Washington, DC – January 20: President Donald Trump signs a series of executive orders at the White House on January 20, 2025, in Washington, DC. (Photo by Jabin Botsford/Washington Post via Getty Images)
Jabin Botsford | Washington Post | Getty Images
President Donald Trump has launched an all-out offensive on energy in his first hours in office, issuing a series of executive orders to boost fossil fuel production and backtrack on US commitments to fight climate change.
It is unclear what impact Trump’s initial actions will have on the energy industry. General directors 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 United States has been the world’s largest producer of oil and gas for years. And some of Trump’s orders are likely to be challenged in court.
However, the president has made a clear policy statement that the US 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 main actions Trump has taken on energy so far.
1. Declare an energy emergency
Trump has declared a national energy emergency, arguing that the US faces an “insecure, inadequate and intermittent energy supply, and an increasingly unreliable grid” that threatens national security.
Demand for electricity is expected to increase in the coming years from data centers supporting artificial intelligence and expanding domestic manufacturing. The largest US grid operator, PJM Interconnection, has warned it could face power shortages as coal plants retire faster than new capacity is connected to the grid.
Trump has directed federal agencies to identify and exercise any lawful emergency authority at their disposal to facilitate the production, transportation, refining and generation of domestic energy resources. He also ordered agencies to use all available emergency authorities to expedite new energy infrastructure projects.
2. Eliminate climate commitments
Trump ordered the US to begin withdrawing from the Paris climate agreement. The landmark international treaty aims to limit the rise in global temperatures to 1.5 degrees Celsius above pre-industrial levels.
Under the terms of the treaty, a country can withdraw from the agreement one year after giving notice that it intends to withdraw. But Trump’s executive order says the US will consider its withdrawal effective once the UN secretary-general receives written notification.
Trump has also scrapped the Biden administration’s ambitious goals for half of new car sales to be electric vehicles, for the electric grid to be carbon-free and for the economy to produce net zero emissions.
3. Drilling expansion, natural gas exports
Trump issued an order to overturn Biden’s ban on oil and gas drilling in most US coastal waters. It is unclear whether Trump has the authority to do so, and the order is likely to 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 Arctic and Atlantic waters.
Trump also issued an order on Monday aimed at maximizing 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 begin reviewing new LNG projects as soon as possible.
4. Restore incentives for clean energy
Trump ordered all federal agencies to immediately stop disbursing funds under the Inflation Reduction Act, the Biden-era climate law that has provided financial support for clean energy.
The president specifically ordered a freeze on funding for electric vehicle charging stations. He also directed his administration to consider ending subsidies and other policies favoring electric vehicles.
Trump targeted wind power in a standalone executive order. The president temporarily suspended new or renewed leases for offshore and onshore wind projects. It also banned the leasing of wind energy projects on the outer continental shelf.
