How the energy industry can seize opportunities from US Executive Orders

1. Declaring a national energy emergency – Energy independence is emerging as a dominant theme worldwide. China, for instance, is pursuing this goal by rapidly expanding renewables, nuclear power, and utilising its remaining coal assets. In contrast, the US is focusing on harnessing its existing fossil fuel reserves to bolster domestic energy security. The declaration of a national energy emergency enables the administration to fast-track approvals, streamline regulatory processes, and remove bottlenecks that could delay energy production and infrastructure development. Notably, the emergency order encompasses a broad range of energy sources, including natural gas, uranium, biofuels, geothermal heat, hydropower, and critical minerals essential for energy technologies.
   
   
2. Unleashing American energy – This EO prioritises critical mineral extraction and removes incentives for EV purchases, reinforcing a focus on traditional energy sources. It aims to accelerate the development of oil, natural gas, coal, hydropower, biofuels, nuclear, and critical minerals while streamlining interstate pipeline infrastructure. Key environmental reporting changes include eliminating social cost of carbon assessments and reducing greenhouse gas reporting requirements for federal programs. Additionally, spending on the Infrastructure Investment and Jobs Act and the IRA is paused, with agency heads required to justify alignment with new policy within 90 days. Liquefied natural gas permitting is also under review, with potential measures to fast-track approvals or impose expedited environmental assessments.
   
   
3. America-first trade policy – This EO reinforces a protectionist stance on energy-related trade, with potential implications for critical minerals, solar panels, and battery supply chains. Industries reliant on global supply chains should prepare for potential disruptions, while also considering opportunities to localise manufacturing and source materials domestically.
   
   
4. Putting America first in international environmental agreements – As anticipated, the US has withdrawn from the Paris Agreement, revoking federal net-zero targets. While this removes national climate commitments, state-level and corporate sustainability goals may continue. Federal reporting on net-zero progress and greenhouse gas emissions is expected to decline, potentially impacting climate-related infrastructure requirements. Additionally, US funding for international climate projects is likely to be significantly reduced or eliminated, signalling a shift away from global climate finance initiatives.
   
   
5. Delivering emergency price relief for American families and addressing the cost-of-living crisis – Affordability is now the primary driver of energy infrastructure decisions, shifting focus toward cost-effective solutions. This approach is expected to favour renewables and battery storage projects already in development, as well as natural gas for reliable power generation. Policy adjustments may prioritise energy sources that offer immediate price relief for consumers while streamlining approvals for lower-cost energy developments.

While these directives introduce pauses and re-evaluations in key areas such as the IRA, they also highlight the increasing complexity of the energy transition. The IRA is the largest climate investment in US and world history, providing tax incentives, funding, and policy support to accelerate clean energy deployment, boost domestic manufacturing, and reduce greenhouse gas emissions.

Energy demand continues to rise globally and policy changes, such as these EOs, while disruptive in the short term, are part of an ongoing negotiation process. The orders appear to be an initial position in what will likely be a dynamic and evolving conversation between policymakers, industry leaders, and regulatory bodies and already several EOs are being challenged legally. 

History shows that negotiations will continue, legal challenges will shape outcomes, and the industry will find a path forward. Energy resilience depends on the ability to adapt, innovate, and stay focused on long-term goals while addressing the increased demand for energy and energy security. Those engaged in energy projects will need to be cognisant of the risks inherent to making investments pursuant to expedited permitting schemes under the orders. This is particularly important when some of those orders are being challenged legally, and the status of permits may be dynamic going forward as a result.

One of the most impactful directives is the Temporary Withdrawal of All Areas on the Outer Continental Shelf from Offshore Wind Leasing, which halts new wind energy leases while conducting a comprehensive review of environmental and economic concerns.

Offshore wind projects in the US were already challenged by high costs and complex permitting. This moratorium introduces further uncertainty for developers.

Similarly, onshore wind projects on federal land face heightened permitting scrutiny. However, onshore wind remains a major component of grid expansion, and while federal policy may shift, state-level commitments could sustain growth in certain markets.

Grid reliability remains a key concern, with transmission investment being crucial for energy expansion. While the EOs prioritise fossil fuel infrastructure, including pipeline development, there is limited emphasis on modernising or expanding grid capacity for renewable integration.

Transmission infrastructure in the US is under significant strain, presenting both a challenge and a potentially lucrative investment opportunity, especially with the rapid growth of AI, data centres, and ongoing electrification efforts.

Despite federal rollbacks, many states and private sector players remain committed to clean energy targets. Investments in battery energy storage systems and hydropower could gain traction as viable alternatives to mitigate renewable intermittency.

Regardless of policy adjustments, the fundamentals driving the energy transition remain unchanged. The demand for clean and affordable energy continues to grow, and private sector investment in renewables, grid modernisation, and energy storage remains high, especially with AI and data centres as a driver for this demand.

For those who are willing to be both strategic and resilient, this is an opportunity to target demand and pivot accordingly, rather than reactively responding to policy shifts.