Since taking office in 2025, President Donald Trump has initiated sweeping changes in U.S. energy policy, significantly impacting both traditional and renewable energy sectors. The administration’s approach has pivoted towards bolstering domestic oil and gas production, despite criticism and concerns about its impact on renewable energy initiatives.
Traditional Energy Gets a Boost
Under Trump’s leadership, the U.S. government has significantly increased support for oil and gas companies. In 2025 alone, the federal administration approved a 55% increase in oil and gas drilling permits on public lands. This surge in permits has primarily benefited major companies like Exxon Mobil Corp. and Chevron Corp.
As global demand for liquefied natural gas (LNG) is expected to rise 50% by 2040, companies such as Cheniere Energy Inc., Sempra, and Energy Transfer LP are positioned to become global leaders in the gas industry.
Renewable Energy Faces Challenges
While traditional energy sectors thrive, renewable energy companies have struggled under the Trump administration. The revocation of 321 clean energy grants has severely impacted companies in the sector, particularly those involved in offshore wind energy. The Department of Energy defended these cuts, stating that the projects did not align with national energy needs or provide a return on taxpayer investments.
Despite the setbacks, some renewable projects have moved forward. For instance, the Gemini Solar Project, a $1 billion, 690-megawatt solar farm near Las Vegas, and the Elisabeth Solar Project in Arizona have received approval. However, the pace of new project approvals remains sluggish.
The Global Energy Landscape
Trump’s energy policies have emphasized traditional energy dominance, but this has sparked concerns about America’s position in the global renewable energy market. China continues to advance in renewable energy technologies, positioning itself as a leader in solar, wind, and nuclear energy.
As the world shifts towards cleaner energy solutions, the U.S. risks falling behind if it does not adapt its energy strategy to capitalize on renewable opportunities. The administration’s focus on traditional energy may offer short-term advantages, but long-term competitiveness could be at stake.
Original Story at www.forbes.com