US President Donald Trump on Monday declared a national energy emergency in an executive order with an eye on driving down energy costs and boosting U.S. oil and gas production. This declaration marks the first national energy emergency issued by the US federal government.
The emergency declaration allows the federal government to use emergency powers to ramp up energy production. According to the Xinhua news agency, this action will enable the government to address energy challenges more aggressively.
The United States remains the world’s largest producer of crude oil and natural gas, and it is the top exporter of liquefied natural gas (LNG).
This declaration is part of a broader set of actions Trump is expected to take to support the US oil, gas, and power industries. Trump’s plan aims to counter former President Joe Biden’s efforts to accelerate the electric vehicle (EV) industry.
In his inauguration speech, Trump proclaimed, “America will be a manufacturing nation once again.” He reiterated, “We will drill, baby, drill.”
While Biden vowed to reduce US dependence on fossil fuels, the production of oil and gas hit record levels under his administration.
Trump also cited the growing energy demands of the US, particularly driven by advancements in artificial intelligence (AI) and technology. The Department of Energy predicts that the power demand from data centres could nearly triple within the next three years.
Trump has called this development a national priority, noting that the US is in an “artificial intelligence arms race” with China and other countries.
In this declaration, Trump could use emergency powers to ease environmental restrictions on power plants. He may also open federal lands for new data centres.
Trump is expected to revoke what he calls an “electric vehicle mandate,” arguing that this will benefit the US auto industry. “The common theme is unleashing affordable and reliable American energy,” a Trump official said.
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