A potentially severe energy crisis is brewing in the United States, one that could see American businesses struggle for power and households face significantly higher bills, according to a Sky News analysis. This looming situation contrasts sharply with the questionable 'national energy emergency' declared by President Donald Trump upon entering the White House.
The Shift Away from Renewables
President Trump's administration has aggressively pursued an 'America First' energy strategy centred on maximising oil and gas reserves, encapsulated by the 'drill, baby, drill' slogan. A pivotal part of this strategy has involved reallocating financial support. The White House has axed hundreds of billions in tax breaks and grants previously earmarked for low-carbon power and clean energy research, diverting these funds towards fossil fuel investments.
This policy shift has had immediate and tangible consequences for major projects. A prime example is Revolution Wind, one of the nation's largest offshore renewable energy ventures. Despite being nearly 80% complete, the project was ordered to halt immediately by the Trump administration. Although a temporary injunction has allowed construction on its massive 200m-wide turbines to continue, they remain disconnected from the grid, and their future is uncertain as long as the current president remains in power.
The analysis, conducted for Sky News by Global Witness, reveals a stark trend. Since the Paris Agreement was signed in 2015, US oil and gas production has grown five times faster than the average of the world's next largest producers, with a significant surge occurring during Trump's first term. Forecasts now predict that by 2035, US production will double that of its closest competitor, Russia.
Surging Demand and a Supply Crisis
Compounding the issue is a dramatic reversal in US electricity demand. After years of decline and stability, demand is now projected to grow by 25% by 2030, driven in part by a race to construct power-hungry data centres. This boom is further encouraged by President Trump's ambition for American supremacy in Artificial Intelligence (AI).
Bill Newsom, the US CEO of Mitsubishi Power, confirmed that demand for the company's state-of-the-art gas turbines, manufactured near Savannah, Georgia, has never been higher. Wait times for new turbines have doubled in just two years. While gas is twice as clean as coal and provides reliable 'baseload' power that current renewable grids struggle to match, the infrastructure cannot be built rapidly enough to meet the soaring demand.
The consequences are twofold. First, American businesses, including the crucial AI sector, are likely to suffer from an inability to secure the power they need. Second, US consumers, whom President Trump promised lower bills, will end up paying more. This is partly because his policies have made renewable energy—the quickest and cheapest way to meet rising demand—more expensive.
The Climate Cost and Political Fallout
The environmental impact of this strategy is profound. Patrick Galey of Global Witness stated, 'Instead of reducing investment in dirty oil and gas, the principal drivers of climate breakdown, the US has doubled down on fossil fuels, ramping up production.' This fact, however, is likely welcomed by the president and his conservative base.
President Trump's declared 'energy emergency' appears to be a direct political response to the 'climate emergency' invoked by his rivals. The problem, however, is that apart from accelerating global warming, his energy plan is set to make America worse off economically. By fighting one perceived emergency with policies that create another, Mr Trump risks harming both the American economy and the global climate.
