Day 1: Trump to declare "emergency" in burst of energy orders
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President-elect Trump's opening flurry of executive orders will declare a "national energy emergency" to juice higher production and lower consumer costs, an incoming administration official tells Axios.
- The wave of moves on day 1 or shortly after is also expected to include an executive order to "unleash Alaska's natural resource potential." The order will support liquefied natural gas exports from the 49th state, with an eye toward helping Asia-Pacific allies.
Why it matters: Trump wants to send an instant message of "promises made, promises kept" — and signal a much friendlier climate for businesses across the board.
Trump's energy executive actions will create "conditions that facilitate investment, that facilitate job creation, that facilitate the production of America's natural resources, and the result will be lower prices for the American people," an incoming White House energy adviser told us.
- "National security is a key issue here," the adviser said. "Energy is fundamental to our foreign policy, and reducing American energy production curtails our ability to exercise our foreign policies."
Threat level: Trump's attempted reversal of Biden-era policies could boost U.S. greenhouse gas emissions — or at least slow down projected reductions.
Future focus: The power to fuel AI — which requires energy-thirsty data centers — is top of mind for the incoming White House, which is vowing to "unleash" U.S. energy.
- The emergency order is expected to focus on electricity generation. U.S. power demand is rising quickly after staying largely flat for the last 15 years.
Friction point: "We're in an AI race with the People's Republic of China and other nations," the incoming energy adviser said.
- "It's fundamental that we're able to produce the necessary electricity here in the United States so that we can win that race and protect our nation."
The big picture: Trump's team aims to ease construction of fossil-fuel infrastructure, such as pipelines. The new administration also is expected to overturn a suite of Biden-era policies:
- A major slowdown of oil and gas leasing in the Gulf of Mexico and new bans in other coastal waters.
- EPA greenhouse gas regulations on power plants, vehicles, and oil and gas infrastructure.
- A "pause" on new LNG export licenses to major markets.
- Restrictions on oil, gas and mineral projects in Alaska.
Reality check: Trump's "dominance" agenda will confront market and process barriers — and plenty of litigation.
- U.S. oil output is already at record levels. Tepid global demand growth makes producers in Texas and elsewhere unlikely to flood the market.
- Gasoline and diesel costs are tethered to oil prices set on global markets, while electricity costs tend to be highly regional and dependent on weather and other forces.
- Executive orders can make some instant policy. Often they're a symbolic opening of the long, legally fraught bureaucratic slog of formally unwinding agency rules and policies.
The intrigue: It's unclear precisely what the "emergency" declaration and other orders will entail.
- "We're going to cut the burdensome red tape and bureaucracy that have inhibited our economy for four years now," the incoming energy adviser said.
- Presidents can use emergency authorities to redirect resources and push the private sector to boost or maintain critical supplies.
Between the lines: The oil and gas industry will cheer Trump's opening moves. But executives are wary of his plans for tariffs, which could raise project costs — and spur retaliation from buyers of U.S. exports.
The bottom line: The first moments and days of Trump 2.0 will ignite a U-turn from President Biden's expansive climate agenda.
- But turning those ambitions into on-the-ground reality is a far longer, trickier task.
