CNN, Washington, D.C.In his comprehensive plan to increase
oil and gas production, President Donald Trump announced on Monday that the
United States would withdraw from an international climate change deal, roll
back environmental regulations, and declare a national energy emergency to
expedite licensing.
Following four years of efforts by former President Joe Biden to promote a
shift away from fossil fuels in the largest economy in the world, the actions
mark a significant U-turn in Washington's energy strategy. However, while
drillers seek high pricing following sanctions on Russia following its 2022
invasion of Ukraine, it is unclear whether Trump's actions will have any effect
on U.S. production, which is already at record levels.
"America will be a manufacturing nation once again, and
we have something that no other manufacturing nation will ever have: the
largest amount of oil and gas of any country on Earth," Trump stated in
his inaugural address.
"And we are going to use it."
Subsequently, Trump issued executive orders announcing a national energy
emergency and removing the US from the 2015 Paris Climate Accord, an
international agreement to combat global warming. He also revoked Biden's goal
of EV adoption, lifted a moratorium on LNG export permits, suspended the sale
of offshore wind leases, reversed Biden's efforts to safeguard Arctic
territories and U.S. coastal waters from drilling, and issued directives to
encourage oil and gas production in Alaska.
Trump stated that by increasing domestic supply and
supporting friends, he anticipates the orders will lower consumer energy prices
and enhance U.S. national security.
"We will bring prices down, fill our strategic reserves up again right to
the top, and export American energy all over the world," he stated.
Environmental organizations have stated that they plan to file a legal
challenge to the executive directives.
The Biden administration had viewed wind energy and electric vehicle technology
as essential to attempts to decarbonize the electricity and transportation
sectors, which together account for about half of carbon dioxide emissions in
the United States.
By enforcing stricter exhaust pollution regulations on
automakers and providing a consumer subsidy for new EV sales, Biden's
administration aimed to promote the usage of electric vehicles. Additionally,
through tax credits that have attracted billions of dollars in new
manufacturing and project investments, it aimed to promote renewable energy
technologies like solar and wind.
Trump's first day's program was dubbed a "disaster for working
families" by the Democratic National Committee.
"It is hardly putting 'America first,'" said DNC spokesperson Alex
Floyd, "to kill manufacturing jobs and give a free pass to polluters who
make people sick."
POWER
INDUSTRY RENOVATION
Throughout his campaign, Trump made it clear that he planned to declare a
national energy emergency, stating that in order to satisfy the growing demand,
the United States needs increase its production of fossil fuels and electricity
generation.
According to the Department of Energy, data center power consumption in the
United States, a significant contributor to the nation's rising electricity
demand, could almost treble over the next three years and account for up to 12%
of the nation's power consumption for artificial intelligence and other
technologies.
In order to meet that demand, Trump's statement aims to expedite the
construction of new power plants, relax environmental regulations on existing
ones, and facilitate the permitting process for pipeline and transmission
projects.
As he signed the order, Trump told reporters, "It
allows you to do whatever you’ve got to do to get ahead of that problem."
"And we do have that kind of an emergency."
"The declaration of an energy emergency in a non-war period is rare and
untested, creating a potential legal vulnerability," said Sam Sankar,
senior vice president for programs at Earthjustice, a non-profit organization
preparing to challenge Trump policies in court.
Although it never did, the first Trump administration had contemplated utilizing
emergency powers under the Federal Power Act to try to fulfill a promise to
save the collapsing coal industry.
Meanwhile, by increasing demand for U.S. crude oil, Trump's
pledge to replenish strategic reserves might raise oil prices.
Biden sold a record 180 million barrels of crude oil from the U.S. Strategic
Petroleum Reserve following the invasion of Ukraine.
The reserve, which is meant to protect the US from a possible supply shock,
fell to its lowest level in 40 years as a result of the sales, which also
helped control the price of gasoline.
0 Comments