"Drill, Drill, Drill"... What Is the Role of the US National Energy Board Newly Established by Trump?

Nomination of Doug Burgum as Chair of the National Energy Commission
Shale Gas Company CEO Appointed as Minister of Energy

Doug Burgum, Governor of North Dakota, nominated as Secretary of the Interior and Chairman of the National Energy Council by President-elect Donald Trump. Photo by AP Yonhap News

Donald Trump, the President-elect of the United States, announced on the 15th (local time) that he has nominated Doug Burgum, the Governor of North Dakota, as the next Secretary of the Interior and simultaneously appointed him as the chairman of the newly established National Energy Council. A day later, he nominated Chris Wright, founder and CEO of Liberty Energy, as the Secretary of Energy (DOE). He also stated that Chris Wright will serve as a member of the National Energy Council.

Both Doug Burgum and Chris Wright are supporters of fossil fuels. Accordingly, it is expected that the newly established National Energy Council will strongly promote the expansion of oil drilling in the United States. Doug Burgum, as chairman of the National Energy Council overseeing the direction of the Trump administration's energy policy, will effectively serve as the 'Energy Czar' in the Trump administration.

The exact role of the National Energy Council has not been specifically disclosed. However, in a statement, President-elect Trump described the National Energy Council as "composed of all departments involved in the permitting, production, development, distribution, regulation, and transportation of all forms of American energy." Doug Burgum, as chairman of the National Energy Council, will also attend the National Security Council.

President-elect Trump also stated, "This council will oversee the elimination of unnecessary regulations and strengthen private sector investment, focusing on innovation rather than unnecessary regulations, so that America can achieve energy dominance." The 'unnecessary regulations' mentioned by Trump are interpreted as various permitting procedures that hinder the expansion of oil drilling.

The National Energy Council is expected to focus on expanding energy production in the United States. President-elect Trump emphasized, "Increasing America's energy supply will benefit the domestic economy and overseas allies and help strengthen the superiority of artificial intelligence (AI)." This means the council will focus on expanding energy supply to meet the rapidly increasing electricity demand due to the expansion of AI data centers.

US 'Energy Czar' is "a longtime friend of the fossil fuel industry"

Energy supply is expected to be achieved through the expansion of oil and natural gas drilling, which President-elect Trump emphasized during his candidacy. In an interview last December, he said, "I want to close the borders and drill, drill, drill." The reason for appointing the Secretary of the Interior as chairman of the National Energy Council is that the Secretary of the Interior manages federal lands, including energy and mineral development.

Doug Burgum previously founded and operated a company called Great Plains Software, which he sold to Microsoft (MS) for $1.1 billion in 2001. He was first elected Governor of North Dakota in 2016. As governor, Doug Burgum pursued pro-business policies and was active in oil development. North Dakota ranks third in oil production in the United States after Texas and New Mexico and heavily relies on fossil fuels for electricity generation.

The oil industry has expressed a welcoming attitude toward Doug Burgum. Eric Milito, president of the National Ocean Industries Association, told the Associated Press, "His deep understanding of American energy resources and public lands will help address energy cost issues and strengthen America in the global energy market." David Seebrook, president of the Wilderness Society, called him "a longtime friend of the fossil fuel industry."

American media outlets view Doug Burgum as taking on the role of 'Energy Czar,' wielding broad authority in the energy sector. Bob McNally of the energy consulting group told Politico, "There were rumors that Trump would have an energy czar, and I just saw the czar being appointed."

The New York Times reported, citing a Trump transition team official, that the newly established National Energy Council was inspired by former President Barack Obama and President Joe Biden, who created a 'climate czar' in the White House. However, the goal will be the opposite. Previous administrations' climate advisory committees worked to slow global warming by reducing coal, oil, and gas use and accelerating the expansion of wind, solar power, and electric vehicle use, but the Trump administration's National Energy Council is expected to move in the opposite direction.

The United States also operated an energy task force centered on Vice President Dick Cheney during the George W. Bush administration. The energy task force also had the expansion of fossil fuel supply as one of its main goals.

Nominee for Secretary of Energy says "There is no climate crisis"

Chris Wright, nominated by President-elect Trump as head of the Department of Energy, is a Massachusetts Institute of Technology (MIT) graduate, CEO of the fracking company Liberty Energy, and a climate change skeptic. Fracking, known as hydraulic fracturing, is a technique that drills holes deep into underground rock formations with high-pressure liquids to separate shale oil or shale gas from the rock. Chris Wright is also a board member of Oklo, a small modular reactor (SMR) company, and EMX Royalty, a mining royalty company.

Chris Wright, CEO of Liberty Energy, nominated as Secretary of Energy by President-elect Donald Trump. Liberty Energy homepage

President-elect Trump praised him as "one of the pioneers who helped start the shale revolution in America" and said he "will be a key leader in eliminating regulations and driving innovation."

The U.S. energy industry hopes that Chris Wright will expand shale gas drilling and approve liquefied natural gas (LNG) terminal construction projects. In January this year, President Biden temporarily suspended approval of new LNG export terminal projects in response to environmentalists' concerns that LNG could negatively impact the climate.

Following Doug Burgum, the appointment of Chris Wright as Secretary of Energy has drawn attention within the U.S. to the possibility that various subsidies and incentives for clean energy such as electric vehicles and green hydrogen may be canceled or reduced. Last year, Chris Wright wrote on LinkedIn, "There is no climate crisis," adding, "What resembles a crisis related to climate change is only regressive and opportunity-suppressing policies justified under the name of climate change." According to major foreign media, the Trump transition team is reportedly discussing with the Republican Party the repeal of electric vehicle subsidy provisions under the Inflation Reduction Act (IRA).

However, Doug Burgum and Chris Wright reportedly have somewhat different positions on carbon capture and storage (CCS) technology. According to The Washington Post, Doug Burgum, as Governor of North Dakota, urged the state to achieve carbon neutrality by 2030, using CCS as a major means. One of North Dakota's largest CCS projects has investment from Harold Hamm, an oil tycoon and one of President-elect Trump's supporters. Harold Hamm is known to have recommended Chris Wright to President-elect Trump.