With the Trump era approaching, significant changes are anticipated in the U.S. energy policy. Overall, Trump’s energy policy emphasizes the development and use of traditional energy sources while reducing industry regulations, particularly in the exploration and extraction of fossil fuels like oil and natural gas. At this critical juncture, the American Petroleum Institute (API), representing the U.S. oil and gas industry, has released a comprehensive Five-Point Policy Roadmap.
This roadmap is addressed to President-Elect Donald Trump and the 119th Congress, outlining strategic actions to leverage U.S. energy resources and maintain its position as a global energy leader, reversing the energy policy directions during the Biden era.
Here are the detailed contents of the five-point policy:
The first suggestion from API is to protect consumer choice in the energy market. They advocate for repealing the Environmental Protection Agency’s (EPA) tailpipe emissions rules and the Corporate Average Fuel Economy (CAFE) standards while opposing California’s Advanced Clean Cars II regulations, claiming these regulations limit choices for American car consumers, increase costs, and intensify reliance on Chinese mineral supply chains pivotal for electric vehicle production. In short, API seeks to repeal various regulations focusing on the transition to electric vehicles.
The second suggestion emphasizes the strategic role of U.S. energy exports in global stability. API urges the Department of Energy (DOE) to lift the Biden administration’s pause on new liquefied natural gas (LNG) export permits, arguing that this policy undermines U.S. international influence. They point out that increasing exports not only enhances geopolitical strength and strengthens alliances but also balances trade and creates domestic jobs.
API’s third suggestion is to maximize the use of natural resources on federal lands and waters in the U.S. They call for a five-year offshore leasing program and repeal onshore leasing rules that limit investment in energy development. Additionally, API recommends working with Congress to repeal the EPA’s methane fee under the Inflation Reduction Act, which they believe imposes unnecessary financial burdens.
API’s fourth goal is to simplify the permitting process for energy projects. They advocate for comprehensive reforms, including repealing Biden administration modifications to the National Environmental Policy Act (NEPA) and establishing a transparent, predictable, and efficient permitting process. PetroNerds CEO Trisha Curtis emphasizes the vast opportunities for infrastructure development, such as natural gas processing facilities, export infrastructure, and potential new pipelines.
The final focus of the API roadmap is on tax policies, such as maintaining the 21% corporate tax rate, continuing and extending critical tax provisions like the immediate deduction of intangible drilling costs and 100% bonus depreciation, along with retaining international tax provisions that prevent double taxation on foreign earnings. API aims to create a stable and favorable tax environment to attract both domestic and foreign investments in U.S. energy, fostering innovation and promoting economic growth.
