Trump’s push for 'energy dominance' may face real-world limits
FILE-President-elect Donald Trump speaks at a House Republicans Conference meeting at the Hyatt Regency on Capitol Hill on November 13, 2024 in Washington, D.C. (Photo by Allison Robbert-Pool/Getty Images)
President-elect Donald Trump plans to create a National Energy Council he claims will establish American "energy dominance" around the world to bolster U.S. oil and gas drilling.
Trump’s energy council will be led by North Dakota Gov. Doug Burgum, his pick to lead the Interior Department — will be important in Trump’s pledge to "drill, drill, drill" and sell more oil and other energy sources to allies in Europe and around the globe.
According to the Associated Press, the council will be given authority over federal agencies involved in energy permitting, production, generation, distribution, regulation, and transportation, with an order to cut bureaucratic red tape, boost private sector investments and focus on innovation instead of "totally unnecessary regulation," Trump said.
However, Trump's energy wishes could run into real-world limits. The AP noted that U.S. oil production under President Joe Biden is already at record levels. The federal government cannot force companies to drill for more oil, and production increases could drop prices and lower profits.
Trump's attempt to strengthen oil supplies — and lower U.S. prices — is complicated by his threat this week to impose 25% import tariffs on Canada and Mexico, two of the largest sources of U.S. oil imports. The U.S. oil industry warned the tariffs could hike prices and even harm national security, the AP reported.
The president-elect has minimized the risks of climate change and committed to rescind unused money in the Inflation Reduction Act, Biden’s landmark climate and health care bill.
Trump also said he will stop offshore wind development when he returns to the White House for a second term in January.
Moreover, Trump also pledged to lower gas prices below $2 a gallon, but experts call that highly unlikely, since crude oil prices would need to fall significantly to accomplish that goal.
The AP noted that gas prices averaged $3.07 nationally as of Wednesday, down from $3.25 a year ago.