Issue Brief

Energy Policy and a Trump Administration

Nov 30, 2016 | Alan J. Krupnick

Summary

This brief examines the stated intentions of President-elect Trump’s campaign and transition team regarding energy policy, the potential roadblocks to their realization, and what the administration could reasonably and quickly turn into a reality.

Key Findings

  • Economic realities expressed through market prices will frustrate Trump administration efforts to boost fossil fuel production.
  • As for President-elect Trump’s stated goal of making the United States a net energy exporter, this trend is already solidly evident.
  • Likewise, the considerable environmental and economic regulations put in place by the states and under state control limit the federal reach.
  • Industry has been and will continue to be responsive to its shareholders and ratings agencies, where climate change and other issues of corporate responsibility are important.
  • Any efforts to promote natural gas production are likely to lower its price and make coal even less competitive.
  • If trade subsides with Mexico over issues with immigration and NAFTA, US natural gas and pipeline suppliers will be hurt.