Trump likely to increase drilling in Louisiana, relax some rules | News

WASHINGTON— Donald Trump ran promising to close the border and deport immigrants here illegally, increase tariffs on imported goods and quickly end Russia's war with Ukraine when he takes office again.

But for Louisiana, the biggest impact of a Trump presidency may be his repeated promises to expand production of oil and gas while redirecting federal grants aimed at boosting the “green energy” industry to curb climate change.

While many politicians and businesses in Louisiana are cheering the potential changes, environmentalists are already warning about measures that would contribute to global warming and accelerate coastal land loss and devastating storms and floods.

At one point during the campaign, Trump joked that he would be “dictator for a day,” in part to increase energy production. A common refrain at campaign rallies was “drill, drill, drill.” Republican congressional candidates have adopted the refrain for their campaigns.

At an Election Day rally in Pennsylvania, House Speaker Mike Johnson, who lives in the Haynesville Shale oil and gas field in northern Louisiana, told a cheering crowd that a new Trump administration would “frack, frack, frack.”

He also said Trump would rescind the Biden administration's order delaying construction of liquefied natural gas plants. President Joe Biden said the move was intended to buy time to determine what impact the LNG plants will have on neighboring communities, many of which are majority Black and lower income.

That order sparked intense criticism in Louisiana, which handles 61% of the country's LNG exports.

Much of Louisiana's congressional delegation is eager to support Trump's proposed changes to oil and gas policy.

U.S. House Majority Leader Steve Scalise of Jefferson wasted no time Wednesday in weighing in on energy issues.

“American families and small businesses deserve a strong national energy strategy that incorporates U.S.-made energy through increased exploration and production, regulatory certainty and an “all of the above” approach that will lower the price of energy,” he said. “With President Trump in the White House, we will once again unleash American energy.”

U.S. Rep. Garret Graves, a Republican from Baton Rouge, has helped draft a GOP bill aimed at expanding energy production and reducing regulations.

“President Trump will reopen the Gulf of Mexico and other American energy sources to meet domestic and global demand,” Graves said Wednesday. “You will see lower prices, lower global emissions and greater economic opportunities for residents of Louisiana and other energy producing states.”

Mike Moncla, head of the Baton Rouge-based Louisiana Oil & Gas Association, contends that the Biden administration's decisions have hindered work in Louisiana's oil fields.

“Industries with expensive long-term projects such as offshore exploration and LNG are looking for certainty in the market,” he said.

Earlier this year, Trump asked major oil executives to contribute to his campaign. He promised to issue “immediate approvals” for production and to cut federal environmental and regulatory agencies that oversee oil and gas drilling, particularly in the Gulf of Mexico.

“There are so many things you can do,” Trump told Fox News in June. “One of the things that is so bad for us is the environmental authorities. They make it impossible to do anything.”

In his first term, Trump repealed more than 100 environmental regulations. He withdrew the U.S. from the global Paris climate accord, which had set international targets for reducing carbon emissions. Trump has also said he will stop funding an initiative to build more electric vehicles.

He wanted energy exploration in a wildlife refuge in Alaska, supported construction of the controversial Keystone pipeline and limited environmental reviews for some drilling, refining and other energy-related infrastructure projects.

Oil companies reported record profits and fossil fuel production reached historic highs under the Biden administration. But oil industry analysts say it takes at least seven years to ramp up production after a lease sale, and they attribute the increase seen in the last four years under Biden to Trump's first term. Under Biden, offshore leasing sales have often been held up by environmental concerns and become less common – none in 2024.

The traditional energy industry has provided thousands of well-paying jobs in Louisiana since 1901. According to a recent study by the Louisiana Mid-Continent Oil & Gas Association, the oil and gas industry directly supports 249,800 jobs, generating approximately $14.5 billion in wages in Louisiana. citing 2020 figures. According to LMOGA, the industry accounted for nearly $4.5 billion in state and local tax revenue in 2019, representing 14.6% of total state taxes, licenses and fees collected.

But concerns about climate change — which scientists say is contributing to the steady loss of land along Louisiana's coasts — have led the federal government and many large companies to pump money into alternative energy sources that also create jobs and wealth in Louisiana. Green energy projects are still in their infancy.

Trump and his supporters are already facing resistance to his promises to increase drilling.

The U.S. Climate Alliance, America Is All In and Climate Mayors — which together represent 24 governors, 350 mayors and environmental institutions — issued a statement Wednesday pledging to continue the fight for additional legislation and programs that address the impacts of climate change counteract.

Retired U.S. Army Lt. Gen. Russel Honoré, a prominent Baton Rouge environmentalist, noted that work in the oil fields is based on the price of oil in open markets, not the wishes of corporations and their political allies. Increased production will drive the price below a level at which private companies can justify the investment, which experts put at $60 a barrel, thereby reducing drilling, he said.

Further deregulation will only worsen environmental problems and increase the number of orphan wells, of which there are already thousands in Louisiana, he said. The industry already benefits from tax breaks and license deferrals that keep the amount sent to state and local governments to a minimum, he said.

“It may have saved some jobs, but it didn't bring great prosperity to the state,” Honoré said. “Why doesn’t Cameron Parish have the best schools? The point I want to make is that it doesn’t stand out locally.”