(This November 25 story has been corrected to say the US became the world’s largest exporter of LNG in 2023, not 2022, in paragraph 12)
By Jarrett Renshaw
(Reuters) – Donald Trump’s transition team is putting together a broad energy package to be rolled out within days of taking office that would approve export licenses for new liquid energy (LNG) liquefaction projects and would increase oil drilling off the US coast and on federal lands. , according to two sources familiar with the plans.
The energy checklist largely reflects the promises Trump made during his campaign, but the plan to roll out the list from day one ensures that oil and gas production will become a pillar of Trump’s early agenda alongside immigration.
Trump, a Republican, also plans to repeal some of his Democratic predecessor’s key climate laws and regulations, such as tax breaks for electric vehicles and new standards for clean power plants that aim to phase out coal and natural gas, according to the sources.
An early priority would be lifting President Joe Biden’s election pause on new LNG export permits and quickly approving pending permits, the sources said. Trump would also seek to expedite drilling permits on federal lands and quickly reopen five-year drilling plans off the U.S. coast to allow for more lease sales, the sources said.
In a symbolic gesture, Trump would seek to approve the Keystone Pipeline, an environmental issue that was halted after Biden revoked a key permit on his first day in office. But any company looking to make a billion-dollar investment to transport Canadians to the U.S. would have to start from scratch, as things like easements have been returned to landowners.
“The American people can be confident that from day one, President Trump will use his executive authority to deliver on the promises he made to them during the campaign,” Karoline Leavitt, Trump’s transition spokesperson, said in a statement.
Many of the elements in the plan would take time to get through Congress or the national regulatory system. Trump has promised to declare an energy emergency on his first day in office, which could test whether he can bypass these barriers and impose some changes on an accelerated schedule.
Trump would also call on Congress to provide new funding so he can replenish the country’s Strategic Petroleum Reserve, which was established as an emergency crude supply and was depleted under Biden to cover price spikes caused by the Ukraine crisis and high to help control inflation during the pandemic. Replenishing the reserve would boost oil demand in the short term and boost U.S. production.
Trump is also expected to put pressure on the International Energy Agency, the Paris-based energy watchdog that advises industrialized countries on energy policy. Republicans have criticized the IEA’s focus on policies to reduce emissions. Trump’s advisers have urged him to withhold funding unless the IEA takes a more pro-oil stance.
“I have been pushing Trump and his team at large to pressure the IEA to return to its core mission of energy security and turn away from greenwashing,” said Dan Eberhart, CEO of oilfield services company Canary.
TRUMP ‘PLANS TO GET STRONG’ ON LNG
Biden in January halted new LNG export permits to study environmental impacts, in an election-year move aimed at making gains among the party’s green voting blocs. Without the export permits, developers cannot proceed with multi-year construction plans for new projects. Postponed projects include Venture Global’s CP2, Commonwealth LNG and Energy transfer (NYSE:)’s Lake Charles complex, all in Louisiana.
The United States is the world’s largest producer of natural gas and became the largest exporter of LNG in 2023, as Europe looked to America to wean itself off Russia’s vast energy supplies after its invasion of Ukraine.
The Biden administration promised to release the environmental study before Trump takes over the White House on Jan. 20, but it would have no influence on the new administration, the sources said.
“The LNG issue is a lay-up and he intends to tackle this issue vigorously,” one of the sources said.
There are five U.S. LNG export projects that have been approved by the Federal Energy Regulatory Commission but are still awaiting permit approvals from the Department of Energy, federal data shows.
Biden’s pause also put a stop to necessary environmental reviews, parts of which may still be needed for the five pending DOE permits to pass legal scrutiny.
LOOKING FOR DRILLING OFFSHORE AND ON FEDERAL LANDS
Trump would try to accelerate drilling off the US coast and on federal lands.
According to federal data, the average time to complete a drilling permit on federal and Indian lands averaged 258 days in the first three years of Biden’s administration, compared to 172 days during the four years of Trump’s presidency.
Trump is expected to expedite pending permits, organize more frequent sales and offer land that is more likely to produce oil, the sources said.
Despite the delay in approving permits, Biden’s Interior Department approved more onshore oil drilling permits on average than Trump’s first administration, federal data show.
Oil production on federal lands and waters hit a record in 2023, while gas production reached the highest level since 2016, according to federal data.
Drilling activity on federal lands and waters accounts for about a quarter of U.S. oil production and 12% of gas production.
