Trump’s energy power-play

Project, to optimise US energy exports further, while leveraging LNG as a bargaining chip in trade negotiations.

Moreover, the RussiaUkraine gas transit deal expired on December 31, 2024. As a result, the US stands to gain significantly by boosting its LNG exports to Europe, thereby strengthening both economic ties and geopolitical influence.

Trump’s energy policies could reshape LNG markets, focusing on deregulation, expedited permits, and expanded federal land leases. These measures aim to boost US LNG export capacity from 11.3 billion cubic feet per day (Bcfd) in 2023 to 22.4 Bcfd by 2030.Key projects like Texas LNG and Calcasieu Pass (CP2) are set to advance despite environmental concerns.

In Venezuela, sanctions on stateowned PDVSA aimed to cut off revenue for Nicolás Maduro’s regime and support opposition efforts for a transitional government.

Trump’s energy policies could reshape LNG markets, focusing on deregulation, expedited permits, and expanded federal land leases.

Trump’s administration earlier took a hardline approach, and under a second term, it is expected to reinstate comprehensive sanctions on Venezuela’s oil sector and stateowned enterprises.

Iran faced the “maximum pressure” campaign, reinstating sanctions after the US withdrew from the JCPOA in 2018. These measures crippled Iran’s oil revenue, curtailing its regional influence and nuclear ambitions.

Trump would likely renew these sanctions and potentially support Israeli strikes on Iranian nuclear and energy facilities.

Although Iraq’s oil sector was not directly targeted, Trump’s administration earlier pressured Baghdad to reduce energy ties with Iran, promoting energy independence. A second term could see Iraq brought under similar “maximum pressure” tactics, revoking waivers for importing Iranian gas and electricity, further straining Iraq’s energy sector.

The creation of the National Energy Council and Trump’s cabinet picks and advisory appointments signal a renewed focus on fossil fuel expansion and policy revision.Chris Wright, CEO of Liberty Energy and a staunch advocate for hydraulic fracturing, was named Energy Secretary.North Dakota Governor Doug Burgum, appointed as Interior Secretary and head of the newly formed National Energy Council, would oversee energy production on federal lands, promoting increased oil and gas drilling.

These steps have set the stage for energy being used for geopolitical leverage.

This commentary originally appeared in The Hindu Business Line.

• International Affairs
• USA and Canada
• deregulation
• energy policy
• fossil fuel expansion
• sanctions
• trade leverage
• US LNG exports

The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.

PREV NEXT