On November 16th local time, the elected president of the usa, Trump, announced that he has nominated Chris Wright for the next energy secretary and stated that a national energy committee will be established to promote the energy production of the usa.

It is reported that Wright is the CEO of the oil & gas service company liberty energy, and has no prior experience working in Washington, being a supporter of traditional energy (oil & gas). American media analysts believe that after Wright takes office, he will vigorously promote the development of fossil fuels, including quickly taking action to end the year-long suspension of natural gas export license approvals by the Biden administration.

This important personnel appointment again highlights Trump's determination to revitalize traditional energy. The market expects that during Trump's second term, there may be significant adjustments to us energy policy. During his campaign, Trump promised to repeal the regulations aimed at reducing carbon emissions set by the Biden administration.

Trump announces.

On November 16th local time, the elected president of the usa, Trump, announced that he has nominated Chris Wright for the next energy secretary and stated that a national energy committee will be established to promote the energy production of the usa.

Wright, the CEO of oil field service company Liberty Energy, has no prior experience working in Washington.

Wright has always been a supporter of traditional energy (oil & gas), emphasizing the importance of fossil fuels in promoting economic prosperity and lifting people out of poverty, while downplaying the exaggerated threat of global warming.

Although Wright acknowledges the link between burning fossil fuels and climate change, he expresses skepticism about the connection between climate change and extreme weather. He claims, 'The world relies on oil & gas to run, and calling for a transition away from fossil fuels within 10 years is a ridiculous timeframe.'

He also stated, 'There is no benefit in hindering the current oil & gas energy system before we establish a new energy system. I believe that there won't be significant changes in our oil & gas system in the next 30 years.'

Therefore, American media analysts believe that after Wright takes office, he will vigorously promote the development of fossil fuels, including quickly taking action to end the Biden administration's year-long suspension of natural gas export permit approvals.

In his statement, Trump wrote, 'Wright has been a leading technical expert and entrepreneur in the energy sector. He has worked in nuclear energy, cecep solar energy, geothermal energy, oil & gas field. Most importantly, he is one of the pioneers who helped kickstart the shale oil revolution in the USA, driving energy independence and altering the global energy market and geopolitical landscape.'

If Wright's appointment is confirmed, he will also serve on the newly established National Energy Commission, which will be chaired by Doug Bergum, the Interior Minister nominated by Trump.

Trump stated that the National Energy Commission is a newly established department that will be involved in the licensing, production, generation, distribution, regulation, and transportation of all forms of energy in the United States. The Commission will reduce bureaucratic procedures, strengthen private sector investments in various sectors of the economy, and oversee the United States' continued energy dominance by focusing on innovation.

In addition to being a Trump campaign donor, Wright has also garnered support from influential conservative figures, including energy tycoon Harold Hamm. Hamm, a long-time supporter and advisor to Trump, played a key role in energy issues during Trump's first term.

In April of this year, Hamm helped organize an event at Trump's Mar-a-Lago estate, where Trump asked energy industry leaders and lobbyists to donate $1 billion for his campaign. Trump promised to reduce environmental regulations if elected.

How significant is the impact?

Trump has always been a supporter of fossil fuels, advocating for the expansion of traditional oil & gas production in the usa and increasing the export distribution of henry hub natural gas. Looking back at his previous term (2017-2020), usa crude oil production maintained high growth.

As a result, the market expects that there may be significant adjustments to usa energy policy during Trump's second term.

On one hand, Trump has clearly stated his support for the development of traditional energy, and market analysts believe that in the next four years, usa energy policy will focus on developing traditional fossil fuels such as oil, gas, and coal, while Biden's policy key points are in reducing emissions, climate, employment, and rebuilding infrastructure.

On the other hand, Trump's attitude towards the new energy industry is complex; he has not publicly stated opposition to the development of renewable energy industries like wind and solar, but during the campaign, he pledged to repeal regulations set by the Biden administration aimed at reducing carbon emissions, withdrawing the Inflation Reduction Act, reclaiming unused funds from the Inflation Reduction Act, and terminating the Green New Deal.

According to a previous report by the new york times, six sources familiar with Trump's transition team disclosed that a series of executive orders and presidential announcements related to climate and energy have already been drafted, aimed at overturning the Biden administration's clean energy regulations, as some critics believe these regulations harm the economy.

The american petroleum institute (API) urged Trump after taking office to cancel existing car emission standards aimed at supporting the electric vehicle industry, lift the ban on suspending liquefied natural gas (LNG) export licenses, and work with Congress to repeal fees on methane emissions from drilling operations. This association is the largest oil & gas trade organization in the usa.

Consulting firm Wood Mackenzie analyzed that Trump's energy policy could jeopardize the usa's anticipated $1 trillion low-carbon energy investments, usa electric vehicle sales may decline, and wind energy, cecep solar energy, and storage projects may be delayed or stagnated, resulting in carbon emissions increasing by 1 billion tons by 2050 compared to current policy.

A previous analysis by the climate news site Carbon Brief indicated that the additional emissions during Trump's 'new term' will offset more than twice the total energy savings achieved globally over the past five years through the deployment of wind power, cecep solar energy, and other clean technologies.

Market analyst Richard Valdmanis pointed out that after Trump's return to the White House, us energy policy will refocus on maximizing oil & gas production, rather than addressing climate change, but it is unlikely to significantly slow the booming growth of renewable energy in the usa.

Another analyst predicted that due to economic forces beyond the president's control, Trump's second term will only slow down but not stop the usa's transition to clean energy. Since Trump's first inauguration, the price of solar energy has fallen by more than half, and the cost of installing utility-scale solar facilities or onshore wind farms is now significantly lower than the cost of building new gas-fired power plants.

Dan Lashoff, U.S. director of the World Resources Institute, said, 'Trump's return to the White House will not sound the death knell for the rapid acceleration of the clean energy transition seen over the past four years.'

Editor/Somer