Energy Abundance Should Be a Priority for the Trump Administration

Changes in government, especially in the executive branch, present ripe moments for policymakers to embark on an entirely new policy agenda. These priorities can shape the incoming administration and its success or failure. As the Trump administration goes through the process of defining its policy priorities, it should be sure not to neglect the importance of domestic energy production and distribution.

The availability and affordability of energy largely dictates how an economy operates. Access to energy determines how goods are transported, manufacturing capacity, and which technologies are at the disposal of businesses and consumers. The more complex and dynamic an economy becomes, the more energy it needs to consume. Hence, it should come as no surprise that there is no high-income country with low energy demand.

Unfortunately, America’s energy capacity has faced significant headwinds in recent years. Most of them are the products of self-inflicted wounds. The continuous electrification of American products, alongside the rise of the energy-hungry technologies like artificial intelligence (AI) has placed significant strain on the power grid. Under these circumstances, it would be expected that policymakers would have prioritized energy production and distribution to ensure that supply can match those surges in energy demand.

Instead, the Biden administration decided to constrain America’s energy capacity to force a transition towards renewables. From power plant restrictions to tailpipe emissions rules that would install an electric vehicle (EV) mandate, the Biden administration has restricted energy supply by forcing a phase-out of fossil fuel energy. Additionally, efforts by the private sector to revitalize nuclear energy have been thwarted by either outrageous permitting regimes or by overzealous regulatory bodies. This further limited access to low cost energy sources. Simultaneously, they also caused spikes in demand by accelerating EV adoption beyond the grid’s capacity.

The incoming Trump administration should aim to reverse this trend as soon as possible. Leaving this issue unattended could become a significant chokepoint for the American economy in the years to come. For now, it seems that a Republican-led Congress might attempt to correct course, as revamping energy production is being mentioned as a major policy point in the discussion for Senate leadership. Discussions over fossil fuel exploitation and fracking were front-and-center in the buildup to the election. The administration should follow through on its promises to remove constraints there as well.

Energy abundance should be a top goal of the incoming Trump administration. The previous administration’s approach of replacing fossil fuels with renewables through mandates and prohibitions was short-sighted and misguided. While the development of low-emission and renewable fuels are exciting promises, they should be deployed in coexistence with other fuel sources in order to ensure that Americans’ livelihood and well-being is not compromised.

As these technologies develop towards cost-efficiency, the administration should focus on maximizing energy output and reinvigorating other low-emission and cost-efficient alternatives such as nuclear. Leaving these energy needs unaddressed will only constrain the American economy and create hardship for consumers who will have to pay higher energy bills.