In an unexpected turn, prominent oil and gas executives are voicing significant unease regarding the Trump administration’s aggressive stance against offshore wind power. This includes direct attempts to obstruct the construction of major wind energy projects along the East Coast.
While typically avoiding public criticism of President Trump, some industry leaders have privately expressed deep misgivings about what they perceive as excessive political interference in energy matters.
“Constantly shifting policies, especially with changes in administration, are detrimental to business,” stated Darren Woods, CEO of Exxon Mobil, in a recent interview. “It’s bad for the economy and ultimately, it’s not good for people.” Mr. Woods, leading America’s largest oil and gas company, was addressing questions about the administration’s attempts to halt already-approved offshore wind farms, though he carefully avoided direct condemnation of those actions.
Behind closed doors, others have shared even more direct worries. They fear that efforts to revoke federal approvals for wind projects could establish a dangerous precedent, potentially allowing a future administration to similarly impede vital pipelines or other fossil fuel infrastructure.
One anonymous survey response from an oil and gas company to the Federal Reserve Bank of Dallas candidly stated, “Life is long, and the sword being wielded against the renewables industry right now will likely boomerang back in 3.5 years against traditional energy.”
A federal judge recently greenlit the resumption of work on Revolution Wind, an offshore wind project near Rhode Island that the Trump administration had tried to stop. This wind farm is now nearing completion. Another project, Empire Wind, was also able to move forward after federal officials rescinded a stop-work order following negotiations with New York Governor Kathy Hochul.
The Trump administration’s stated reason for its actions was to evaluate potential national security implications of offshore wind farms.
When questioned about the oil and gas industry’s anxieties, White House spokeswoman Taylor Rogers instead pointed fingers at previous administrations. “It was Obama and Biden who declared war on the energy industry by shutting down gas pipelines, banning offshore drilling in large parts of our waters, halting LNG export terminals and freezing coal mining projects,” she countered.
Indeed, President Trump is not the first to oppose energy ventures, though the frequency and intensity of such actions seem to be on the rise. In 2021, President Joseph R. Biden notably revoked a federal permit for the Keystone XL oil pipeline, deeming it not in the national interest. This pipeline, intended to transport oil from Alberta to Nebraska, was already under construction.
Last year, President Biden also temporarily paused federal approvals for new natural gas export infrastructure to conduct a comprehensive study on their potential effects on the climate, economy, and national security. This pause was later lifted by a federal judge’s order.
However, Mr. Trump has been particularly outspoken in his criticisms of wind turbines, often making unsubstantiated claims, such as assertions that they cause cancer or are responsible for whale fatalities.
His administration has sought to prevent all new leasing for wind farms on federal lands and waters. It has also moved to retract federal approvals for other permitted wind developments off the coasts of Maryland and Massachusetts. The New York Times also reported that the White House recently directed six federal agencies to investigate the risks associated with offshore wind.
“Windmills, we’re just not going to allow them,” Mr. Trump declared during a recent cabinet meeting.
Further complicating matters for the wind industry is the accelerated phaseout of tax credits for wind power, enacted by Congress this past summer. Energy analysts now anticipate a halt in new offshore wind farm construction in the United States after 2028.
“I sympathize with the wind guys, man,” remarked Toby Rice, CEO of Pittsburgh-based EQT, a major natural gas producer. “I understand exactly how it feels when an energy project that’s nearly ready to be built gets stopped. I hope to see a world where that doesn’t happen.”
Trade organizations are particularly troubled by the administration’s efforts to revoke already-granted permits. “This not only injects significant uncertainty into the infrastructure development process but also invariably drives up project costs and risks increasing electricity prices, thereby hindering our ability to meet rising demand,” wrote Martin Durbin, Senior Vice President of Policy for the U.S. Chamber of Commerce, earlier this month.
Jason Grumet, who leads the American Clean Power Association, a trade group representing renewable energy companies, indicated that members now face a “risk premium” when investing in the United States. “Which is horrifying,” Mr. Grumet commented. “We always were the rule-of-law place.”
Mike Sommers, CEO of the American Petroleum Institute, the primary oil industry trade organization, has urged Congress to reform and streamline federal permitting. On a recent Politico Energy podcast, he noted, “we’ve seen both sides of the aisle abuse the permitting process.”
Nevertheless, Mr. Sommers also expressed a degree of frustration over past opposition to oil and gas projects. “I didn’t see a lot of clean energy lobbyists out there saying that we should get the Keystone XL pipeline built,” he told Politico.