WASHINGTON (AP) — On Friday, President Donald Trump signed an executive order that officially established a National Energy Dominance Council, instructing it to expedite efforts to boost domestic oil and gas production, which is already at record highs.
Additionally, Trump’s administration announced it has provided conditional export authorization for a significant liquefied natural gas project in Louisiana, marking the first approval for new LNG exports since former President Joe Biden put a hold on such approvals a year prior.
Furthermore, Trump has tasked Interior Secretary Doug Burgum with reversing Biden’s prohibition on future offshore oil drilling along the East and West coasts. Trump criticized Biden’s last-minute action last month for “viciously removing” over 625 million acres of offshore land, which could otherwise contribute to the nation’s “net worth.”
He also committed to reviving a previously canceled pipeline aimed at transporting natural gas from Pennsylvania to New York, asserting that it could reduce energy costs in the Northeast by up to 70%.
Collectively, these actions highlight Trump’s dedication to enhancing U.S. energy production, particularly in fossil fuels such as oil and gas, while dismantling regulatory obstacles that might impede progress. Trump emphasized that the U.S. is endowed with “liquid gold,” encouraging energy companies to increase oil and gas sales to allies in Europe and worldwide.
“We’re going to generate more revenue than anyone has ever seen from energy,” Trump stated during an Oval Office event on Friday. He remarked on the quality of American energy, referring to it as “very clean beautiful energy,” calling it “liquid gold under our feet” and expressing determination to utilize it.
The newly established council, which will be led by Burgum, will have extensive authority over federal agencies responsible for energy permitting, production, generation, distribution, regulation, and transportation, aiming to eliminate bureaucratic red tape, foster private sector investments, and prioritize innovation over “unnecessary regulation,” as per Trump’s remarks.
Trump also announced plans to roll back efficiency standards for appliances like dishwashers. Additionally, Lee Zeldin, the Environmental Protection Agency administrator, stated plans to work with Congress to revoke a waiver that Biden’s EPA granted, allowing California to enforce stringent air pollution standards on vehicles.
In January 2024, Biden stated he would postpone reviewing new natural gas export terminals in the United States, despite the surge in gas shipments to Europe and Asia following Russia’s invasion of Ukraine.
This decision aligned Biden with environmentalists who are concerned that the significant increase in LNG exports could potentially lock in catastrophic emissions, even as he pledged to cut climate pollution in half by 2030.
However, this move angered the oil and gas sector and Republicans, who labeled it a betrayal and a “broken promise” to U.S. allies reliant on LNG imports for heating and other essential needs.
Trump has consistently called for reversing Biden’s actions, and an executive order he signed on his first day back lifted the delays. Energy Secretary Chris Wright, who appeared with Trump at the White House, announced the conditional approval for Commonwealth LNG in Louisiana. The company plans to export 9.5 million tons of LNG per year from a new facility in Cameron Parish, Louisiana.
By signing off on the conditional export approval, Wright stated he was “unpausing the pause” initiated by Biden.
“By exporting American LNG, we enhance the U.S. economy and create American jobs while strengthening global energy security, and I am proud to collaborate with President Trump to restore American energy exports,” Wright expressed.
Commonwealth LNG, owned by Kimmeridge Texas Gas, commended the administration’s actions, claiming in a statement that they “demonstrate President Trump’s prioritization of the American energy sector.”
Although Wright’s approval awaits a final order from the independent Federal Energy Regulatory Commission, the company expressed confidence that the panel would endorse the project by summer.
Commonwealth projects to reach a final investment decision in September, with initial LNG production expected to commence in early 2029, according to CEO Farhad Ahrabi.
Biden, in prohibiting new offshore drilling shortly before his term ended, cited authority under the federal Outer Continental Shelf Lands Act to safeguard offshore regions along the East and West coasts, the eastern Gulf of Mexico, and parts of Alaska’s Northern Bering Sea. While this order does not affect substantial portions of the Gulf of Mexico—where most U.S. offshore drilling takes place—it does safeguard coastlines in California, Florida, and other states from future exploration.
Biden’s action, protecting over 625 million acres of federal waters, may pose challenges for Trump to reverse, as it would likely necessitate Congressional intervention. The law referenced by Biden allows the president to withdraw segments of the outer continental shelf from mineral leasing, including for oil and gas extraction, if designated as too sensitive for such activities.
“The financial loss that Biden inflicted on our balance sheet was unimaginable,” Trump stated on Friday. “He essentially erased it. That’s a significant portion of the ocean, and he just relinquished it. He took it away.”
Trump expressed confidence that the order could be annulled “through a very legal process,” adding: “Now, it’s back on our balance sheet.”
