Amidst a shifting political landscape, energy policy has become a central focus in the current administration’s agenda. During an April 2024 meeting at Mar-a-Lago, former President Trump sought substantial financial backing from major oil companies, asking for $1 billion to bolster his presidential campaign. His pledge was to dismantle several of the Biden administration’s initiatives, including electric vehicle tax credits and funding for renewable energy projects.
The gathering included leaders from prominent oil companies such as ExxonMobil, Chevron, ConocoPhillips, and Continental Resources, alongside natural gas and energy trade groups like EQT and the American Petroleum Institute. Trump’s appeal for funds was positioned as an investment opportunity for these companies, suggesting that deregulation and tax cuts under his administration would enhance their profitability. However, some attendees speculated that a portion of these contributions might be allocated to Trump’s legal defenses.
Oil giants continue to enjoy significant profits, with the top six companies, including Shell, earning approximately $3,000 per second. These earnings are largely due to rising crude oil prices, which have allowed companies to focus on stock buybacks and shareholder dividends, while consumers face elevated gasoline costs.
Trump’s candid solicitation highlighted his strategy to integrate the petroleum sector into his political and policy framework. This involved reversing clean energy advancements, such as those related to offshore wind power, which Trump criticized with unsubstantiated claims about health and environmental impacts. He promised to expand drilling leases in the Gulf of Mexico, aligning with some industry leaders’ priorities.
Since assuming office, Trump has revoked key offshore wind leases, previously worth nearly $2 billion, redirecting investment to fossil fuel ventures. This has effectively halted the growth of the U.S. offshore wind industry, which lags significantly behind Europe’s substantial offshore wind energy infrastructure.
These policy shifts have been felt broadly, contributing to rising gasoline and fertilizer prices, with implications for food costs. Despite the economic and environmental rationale for transitioning to renewable energy sources, the current administration has reinforced support for traditional energy industries, including coal and oil drilling.
Nevertheless, renewable energy has made substantial inroads. In 2025, 26% of U.S. power was sourced from renewables, capable of supplying electricity to 108 million homes annually. Notably, states like Texas, Florida, and Ohio, typically Republican strongholds, represented 73% of new solar capacity that year according to the Solar Energy Industry Association.
The U.S. Energy Information Administration projects that wind, solar, and battery technologies will account for 93% of new electrical capacity this year. Meanwhile, coal production has decreased by 53% since 2000, now contributing only 16% to the nation’s utility-scale electricity. Employment in the coal sector remains low, with fewer workers than industries like bowling alleys, while renewable sectors like wind and solar employ significantly more.
While Trump has cut tax benefits and funding for clean energy projects, legal challenges have successfully overturned some of these actions. In December, a court invalidated a new wind energy permit ban, labeling it “arbitrary and capricious.” Similarly, stop-work orders for offshore wind farms have been contested and reversed in court, and a federal ruling in January deemed the cancellation of clean energy grants unlawful.
Globally, renewable energy reached nearly half of all power capacity by the end of 2025, with 86.5% of new capacity coming from renewables last year. In the U.S., states leading in renewable energy include Iowa, where 61% of electricity is from wind and solar, followed by South Dakota and New Mexico. California also made strides, with 44% of its power from renewables.
Despite administrative resistance, the growth of renewable energy in the U.S. is driven by economic factors, as solar and wind have become cost-effective alternatives to fossil fuels. The trajectory of renewable energy’s expansion now hinges on the interplay of market dynamics and political decision-making.
Gary Griggs is a distinguished professor of Earth and planetary sciences at UC Santa Cruz. He can be reached at griggs@ucsc.edu. For past Ocean Backyard columns, visit seymourcenter.ucsc.edu/ouroceanbackyard.
Original Story at www.santacruzsentinel.com