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Trump’s Silver Bullet
Politics
Trump’s Silver Bullet
Increasing American energy production is the single most significant step the incoming administration can take toward delivering on its mandate.
Credit: ded pixto/Shutterstock
Two key aspects of President-elect Donald Trump’s decisive electoral mandate are leading a working- and middle-class economic recovery and cooling overheated global tensions with the United States’ strategic competitors. These two tasks, which the Biden administration treated as mutually exclusive, can both be addressed by the MAGA agenda’s silver bullet: fossil fuel extraction.
Trump’s choices to lead the Interior and Energy Departments underscore the incoming administration’s commitment to a unified, pro-fossil-fuel energy strategy. At Energy, Trump has nominated Chris Wright, the CEO of Liberty Energy. Wright’s career has been defined by innovation in the energy sector. In 1992, he founded Pinnacle Technologies, pioneering the development of hydraulic fracturing technologies that were instrumental in advancing the commercial viability of shale gas production. Following Pinnacle’s sale in 2006, Wright reentered the energy market by founding Liberty Energy, which has since become a leading service provider for hydraulic fracturing operations.
At Interior and at the helm of the newly created National Energy Council, North Dakota’s Governor Doug Burgum is set to take the reins. North Dakota ranks third in the nation—behind only Texas and New Mexico—in both crude oil production and proven reserves, making Burgum’s state a central player in America’s energy landscape. Burgum, who ran a presidential campaign with a near-exclusive focus on energy policy, brings a personal understanding of the energy industry and a proven track record of championing fossil fuels. His appointment to Interior signals a decisive shift in federal policy: opening federal lands for exploration and extraction. This move has the potential to significantly expand domestic production capacity, bolstering economic growth and energy security.
Though these selections have garnered less press attention than Trump’s less conventional selections at other posts, Wright and Burgum’s appointments send a clear message to global markets and adversaries: The United States is back in business, and we intend to “drill, baby, drill!” The impacts of deregulatory, pro-production policies will quickly be felt both at home and abroad, allowing the Trump administration to deliver quick, substantive wins for the American people.
Though the U.S. faces a myriad of crises, no single issue drove Americans to the polls more than the ongoing affordability crisis. Reckless Covid-era spending, coupled with Biden’s so-called Inflation Reduction Act, fueled a modest rise in core inflation but burdened American households with extraordinarily high consumer inflation. The Inflation Reduction Act, the “Green New Deal” in disguise, delivered entirely predictable results. Gasoline prices rose 37 percent from January 2020 to June 2024. Groceries increased by roughly 22 percent over the same period, electricity costs jumped 30 percent, and the median home sale price skyrocketed by 50 percent. While wages have risen modestly, American households have been unable to keep up with crushing cost increases, fueling record-breaking reliance on credit cards as citizens scrabble to make ends meet.
Trump’s commitment to fossil fuel production, especially natural gas, will help alleviate costs on these hard-hit Americans who delivered his mandate. The U.S. Energy Information Administration (EIA) estimates that liquefied natural gas (LNG) accounts for 36 percent of American electricity generation, far surpassing crude oil, coal, and renewable competitors. By investing heavily in natural gas extraction and lowering its price, the Trump administration could potentially deliver billions in savings to strained American households and businesses, which would then pass those savings on to consumers. Electricity prices are closely tied to the Consumer Price Index (CPI). Reducing electricity costs would directly alleviate financial burdens on American consumers. Trump’s bold commitment to cut consumer energy costs by 50 percent suggests his administration will incentivize a dramatic expansion of oil and gas production.
The incoming administration’s commitment to expanding oil and gas production also aligns with one of Trump’s key promises: job creation. The natural gas sector already supports 3.4 million jobs, and increased natural gas production could add tens of thousands more in areas such as transportation, infrastructure development, and extraction. Energy-producing states like Texas, Pennsylvania, and Louisiana are poised to see significant economic benefits. Trump’s nomination of Burgum signals a focus on supporting crude oil-producing states like North Dakota while unlocking the production potential of states with large federal land reserves. New Mexico, Wyoming, and Alaska are likely to see substantial benefits to their state economies and workforce development as result of the shift in policy.
Perhaps most critical to the success of Trump’s rare non-consecutive second term will be his handling of the spiraling geopolitical crises triggered by the Biden Administration’s belligerent incompetence. Trump stands to inherit a house-on-fire situation in both Eastern Europe and the Middle East. The Biden administration’s adversaries, Russia and Iran, have leveraged high energy demand to fund their wars in eastern Ukraine and in the Levant, respectively. The Trump administration can undermine these petro-reliant states by supplying the world, increasing demand for American energy exports. Weakening Russia and Iran’s hands with American energy production, prior to negotiations, may prove one of Trump’s key points of leverage if he is to deliver substantive settlements.
Cleaning up Biden’s geopolitical failures won’t be the only strategic advantage of expanded oil and gas production. The incoming administration is rightly prioritizing Asia, recognizing China as America’s chief competitor. Asia accounts for nearly 70 percent of global LNG demand and 37 percent of global crude consumption, with China as the largest individual importer. Trump is sure to leverage American energy to deter Chinese aggression against Taiwan or in the South China Sea. Japan and South Korea, key American allies for Trump’s containment strategy, are the second- and third-largest LNG importers in the region. Meeting their demand with affordable, emission-reducing energy serves to bolster allied economies and sovereignty. Affordable American energy exports also serve to undermine China’s strategy of using vast energy imports to consolidate influence over petro-states, including the Gulf States, Iran, Russia, and Venezuela.
The success of the once and future president in fulfilling his mandate will hinge largely on fossil fuel production, particularly natural gas. The administration’s ability to cut regulatory red tape, expand domestic production, and boost international exports will shape both the trajectory of the American economy and the nation’s international standing. If production thrives, so will America. If it falters, America’s position will weaken. With Wright and Burgum guiding the administration’s energy strategy, the president has taken a decisive step toward an energy boom and a renewal of American prosperity.
The post Trump’s Silver Bullet appeared first on The American Conservative.
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