President Donald Trump has launched a sweeping offensive on energy during his first hours in office, issuing a raft of executive orders to boost fossil fuel production and roll back U.S. commitments to fight climate change.
It's unclear what impact Trump's initial actions will have on the energy industry. The CEOs of Exxon and Chevron have said oil and gas production levels are based on market conditions and are unlikely to change meaningfully in response to Trump's desire to "drill, baby, drill." The U.S. has been the world's largest oil and gas producer for years now. And some of Trump's orders will likely be challenged in court.
Still, the president has made a clear political statement that the U.S. is abandoning the Biden administration's focus on fighting climate change through a transition to cleaner energy sources.
Instead, Trump is prioritizing fossil fuel projects to "solidify the United States as a global energy leader long into the future." Here are the key actions Trump has taken on energy so far.
1. Declares energy emergency
Trump has declared a national energy emergency, arguing that the U.S. faces a "precariously inadequate and intermittent energy supply, and an increasingly unreliable grid" that threatens national security.
Electricity demand is expected to surge in the coming years from data centers that support artificial intelligence and the expansion of domestic manufacturing. The largest grid operator in the U.S., PJM Interconnection, has warned it could face electricity shortfalls as coal plants are retired faster than new capacity is connected to the grid.
Trump has directed federal agencies to identify and exercise any lawful emergency authorities available to them to facilitate the production, transportation, refining and generation of domestic energy sources. He also ordered agencies to use all emergency authorities available to expedite new energy infrastructure projects.
2. Rolls back climate commitments
Trump ordered the U.S. to begin withdrawing from the Paris climate agreement. The landmark international treaty seek to limit rising global temperatures to 1.5 degrees Celsius above preindustrial levels.
Under the treaty's terms, a country can exit the agreement one year after providing notification that it intends to withdraw. But Trump's executive order states the U.S. will consider its withdrawal to be effective as soon as the United Nations secretary-general receives written notification.
Trump has also scrapped ambitious Biden administration goals that aimed for half of new cars sales to be electric vehicles, for the electric grid to be free of carbon pollution, and for the economy to produce net-zero emissions.
3. Expand drilling, natural gas exports
Trump issued an order to revoke Biden's ban on oil and gas drilling in most U.S. coastal waters. It is unclear whether Trump actually has the authority to do this and the order will likely face litigation. A federal court struck down a similar order by Trump during his first term that sought to reverse President Barack Obama's decision to protect waters in the Arctic and Atlantic.
Trump also issued an order Monday that aims to maximize the production of natural resources in Alaska. The order prioritizes the development of liquefied natural gas projects and directs the federal government to expedite permitting and leasing of energy projects in the state.
The president reversed the Biden administration's pause on new liquefied natural gas export facilities. Trump directed the Energy secretary to start reviewing new LNG projects as quickly as possible.
4. Rolls back clean energy incentives
Trump ordered all federal agencies to immediately pause the disbursement of funds under the Inflation Reduction Act, the Biden-era climate law that has provided financial support for clean energy.
The president specifically ordered a halt to funding for electric vehicle charging stations. He also directed his administration to consider ending subsidies and other policies that favor electric vehicles.
Trump targeted wind energy in a stand-alone executive order. The president temporarily suspended new or renewed leases for offshore and onshore wind projects. He also halted the leasing of wind power projects in the outer continental shelf.
