What the Oil and Gas Industry Seeks from Trump and How He Could Fulfill Their Agenda

The oil and gas sector has presented a detailed agenda for President-elect Donald Trump to consider. The American Petroleum Institute (API), a major lobbying group, has urged Trump to prioritize several key actions. These include approving liquefied natural gas (LNG) exports without delay, expanding drilling opportunities on federal lands, simplifying the pipeline approval process, rolling back stringent vehicle emissions and fuel economy standards, and maintaining current corporate tax policies.

This five-point plan reflects how the industry envisions Trump’s well-known slogan, “drill, baby, drill,” being translated into tangible policies. During an interview with NBC News Trump mentioned his intent to sign executive orders related to energy after his inauguration on January 20, though he did not provide specific details.

Establishing a National Energy Council

Trump plans to create a National Energy Council tasked with steering the nation toward energy dominance by reducing bureaucratic hurdles. North Dakota Governor Doug Burgum, chosen as Trump’s Interior Secretary, will head this council and hold a position on the National Security Council.

The council will involve all federal entities engaged in energy production, distribution, regulation, and permitting, according to a statement from Burgum. API President Mike Sommers praised this approach, describing it as a comprehensive government strategy aimed at ensuring U.S. energy security for the next quarter-century.

Chris Wright, CEO of Liberty Energy and Trump’s nominee for Energy Secretary, will also be part of this council. According to Kevin Book, managing director of ClearView Energy Partners, these appointments suggest a strong focus on significantly reducing regulations.

Focus on Deregulation

Both Burgum and Wright are closely aligned with smaller, independent oil and gas firms, which often face greater challenges in complying with regulatory demands than larger corporations. Book noted that Wright’s company, Liberty Energy, is a relatively small player in the oilfield services sector, with a market value of $2.8 billion. Meanwhile, Burgum’s state, North Dakota, heavily relies on fossil fuel production, with many operators being small-scale firms.

“This council seems to represent a voice more in favor of independent oil and gas companies, likely advocating for deeper deregulation,” Book explained.

Expanding Exports and Drilling

While Trump’s National Energy Council is officially dedicated to achieving “energy dominance,” U.S. energy production is already at historic highs. According to Department of Energy data, the U.S. has led the world in oil production for six consecutive years and became the largest exporter of natural gas in 2023.

Book believes the Trump administration aims to further boost the U.S. position in the global oil and gas markets, challenging competitors such as OPEC.

To achieve this, API has called for an immediate end to restrictions on new LNG export projects and expedited approvals for pending applications. These restrictions were implemented by the Biden administration to evaluate the environmental and economic impacts of LNG exports.

The API also advocates for increased federal leasing for oil and gas development in regions such as New Mexico, the Gulf of Mexico, and Alaska. Under the Biden administration, offshore drilling opportunities were significantly reduced, with plans allowing limited exploration exclusively in the Gulf of Mexico through 2029.

“These leases are essential for long-term production, spanning 30 to 40 years,” Sommers said, emphasizing the need for action now to secure future supply.

Limitations of Policy on Production

While offering more leases may enhance future supply, decisions to invest ultimately depend on the oil market’s supply and demand dynamics, according to Bob McNally, a former energy advisor to President George W. Bush.

McNally explained that while poor policy choices could hinder production, a president’s ability to rapidly increase output is limited. “Ultimately, investment in production hinges much more on oil prices, which the president has little control over,” McNally stated.

By Bitumenmag

Oil, Gas, Energy