U.S. President Donald Trump has established a new energy council aimed at meeting the country’s growing electricity demands, particularly to support artificial intelligence (AI) development. The move is part of a broader strategy to strengthen U.S. global competitiveness, particularly against China. “We’re going to be energy dominant like nobody else,” Trump told reporters as he signed the executive order. “They need at least double the electricity we have right now.”
The newly formed council, led by Secretary of the Interior Doug Burgum and Vice-Chair Energy Secretary Chris Wright, will coordinate energy policy across federal agencies. Its goal is to streamline permitting, production, and distribution of energy resources, reinforcing Trump’s campaign slogan of “drill, baby, drill.”
AI’s Growing Energy Demands
The initiative reflects growing concerns about the U.S. energy grid’s ability to support the AI industry. Tech companies have been lobbying the administration, warning that AI training and data centers will require as much as five gigawatts of additional electricity by 2028—enough to power around five million homes.
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Burgum highlighted the urgency, stating, “The U.S. is in an AI arms race with China. The only way we win is with more electricity.” The U.S. energy infrastructure has suffered from underinvestment and the shutdown of aging nuclear plants, making it difficult to meet future energy needs. Trump’s council is expected to address these challenges by focusing on domestic energy production.
LNG Exports Resume
In a related move, the Trump administration also approved a long-delayed liquefied natural gas (LNG) export license for the Commonwealth LNG project in Louisiana. This marks the first LNG approval since Trump lifted former President Joe Biden’s freeze on export licenses on his first day back in office. Energy Secretary Wright hailed the decision, saying, “Exporting U.S. LNG strengthens the economy and supports American jobs while bolstering energy security around the world.”
The approval allows Commonwealth LNG to build a 9.5 million metric ton per year export facility, with the first production expected in early 2029. Trump’s decision aligns with efforts to reduce Europe’s reliance on Russian gas, a priority since Moscow’s invasion of Ukraine three years ago.
Other LNG companies, including Cheniere and Energy Transfer, have also announced plans to ramp up exports. U.S. LNG exports are projected to double by the end of the decade, sparking concerns from environmental groups and industries that fear rising domestic gas prices.
Expanding Oil and Gas Production
Trump has made it clear that boosting domestic oil and gas production is a priority. He signed another executive order opening over 600 million acres of offshore federal waters for drilling, reversing Biden-era restrictions.
Trump also announced his administration’s intention to revive the Constitution natural gas pipeline, which was canceled in 2020 due to political and environmental opposition. The pipeline would transport gas from Pennsylvania’s drilling fields to New York, potentially lowering energy costs in the region.
The President’s approach mirrors past administrations’ energy policies, such as Biden’s National Climate Task Force and George W. Bush’s National Energy Policy Development Group. However, unlike Biden, Trump has prioritized fossil fuels while sidelining renewable energy projects.
A Strategic Energy Shift
The new energy council will play a central role in shaping U.S. energy policy. Its members will include representatives from the Interior Department, the Department of Energy, and the Environmental Protection Agency. They will oversee coal, oil, and renewable energy production, manage emergency oil stockpiles, and regulate power plant emissions.
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Trump has also surrounded himself with energy advisers, including former oil executives like Wright and Harold Hamm, chairman of Continental Resources. Despite Trump’s push for increased drilling, many oil executives remain cautious about significantly boosting output, instead focusing on shareholder profits.