Trump’s Energy Council

Chris Wright:

• Trump nominated to serve as Secretary of Energy
• CEO of Liberty Energy which accounts for 20% of drilled wells in the U.S.
• MIT Graduate with Masters degree in Electrical Engineering
• Serves on the board of Oklo, a developer of small nuclear reactors
• Skeptical about the urgency of climate action, says energy poverty is more serious
• Wants to reduce bureaucratic hurdles for energy projects and promote innovation
• Proponent of doubling current nuclear energy fleet

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Doug Burgum:

• Trump nominated to serve as Secretary of Interior and Chair of the Energy Council
• Governor of North Dakota and self-made tech billionaire
• MBA Graduate from Stanford University
• Will oversee energy production on federal lands
• Believes in maximizing domestic production across federal land and water
• Advocates for using carbon capture technology vs fossil fuel reduction
• Promotes an "all-of-the-above" energy strategy that includes fossil fuels, nuclear energy, and renewable sources

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Anticipated Shifts in Energy Policy

• Deregulation of the Energy Sector: The administration plans to reduce regulatory constraints, aiming to boost  domestic energy production and streamline operations for energy companies. 

• Promotion of Fossil Fuels: There is a clear emphasis on enhancing the production and utilization of fossil fuels,  particularly oil, natural gas, and coal, to achieve energy independence and economic growth. 

• Reevaluation of Renewable Energy Support: While not entirely dismissing renewable energy, the administration  intends to reassess the level of support and subsidies provided to renewable energy projects, potentially  shifting focus towards more traditional energy sources. 

• Infrastructure Development: Plans include expanding energy infrastructure, such as pipelines and refineries, to  facilitate increased production and distribution of energy resources. 

• Review of Environmental Policies: The administration is expected to revisit existing environmental regulations,  potentially relaxing standards to favor energy development and reduce compliance costs for businesses. 

• Reduced Federal Oversight on Utilities: Deregulation efforts might extend to the electricity sector, with reduced  federal oversight allowing states and utilities greater flexibility in how they generate and distribute electricity. 

• Grid Resilience Focus: There may be a push to argue for the importance of baseload power sources (like coal  and nuclear) to maintain grid reliability, even as renewables become more cost-competitive.

Market Impact

Natural Gas 

• Reduced regulatory costs for energy producers (especially in fossil fuels) could lower production costs,  potentially decreasing prices  

• Increased supply is likely with the potential for oversupply as policies encourage increase production • Demand will increase due to LNG export terminal approvals and encouragement of consumer/  business demand (no more stigma) 

Electricity 

• Investment in new infrastructure may increase the non-energy charges  

• Likely reduced-price volatility as grid infrastructure is improved and continuation of a balanced  generation fleet  

• Increase in off peak prices and stabilization/ reduction in on peak prices as wind production credits  could be eliminated 

Bottom Line: Policy shifts are unlikely to have an immediate impact on energy prices, as infrastructure  changes require significant time. For example, new LNG export terminals take 3 to 5 years to construct,  grid infrastructure improvements can span several years, and new nuclear plants require 5 to 7 years to develop. Ultimately, economic feasibility dictates progress—new generation facilities or natural gas wells  will only be developed if they are profitable. In the short term, price impacts are expected to be minimal,  with potential reductions in volatility anticipated after 2029.