Energy Revolution Ahead: Trump’s Plan to Slash Prices
A National Energy Emergency
President-elect Donald Trump is set to declare a national energy emergency on his first day in office, vowing to cut electric and gasoline prices in half within the first year of his administration. This bold move aims to dramatically increase energy production, generation, and supply.
Unleashing Energy Production
To achieve this rapid reduction in energy costs, Trump plans to approve new drilling, pipelines, refineries, power plants, and reactors, while slashing red tape. He will also establish a National Energy Council, led by North Dakota Gov. Doug Burgum, to oversee the effort.
Executive Orders and Emergency Powers
Trump is expected to issue a series of executive orders to reverse Biden administration policies on natural gas exports, drilling, and emissions standards. He may also invoke emergency statutes to promote power generation and expand the nation’s fuel supply, waiving certain environmental and pollution rules related to energy.
Fueling the Economy
The president-elect’s plan could include fuel waivers under the Clean Air Act, allowing gasoline onto the market that would otherwise violate federal air quality standards. He may also invoke the Federal Power Act to order power plants to run at maximum capacity, regardless of pollution limits.
Industry Expectations
Oil industry lobbyists anticipate that Trump will issue orders tied to energy, including lifting the pause on new liquefied natural gas export facilities and reversing the ban on drilling in federal waters. The industry is also expecting increased oil and gas lease sales in the Gulf of Mexico.
Limitations and Challenges
While Trump’s emergency declaration may be largely symbolic, it could still face pushback from the courts. Additionally, the president’s authority to force new production is limited, and he cannot circumvent bedrock environmental policies such as the National Environmental Policy Act and the Endangered Species Act.
A New Era for Energy
Trump’s energy plan is expected to have a significant impact on the industry, but its immediate effects on production are unclear. As the U.S. continues to be the world’s largest producer of oil, the CEOs of Exxon and Chevron have made it clear that production decisions are based on market conditions, not presidential directives.
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