Trump plans major initiative to boost gas exports and oil drilling, Reuters
Photo: Trump to increase gas exports and oil drilling (Getty Images)
Donald Trump's transition team is preparing a wide-ranging energy package that will be presented within days of his inauguration. The package will include approval of export permits for new liquefied natural gas (LNG) production projects and an increase in the volume of oil drilling off the US coast and on federal lands, Reuters reports.
The energy checklist largely reflects Trump's election campaign promises. Still, the plan to unveil the list from day one guarantees that oil and gas extraction will become one of the pillars of Trump's early agenda, alongside immigration.
Sources have reported that Republican Trump also plans to cancel some key climate laws and regulations of his predecessor, Democrat Joe Biden, such as tax incentives for electric vehicles and new standards for clean power plants aimed at gradually phasing out coal and natural gas.
Sources said a top priority will be canceling President Biden's moratorium on new LNG export permits in the election year and rapid approval of permits currently under review. Trump will also attempt to speed up the issuance of drilling permits on federal lands and quickly restore five-year drilling plans off the US coast to include more lease sales.
As a symbolic gesture, Trump will try to approve the Keystone pipeline, a controversial issue that was halted after Biden revoked a key permit on his first day in office. However, any company wishing to build a multi-billion dollar project to transport Canadian crude oil to the US will have to start from scratch, as things like easements were returned to landowners.
"The American people can bank on President Trump using his executive power on day one to deliver on the promises he made to them on the campaign trail," Karoline Leavitt, Trump's transition spokesperson, said in a statement.
Many plan elements will require time to pass through Congress or the country's regulatory system. Trump promised to declare a state of emergency in the energy sector on his first day in office, allowing him to bypass these barriers and implement some changes on an accelerated timeline.
LNG plans
Biden froze new LNG export permits in January to study the environmental impact as part of a pre-election push to benefit from green voting blocs in his party. Without export permits, developers cannot continue long-term plans to build new projects. Among the delayed projects are Venture Global's CP2, Commonwealth LNG, and Energy Transfer's, as well as Lake Charles complex, all of which are in Louisiana.
The United States is the world’s largest producer of natural gas and became the largest exporter of LNG in 2022, as Europe hoped that America would help them reduce massive energy supplies from Russia after its invasion of Ukraine.
According to the sources, the Biden administration promised to publish the environmental study before Trump enters the White House on January 20. Still, it will not affect the new administration.
"The LNG issue is a lay-up, and he plans to go strong on the issue," said one of the sources.
As the federal records indicate, five LNG export projects in the US have been approved by the Federal Energy Regulatory Commission. However, they are still awaiting approval from the Department of Energy.
Biden's pause also halted necessary environmental assessments, some of which may still be required to ensure the five pending permits from the Department of Energy survive legal scrutiny.
Offshore and federal land drilling opportunities
Trump aims to accelerate drilling off the US coast and on federal lands.
According to federal agencies, the average time to obtain a drilling permit on federal and Indian lands was 258 days during Biden's first three years in office, while during Trump's four years in office, it was 172 days.
Sources said Trump is expected to speed up permit issuance, conduct more frequent sales, and offer lands more likely to be suitable for oil extraction.
Despite delays in permit issuance, Biden's Interior Department approved, on average, more drilling permits on land than the first Trump administration.
According to federal data, oil production on federal lands and waters reached a record high in 2023, and gas production hit its highest level since 2016.
Drilling on federal lands and waters accounts for about a quarter of US oil production and 12% of gas production.
As reported earlier, Kyiv expects that by the inauguration on January 20, Trump's team aims to have a ready solution for Ukraine to be implemented as quickly as possible once he has official powers. This "American turbo mode" will extend beyond Ukraine, targeting issues like the Middle East, illegal immigration, and others.
