What Does It Mean to Live Under a National Energy Emergency?
President Donald Trump used the first hours of his second term in office Monday to make the emergency declaration.

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This isn’t exactly a vintage 1973-74 kind of “national energy emergency” but it does speak to the special place fossil fuels have in the new administration.
President Donald Trump used the first hours of his second term in office Monday to make the emergency declaration, signing an executive order designed to boost US oil and gas production.
The Electric Slide
The emergency declaration marks a U-turn from Biden-era green energy policies focused on climate change to a policy of, in Trump’s words Monday, “drill, baby, drill.” The president plans to greenlight more permits to surface the “liquid gold under our feet,” including by opening up drilling in Alaska, in a bid to lower energy costs for businesses and consumers.
Energy production was already trending in the direction the Trump administration desires:
- US oil production is near peak levels, accounting for 22% of the world’s oil, more than any other country. Production levels, coupled with an economic slowdown in China, meant that oil prices declined 3% in 2024, the second consecutive year.
- Energy Information Administration analysts expect an oversupply of oil this year, which could further tame prices, while US production is poised to continue growing. Nevertheless, energy prices fell on Trump’s inauguration, suggesting markets think the president’s policies could push output even higher: Brent crude futures, the international oil benchmark, closed down 0.8% at $80.15. US West Texas Intermediate crude futures fell 1.7% to $76.58.
None of this is to say the United States doesn’t have real energy concerns, but the biggest one might be electricity. Demand is surging for the first time since the 1990s, and will increase in some US regions by 15% over the next five years, according to an October report by Wood Mackenzie. Power-guzzling data centers and new manufacturing facilities mean, since Trump doesn’t plan to go the energy conservation route, he could expedite the building of new power plants.
What You Can Expect: According to a letter Trump’s team circulated to lawmakers, the brakes will likely be slammed on electric vehicle initiatives in the coming months, meaning you should buy your electric car now if you still want that federal subsidy. Other efforts to “empower consumer choice” will be taken for showerheads, toilets, washing machines, lightbulbs, and dishwashers, meaning you can expect agencies to roll back regulations on those items.