President Trump Declares Energy Emergency, Takes Action to Expand Fossil Fuel Production

U.S. President Donald Trump issued a series of executive actions on Jan. 20, declaring a national energy emergency, initiating fossil fuel expansion, and withdrawing the U.S. from the Paris Climate Agreement. These actions represent a sharp departure from former President Biden’s renewable energy and climate-focused policies.

The declaration of a national energy emergency seeks to prioritize domestic fossil fuel production and streamline regulatory barriers to address rising energy demands and reduce consumer costs. The move emphasizes the urgent need to address “a precariously inadequate and intermittent energy supply” and an “increasingly unreliable grid.” The order warns that without swift and decisive action, the situation will worsen in the near future due to surging demand for energy and natural resources driven by the next generation of technology. Across the U.S. unprecedented projections for electricity demand growth driven by data centers has prompted calls for additional capacity to maintain grid reliability. Data centers are expected to consume 6.7 to 12 percent of total U.S. electricity by 2028, up from about 4.4 percent in 2023, according to the U.S. Energy Department. The order underscores the administration’s view that stabilizing the energy supply and ensuring grid reliability are critical to supporting technological advancement and maintaining economic and national security. The order also seeks to facilitate oil and gas expansion in Alaska.

In a setback for climate action, President Trump signed an executive order titled “Putting America First in International Environmental Agreements,” withdrawing the U.S. from the Paris Climate Agreement. This action mirrors a similar withdrawal during his first term and underscores a shift away from international climate commitments aimed at limiting global temperature increases.

An executive order aimed at “unleashing American energy” lifts a pause instituted by the Biden administration on approvals for liquefied natural gas export facilities.

Last month, the department released an updated study, which found that unfettered LNG exports would drive up wholesale domestic natural gas prices. The study is intended to inform future decisions on whether export applications are in the public interest. The same order also rolls back auto emission rules, including the termination of state emissions waivers that limit sales of combustion engine vehicles, and considers eliminating subsidies and government-imposed market distortions favoring electric vehicles.

In a separate executive action, President Trump suspended offshore wind leasing across the Outer Continental Shelf and directed a review of federal wind leasing and permitting practices.

Read the first edition of EnerKnol Insights Series exploring the five must-watch power sector trends in 2025 including implications of policy changes under the Trump administration and evolving utility planning strategies to address growing electricity demand driven by data center expansion.