How Trump Could Actually Increase Fossil Fuel Production

How Trump Could Actually Increase Fossil Fuel Production 1

This story originally appeared on Vox and is part of the Climate Desk collaboration.

During his campaign, president-elect Donald Trump had a pointed tagline for his energy policy: “Drill, baby, drill.”

That statement is emblematic of where Trump is poised to focus his efforts in a second term: He’s pledged US “energy dominance” and everything from “new pipelines” to “new refiners” that amp up fossil fuel production.

This approach marks a stark shift from the Biden administration’s and puts the US’s emphasis more heavily on producing oil and gas than on attempting a transition to clean energy sources. In addition to touting the need to boost fossil fuels, Trump has disparaged subsidies for clean energy investments and called for “terminat[ing]” the funds that were allocated for those subsidies in the Inflation Reduction Act. His stance ignores the role that burning fossil fuels has played in climate change and could cause considerable harm to US efforts to address the issue.

Several of his nominations are indicative of these goals. He’s chosen oil industry executive Chris Wright—a fracking evangelist—to head up the Department of Energy. He’s named North Dakota governor Doug Burgum—who connected Trump to oil executive donors during the campaign—as the lead for the Interior Department and as an “energy czar.” He’s also tapped former representative Lee Zeldin—who’s emphasized his commitment to deregulation—as his chief of the Environmental Protection Agency (EPA).

There’s only so much the administration can control, however. Although Trump can take notable steps to try to increase fossil fuel production, actual upticks in oil and gas extraction will depend heavily on the private sector and the economics of the industry.

Still, while Trump faces some constraints, he has significant policy levers he can pull to encourage production of fossil fuels. Wright, Burgum, and Zeldin have also signaled they’re prepared to execute on the president-elect’s vision, including changes to drilling on public lands and speedier permitting for oil and gas projects.

“President Trump and his energy team—Mr. Burgum, Mr. Wright, Mr. Zeldin—can go to considerable lengths to make expanded production attractive and relatively easy,” Barry Rabe, a University of Michigan environmental policy professor, told Vox.

How Trump Could Increase Fossil Fuel Production

Trump has two key avenues he can utilize to boost fossil fuel production. One, he can open up more public lands and waters for exploration, development, and extraction. Two, he can ease the regulatory processes that govern fossil fuel work.

Trump Could Offer More Oil and Gas Leases on Public Lands

As president, Trump will oversee the Interior Department, which includes the Bureau of Land Management as well as the Bureau of Ocean Energy Management, both of which manage a substantial fraction of the country’s public lands and waters. He’ll also oversee the Agriculture Department, which contains the Forest Service, another body that has oversight of some public lands.

The Bureaus of Land Management and Ocean Energy Management, as well as the Forest Service, are the three main entities that issue oil and gas leases on public spaces. These leases effectively allow fossil fuel companies to rent parcels of public land from the federal government so they can extract resources from these areas. Once land is designated as available for lease, leases are typically auctioned off to the highest bidder.

Those bureaus, and the Forest Service, have major discretion to determine if more leases can be issued and where. But the president can issue an executive order instructing them to prioritize the subject: Trump could call on agencies to make identifying suitable public lands a top agenda item, for example.

“If you have an administration that says we want everything that could be leased to be leased, there’s a lot of discretion to be able to do that,” says Stan Meiburg, the executive director of the Center for Environment and Sustainability at Wake Forest University.

Trump’s first term, during which he also made moves to expand the acreage of public lands available for oil and gas drilling, is likely a sign of what’s to come. Per a study from Science, he mounted one of the largest reductions in protected public lands in history, rolling back the acreage of Bears Ears National Monument and Grand Staircase-Escalante National Monument to allow for additional oil and gas exploration in these places.

Data from the Bureau of Land Management shows that there was an increase in total acres offered for oil and gas leases during Trump’s first term compared to President Barack Obama’s second term and Joe Biden’s current term.

Though Trump could again expand the number of leases available, it’s important to note that won’t necessarily translate to more production. Leases are subject to environmental rules—that means new leases could well be challenged in court for potential violations of the National Environmental Policy Act, the Endangered Species Act, or other federal laws.

Another factor could limit production too: corporate interest. Companies may not be interested in these new leases, since many of the parcels might not be home to fossil fuels. And businesses could also lease the land but fail to utilize it.

The White House Could Make Expanding Production Easier for the Private Sector

The second avenue Trump could pursue is rolling back regulations to make fossil fuel production easier and faster for the private sector.

Much of this will involve undoing policies the Biden administration put in place—like the pause on permits for liquefied natural gas exports—and expediting federal approvals for oil- and gas-related projects.

Trump could use the executive branch’s authority to rescind certain proposals. For other rules, the White House could need Congress’ help. By utilizing what’s known as the Congressional Review Act, Congress has the ability to roll back rules that agencies have recently put in place. In other cases, it might need to pass new legislation: The EPA has just begun imposing a methane fee on oil and gas companies, and because that fee was included in the Inflation Reduction Act, it would need an act of Congress to undo. Under it, these businesses must curb their methane emissions or suffer a financial penalty.

Repealing policies like the methane fee and the natural gas export permit pause would curb the restrictions oil and gas companies currently face, creating more opportunities to export products abroad and making fossil fuel production less costly.

Another area where both the administration and Congress have power to ease regulation is on the issue of permitting reform. Currently, any oil and gas project—such as building a new pipeline—must go through many layers of approval by federal agencies like the EPA. (Many clean-energy infrastructure projects also need to go through this process.) For these projects, companies have to obtain a hefty number of permits, slowing their ability to execute on these plans.

The Biden administration managed to outstrip the pace at which the Trump administration issued permits for drilling on public lands. Under Trump, federal agencies could try to further streamline such approvals, says Mark Squillace, a University of Colorado-Boulder Law School professor and former staffer at the Interior Department. “We certainly could see some efforts to pull back on environmental standards, to make it easier to permit different kinds of facilities,” Squillace told Vox.

Trump could also take executive action to direct agencies to cut as many unnecessary steps as possible and to simplify their processes. More expansive permitting reforms, like policies that put firm limits on the time needed for legal challenges and federal approvals of a project, would need the backing of Congress, however, and have had bipartisan support in the past.

The combination of loosening restrictions currently placed on oil and gas companies and making new projects easier to pursue all tie back to Trump’s pledge to “slash the red tape” on the industry.

As is the case with expanding access to public lands, it’s not clear that these policy changes will result in more fossil fuel production, since much of that will depend on how private companies respond.

The Market for Fossil Fuels Is Also a Factor

During the Biden administration, the US produced more oil and gas than any country in the world. Companies’ incentives to increase production will depend on whether they think it’s financially sound for them. As more countries—including the US—have invested in clean energy sources, there is more competition in the market, which could factor in to whether businesses see it as a smart move to dial up their fossil fuel output if given the chance.

“As we watch a movement toward more solar and wind development, there is less demand for the oil and gas products that we’ve been producing,” Squillace says.

Though the administration has stressed that it’s all-in on fossil fuels, it’s not evident that it can turn away from clean energy investments to the degree that Trump has urged. Defunding the subsidies in the Inflation Reduction Act, for instance, would prompt legal challenges, short of an actual repeal by Congress.

The administration could well take some contradictory stances too. Although Trump has long denigrated energy sources like offshore wind and subsidies for electric vehicles, his allies include Tesla CEO Elon Musk, who’s the head of an EV company. Musk is among the tech leaders who’ve attained notable influence in the administration and who also has deep ties with the government due to his role leading SpaceX.

All of this means that, ultimately, even though Trump will have the power to try making good on this campaign pledge, it may not work out the way he promised.