On his first day back in the White House, President Donald Trump wasted no time signaling a dramatic shift in US energy policy. With a flurry of executive orders and statements, Trump declared a “national energy emergency” and outlined plans to lower energy costs, ramp up fossil fuel production, and position the United States as an energy export powerhouse.
His actions aim to undo many of his predecessor’s efforts to accelerate clean energy adoption and curb greenhouse gas emissions, underscoring a renewed emphasis on traditional energy sources.
Here, energy experts from the Atlantic Council weigh in on the implications of Trump’s bold first moves and the pressing questions they raise about the future of US energy policy.
1. What Impact Will Trump’s Executive Orders Have on Energy?
Trump’s swift actions highlight energy production as central to his broader goals of combating inflation and bolstering national security. His order declaring a national energy emergency is designed to streamline permitting for energy projects and infrastructure. However, significant impacts may take time, as regulatory processes and industry responses unfold.
Reed Blakemore, director at the Atlantic Council Global Energy Center, notes that Trump’s “drill, baby, drill” agenda is still in its infancy. While expanded exploration is expected, the production boom will depend on market dynamics and industry priorities, particularly as oil and gas companies balance shareholder demands for capital returns. Trump’s lifting of a pause on liquefied natural gas (LNG) export approvals has garnered enthusiasm abroad, but practical results in energy markets will take years to materialize.
The administration’s approach to tariffs, sanctions, and foreign trade agreements will also shape the energy agenda, influencing global supply chains and US energy exports. Blakemore emphasizes that Trump’s commitment to energy dominance is evident, but achieving tangible results during his tenure will require navigating complex political and market factors.
2. Is the US Experiencing a National Energy Emergency?
The declaration of a national energy emergency serves more as a policy signal than a reflection of immediate crisis. David Goldwyn, chairman of the Atlantic Council’s Energy Advisory Group, cautions that regulatory changes and increased fossil fuel investments will face legal and market challenges. Rising energy prices, driven by supply chain constraints and global geopolitical tensions, could complicate Trump’s goal of reducing costs for American consumers.
State and local governments, utility companies, and consumer preferences will play pivotal roles in shaping energy outcomes. Meanwhile, foreign policy decisions, including sanctions on key energy-producing nations, could influence global energy markets more than domestic production increases in the near term.
3. What Does Trump’s Energy Agenda Mean for US-China Competition?
Trump’s energy policies are poised to influence the ongoing geopolitical competition with China, according to Joseph Webster of the Atlantic Council. US energy exports, particularly LNG, could strengthen alliances and reduce partners’ dependence on China. However, increasing domestic hydrocarbon production while neglecting demand-side measures may limit the full potential of energy exports as a geopolitical tool.
Webster highlights advanced batteries and artificial intelligence (AI) as critical battlegrounds in the US-China rivalry. The energy-intensive demands of AI and the strategic importance of advanced battery technologies underscore the need for a robust energy policy that supports innovation. Trump’s ability to reform infrastructure and promote diverse energy sources will be critical in determining US competitiveness.
4. What Are the Implications of Boosting Oil and Gas Production and Ending the LNG Pause?
Trump’s reversal of Biden-era policies, including the pause on LNG terminal approvals, has been welcomed by investors and allies. However, as Brenda Shaffer, a senior fellow at the Atlantic Council, points out, inconsistent US energy policies have undermined global confidence in the United States as a reliable energy supplier. Restoring trust will require long-term stability and clear commitments.
Expanded natural gas production is central to Trump’s strategy to combat inflation and lower energy costs. By reducing regulatory hurdles and methane taxes, the administration aims to spur investment and bring energy prices down. Yet, Shaffer warns that the pace of change may be slower than anticipated, with tangible benefits emerging only after years of permitting and construction.
5. Will Trump Prioritize Nuclear Energy?
Jennifer T. Gordon, director for the Nuclear Energy Policy Initiative at the Atlantic Council, believes that nuclear energy will play a prominent role in Trump’s energy strategy. By supporting both traditional light-water reactors and next-generation technologies like small modular reactors, the administration seeks to enhance US energy security and compete with Russia and China in the global nuclear market. Key appointments of nuclear advocates to leadership positions signal a strong commitment to advancing nuclear energy as part of the broader energy dominance agenda.
6. What Are the Domestic and Global Impacts of Rolling Back Clean Energy Initiatives?
Trump’s actions to halt funding for clean energy projects, revoke EV mandates, and withdraw from the Paris Climate Agreement represent a sharp departure from Biden-era climate policies. Robert F. Ichord Jr., a senior fellow at the Atlantic Council, warns that these moves could slow progress on renewable energy and weaken US leadership in the global clean energy transition.
China, already a leader in clean technology manufacturing, stands to benefit from reduced US investment in renewables. Ichord notes that Trump’s rollback of climate funding for developing nations could further strain international relations and cede influence to China in shaping the global energy landscape.
7. Can the US Continue to Lead on Clean Energy?
Despite the Trump administration’s pivot to fossil fuels, Lee Beck of the Atlantic Council highlights the resilience of the clean energy sector. Federal tax credits and private sector momentum, driven by bipartisan policies, have already spurred significant investment in clean technologies. To maintain global leadership, the US must ensure policy continuity and regulatory certainty to support ongoing projects.