On his first day back in office, Trump declared a national energy emergency through an executive order, enabling his administration to fast-track approvals for energy infrastructure projects such as pipelines and power plants. A key focus of his energy agenda is to mobilize all available resources to expand the nation’s energy infrastructure.
Additionally, Trump has moved to open Alaska—an area abundant in natural resources—for energy development. On Monday night, he signed an executive order overturning Biden-era restrictions on oil and gas exploration in the region.
“We will restore our nation’s wealth, and the valuable resources beneath our feet will play a crucial role in making that happen,” he stated in his inaugural address.
On Monday, Trump stated that the U.S. possesses “the largest reserves of oil and gas of any nation on Earth, and we are going to use it,” vowing to drive down energy costs and expand American energy exports worldwide.
Throughout his campaign, Trump emphasized that “unleashing American energy”—specifically oil and gas—while rolling back Biden-era climate regulations would lead to lower fuel prices and spur economic growth. This message resonated with many Americans concerned about inflation.
Standing alongside top executives from the nation’s largest tech firms on Monday, Trump announced plans to dismantle the Green New Deal and eliminate the electric vehicle mandate.
In a statement, the White House confirmed that Trump would terminate wind farm leases and once again withdraw the U.S. from the Paris Climate Accord.
However, fulfilling these pledges may prove challenging. Economists and energy experts told Business Insider that oil and gas prices are primarily influenced by global market forces beyond a president’s control. Meanwhile, supporters of Biden’s landmark climate legislation cautioned that undoing it could disrupt a manufacturing boom—especially in Republican-led states—where new factories are producing solar panels, electric vehicles, and batteries designed to curb emissions from fossil fuels.
Along with expanding fossil fuel production, administration officials stated that the executive orders would also seek to increase the supply of non-fuel minerals, enhancing consumer options for various manufactured goods.
According to industry estimates, approximately 24% of U.S. oil and 11% of natural gas are extracted from federal lands and waters, while the majority comes from privately owned land. The Biden administration had restricted drilling in federally controlled regions, including the Gulf of Mexico and Alaska, and temporarily halted new permits for gas export terminals.
Fossil fuel industry groups, such as the American Petroleum Institute, argued that these policies resulted in job losses domestically and jeopardized global energy security. They also contend that the U.S. must boost oil and gas production to keep pace with the rapidly increasing energy demand driven by artificial intelligence and the need for constant power supply.
U.S. oil and gas production has already reached record highs.
In a series of press interviews in November, ExxonMobil CEO Darren Woods suggested that a Trump administration would have minimal impact on output. He noted that the industry is already producing substantial amounts of oil and gas, leaving little room for a significant production surge in the near future.
Trump’s nominees for two key Cabinet positions pledged to restore America’s “energy dominance” during Senate confirmation hearings last week.
Chris Wright, Trump’s pick to head the Energy Department, stated that he would support all energy sources, including fossil fuels, nuclear power, and renewables. He acknowledged climate change as a “global challenge” that must be addressed—a departure from some of his past remarks downplaying the crisis and criticizing renewables as “unreliable and expensive.” Meanwhile, Doug Burgum, Trump’s nominee for the Interior Department, vowed to expand oil and gas drilling on federal lands and waters.
Energy experts told Business Insider that major oil companies have prioritized returning profits to shareholders over investing in new production projects, partly due to China’s economic slowdown. For decades, China fueled global oil demand through rapid industrial and real estate expansion, along with a growing middle class purchasing more vehicles. However, the country’s housing sector is now struggling with a surplus of unsold apartments, while rising electric vehicle adoption has further reduced oil demand.
Since the IRA was signed into law in 2022, more than 1,000 manufacturing plants and 350,000 jobs have been announced. Additionally, millions of Americans have taken advantage of over $8 billion in tax credits for solar panels, electric vehicles, and heat pumps—investments that could help reduce long-term energy costs.
Trump has criticized the law, calling it the “green new scam,” and vowed to repeal it.
