Our Long National *Energy* Nightmare Is Over - TEA

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Our Long National *Energy* Nightmare Is Over

January 17th, 2025

The issue: There are several ways that President-elect Donald Trump can turn energy dominance into reality and unleash American natural gas.

Why it matters: According to the U.S. Energy Information Administration (EIA), domestic oil production is projected to increase by about 300,000 barrels per day in 2025 — reaching 13.52 million barrels per day — before leveling off in 2026. A similar trend is expected for natural gas output and that’s good news for consumers. Also, the U.S. is going to need an increasing amount of electricity in the future as artificial intelligence and other technology places demands on our grid.

Consider: Trump will be sworn into office for the second time next Monday at noon. To achieve an ARC Energy Security, starting on Day One, he must make good in his campaign promises, including:

  • Roll back the Biden-era regulations that included raising the federal royalty rates from 12.5% to 16.66%, hiked bonding requirements on oil and gas leases and instituted new limits and fees on methane emissions — all measures that eat into industry profits.
  • Accelerate the liquefied natural gas (LNG) export approvals. Ending the freeze would be a policy shift that would instantly boost investor confidence and create additional demand for U.S. natural gas, shoring up prices and profits for upstream producers.
  • Open more federal lands and waters to drilling. As Trump put it, “Drill baby, drill.”
  • TEA would add to that “Build baby, build” for a brighter future, and reform the permitting system. Faster permitting for pipelines and other infrastructure would help alleviate bottlenecks, thereby improving the economics of drilling in maturing shale basins.

Chris Wright, Trump’s pick for Energy secretary, told the Senate Energy and Natural Resources Committee on Wednesday that if confirmed he would use the position to “unleash American energy at home and abroad.” Wright is a solid pick and is expected to be confirmed. This type of bold leadership is exactly what’s needed in Washington.

“The security of our nation begins with energy,” Wright said during the hearing. He is absolutely on point and understands that every issue is an energy issue.

By diligently rolling back regulations, reforming the permitting process, expediting LNG export approvals and expanding federal lease sales, the Trump administration can significantly improve the domestic industry’s profitability.

Bottom line: Make doing business easy again. That’s the essence of what Donald Trump will need to do to incentivize more American energy production, and he’s assembled the right team to do it.

The issue: It’s been nearly one year since the Biden administration announced that the U.S. would pause pending decisions on permits to export liquefied natural gas (LNG) to non-free trade agreement countries until the U.S. Department of Energy could update the underlying analyses for authorizations.

Why it matters:  A year later there is a global scramble for natural gas unfolding. The LNG industry is critical to serving the world’s energy needs and has rapidly become an integral contributor to our economy.

Consider: This move also has damaged the economy of key states like Louisiana, who rely on LNG exportation. Trump has promised swift action to restart approvals for LNG export licenses and says he’ll do so via an executive order.

The damage done by the Biden-Harris team amounts to a lengthy laundry list of bad energy policies, including:

  • Canceling the Keystone XL pipeline project on day one.
  • Biden issued an executive order announcing a moratorium on new oil and gas leases on public lands or in offshore waters.
  • He directed his Interior Department to conduct a review of permitting and leasing policies.
  • The U.S. government leveraged its power to attack oil and gas producers, while subsidizing favored industries such as wind and solar.
  • The Department of Energy increased regulatory burdens on commercial building codes, requiring green energy codes to disincentivize natural gas and other energy sources.
  • Biden released new rules to force electric vehicles on Americans, and spent billions of dollars on charging stations.
  • The Department of Energy announces the sale of an additional 10 million barrels of oil from the SPR.

The list is extensive, with more than 250 actions taken under this bumbling presidency that have harmed domestic energy production and contributed to higher costs for energy, including heating your home and putting gasoline in your vehicle. We know President-elect Trump has a better policy, a common sense energy agenda very similar to what TEA has advocated for the past 5 years. We expect those policies to be implemented starting next week because it will take time to undo the hideous actions that have hindered energy production, limited consumer choice and driven up prices.

The drilling ban is a powerful demonstration of a broken federal government.

Bottom line: Over the last 4 years, Biden did everything in his power to make doing business harder for American oil and gas producers, resulting in record high prices for everyone. On Monday, the long national energy nightmare is finally over.

Ahead of Donald Trump’s inauguration on Monday, gas prices across the country moved slightly higher. The national average for a gallon of gasoline is now $3.11, which is 5 cents more than one week ago. As a final farewell to President Biden, we’d like to remind our readers that the HIGHEST EVER average price for gas was recorded in June of 2022 when the national average reached $5.02.

Hearing On Transportation Secretary Nomination: On Wednesday, January 22, the Senate Commerce, Science, and Transportation will have a hearing to consider the nomination of Sean Patrick Duffy, of Wisconsin, to be Secretary of Transportation.

Hearing On Agriculture Secretary Nomination: On Thursday, January 23, the Senate Agriculture, Nutrition, and Forestry will have a hearing to examine the nomination of Brooke Rollins, of Texas, to be Secretary of Agriculture.

“Energy is not a sector of the economy. It’s THE sector of the economy that enables everything else we do.”

-Donald Trump’s incoming Energy Secretary Chris Wright, in his confirmation hearing.

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