Oil & Gas

Donald Trump's transition team is preparing a wide-ranging energy package to be rolled out soon after he takes office, focusing on expanding oil and gas production. The plan includes approving export permits for new liquefied natural gas (LNG) projects, increasing offshore drilling, and speeding up oil drilling permits on federal lands. These initiatives reflect Trump’s campaign promises and will ensure energy production is a key early priority, alongside immigration. Additionally, Trump plans to repeal significant climate regulations from the Biden administration, including tax credits for electric vehicles and rules aimed at reducing coal and natural gas use.

One of Trump’s early priorities is lifting the freeze on new LNG export permits imposed by President Biden in early 2024. The Biden administration paused these permits to study environmental impacts, delaying major projects. Trump, however, intends to prioritize LNG exports, a key element in strengthening the U.S. position as the world’s leading natural gas producer and exporter. His transition team is preparing to act quickly on approving the pending LNG export permits, which would allow major projects, including those in Louisiana, to proceed.

Trump is also expected to push for the approval of the Keystone Pipeline, a project blocked by Biden after taking office. However, restarting construction would require significant effort, as land easements previously granted to the pipeline have been returned to landowners. In addition, Trump plans to use executive power to bypass regulatory delays and push forward his energy agenda on day one. This includes replenishing the Strategic Petroleum Reserve, which was depleted under Biden to manage oil price spikes caused by the Ukraine crisis and pandemic inflation.

Trump’s energy plan will also include efforts to expedite oil and gas drilling on federal lands, reducing the approval time for drilling permits. Despite delays under Biden, oil and gas production from federal lands hit record highs in 2023. Trump aims to hold more frequent lease sales and offer land with higher potential for oil production. His administration also plans to apply pressure on the International Energy Agency (IEA) to focus on energy security and reduce emphasis on emissions reduction, as part of a broader push to strengthen the U.S. energy sector.