A Trump U.S. Energy Renaissance

 Donald Trump’s nominations are a mix of good, bad and ugly. His choice of North Dakota Gov. Doug Burgum to head the Interior Department and Liberty Energy CEO Chris Wright at Energy fit squarely in the first category.

Mr. Burgum leads the third-largest oil producing state and one of the country’s top wind producers. Before becoming Governor in 2016, he ran a software startup that he later sold to Microsoft and founded a venture capital firm. Mr. Wright helped pioneer hydraulic fracturing and now runs the major fracking contractor Liberty Energy.

Both nominees understand how energy markets work, unlike Biden officials whose primary goal was to lock up America’s fossil-fuel resources. Mr. Burgum’s first charge at Interior will be to roll back the Biden regulations that have hampered resource development.

For starters, he could scrap the Biden five-year offshore oil and gas leasing plan that allows only three auctions between now and 2029—the fewest of any President in modern times. Mr. Trump’s first-term plan had proposed 47. Mr. Burgum may need to schedule more to make up the many that the Biden team has cancelled.

Another priority will be to reopen the Arctic National Wildlife Refuge for oil and gas leasing, as required by the GOP 2017 tax reform. Biden Secretary Deb Haaland last year cancelled leases issued under Mr. Trump. Mr. Burgum could also speed up permitting for projects on federal land and open some up for housing, as Mr. Trump promised in his campaign.

Mr. Trump also tapped Mr. Burgum to lead a new National Energy Council that will be comprised of federal agencies involved in energy permitting, production and regulation. “This Council will oversee the path to U.S. ENERGY DOMINANCE by cutting red tape, enhancing private sector investments across all sectors of the Economy,” Mr. Trump said.

A National Energy Council is a smart idea since regulatory authority over energy is spread across multiple agencies, including the Environmental Protection Agency, the Federal Energy Regulatory Commission, the Energy Department and others. Hiccups anywhere in the permitting chain can snarl projects.

That’s especially true for liquefied natural gas exports, which need permits from FERC and the Energy Department. Pipelines that transport gas from shale fields to export terminals must also be approved by FERC and comply with EPA methane regulations. FERC and Energy must consult with Interior on permits to protect wildlife.

Mr. Wright at Energy will manage a sprawling bureaucracy that oversees the country’s nuclear weapons, 17 national labs, energy loan program and LNG exports, among other things. His job on Day One will be to restart permitting for LNG exports, which the Biden team paused in an effort to appease young progressives who made this a cause celebre on TikTok.

He could also conduct a top-down review of the department’s Loan Programs Office, which the Inflation Reduction Act authorized to make more than $400 billion in loans and guarantees for green projects. The Biden team is rushing the largesse out before they leave, but Mr. Wright could rescind some if recipients fail to make good on contractual promises.

Mr. Trump likes to say he wants to “drill baby drill.” An equally important imperative is to make energy policy competent again.

https://www.wsj.com/opinion/a-trump-u-s-energy-renaissance-energy-burgum-wright-02f4626d