President-Elect Donald Trump’s policies are expected to bolster U.S. oil and gas production, which could benefit the petrochemical industry that relies on these resources for feedstock and energy. Trump has pledged to remove what he refers to as the “electric vehicle (EV) mandate” set by President Joe Biden and may aim to reduce green energy subsidies included in Biden's Inflation Reduction Act (IRA).
Shift in Energy Sentiment
U.S. oil and gas production has primarily increased due to drilling on private lands, like those in the Permian Basin, which are less impacted by federal regulations. However, federal restrictions still play a role, and Trump has promised to reduce barriers for the industry, including permits, taxes, and drilling limits.
Impact on Renewable Policies and EVs
Trump has stated his intent to roll back many of Biden’s sustainability efforts. This includes a withdrawal from the Paris Agreement, eliminating the EV mandate, and loosening emissions standards. Trump also opposes California’s proposed Advanced Clean Car II (ACC II) program, which would phase out gasoline vehicles by 2035; under his administration, the EPA is expected to reject or reverse this proposal.
Reduced Support for Renewables
Trump plans to cut green energy incentives in the IRA, such as tax credits for renewable diesel, sustainable aviation fuel (SAF), and hydrogen. Additionally, he may not support the UN plastic treaty, which could face challenges in the Senate if it imposes limits on plastic production.
While Trump’s approach signals a strong return to traditional energy, the future of America’s renewable energy sector remains uncertain.
Comments