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On Sunday, December 22nd, AEA’s Vice-President for Policy Kenny Stein joined the Energy Mixx Radio Radio Show. On the show Kenny discusses what the recent election results mean for America’s energy future and what to look forward to from the new Trump administration. Energy Mixx is A program about the oil, gas and energy business heard Sundays on 740 KTRH, Houston.
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WASHINGTON DC (12/18/24) – Today, the Biden-Harris administration announced it will grant the State of California permission to move forward with its ban on gas-powered cars and light trucks. Earlier this year, our partner organization, the Institute for Energy Research, filed an amicus brief in a case challenging the legality of such a waiver.
Tom Pyle, President of the American Energy Alliance, issued the following statement:
“It is no surprise that President Biden waited until the eleventh hour of his presidency to run roughshod over the wishes of the American people by granting California permission to ban gas-powered cars and light trucks.
“Voters sent a clear message in November that they oppose President Biden and Governor Newsom’s EV mandates. These reckless policies have raised the cost of all vehicles on the market and fail to take into account the needs and realities of most Americans.
“Americans should be free to choose the types of cars and trucks that best suit their needs, not ones that bureaucrats in Washington, D.C. and Sacramento dictate to them. Access to affordable vehicles has helped maintain widespread access to mobility, a cornerstone of American life that has fueled our dynamism for more than a century.
“President Biden and Governor Newsom have once again put the interests of coastal elites and green special interests ahead of working and middle-class American families. This decision is yet another example of how completely out of touch the Democratic Party has become. I look forward to Donald Trump immediately revoking this waiver when he is sworn in as the 47th President of the United States.”
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WASHINGTON DC (12/17/24)– American Energy Alliance President Thomas Pyle released the following statement today following the release of the Department of Energy’s report on liquified natural gas (LNG) exports:
“This latest analysis of LNG exports fundamentally misrepresents the economic and environmental benefits of America’s global leadership in energy production. The study epitomizes four years of misguided energy policy that has consistently undermined American energy independence.
“The Department of Energy – led by a Secretary who famously didn’t even know how much oil our nation used – has produced an analysis designed to justify restricting America’s role as a global energy leader rather than embracing it. This whole effort has been nothing more than an equation in search of a solution to a problem that never existed. The report is one more in a long list of actions the Biden-Harris Administration has taken to suppress American energy dominance.
“On election day, the American people rejected these kinds of artificial limits on America’s energy export potential. I look forward to this study being thrown in the trash bin on January 20, 2025, because that’s where it belongs.”
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On this episode of The Unregulated Podcast Tom Pyle and Mike McKenna are joined by Alaskan Governor Mike Dunleavy for a discussion on resource development, Alaska’s energy future and more.
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The Biden-Harris administration is halting new coal leases in the Powder River Basin, ensuring that the U.S. will cease coal production there after 2041. The Powder River Basin, located in northeast Wyoming and parts of southeast Montana, is the largest coal mining area in the country. It produces subbituminous coal, prized for its low sulfur content, which is primarily used in power generation. The region is responsible for supplying 40% of the nation’s thermal coal. The Bureau of Land Management (BLM), under the Biden-Harris administration, has decided not to offer new coal mining leases on federally managed lands in the Basin. This move will prevent the extraction of 48.12 billion short tons of coal across 413,250 acres in the region.
Following a federal lawsuit (Western Organization of Resource Councils et al. v. Bureau of Land Management), a court ordered the BLM to revisit its environmental review and consider alternatives such as no-leasing or limited leasing options. Taking advantage of this opportunity, the Biden-Harris BLM concluded that “additional leasing of BLM-managed coal is not necessary” after conducting an analysis outlined in the Final Supplemental Environmental Impact Statement. This assessment found that the existing coal reserves from currently operating mines in the Basin are sufficient to meet production demands until 2041.
Wyoming’s Governor Mark Gordon plans to fight the decision in court. Gordon believes the decision is political as Congress has directed federal lands under BLM to be managed for multiple uses, including the production of coal and jobs in states with large federal land ownership. The BLM, however, under the Biden-Harris administration, updated its approach to land management, recognizing conservation now “as an essential component of public lands management, on equal footing with other multiple uses of these lands.” Wyoming has spent $800,000 on a retainer for a law firm, Consovoy McCarthy, who has argued multiple appeals before the U.S. Supreme Court. And, according to Wyoming Senator Cynthia Lummis, the federal government has overstepped its powers to regulate energy policies. Wyoming is participating in 58 legal actions designed to push back on federal overreach to curtail or end the state’s right to mine and produce energy. The BLM’s decision is consistent with Biden’s campaign promise in 2020 to “end fossil fuels.”
Wyoming Coal Production
Wyoming’s coal production has been steadily declining, largely due to increasing competition from natural gas and the impact of stringent regulations introduced by both the Obama and Biden administrations. For the first time since 1992, the Powder River Basin is projected to produce fewer than 200 million tons of coal. The region’s coal output once surged following the 1990 Clean Air Act amendments, which imposed limits on sulfur dioxide emissions, making Wyoming coal attractive due to its low sulfur content. Between 2006 and 2011, the Powder River Basin consistently produced over 400 million tons of coal annually, peaking at 446.5 million tons in 2008.
However, by 2023, production had fallen to 230.5 million tons, a significant decrease from nearly 382 million tons in 2014—representing a 40% drop. In the first half of 2024, a mild winter, combined with large coal stockpiles at power plants, contributed to a further decline of more than 20% in production. Despite these declines, by July 2024, the region had still mined a total of 9 billion tons of coal over the past 25 years.
Biden-Harris Administration Regulations
The Biden-Harris administration is accelerating the closure of coal plants by imposing stringent regulations that are seen as financially unfeasible. This spring, the Environmental Protection Agency (EPA) finalized a new rule targeting carbon emissions from coal and natural gas plants, which together supply around 60% of the United States’ electricity. These plants provide reliable power to the grid and serve as backup for intermittent renewable sources like wind and solar. The new rule mandates that existing coal plants and new natural gas plants must adopt a carbon capture technology that is neither commercially viable nor economically practical to cut carbon dioxide emissions—or face shutdown. By 2032, coal plants will be required to capture 90% of their carbon dioxide emissions, but the technology needed for this, known as carbon capture and sequestration, is still in the experimental stage and has not been proven at scale.
The shift would require utilities to invest enormous amounts of capital in a process that could make coal power prohibitively expensive—or they could opt to close their plants, aligning with the goals of anti-fossil fuel advocates. In addition to the power plant rule, the EPA is also finalizing regulations aimed at curbing toxic wastewater discharges from coal plants, tightening rules on coal ash disposal, and limiting mercury and other harmful pollutants released during coal combustion. These measures are part of President Biden’s broader agenda to phase out fossil fuels in the United States, even as those fuels continue to account for the majority of the country’s energy supply.
Conclusion
The Wyoming economy is dependent on revenues received from its coal industry—both directly from royalties and taxes and indirectly from the benefits coal mining brings to the state. The federal government owns nearly 50% of the land in the state, so what it does with those lands affects the state’s economy. With electricity demand skyrocketing from AI data centers and Biden-Harris regulations and policies supporting the electrification of almost everything, reliable sources of generation are needed for the U.S. economy as well. President-elect Trump will try to overturn the onerous regulations and policies of the Biden-Harris administration, but many will take time to reverse, and others will be litigated by environmental groups that brought “sue and settle” decisions upon the Biden-Harris administration, which was an easy way for the administration to please environmental groups and donors.
*This article was adapted from content originally published by the Institute for Energy Research.
This week on The Unregulated Podcast, Tom Pyle and Mike McKenna are joined by The Honorable Jason Isaac, the founder and CEO of the American Energy Institute, to talk about AEA’s Pipeline Protection Project and what can be done to push back against radical environmental groups with the new admin.
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On this episode of The Unregulated Podcast Tom Pyle and Mike McKenna discuss the tentative transition occurring at the White House and Team Biden’s race against time to spend every tax-dollar they can.
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WASHINGTON DC (11/26/24) – American Energy Alliance President Thomas Pyle issued the following statement today on the leaders President-elect Trump has nominated to comprise his energy team:
“Throughout his campaign, President Trump expressed his unwavering commitment to American energy, and his selections show how serious he is about unlocking our country’s resource potential. He has chosen strong candidates to comprise his energy team, all of which should instill confidence in the American people.
“All of these leaders share a vision for energy dominance and economic growth. Their dedication to prioritizing domestic energy production and addressing regulatory burdens will serve to spur job creation and strengthen our economy.“With his expertise and leadership, Chris Wright is the right person for the job. Over the past decade, Wright has led the way making the moral case for energy development, recognizing the link between economic growth and environmental progress. He is a champion for reliable, affordable energy and the role it plays in ensuring American prosperity and improving people’s lives in the developing world. His approach challenges conventional thinking while remaining firmly rooted in real-world solutions.
“One of the largest hurdles to affordable, reliable energy is our burdensome regulatory framework. Lee Zeldin understands the challenges that come with trying to innovate in a space that discourages practical solutions. His leadership at the EPA will bring the fresh perspective that is so desperately needed.
“Doug Burgum hails from one of the largest energy-producing states in the country and knows what it takes to get the job done. As Governor of North Dakota, he has overseen one of America’s great energy growth stories and his perspective will be valuable as we work to grow American energy production.
“It’s encouraging to see President-elect Trump nominate Russ Vought to resume his leadership at the Office of Management and Budget. Under his direction during the first Trump administration, he focused on cutting through red tape to make government more efficient. His vision and focus are exactly what is needed in the push to strengthen America’s infrastructure and champion American energy.”
In addition to President-elect Trump’s chosen nominees, Pyle issued this statement on news that Senator Mike Lee will chair the Senate Energy and Natural Resources Committee in the 119th Congress:
“Sen. Mike Lee has consistently been a champion of American energy and natural resource development during his tenure in the Senate. He understands that free markets are the best way to deliver for the world’s growing energy demands. His perspective is rooted in a deep respect for the Constitution and the rule of law, a perspective that is sorely needed on energy and natural resource issues. We congratulate him on his chairmanship and look forward to working with him in the new Congress, for the good of the American people.”
In conclusion, Pyle stated:
“By assembling a team of energy experts and proven leaders, the incoming administration is positioning America to bolster its role as a global energy powerhouse. President-elect Trump is clear in his vision for affordable, reliable energy for all Americans; before he has even taken the oath of office, he is already positioning our country back on the right track and making American Energy Great Again.”
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President-Elect Trump has made it clear that he is not a supporter of offshore wind energy, a stance he reinforced during his interview with Joe Rogan. Offshore wind, according to Trump, disrupts fishing zones, threatens wildlife such as birds and bats, damages large sections of the ocean floor, jeopardizes the North Atlantic Right Whale’s survival, and burdens Americans with high electricity costs that are unreliable—operating at less than half capacity. Wind power, he argues, requires backup from fossil fuels, nuclear plants, or costly batteries to be integrated into the grid, meaning consumers are paying not only for the wind energy itself but also for its backup capacity. Offshore wind exists largely due to massive subsidies from the Inflation Reduction Act, passed by Democrats, which are funded by U.S. taxpayers. Additionally, the Biden-Harris administration has pushed to build 30 gigawatts of offshore wind by 2030 to meet commitments made under the UN’s Paris Agreement. Warren Buffett has famously pointed out that wind energy would not exist without tax credits, many of which his own company benefits from. In essence, Americans are paying twice for offshore wind: once as consumers and once as taxpayers.
A recent incident off Nantucket on July 13 highlights further concerns about the industry. A large blade from the Vineyard Offshore Wind facility broke off, scattering debris along the coastline and creating hazards for boats. The manufacturer, GE Vernova, identified the root cause of the failure as a manufacturing error at its Canadian factory, revealing that other blades with the “manufacturing deviation,” had been found. As a result, the Federal Bureau of Safety and Environmental Enforcement issued a suspension order for Vineyard Wind, halting all turbine operations, blade installations, and other activities until the problem could be addressed. GE Vernova has since announced plans to replace some of the faulty blades and reinforce others at the site. This is not the first blade failure for the company—two blades also broke at the Dogger Bank offshore wind farm in the UK.
For years, fishermen, marine conservationists, and ocean advocates have voiced concerns about the expedited approval processes for offshore wind projects. Jerry Leeman, founder & CEO of the New England Fishermen’s Stewardship Association, said, “It is now obvious that foreign mega developers and their political allies cut corners to bring their flagship project online. Despite the compounding safety concerns at Vineyard Wind, lease auctions loom for wind farms in the Gulf of Maine, the culmination of a rushed regulatory process. There is no doubt that speed has taken precedence over safety and conservation for offshore wind.”
In Oregon, tribal leaders were forced to take legal action to slow the pace at which the Biden-Harris administration was pushing for an offshore wind lease sale for a costly floating wind farm. A lawsuit alleges that during a June 6 meeting with tribal representatives, Bureau of Ocean Energy Management (BOEM) Director Elizabeth Klein revealed that she had been given specific political directives from the White House to fast-track offshore wind projects. The administration ultimately canceled the Oregon lease sale, citing concerns from Native American tribes about its potential impact on their communities and the environment, as well as limited interest from potential bidders.
The situation in the Gulf of Maine mirrors the trend of limited interest in offshore wind development. In a recent lease sale, only four out of eight lease areas received bids, and those came from just two developers. The low level of interest is likely due to the high costs associated with floating wind technology, which remains less developed than traditional bottom-fixed wind installations, as well as inflation and market uncertainties. Offshore wind is significantly more expensive than natural gas combined-cycle generation—about 4.5 times more costly to build and 2.3 times more expensive to operate—even with the substantial federal subsidies, and without factoring in the additional costs for backup battery systems.
In Europe, Sweden has dropped plans for 13 wind facilities in the Baltic Sea due to security concerns as wind turbines could interfere with radar and slow Sweden’s missile response. Sweden shares a coast on the Baltic Sea with Russia. A study found that an additional minute could be added to the country’s missile response time as wind turbines could impede the country’s ability to detect incoming cruise or ballistic missiles. The towers and their blades produce radar echoes and interference both in the air and underwater, making missiles and submarines in their vicinity harder to detect.
Conclusion
Biden’s Executive Order 14008 issued on February 1, 2020–only two weeks after his Inauguration– launched the offshore wind program in the United States. This is an executive order that President-Elect Trump could easily rescind on his first day in office by just issuing a counter-executive order, which would stop the onslaught of this very expensive energy being added to the U.S. grid. Another way is to remove the excessive tax credits that encourage its adoption, which would take new legislation and add time to the process. Regardless of the avenue, it is not in the best interest of the American public to be hit with this double whammy—being taxed for lucrative tax credits for wind and the much higher energy costs that result from its construction and operation.
*This article was adapted from content originally published by the Institute for Energy Research.
The Northeast region of the United States includes the states of West Virginia, Virginia, Maryland, Pennsylvania, New Jersey, and New York, as well as the entirety of New England, which is made up of Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine. The Northeast is an important region for fossil fuel production especially for coal and natural gas, which replaced coal as the primary fuel used for electricity generation in the region. Transporting fuel throughout the Northeast requires an intricate network of rail lines for transporting coal and numerous pipelines for the transportation of highly reliant and affordable natural gas and oil. The Northeast plays an integral role in America’s energy industry, both domestically and internationally, and its importance to America’s energy security cannot be understated.
The Role of Coal in the Northeast
Of the top 5 coal-producing states, the second and third largest producers, coming in after Wyoming, are in the Northeast. In 2022, West Virginia produced 14% of the nation’s coal, while Pennsylvania produced 7% accounting for a combined 21% of all national production. With the exception of West Virginia where coal-fired power plants accounted for 89% of electricity generation in 2022, natural gas is regularly favored for electricity generation in the northeast; in 2022, coal still accounted for 19.5% of electricity generation in the United States.
Although the use of coal for power generation has declined over time, it remains a highly valuable export for the Northeast. Northeastern coal, primarily from West Virginia and Pennsylvania, is shipped via rail by CSX or Norfolk Southern, who provide most rail services east of the Mississippi, and arrives at the Port of Baltimore. Once processed, it is loaded onto ocean vessels and distributed around the world – the Port of Baltimore accounted for 28% of all American coal exports in 2023 with the majority going to India.
Natural gas and oil play an important role in both residential and commercial energy consumption in the Northeast and the nation as a whole. In 2024, approximately half of the region used natural gas as its primary fuel source for generating electricity. Meanwhile, 82% of the 4.79 million Americans who use oil to heat their homes, reside in the Northeast.
Pennsylvania is the second largest natural gas producer after Texas, producing 7.5 trillion cubic feet of natural gas in 2022 and 2023 – 20% of the U.S.’s total. In that same year, West Virginia produced 2.9 trillion cubic feet of natural gas, making it the country’s fourth-largest producer. Given that in 2022, the United States consumed 33.31 trillion cubic feet of natural gas, accounting for 33% of national primary energy consumption for that same year, the northeast contributes significantly to the overall energy production of the United States. Natural gas consumption is spread out into five categories: the electric power sector, accounting for 38% in 2022, the industrial sector, accounting for 32%, the residential sector, accounting for 15%, the commercial sector, accounting for 11%, and the transportation sector, accounting for 4%.
Pipelines & Regulatory Constraints
Transporting the Northeast’s natural gas requires several pipelines with both domestic and international terminals; although more are sorely needed. The largest of the region’s pipelines is the Maritimes and Northeast pipeline, a 684-mile-long pipeline that transports natural gas from Nova Scotia to parts of Canada and America’s Northeastern states. Passing through Maine and New Hampshire, the Maritimes and Northeast connect to the American natural gas pipeline grid in Dracut, Massachusetts where it disperses the Canadian natural gas further throughout the United States.
Although the region is rich in natural gas, thanks in part to the Marcellus Shale Formation in western Pennsylvania, a significant portion of the Northeast does not have access to low-cost natural gas due to stringent regulations preventing the construction of the necessary pipelines required for its distribution. The lack of pipeline infrastructure, especially throughout New England, has forced the region to import most of its natural gas from overseas. New England has historically sourced its natural gas from nations such as Trinidad and Tobago, Norway, Canada, and Russia, and due to the Jones Act, which requires goods being shipped from one U.S. port to another to be on American-owned and operated vessels, a challenge in itself with America’s defunct shipbuilding industry, prices in New England tend to be exorbitant.
Northeastern residents are stuck with higher natural gas prices due to having to import natural gas from overseas as a result of regulatory restrictions preventing the construction of much-needed pipeline infrastructure. Industry complaints include challenges getting permits for drilling for natural gas on state-owned lands, as well as obstacles to building out pipeline capacity due to unfounded anti-fossil fuel, and therefore anti-energy security organizations such as Greenpeace. Environmental groups have a track record of halting pipeline construction across the country, and Northeastern politicians, unfortunately, are not immune to their demands.
Conclusion
The Northeast contributes significantly to America’s energy security providing substantial amounts of natural gas and coal to both domestic and international consumers. Although abundant, the region has been unable to take full advantage of the accessible and affordable energy resources due to pressure from misguided environmental groups resulting in high natural gas impact fees and restrictive pipeline construction policies forcing most of the region to be reliant on expensive and highly regulated maritime imports. The inability to build out a more extensive pipeline network has caused production in the Northeast, especially Pennsylvania, to stagnate. Excessive and misguided regulations preventing pipeline construction, as well as outdated maritime policies, will continue to make access to the affordable and abundant natural gas of the region, not obtainable.