The incoming Trump administration is expected to implement several pro-oil energy policies shortly after taking office. These measures include expanding oil drilling and reviving liquefied natural gas (LNG) exports, according to a recent report from Reuters.
An early priority of the president-elect’s transition team will reportedly be lifting the Biden administration’s pause on new LNG export permits and approving pending ones. The pause had been introduced to mitigate methane emissions — a greenhouse gas that is 28 times more harmful than carbon dioxide and makes up around 95% of LNG.
However, an October study by National Manufacturers Association found that the pause on LNG exports could reduce U.S. tax revenue by approximately $46 billion.
Additionally, the incoming administration plans to expedite approvals for oil drilling permits on federal lands and expand offshore drilling opportunities along U.S. coastlines.
Another proposed initiative involves replenishing the Strategic Petroleum Reserve, which was depleted under Biden to address rising oil prices during the conflict in Ukraine and economic challenges from the pandemic.
Rebuilding the reserve could stimulate short-term oil demand in the nation and encourage U.S. production.
These policies reflect commitments made by Trump to the oil and gas industry during his campaign. While Big Oil donors did not meet Trump’s alleged funding request of $1 billion, they did provide him with more financial support during this election cycle than in either of his previous campaigns.
