President-elect Donald Trump has selected North Dakota Republican Gov. Doug Burgum and Chris Wright, the CEO of Liberty Energy, as his nominees to lead the Department of the Interior and Department of Energy (DOE), respectively. Though other staff picks have been head-scratchers, the selection of Wright and Burgum signals a possible return to energy realism in the federal government.
Assuming they're confirmed to head these agencies, Wright and Burgum will serve on the National Energy Council (to be chaired by Burgum), which will work with federal agencies to streamline permitting, reduce regulations, and get out of the way of private sector energy innovation. As head energy advisers, it will also be their job to direct Trump away from using state power to prop up favored industries or attack technologies he doesn't like.
The Energy Department manages the nation's stockpile of nuclear warheads, energy and technological research and development, and environmental cleanup at former nuclear weapons and nuclear research sites. Through legislation such as the Inflation Reduction Act, the department has received billions of dollars in new funding, which have been directed toward pet projects. President Joe Biden's DOE also paused exports of liquefied natural gas (LNG) in January.
Whether or not Congress repeals the Inflation Reduction Act (a full repeal is unlikely), Wright will set the spending priorities of the Energy Department, whose budget reached nearly $50 billion in FY 2024. If Wright wants to eliminate redundant and wasteful programs, he will need to work with lawmakers. Reducing red tape and reversing Biden's pause on LNG exports are other actions he could take in his capacity as energy secretary.
The Department of the Interior facilitates oil and gas leasing and manages mineral extraction and renewable energy development on federal lands. In his first week in office, President Joe Biden paused new oil and gas leasing on federal lands. The ban remained in place until April 2022. The department also issued a 20-year mining moratorium on 225,000 acres of mineral-rich land in Minnesota.
With approximately 12 percent of the nation's oil production and 11 percent of its natural gas production occurring on federal lands, Burgum will play a large role in shaping U.S. energy policy over the next four years. Holding quarterly leases for oil and gas (which are required by law) and working with Congress to reduce regulations for mining on federal lands will be under his purview. The latter move would reduce dependency on China, which controls a large portion of the critical mineral supply chain.
While many environmental groups oppose the nomination of an oil executive and a governor from a top fossil fuel–producing state, Wright and Burgum's records suggest a holistic and innovative approach to energy policy.
As the CEO of Liberty Energy, Wright played a key role in boosting fracking, which is the leading cause of emissions reductions in the United States. Wright is also a board member of Oklo, an advanced nuclear energy company specializing in microreactor designs. And while media outlets have labeled Wright a "climate skeptic," he has called climate change a problem that can only be addressed by making energy more affordable. His company launched the Bettering Human Lives Foundation, which increases access to propane cooktops in developing countries to reduce indoor air pollution, which causes an estimated 3.2 million premature deaths annually.
Since being elected governor in 2016, Burgum has embraced an "all of the above" energy approach; 55 percent of North Dakota's electricity comes from coal and 36 percent from wind power. As the state has remained a large oil producer, it has also adopted net-zero greenhouse gas goals that will be accomplished through a mix of carbon capture and sequestration and hydrogen fuel.
To be sure, whatever positive actions Burgum and Wright take to help lower energy costs will likely be offset by Trump's economic agenda; tariffs, industrial policy, and reckless government spending increase prices for consumers and stifle economic growth.
With many of Trump's staff picks being bizarre–or downright terrible—Burgum and Wright are refreshingly competent. Together they have the opportunity to prioritize energy realism, market-led innovation, and deregulation, all of which would be a win for taxpayers, consumers, and the environment.
The post Trump's Energy Picks Are Refreshingly Competent appeared first on Reason.com.
