
In contrast to Biden’s climate team—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 improved coordination across energy sectors.
However, Meyer emphasized that “market dynamics will always be the critical factor” in any potential increase in energy production.
Jonathan Elkind, a senior research scholar at Columbia University’s Center on Global Energy Policy, referred to 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 lower gas prices to below $2 a gallon, yet experts consider this aspiration highly unlikely without a substantial decline in crude oil prices. As of Wednesday, the average national gas price stood at $3.07, down from $3.25 a year ago.
Elkind and other experts hope that the new energy council will also prioritize renewable energy sources such as wind, solar, and geothermal, along with nuclear energy, as these alternatives do not contribute to greenhouse gas emissions associated with climate change.
“Ignoring climate change, which poses a significant threat to our planet, is a serious concern and could result in considerable losses in both American property and lives,” warned Elkind. He cited federal data showing that this year alone, more than two dozen weather-related disasters caused damages exceeding $1 billion each and resulted in 418 fatalities.
Trump has minimized the risks associated with climate change and has vowed to eliminate unspent funds allocated by the Inflation Reduction Act, Biden’s hallmark climate and healthcare legislation. He has also expressed intentions to halt offshore wind development upon his return to the White House in January.
Nevertheless, 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 included a nod to renewable energy, as highlighted by Safak Yucel, an associate professor at Georgetown University’s McDonough School of Business.
“The council is tasked with ensuring U.S. dominance on a global scale, but what could embody American values more than solar and wind energy?” he posed, referencing a report from Ernst & Young that identified solar energy as the most cost-effective new source of electricity in numerous markets.
Trump has stated that he aims to significantly enhance baseload power to reduce electricity costs, prevent blackouts, and “WIN the battle for AI superiority.”
Before his appointment to the energy position, Burgum emphasized a similar goal, acknowledging the growing demand for electricity driven by artificial intelligence and rapidly expanding data centers. “The competition in AI affects everything from defense to healthcare to education to national productivity,” Burgum asserted.
While Trump has dismissed the climate law as the “green new scam,” experts believe he is unlikely to completely dismantle it. A significant reason is that many of its investments and job creation take place in Republican districts. GOP lawmakers have urged House Speaker Mike Johnson to retain the law, which was passed solely with Democratic support.
“Numerous Southern states are advising Trump that they actually support renewables,” Yucel pointed out, noting that Republican-led states have experienced substantial job growth in the wind, solar, and battery industries in recent years.
If renewables continue to prove economically viable, he concluded, “they will endure.”