Analysis by Energy Workforce President Tim Tarpley
After a series of announcements last week, we are beginning to get a much better understanding of what President-Elect Trump’s energy team is going to look like. Over the weekend, President Trump announced he would choose longtime EWTC member Liberty Energy CEO Chris Wright for the Secretary of Energy post. Chris Wright has been a leader in the American shale revolution, which has allowed America to go from being a net energy importer to a net energy exporter. Chris Wright has been CEO of Liberty Energy since its founding in 2011, and he has led the company to a current valuation of $2.8 billion. Prior to Liberty, Wright founded Pinnacle Technologies, another fracking company, and served as its CEO until 2006. He also servs on the board of Oklo, a nuclear technology company.
Although energy policy at the federal level is divided among multiple agencies in DC, the DOE post is very important for energy development and leading the direction of energy policy in the United States. DOE oversees US national energy policy and energy production, the research and development of nuclear power, the military’s nuclear weapons program, nuclear reactor production for the US Navy and energy-related research and conservation. In the short term, DOE oversees the “national interest” permit for LNG export facilities that are exporting products to non-FTA countries. This permit is where the Biden administration has enacted the “LNG pause” by pausing the granting of new permits pending a review of the carbon implications of US LNG exports. This slowdown in new permits has thrown the long-term financing and planning for US LNG export facilities into disarray. We expect this “pause” to be reversed early in the next administration. Additionally, there are a number of pending LNG export permits awaiting action by DOE, and we hope that DOE will be able to approve these pending permits quickly. There may also be an effort to reform this permit process entirely to create a more expedited process. Given Wright’s background in nuclear technology, we can also expect him to play a pivotal role in encouraging nuclear power development and grid stabilization, permitting reform, and other actions to address the growing power projection needs in the United States.
Another important pick for our sector is North Dakota Governor Doug Burgum, whom President-Elect Trump named a designee to lead the Department of the Interior and a newly formed “National Energy Council.” Doug Burgum was a widely successful software executive leading Great Plains Software, which Microsoft acquired for $1.1 billion in 2001. He successfully ran for Governor of North Dakota in 2016 and has served in the position since. During his tenure, he advocated for an “all-of-the-above” energy policy in the state and pushed for carbon capture, hydrogen, and biofuels. The Interior Department has significant oversight over energy resources in the United States. It includes the Bureau of Land Management and the Bureau of Ocean Energy Management, which oversees 500 million acres of public land and 1.7 billion acres of the outer continental shelf. First up for actions next year will be for the Department to resume a normal schedule of offshore and onshore lease sales for oil and gas development which have been disrupted during the Biden Administration. The Biden Administration has slow-walked lease sales despite Congress directing them to resume a normal cadence of lease sales. We can expect this action to be on the top of the list for the incoming Secretary.
In addition to his role as leading the Department of Interior, President-Elect Trump announced that Governor Burgum will lead a newly created National Energy Council. President-Elect Trump stated that the new Council will oversee US energy dominance and all types of energy, including growing US electricity supplies to cut consumer costs and meet growing demand. Trump stated the new Council “will consist of all Departments and Agencies involved in permitting, production, generation, distribution, regulation, transportation of ALL forms of American Energy.” This position is expected to give Burgum a position on the National Security Council. While the details of this position and how Burgum will manage both responsibilities still need to be worked out, what we can assume is that he will have a significant amount of power in the energy space and will be key to shepherding massive changes to energy policy across the finish line in the coming years. First on the list will certainly be comprehensive permitting reform if the Manchin/Barrasso package does not make it across the finish line before the end of 2024. If it doesn’t, we can expect a Republican-led effort to move quickly in 2025, and coordination between Congress and the Administration will be vital.
We are still waiting for an announcement on USTR, but on Tuesday, President-Elect Trump also announced that former House member and current FOX Business co-host will become the designee for Secretary of Transportation. Duffy will also play a major role in implementing permitting reform as DOT has significant jurisdiction over pipelines and hazardous materials through PHMSA.
Tim Tarpley, Energy Workforce President, analyzes federal policy for the Energy Workforce & Technology Council. Click here to subscribe to the Energy Workforce newsletter, which highlights sector-specific issues, best practices, activities and more.
