On inauguration day, US President Donald Trump emphasized his goal of achieving “energy dominance,” leading to a series of executive orders aimed at reshaping the US energy landscape. One such order overturned the Biden administration’s ban on liquefied natural gas on the same day, followed by another on February 14 that established the National Energy Dominance Council. Under the leadership of Secretary of the Interior Doug Burgum and Vice-Chair Secretary of Energy Chris Wright, the council is tasked with advising the president on strategies to enhance American energy production, improving processes related to permitting, generation, distribution, and regulation across all forms of energy.
However, three months into the Trump administration, energy producers are increasingly apprehensive about these policies, dubbing 2025 the year of “uncertainty.” Geopolitical issues, fluctuating oil prices, and unpredictable tariffs prompt many in the industry to practice capital discipline, considering limiting production and postponing future projects. One executive remarked to the Dallas Federal Reserve that he has “never felt more uncertainty about our business in my entire forty-plus-year career.”
To combat this worrying trend, the National Energy Dominance Council must act promptly to bring stability back to the energy sector. The council has a unique opportunity to develop pragmatic energy strategies not based on untested technology or political ideology. To ensure progress towards energy security, there are seven principles that the council should adhere to.
First, the council must move quickly. Energy infrastructure is a long-term commitment that takes years to develop. A proposal or plan should be articulated within the next two months, as the timeline for energy development can stretch between four to ten years or more. The Trump administration operates under a new energy policy paradigm where changes can happen rapidly, including the suspension of permitting processes and the cancellation of lease auctions. Hence, the council needs an actionable plan before summer arrives.
Second, communication with the industry is crucial. The energy sector requires a clear understanding of what to expect in both the upcoming four years and beyond. The council should prioritize the publication of a timeline detailing plans for energy regulation, permitting, funding, and leasing. Providing this information can enable businesses to plan and allocate capital effectively. Open communication channels could significantly increase trust and ease the anxiety stemming from the administration’s tariff decisions.
Third, establishing regulatory stability is essential. Streamlining permitting processes does not imply the elimination of environmental reviews; it entails ensuring that companies have a reliable expectation of permit approval when they meet agency guidelines. During the Biden administration, the permitting process faced considerable disruption, impacting exploratory drilling initiatives. Regulatory stability also demands timely issuance of new regulations, in line with previously established deadlines, to avoid chaos in renewable energy and emissions standards that create uncertainty for businesses.
Fourth, prioritizing congressional legislation over executive action can lead to longer-lasting energy policies. While navigating legislative procedures can be challenging, laws can provide a foundation that outlasts any presidential tenure. The council should encourage legislation that secures oil and gas drilling and renewable energy leases, ensuring they cannot be undermined by political machinations. This approach decouples energy regulation from political whims, allowing the market to decide the viability of drilling actions.
Fifth, developing strategic reserves of critical minerals is vital. The United States has an urgent need to lessen its dependency on foreign sources of critical minerals, which are essential for energy storage. Trump’s executive order aimed at expediting the permitting process for domestic mining is a step in the right direction, but the establishment of strategic reserves will further secure these resources. This move can shield the US from the pitfalls of trade wars, such as China’s restrictions on critical mineral exports that have affected American defense manufacturers.
In addition, the establishment of reserves for copper may mitigate the volatility in US copper supplies. The nation relies heavily on imports, particularly from Canada. Thus, a strategic reserve system could prevent panic buying and stabilize market prices during trade conflicts.
Sixth, incentivizing long-term investments in oil and gas production is essential. As conventional oil resources decline, unconventional methods like fracking have recently driven production, but these wells tend to have faster decline rates. The federal government can enhance incentives for energy investment through better regulation, tax incentives, and the establishment of a stable rule of law. The council should examine various strategies to encourage investment, mitigating impediments such as frivolous lawsuits that stall production.
Finally, modernizing infrastructure is necessary for ensuring that energy production translates into reliable supply for consumers. The federal government should facilitate new pipelines for natural gas and bolster electricity infrastructure to improve safety and efficiency. Federal grants and loans to state and local governments should be made available to support these necessary upgrades.
The National Energy Dominance Council stands at a pivotal juncture with the potential to provide effective policies that can restore stability to the US energy sector. Its agenda needs to focus on removing barriers to energy production while safeguarding environmental protections and resolving regulatory uncertainties. By acting on these priorities, the council can significantly contribute to the nation’s energy security moving forward.
Ellen Wald, a nonresident senior fellow with the Atlantic Council Global Energy Center, emphasizes the urgent need for decisive actions by the National Energy Dominance Council. Without prompt movement on these issues, the council’s goals may fade amid growing uncertainties in the energy sector.
image source from：https://www.atlanticcouncil.org/blogs/new-atlanticist/how-the-national-energy-dominance-council-can-set-the-us-on-the-path-to-energy-security/
