Breaking Down Donald Trump’s Call for ‘Energy Dominance’ and Its Potential Real-World Limits

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WASHINGTON — President-elect Donald Trump is set to create a National Energy Council that he says will establish American “energy dominance” around the world as he seeks to boost U.S. oil and gas drilling and move away from President Joe Biden’s focus on climate change.

The energy council — to be led by North Dakota Gov. Doug Burgum, Trump’s choice to head the Interior Department — will be key in Trump’s pledge to “drill, drill, drill” and sell more oil and other energy sources to allies in Europe and around the globe.

The new council will be granted sweeping authority over federal agencies involved in energy permitting, production, generation, distribution, regulation and transportation, with a mandate to cut bureaucratic red tape, enhance private sector investments and focus on innovation instead of “totally unnecessary regulation,” Trump said.

But Trump’s energy wishes are likely to run into real-world limits. For one, U.S. oil production under Biden is already at record levels . The federal government cannot force companies to drill for more oil, and production increases could lower prices and reduce profits.

A call for energy dominance — a term Trump also used in his first term as president — “is an opportunity, not a requirement,” for the oil industry to move forward on drilling projects under terms that are likely to be more favorable to industry than those offered by Biden, said energy analyst Kevin Book.

Whether Trump achieves energy dominance — however he defines it — “comes down to decisions by private companies, based on how they see supply-demand balances in the global marketplace,” said Book, managing partner at ClearView Energy Partners, a Washington research firm. Don’t expect an immediate influx of new oil rigs dotting the national landscape, he said.

Trump’s bid to boost oil supplies — and lower U.S. prices — is complicated by his threat this week to impose 25% import tariffs on Canada and Mexico, two of the largest sources of U.S. oil imports. The U.S. oil industry warned the tariffs could raise prices and even harm national security.

“Canada and Mexico are our top energy trading partners, and maintaining the free flow of energy products across our borders is critical for North American energy security and U.S. consumers,” said Scott Lauermann, speaking for the American Petroleum Institute, the oil … Read More