Trump making fossil fuels great again has global implications

Prof. Syed Munir Khasru

South China Morning Post
April 15, 2025

https://www.scmp.com/opinion/world-opinion/article/3306467/trump-making-fossil-fuels-great-again-has-global-implications

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The era of hydrocarbons is accelerating under the second Trump administration, posing a direct threat to global climate goals and putting years of clean energy progress at risk. On his first day in office, US President Donald Trump declared a national energy emergency and signed an executive order establishing the National Energy Dominance Council. Headed by Interior Secretary Doug Burgum, its mandate revolves around fast-tracking oil, gas and coal development.

This aggressive stance was reinforced by a series of executive orders focused on reviving the coal industry, which Trump described as “beautiful” and “clean”. Surrounded by coal miners at the White House, he pledged to accelerate leases for coal mining on federal land and eliminate permitting delays that have long hindered coal expansion.

The administration has not limited its efforts to the federal level. It has also taken aim at state-driven climate initiatives, seeking to override local authority and weaken environmental protections. Moves to block California’s cap-and-trade policies, halt enforcement of penalties against fossil fuel firms in New York and Vermont and shut down climate lawsuits targeting oil companies all reflect a broader strategy to consolidate fossil fuel influence across every level of government.

The recent approval of liquid natural gas exports from Commonwealth LNG in Louisiana marks the first authorisation since president Joe Biden’s moratorium five years ago. These initiatives signal a shift in US strategy towards treating energy infrastructure not merely as economic development but as instruments of geopolitical influence.

Trump’s declaration that US oil reserves are “liquid gold” highlights his administration’s commitment to fossil fuel dominance. By positioning the US as a global energy powerhouse, Trump aims to challenge the Organisation of Petroleum Exporting Countries’ influence and assert US control over fast-growing energy markets in Asia.

In further moves to increase US energy influence, the Trump administration has imposed new sanctions targeting Iran’s oil industry and a surprise 25 per cent tariff on countries importing Venezuelan crude oil and gas. This has disrupted supply chains across Asia and pushed up oil prices amid increased geopolitical risk. Trump has spared Russia from being part of the “reciprocal” tariffs, but the trade war he has sparked could bring about falling oil prices which in turn would destabilise the Russian economy.

Meanwhile, Trump has moved to reverse Biden’s offshore drilling ban, which had removed more than 252.9 million hectares (625 million acres) from future leasing, framing it as an attack on America’s energy wealth. He also vowed to revive the cancelled Constitution Pipeline project meant to take natural gas from Pennsylvania to New York and New England, with his claim that the deal could reduce energy costs in the Northeast by up to 70 per cent aimed at voters in economically challenged regions.

In a nutshell, Trump’s strategy uses the supposed self-actualisation of the United States as a conduit for challenging Opec’s dominance. Given that US crude oil output has surpassed 13 million barrels per day, American producers could be positioned to supply regions traditionally dependent on Opec.

The US positioning itself as an alternative to traditional suppliers could be significant for major importers such as India and Japan, who might see US energy exports as a more stable and politically aligned option for long-term supply security.

India, the world’s third largest oil importing nation, traditionally sourced oil from the Middle East, but dramatically increased imports from Russia after Russian oil became available at a discount following the Ukraine war. Japan too has continued to import energy from Russia.

The current White House and its supporters might say that strengthening the US hydrocarbon industry is essential to meet rising power demands, but this argument only masks a deeper retreat from climate responsibility. Reframing fossil fuels as a necessary solution to continued growth allows the administration to obscure the environmental costs of its energy agenda.

Trump’s rolling back of the Inflation Reduction Act – one of Biden’s signature pieces of legislation – and the elimination of subsidies for renewable energy is already casting uncertainty on the future of US domestic manufacturing for batteries, solar panels and wind turbines. The law’s tax incentives aimed at revitalising US production sparked a wave of investment in clean energy technology and electric vehicle manufacturing, but Trump’s proposed cuts to climate programmes and the imposition of new import tariffs have thrown up roadblocks to further progress.

Billions of dollars in clean energy projects have been cancelled this year alone. The offshore wind sector, which is already under stress amid cost pressures and permitting delays, is a particular concern. Mounting political uncertainty, especially given most offshore wind projects take place in waters controlled by the federal government, is further destabilising major developers.

US energy strategy under Trump has serious international implications. It presents a challenge to Opec as a US energy sector freed from regulation threatens to undercut prices and seize market share in major Asian economies. It also presents those economies with new avenues for energy diversification, but at the cost of delaying or weakening their own climate goals.

The conflict between expanding fossil fuel use and the urgency of fighting climate change is not only unresolved but becoming more volatile.