President-elect Donald Trump is set to create a National Energy Council that he says will establish American “energy dominance” as he seeks to boost U.S. oil and gas drilling and move away from President Joe Biden’s focus on climate change. The new council will have sweeping authority over federal agencies involved in energy permitting, production, distribution, and regulation, with a mandate to cut bureaucratic red tape.
Why is this a big deal…..
- The president-elect’s energy wishes are likely to run into real-world limits. For one, U.S. oil production under Biden is already at record levels. The federal government cannot force companies to drill for more oil, and production increases could lower prices and reduce profits. However, this is based on present day calculations not on estimated fuel limits.
- Trump has played down risks from climate change and pledged to rescind unspent money in the Inflation Reduction Act, Biden’s landmark climate and health care bill. He also said he will stop offshore wind development when he returns to the White House in January. Even so, his Nov. 15 announcement of the energy council says he will “expand ALL forms of energy production to grow our economy and create good-paying jobs.”
- Trump has promised to bring gasoline prices below $2 a gallon, but experts call that highly unlikely. Trump’s bid to boost oil supplies — and lower U.S. prices — is complicated by his threat to impose 25% import tariffs on two of the largest sources of U.S. oil imports, Canada and Mexico. The oil industry warned the tariffs could raise prices and even harm national security.
