White House Economic Advisors Council Report on Energy Policy
The White House Economic Advisors Council released a survey on Thursday that indicates the energy policy under the Trump administration could potentially contribute nearly two percentage points to the United States’ gross domestic product (GDP) by 2035. The report, spanning 24 pages, outlines various initiatives aimed at unlocking America’s energy resources through deregulation and expedited permitting processes.
Some of the measures discussed include simplifying fundraising decisions, overhauling cumbersome regulatory bodies, shortening permit review timelines, restarting federal lease sales for energy, authorizing new liquefied natural gas (LNG) export terminals, advancing nuclear technology, and enhancing the electric grid, among others.
The Council projects that the U.S. energy policy could boost growth by “at least 0.56-1.90 percent by 2035,” or “0.31-1.23 percent if deregulation effects are excluded,” with details on how specific policies may drive this growth.
- Eliminating restrictions on offshore oil reservoirs could raise GDP by 0.03-0.13% by 2035.
- Increased production from federal lands could contribute 0.025-0.11% annually to GDP.
- Growth in LNG exports might drive GDP up by at least 0.03% by 2035.
- Removing excessive regulations could lead to a GDP increase of 0.25-0.67% or more by 2035.
The report also emphasizes how a significant new law would support the president’s energy agenda, which includes funding to replenish the U.S. strategic oil reserves and developing artificial intelligence models to enhance new energy technologies.
Furthermore, it states that the law will “restart oil, gas, and coal leases with regular lease sales and low royalties,” and “includes projects aimed at expanding the Department of Energy’s loan guarantee program, improving electricity supply availability, ultimately leading to a more reliable grid.”
Trump and his administration have long advocated for increased energy supply to bolster American AI development, especially amid competition with China, as noted by figures like Home Secretary Doug Burgham.
The report highlighted, “Affordable, reliable, sustainable electricity is vital for AI development, and countries that can supply energy efficiently will have a significant advantage.” It further adds that if half of U.S. companies adopt AI widely by 2034, annual labor productivity growth could increase by 1.5% compared to a scenario without such adoption. This rise in productivity could, in turn, uplift GDP growth by 0.4% in 2034.
In remarks to Breitbart News, White House assistant reporter Kush Desai underscored the pivotal role of energy abundance in the president’s strategy. Desai stated, “Unlocking our energy resources was essential for the historic job creation, wage growth, and investments during President Trump’s first term. Energy abundance is critical for our aim to secure American leadership in AI and restore our industrial base. The administration is dedicated to maximizing efforts to foster American greatness.”
