President Trump: A Crossroads for Manufacturing and Energy
As said by US President Donald Trump during his inauguration speech: "America will be a manufacturing nation once again and we have something that no other manufacturing nation will ever have: the largest amount of oil and gas of any country on Earth."
This bold declaration sets the tone for an administration defined by its energy-driven approach to industry.
Seated before him were some of the most influential figures in business and government, ready to witness the first chapter of this energy-centric vision unfold.
Trump’s promise to restore America’s manufacturing dominance is intertwined with his “America First” agenda, underpinned by a reliance on the country’s vast reserves of oil and gas.
This approach prioritises short-term economic gains from traditional energy manufacturing over sustainable alternatives, raising critical questions about the environmental and global implications of such a strategy.
This philosophy is evident in Trump’s policies on tariffs, aimed at nations like China, Mexico and Canada.
The logic of these tariffs — initially touted as costs that foreign nations would bear, but which instead largely fell on US consumers — underscores Trump’s approach: a mix of bold rhetoric and contentious execution.
On the topic, Trump said on X (formerly Twitter): “I am a Tariff Man. When people or countries come in to raid the great wealth of our nation, I want them to pay for the privilege of doing so.”
However, the sweeping tariffs Trump proposed have yet to fully materialize. Instead, his focus has shifted to a new frontier: energy manufacturing.
Expanding American energy production with fossil fuels
During his campaign, Trump repeatedly promised to declare a national energy emergency on his first day back in office — a pledge he has now fulfilled through a flurry of executive orders.
These directives aim to boost US fossil fuel production, rolling back sustainable energy policies implemented under previous administrations.
The executive orders seek to increase domestic power generation, ease restrictions on fossil fuel extraction and streamline permitting for energy infrastructure projects.
They also reverse policies designed to accelerate the transition to renewable energy, signaling a dramatic shift in priorities.
Trump’s argument centres on the idea that the US faces an energy crisis, pointing to rising demand as a justification for these measures. But is this claim substantiated?
According to the US Energy Information Administration (EIA), energy consumption has grown since the 1970s, but advancements in efficiency and a shifting energy mix have mitigated its impact.
Fossil fuel consumption has decreased by 10% over the past two decades and overall energy use per capita has declined since the early 2000s.
However, one emerging challenge that lends weight to Trump’s energy concerns is the exponential growth of data centres.
This approach prioritises short-term economic gains from traditional energy manufacturing over sustainable alternatives, raising critical questions about the environmental and global implications of such a strategy.
This philosophy is evident in Trump’s policies on tariffs, aimed at nations like China, Mexico and Canada.
The logic of these tariffs — initially touted as costs that foreign nations would bear, but which instead largely fell on US consumers — underscores Trump’s approach: a mix of bold rhetoric and contentious execution.
On the topic, Trump said on X (formerly Twitter): “I am a Tariff Man. When people or countries come in to raid the great wealth of our nation, I want them to pay for the privilege of doing so.”
However, the sweeping tariffs Trump proposed have yet to fully materialize. Instead, his focus has shifted to a new frontier: energy manufacturing.
Expanding American energy production with fossil fuels
During his campaign, Trump repeatedly promised to declare a national energy emergency on his first day back in office — a pledge he has now fulfilled through a flurry of executive orders.
These directives aim to boost US fossil fuel production, rolling back sustainable energy policies implemented under previous administrations.
The executive orders seek to increase domestic power generation, ease restrictions on fossil fuel extraction and streamline permitting for energy infrastructure projects.
They also reverse policies designed to accelerate the transition to renewable energy, signaling a dramatic shift in priorities.
Trump’s argument centres on the idea that the US faces an energy crisis, pointing to rising demand as a justification for these measures. But is this claim substantiated?
According to the US Energy Information Administration (EIA), energy consumption has grown since the 1970s, but advancements in efficiency and a shifting energy mix have mitigated its impact.
Fossil fuel consumption has decreased by 10% over the past two decades and overall energy use per capita has declined since the early 2000s.
However, one emerging challenge that lends weight to Trump’s energy concerns is the exponential growth of data centres.
Data centres: Energy guzzlers
The US leads the world in data centre infrastructure, with more than 5,000 facilities consuming massive amounts of energy.
Between January and July 2024, new data centre capacity grew by 10%, with power demands expected to triple in the next three years.
These centres are integral to fuelling technologies like artificial intelligence and cloud computing but present a unique energy challenge.
The Department of Energy (DoE) expects their power use will triple over the next three years, consuming as much as 12% of the country's power and advocates for renewable and next-generation solutions, including solar, wind, geothermal and advanced nuclear technologies as the most scalable and cost-effective approaches.
Despite this, Trump has doubled down on fossil fuels, arguing that only an immediate increase in oil and gas production can meet the demand.
"It allows you to do whatever you’ve got to do to get ahead of that problem," he told reporters while signing the order. "And we do have that kind of an emergency."
Corporate influence and the fossil fuel agenda
Corporate lobbying remains a significant force in shaping US energy policy.
Trump’s 2024 campaign received US$14.1m in donations from the oil and gas sector, solidifying the industry’s influence.
These donations came with promises: scrapping environmental regulations, issuing tax breaks worth US$110bn and opening new areas for drilling and extraction.
Trump has wasted no time fulfilling these commitments.
He has reversed bans on offshore drilling, greenlit Arctic oil exploration and lifted restrictions on LNG exports.
He also announced plans to replenish the Strategic Petroleum Reserve, depleted by record withdrawals during the Biden administration, a move that could raise crude oil prices by driving up demand.
"We will bring prices down, fill our strategic reserves up again right to the top and export American energy all over the world," he said.
The environmental cost
The environmental consequences of these policies are profound.
Increased fossil fuel extraction disrupts ecosystems, threatens wildlife and risks catastrophic oil spills.
Once burned, these fuels release carbon dioxide, accelerating climate change and pushing the world closer to what the UN terms a “climate abyss”.
In a stark departure from the Biden administration’s focus on renewable energy, Trump’s orders have dismantled initiatives aimed at decarbonizing the US economy.
By suspending offshore wind leases, halting subsidies for electric vehicles and withdrawing from international climate agreements, Trump has shifted the nation’s manufacturing priorities toward short-term economic gains at the expense of long-term sustainability.
These executive orders mark a sharp diversion in governmental policy, moving decisively towards non-renewable manufacturing and boosting the production of oil and gas.
The benefits of an increased energy supply potentially outweigh the environmental consequences this will contribute to globally.
As Trump turns to trade in February, many are saying another trade has already been made: profit for planetary sustainability.
The energy manufacturing decisions made now will have lasting implications, not just for the US economy but for the global climate.
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