President-elect Donald Trump has announced his intention to declare a national energy emergency aimed at bolstering domestic energy production by prioritizing oil and gas resources while terminating the electric vehicle mandate.

The declaration, which was set to happen immediately upon his inauguration, intends to enhance energy production across the United States, and by focusing on traditional energy sources and ending EV requirements, Trump aims to lower energy costs, create jobs, and strengthen national security, as CBS News reports.

The incoming administration plans to utilize various authorities to push this initiative, starting with opening up resources in Alaska.

The cessation of the electric vehicle mandate is central to the order, reflecting Trump's long-standing opposition to clean energy policies and his advocacy for traditional energy solutions.

Trump's Inauguration and Immediate Energy Plans

Trump was sworn in at noon Monday, amid the observance of Martin Luther King Day when stock markets were closed.

An official from the incoming administration highlighted that energy expenses have widespread economic impacts, affecting everything from fuel prices to the costs of goods produced using fossil fuels.

The official asserted that the higher prices observed during the previous administration were no accident, claiming they were intentional. By declaring a national energy emergency, Trump plans to address these concerns on his first day in office.

Trump has consistently voiced his dissent against electric vehicles and clean energy subsidies, preferring to prioritize oil and gas development. Despite the prior administration's clean energy incentives, U.S. crude oil production surged to a historical peak of 13.4 million barrels daily in October 2024, representing unprecedented growth since 1920.

Trump's Vision for Traditional Energy

During his inauguration speech, Trump reinforced his commitment to these traditional energy approaches. Emphasizing the need to "drill, baby, drill," Trump declared that inflation was a result of previous "massive overspending" and skyrocketing energy prices.

By unlocking diverse orders, the administration aims to target prior attempts to regulate everyday products such as shower heads, gas stoves, and dishwashers. The goal is to eliminate constraints that limit consumer choices, the incoming official stated.

According to Nigel Green, CEO of deVere Group, deregulation presents new opportunities for energy companies. As restrictions are dismantled, investments in domestic production could surge. Such changes could positively influence the stock market, especially for U.S. energy firms, which might see considerable growth.

Impact on U.S. Economy and Energy Sector

The broader economic implications of the declaration are significant. The Trump administration argues that production boosts are directly linked to economic health, impacting everything from consumer prices at the pump to broader market trends.

Trump's move is expected not only to spur job creation within the energy sector but also to reinforce national security. By focusing on energy independence, the administration's stance places a high priority on domestic resources.

Despite Biden's clean energy incentives, the U.S. oil production had thrived, even before Trump's declaration. By advocating for more traditional energy exploration and extraction, Trump's policies aim to capitalize on this growth trajectory.

Broader Policy Shifts Expected Under Trump's Term

The administration also plans to address inflation concerns through a memorandum, attributing recent inflationary pressures to strategic decisions by the prior administration. This move underscores Trump's belief that energy prices are pivotal to broader economic stability.

Moreover, the planned energy emergency will bring attention back to the controversies surrounding clean energy and the subsidies provided to electric vehicles. This reversal aligns with Trump's broader agenda of promoting fossil fuels and expanding domestic energy resources.

In conclusion, Trump's energy agenda is clear: prioritize domestic production and reduce reliance on international resources.

By challenging the previous administration's policies, Trump aims to shift the nation's energy strategy towards traditional methods that he believes will provide economic and security benefits.

As the new administration takes office, the declaration of a national energy emergency will undoubtedly be a key focal point. Observers and stakeholders in the energy sector will await the impending changes and their ripple effects across the economy