By Jarrett Renshaw
(Reuters) – U.S. President Donald Trump issued a series of orders on Monday hours after his inauguration aimed at boosting the country’s already record oil and gas production and ending former President Joe Biden’s climate agenda.
Here are some of the actions Trump took on his first day:
ENERGY EMERGENCY
Trump declared a national energy emergency, intended to give him the power to reduce environmental restrictions on energy infrastructure and projects and make it easier to permit new transportation infrastructure and pipelines.
“This allows you to do whatever it takes to get ahead of this problem,” Trump told reporters as he signed the order. “And we have that kind of urgency.”
Earlier today he explained the reason for this statement: “The inflation crisis has been caused by massive overspending and rising energy prices, and that is why today I I’m also going to declare a national energy emergency. We’re going to drill baby, drill.”
He has previously said that growing demand for electricity from the tech industry, mainly to power artificial intelligence, requires a major overhaul of the grid.
LNG LICENSE
Trump ordered the United States to resume processing export permit applications for new liquefied product projects supplying Asia and Europe, reversing a pause put in place by Biden in early 2024 to study environmental and economic effects of the export boom.
U.S. exports of super-chilled fuel set a record in 2023 and the country is the world’s largest exporter of the product. But the pause in new export approvals has created uncertainty for a large number of ongoing projects.
Louisiana plants awaiting approval include Commonwealth LNG, Venture Global’s CP2, Cheniere Energy’s (NYSE:) expansion at its Sabine Pass facility and Energy transfer (NYSE:) from the Lake Charles terminal. In Texas, a second phase of Sempra’s Port Arthur LNG project is awaiting approval.
GOODBYE PARIS
Trump ordered the United States to withdraw from the Paris climate accord, an international agreement aimed at combating climate change, repeating a decision he made during his first term.
Trump has called climate change a hoax and says the deal puts the United States at a competitive disadvantage compared to geopolitical rivals like China.
“I am immediately withdrawing from the unfair and unilateral scam of the Paris climate agreement,” he said. “The United States will not sabotage our own industries while China pollutes with impunity.”
OFFSHORE WIND
Trump has suspended new federal leasing of offshore wind power pending an environmental and economic review, saying wind turbines are ugly, expensive and harm wildlife.
“We’re not going to do the wind thing,” he said.
A White House press release said Trump issued an executive order suspending offshore wind leasing in all areas of the U.S. outer continental shelf pending an environmental and economic review.
This order is not expected to impact existing U.S. offshore wind projects advanced by companies including Orsted (CSE:), Avangrid (NYSE:), Copenhagen Infrastructure Partners and Dominion.
Biden saw wind power as a critical part of his strategy to decarbonize the electricity sector.
EV TARGETS
Trump took aim at electric vehicles, revoking a 2021 executive order signed by Biden that aimed to ensure that half of all new vehicles sold in the United States by 2030 are electric.
Biden’s 50% target, which was not legally binding, had won support from U.S. and foreign automakers.
Trump said in an executive order that he was suspending the distribution of unspent government funds for vehicle charging stations from a $5 billion fund, called for ending the waiver allowing states to adopt rules on zero-emission vehicles by 2035 and said his administration would consider ending tax credits for electric vehicles. .
DRILL, BABY, DRILL
Trump signed an executive order repealing Biden’s efforts to block oil drilling in the Arctic and along large areas of the US coast, according to the White House.
Trump also rescinded a 2023 memo banning oil drilling on some 16 million acres (6.5 million hectares) in the Arctic, the White House said.
It is unclear whether these measures will be enough to attract large drillers, who have fled the region in recent years due to relatively high development costs.
Biden this month banned all new offshore oil and gas development along most of America’s coasts ahead of Trump taking office.
RELOAD STOCK
Trump said he intended to fill the strategic reserves “to the top.”
This is likely a reference to the United States Strategic Petroleum Reserve, the national oil stockpile, designed as a buffer against supply shocks.
After the invasion of Ukraine, Biden sold more than 180 million barrels of crude oil from the reserve, a record amount.
The sales helped keep gasoline prices in check, but sent reserves to the lowest level in 40 years.
“We will lower prices, refill our strategic reserves, all the way to the top, and export American energy around the world,” Trump said.
He will likely turn to Republican lawmakers to give him money for oil purchases in the coming weeks.
