Trump’s Policies Are Creating Uncertainty for Fossil Fuel Companies
1 min read
Summary
The US Department of the Interior is accelerating the permitting process for fossil fuel projects, reducing environmental impact assessments that can currently take years down to a month at most.
Experts say that the new deadlines are in violation of the National Environmental Policy Act, the Endangered Species Act and the National Historic Preservation Act.
As part of the changes, introduced via executive order, the government can bypass environmental assessments in a declared national energy emergency, a vaguely defined scenario that has been criticised by experts.
The energy industry faces a potential reckoning under the new government, with conflicting messages and a desire to unleash “energy dominance” at odds with President Trump’s low oil price target.
Uncertainty caused by the government’s energy policy changes is driving investors away, with anger towards the White House evident in quarterly surveys of energy executives.
Even if the changes lure investors in the short term, energy companies are having to factor in political risk when deciding whether to invest in US projects, as a reversal of policy is always a possibility.
