Executive viewpoint: President-elect Trump’s path towards unleashing the economic power of American energy

TIM TARPLEY, JR., PRESIDENT, ENERGY WORKFORCE & TECHNOLOGY COUNCIL 

U.S. citizens’ economic views. According to recent exit polling, two-thirds of American voters view the economy negatively, with 75% reporting that inflation is a personal hardship. Any American, who has gone to the grocery store recently, has felt the pinch. Although inflation has cooled somewhat from last year’s high of 9% down to 2.4% in September, prices remain elevated. Given the correlation between increasing energy usage and a higher quality of life, it is imperative that Americans have access to affordable and reliable energy to fuel our economy. Americans know that something has to give, and President-elect Trump’s incoming administration has the opportunity to unlock America’s vast energy resources, reigniting the economy, all while keeping energy costs low. 

The picture on demand. The reality is that energy demand in the United States is about to surge, in addition to already growing global demands in Asia. The U.S. Energy Information Administration (EIA) projects that worldwide energy demand could increase anywhere between 33% and 75% by 2050. This isn’t just an abstract statistic—it has real consequences for the American economy. We’ve all read the recent headlines discussing the increasingly prevalent use of A.I. and subsequent growing energy demand. In fact, data centers could consume 9% of the United States’ electricity generation by 2030, double the amount consumed today, according to an Electric Power Research Institute study. 

If America fails to meet this growing demand, the next wave of technological innovation could very well leave American shores. The good news is that President-elect Trump has tools at his disposal to tackle this energy demand head-on, securing our energy future, cutting costs and unleashing America as an economic powerhouse once again. 

Tools at Trump’s disposal. First, President-elect Trump can direct the Department of the Interior to accelerate federal onshore and offshore lease sales. Federal lands, especially offshore in the Gulf of Mexico, produce about 15% of the country’s total crude oil.  

Despite this, the Biden Administration has consistently slow-walked lease sales, in spite of Congress's direction to do otherwise. This slowdown means domestic production for the U.S. falters, creating a higher dependence on foreign oil sources, resulting in higher energy costs and loss of economic output. Reinstating and expanding lease sales would strengthen our economy, lower prices, and reduce reliance on foreign energy sources, not to mention protect high-paying American energy jobs. 

For far too long, permitting delays have hampered the growth of critical energy infrastructure. In 2000, it took just two years for energy projects to go from permitting to full-on operation. Today, that timeline has stretched to more than five years, with many projects indefinitely stalled. Meanwhile, energy demand continues to increase. Trump’s swift action on this front would signal to the world that America is once again serious about leveraging its vast energy resources for the benefit of its people. 

A comprehensive permitting reform package, passed swiftly by a Republican Congress and signed by President Trump in his first 90 days, would cut red tape, reduce energy costs, and make it easier for developers to invest in projects that power America.  

Third, on day one, President-elect Trump can undo the Biden Administration’s LNG “pause” and expedite pending export permits for pending projects. These exports lower worldwide energy prices and contribute $43.8 billion to U.S. GDP. Additionally, the stable, long-term contracts that LNG exports provide allow for economic stability for the 650,000 men and women in the energy services sector, as it helps cull demand instability. 

By taking these immediate steps in January, President-elect Trump can quickly get us on the right path to incentivize U.S. energy security and economic development, while helping to curb inflation at the same time. The men and women in our energy workforce are ready to power this transformation and look forward to seeing President-elect Trump’s team to enact these common-sense steps to help get America back on track. It’s time to unleash America’s energy potential. 

About the author

Tim Tarpley is President of Energy Workforce & Technology Council, the national trade association for the global energy technology and services sector. It represents more than 650,000 U.S. jobs in the technology-driven energy value chain.