Energy independence means embracing all sources of energy, not limiting them. While President Trump’s executive actions to boost American energy production are a step in the right direction, his recent move to halt offshore wind projects could undermine this goal. Just like Biden’s LNG export freeze, restricting energy supply creates uncertainty, discourages investment, and ultimately raises costs for consumers. With electricity demand surging due to AI, semiconductor manufacturing, and other industries, we need all forms of energy to power our future. Market Institute President Charles Sauer has a new article in Real Clear Markets commending the President’s focus on expanding American energy, but cautions there should not be limits.
He writes:
“On his first day in office, President Trump signed a series of Executive Orders to unleash American energy and, over time, reduce energy costs. He withdrew the U.S. from the Paris Climate Accords, reversed Biden’s foolish LNG export ban, and declared a national energy emergency (that one might be a bit much).
Restoring energy self-sufficiency was a central part of his winning campaign message, and he is right to encourage the production of traditional fuels like coal, petroleum, and natural gas. Despite an onslaught of regulatory actions from the previous administration, these are the fuels that power our economy today and will continue to do so well into the future. However, Trump has also become extremely critical of renewable energy sources which today make up an important part of our energy grid. We need more energy across the board and it shouldn’t matter how it is produced.
For example, while the energy Executive Orders are positive, Trump unfortunately also signed an Order that is a de-facto ban on onshore and offshore wind farm construction. This Order will undermine – not help – his goal of energy self-sufficiency. Specifically, the EO stops the leasing of federal lands and waters for new wind farms and directs federal agencies to pause issuing permits for all U.S. wind farms. What’s more, the President has expressed interest in terminating offshore wind leases that have already received federal approval.
Trump’s plans for offshore wind have been shared along his campaign trail and in his speeches following his victory – so this order did not come as a surprise.
In his Inaugural Address, Trump shared his vision for unlocking U.S. energy production. He named goals of cutting energy prices, filling U.S., reserves, and dominating energy exportation, and while wind provides less energy than some of the areas of energy production it does provide a significant amount – and lowering supply is not a way to lower prices.
Just as President Biden’s temporary suspension of LNG export projects introduced instability last year, Trump’s measures against offshore wind create a new cycle of unpredictability unnecessarily. Energy companies require stable regulatory environments to make informed decisions about capital investments and project development timelines. Frequent policy shifts deter investors who seek predictable returns on their investments, ultimately stalling innovation and progress within the sector.
Trump’s current energy playbook benches part of its roster. With the demand for electricity on the rise thanks to new industries like artificial intelligence and semiconductor manufacturing, every player counts. According to Grid Strategies, nationwide electric demand is forecast to increase nearly 16% by 2029. Drill baby drill, as Trump likes to say, but oil alone is not likely to support the future demands on the energy grid – all energy sources will have a role to play and most importantly innovation will need occur. The issue, and this applies to all industries, is that government shouldn’t pick where that innovation occurs.”
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