The Phillips 66 Los Angeles Refinery Wilmington Plant in California. — AFP

Donald Trump’s transition team is assembling a comprehensive energy plan to be unveiled shortly after his inauguration, which includes approving export permits for new liquefied natural gas (LNG) projects and expanding oil drilling off the US coast and on federal lands, according to two sources familiar with the plans.

This energy strategy largely mirrors the promises Trump made during his campaign, but the intention to implement it as early as his first day in office underscores the importance of oil and gas production alongside immigration in Trump’s initial agenda. Trump, a Republican, also intends to repeal key climate legislation and regulations enacted by his Democratic predecessor, such as tax credits for electric vehicles and new clean power plant standards aimed at phasing out coal and natural gas, the sources said.

An early focus will be on lifting President Joe Biden’s election-year pause on new LNG export permits and swiftly approving pending permits, the sources added. Trump also plans to expedite drilling permits on federal lands and reopen five-year drilling plans off the US coast to include more lease sales.

Symbolically, Trump aims to approve the Keystone Pipeline, a project that became an environmental focal point and was halted after Biden canceled a key permit on his first day in office. However, any company seeking to restart this multibillion-dollar project to transport Canadian crude oil to the US would need to begin anew, as easements have been returned to landowners.

“The American people can rely on President Trump using his executive power on day one to fulfill the promises he made during his campaign,” said Karoline Leavitt, Trump’s transition spokesperson, in a statement.

Many elements of the plan would require time to navigate through Congress or the nation’s regulatory system. Trump has pledged to declare an energy emergency on his first day in office, which could test his ability to bypass these barriers and implement some changes more rapidly.

Trump also plans to call on Congress to provide new funding to replenish the nation’s Strategic Petroleum Reserve, established as an emergency crude oil supply and depleted under Biden to manage price spikes caused by the Ukraine crisis and high inflation during the pandemic. Replenishing the reserve would boost short-term oil demand and encourage US production.

Trump is also expected to pressure the International Energy Agency (IEA), the Paris-based energy watchdog that advises industrialized countries on energy policy. Republicans have criticized the IEA’s focus on reducing emissions. Trump’s advisers have urged him to withhold funding unless the IEA adopts a more pro-oil stance.

“I have personally urged Trump and his team to pressure the IEA to return to its core mission of energy security and move away from greenwashing,” said Dan Eberhart, CEO of oilfield service firm Canary.

Trump ‘plans to go strong’ on LNG

Biden imposed a freeze on new LNG export permits in January to study the environmental impacts, aiming to gain support from the party’s green voting blocs. Without these export permits, developers cannot proceed with multi-year construction plans for new projects. Delayed projects include Venture Global’s CP2, Commonwealth LNG, and Energy Transfer’s Lake Charles complex, all located in Louisiana.

The United States is the world’s top producer of natural gas and became the No. 1 exporter of LNG in 2022 as Europe sought to reduce its reliance on Russia’s vast energy supplies following the attack on Ukraine. The Biden administration promised to release the environmental study before Trump’s inauguration on January 20, but it would have no influence on the incoming administration, the sources said.

“The LNG issue is straightforward, and he plans to address it strongly,” said one of the sources.

There are five US LNG export projects approved by the Federal Energy Regulatory Commission but still awaiting permit approvals at the Department of Energy, according to federal records. Biden’s pause also halted necessary environmental reviews, parts of which may still be required for the five pending DOE permits to withstand legal scrutiny.

Looking to drill offshore and on federal lands

Trump aims to accelerate drilling off the US coast and on federal lands. The average time to complete a drilling permit on federal and Indian land averaged 258 days in the first three years of Biden’s administration, up from 172 days during Trump’s presidency, according to federal data.

Trump is expected to expedite pending permits, hold sales more frequently, and offer land more likely to yield oil, the sources said. Despite the lag in permit approvals, Biden’s Interior Department approved more onshore oil drilling permits on average than Trump’s first administration, according to federal records.

Oil output on federal lands and waters reached a record in 2023, while gas production hit its highest level since 2016, according to federal data. Drilling activity on federal lands and waters accounts for about a quarter of US oil production and 12 percent of gas output.

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