The current presidential administration is sure to result in significant changes to energy law, affecting landowners, businesses and the broader energy sector.
Based on past policies and campaign promises, the second term for this president is likely to focus on deregulation, domestic energy production and reduced federal oversight. While this could benefit businesses by easing regulatory burdens, it may also create challenges related to environmental concerns, land use rights and long-term energy policy stability.
Deregulation and increased energy production
One of the key takeaways from the president’s first term was a strong emphasis on reducing federal regulations in the energy sector. A second term is sure to continue this trend, making it easier for businesses to develop oil, gas and renewable energy projects without facing particularly stringent environmental restrictions. This could benefit landowners looking to lease property for energy development, as fewer regulatory barriers may lead to faster approvals and increased leasing opportunities.
Additionally, policies favoring oil and gas expansion could drive higher investments in domestic drilling, pipeline development and refining infrastructure. This could result in increased job creation and economic growth in energy-rich states. However, it may also create legal complexities for landowners concerned about property rights, environmental risks and fair compensation from energy companies.
Rollback of environmental protections
On the other hand, the administration could weaken certain environmental and land use protections, which may raise concerns for some landowners. Policies aimed at reversing emissions regulations, reducing federal oversight of wetlands and limiting environmental reviews could lead to disputes over how energy development impacts private property.
For businesses investing in renewable energy, potential rollbacks on federal tax credits and incentives could slow the transition to solar, wind and other alternative energy sources. While the president’s first administration did not eliminate renewable energy subsidies, it has been promised that a second term will shift more support toward traditional fossil fuels, potentially making it harder for renewable energy companies to compete on a national scale.
Federal land use and energy policy uncertainty
Landowners who rely on leasing rights for energy development on federal lands may see an expansion of drilling and mining opportunities. The president previously sought to open more federal lands to oil and gas leasing, and a second term could has already resulted in additional efforts to reduce restrictions on energy production in protected areas.
However, rapid policy shifts create uncertainty for long-term energy investments. Businesses and landowners may face challenges in navigating changing regulatory landscapes, making it crucial to stay informed about state and local energy laws that may provide more stability.
Whether the impact of this administration is likely to benefit or harm landowners and businesses depends on their specific interests. Those involved in oil, gas and traditional energy may experience fewer restrictions, while those invested in renewable energy or conservation efforts may face new obstacles.