Are we in an energy emergency? What Trump's executive order means
Second day of President Donald Trump in office
President Donald Trump kicks off the second day of his second non-consecutive term. He is the second president in history to serve under those conditions. Fox News Correspondent, Rebekah Castor, joins LiveNOW from FOX, with the latest on the executive orders he's signing, and what you can expect for the future.
WASHINGTON - President Donald Trump declared a national energy emergency on Monday, citing high fuel prices and the need to strengthen domestic energy production.
This unprecedented move aims to accelerate energy infrastructure, bolster fossil fuel output, and fulfill Trump’s promise to revitalize American manufacturing while addressing what his administration describes as a critical economic and national security crisis.
Has an energy emergency been declared before?
The backstory:
Declaring a national energy emergency is a first for a U.S. president. The executive order activates legal mechanisms that could significantly expand the government’s ability to expedite energy-related projects.
According to legal experts, the order may invoke the Defense Production Act to fast-track energy production, authorize emergency fuel purchases, or lift environmental restrictions on new projects.
Defense Production Act to fast-track energy production, authorize emergency fuel purchases, or lift environmental restrictions on new projects.
While Trump did not specify which legal authorities the order would tap, analysts say the International Emergency Economic Powers Act could allow the administration to block foreign energy imports.
FILE - Oil pumpjacks operate at dusk Willow Springs Park in Long Beach, California. (Photo by APU GOMES/AFP via Getty Images)
Historical analysis by the Brennan Center revealed that while no president has ever declared a "national energy emergency," there were regional "energy emergencies" during the 1970s due to fossil fuel shortages.
At the time, President Jimmy Carter authorized state governors to temporarily ease certain environmental regulations, urging caution to avoid unnecessary risks to public health and to resort to such measures only when absolutely necessary.
Although Carter prioritized the energy crisis as a key issue for his administration, he stopped short of declaring a nationwide emergency.
What will Trump's energy policies look like?
Big picture view:
During his inaugural address, Trump underscored his vision for American energy dominance: "We will drill, baby, drill. America will be a manufacturing nation once again. We have the largest oil and gas reserves on Earth, and we are going to use them."
Trump’s comments also highlighted the administration’s focus on reducing gas prices, which currently average $3.13 per gallon, according to AAA. This figure is down from 2022’s peak following Russia’s invasion of Ukraine but remains higher than during Trump’s first term when prices averaged $2.60 per gallon in 2019.
Despite the executive order, analysts indicate that the United States is not currently facing a fuel shortage.
What could Trump's energy policies look like?
Exxon Mobile CEO Darren Woods shared that the U.S. should stay in the Paris climate agreement under the incoming Trump administration. LiveNOW's Austin Westfall discusses what to expect from the new Trump administration on climate and environmental policy with Dr. Ian Palmer, who just released a book titled "How Oil and Gas Companies are Pivoting Toward Climate Change."
As the world’s leading producer and net exporter of fossil fuels, U.S. oil and natural gas production remains at historic highs, with output continuing to grow steadily, according to data from the U.S. Energy Information Administration.
Experts also project a global near-term oversupply of oil and gas, with supply outpacing demand, NPR recently reported.
Nevertheless, President Trump has prioritized expanding domestic oil drilling. His administration plans to ease regulations, boost leasing on federal lands, and actively urge companies to increase production.
The impact of high fuel prices
Why you should care:
The administration has positioned the emergency declaration as a response to economic challenges and energy supply concerns.
While U.S. oil production reached record highs under the Biden administration, critics argue that regulatory hurdles slowed the approval of new energy infrastructure.
By invoking the emergency, Trump’s team hopes to streamline the permitting process for pipelines, refineries, and power plants.
"The inflation crisis was caused by massive overspending and escalating energy prices," Trump said during his inaugural speech. "We will rebuild our energy infrastructure and make America energy secure."
The outlook on America’s energy
What's next:
The executive order directs federal agencies to identify immediate actions to boost domestic energy supply. Agencies have been instructed to prioritize regulatory reforms and report progress within 30 days. Potential measures include emergency waivers for fuel standards and expanded leases for drilling on federal lands.
Experts say the move could face legal challenges, particularly from environmental groups. However, Trump’s team remains confident the plan will gain momentum, citing strong industry support.
The Source: This story is based on reporting from NPR, The Hill, the Brennan Center, and the official White House executive order published on January 20, 2025. This story was reported from Los Angeles.