Listen to this article
Ashlyn Smith
President Trump has declared a national energy emergency on the grounds the country lacks adequate energy to sustain its way of life. Therefore, on January 20, 2025, the president signed an executive order, “Unleashing American Energy,” which aims to boost oil and gas production by rolling back regulations put in place during the previous administration. The executive order includes several key provisions, which:
– Direct federal agencies to streamline the permitting process for energy projects, including oil, natural gas, coal, hydropower, biofuels, critical minerals, and nuclear energy.
– Require all federal agencies to review, revise, or rescind existing regulations that unduly burden the development or use of domestic energy resources.
– Aim to decrease regulations on consumer appliances such as dishwashers, washing machines, gas stoves, water heaters, toilets, shower heads, and light bulbs.
– Instruct the Environmental Protection Agency (EPA) to reassess the 2009 Endangerment Finding, which has been the basis for federal emissions regulations.
– Instruct the EPA to revoke federal waivers that allowed states to set stricter greenhouse gas emissions standards than the federal government.
– Halt the disbursement of funds under the Inflation Reduction Act (IRA), which provided financial incentives for clean energy initiatives, including electric vehicle (EV) manufacturing.
The order marks a major policy shift aimed at promoting national energy independence while also sparking debates and potential legal battles over environmental protection and regulatory oversight.
On the one hand, these changes are expected to benefit large and small oil and gas producers alike. Industry groups like the Oklahoma Energy Producers Alliance (OEPA), for example, have openly welcomed these changes, which are seen as a way to reduce compliance costs and stimulate growth. Similarly, the administration hopes these changes will lower costs for consumers and increase market choices.
On the other hand, these changes represent a significant shift in federal policy regarding oil and gas operations, EV infrastructure, and greenhouse gas emissions. Lingering uncertainties about when and how many of these changes will be implemented will require careful attention. Oil and gas industry stakeholders, in particular, should pay close attention to this rapidly changing regulatory landscape to ensure compliance, manage risks, adapt operations efficiently, and ultimately remain competitive in a constantly evolving energy market.
Ashlyn Smith is an associate at GableGotwals, where his practice focuses on complex litigation in both state and federal courts.