The energy landscape in the United States may see significant shifts in 2025, especially following the recent election results. Changed leadership may influence key policies and regulatory approaches. Here's an overview of the primary energy trends and factors expected to shape the industry in the coming year, from fossil fuels to renewables and energy technology investments. Contact the Dohrwardt Law Firm to discuss how the firm can help you with your energy needs.

Revitalization of Domestic Oil and Gas Production

With the recent elections, the oil and gas industry anticipates a more favorable regulatory environment. Potential deregulatory efforts could accelerate exploration, drilling, and production in critical basins, particularly in regions like the Permian and Bakken formations. In addition, there may be a stronger push toward:

• Increased Access to Federal Lands: There could be renewed interest in opening more federal land for drilling activities, enhancing domestic production levels, and reducing dependence on imported energy.
• Streamlined Permitting Processes: Industry stakeholders may benefit from expedited permitting for new projects, which would allow quicker upstream (extraction) and midstream (transportation) oil and gas infrastructure development.

Natural Gas as a Bridge Fuel

Natural gas will likely continue being championed as a “bridge fuel” toward a cleaner energy mix. In 2025, expect natural gas production and liquefied natural gas (LNG) exports to see steady growth due to the following factors:

• Global Demand for US LNG: The international demand for LNG, mainly from Europe and Asia, remains high. Policies encouraging LNG exports and new terminal projects could significantly increase capacity, boosting the US's role as a global energy supplier.
• Modernizing Infrastructure: Upgrading pipelines and storage facilities to reduce methane emissions will likely receive bipartisan support, as it aligns with both environmental goals and industry interests.

Renewable Energy Investment and Subsidies

While traditional energy sources may see renewed support, renewable energy remains a critical component of the energy mix. Trends to watch include:

Extension or Modification of Tax Credits: Although adjustments to tax credits may occur, specific incentives for wind, solar, and other renewable projects could remain to support job creation and rural development, especially in states where renewables have bipartisan support.

Grid Modernization and Resiliency: Policies to improve grid infrastructure, integrate renewables, and enhance grid resiliency may receive increased attention to prevent blackouts and meet the growing demands of electrification.

State-Level Renewable Standards: Even with potential shifts at the federal level, many states have renewable portfolio standards (RPS) that will continue driving local investment in clean energy.

Focus on Nuclear Energy as a Reliable Power Source

With growing interest in reliable, low-carbon energy, nuclear power is regaining attention. The potential support for atomic energy development may include:

• Investment in Small Modular Reactors (SMRs): SMRs, known for their safety and efficiency, could receive significant backing, with potential deployment at retired coal plant sites or in regions with high energy demands.
• Extended Life of Existing Plants: Policies may incentivize the continued operation of existing nuclear facilities, upgrading aging infrastructure to ensure safety and efficiency.
• Public-Private Partnerships: Collaboration between the government and private companies could advance nuclear technology, making it more economically viable.

Continued Push for Decarbonization in Industry

Industrial decarbonization will likely remain a focus as policymakers and businesses seek to reduce emissions in hard-to-abate sectors like manufacturing, cement, and chemicals. Key areas include:

• Carbon Capture, Utilization, and Storage (CCUS): Expect increased attention on CCUS technologies, especially those that can be applied to fossil fuel-based power plants and heavy industry. Bipartisan interest in carbon capture technology could drive investments and regulatory incentives.
• Hydrogen as a Clean Energy Carrier: Hydrogen, mainly green hydrogen from renewable sources, may receive support as a low-emission energy solution. Pilot projects and infrastructure development, including pipelines and storage, may emerge in 2025.
• Electrification of Industrial Processes: Policies encouraging the electrification of traditionally fossil-fuel-dependent industrial processes may gain traction. This would reduce emissions while increasing demand for reliable, clean electricity.

Electric Vehicles (EVs) and Charging Infrastructure

While EV adoption and infrastructure development will likely continue, the approach may shift slightly:

• EV Charging Network Expansion: Building out a national EV charging network may continue to gain momentum, though there could be a greater emphasis on private sector participation and investments to expand EV accessibility.
• Support for Domestic EV Manufacturing: Incentives for domestic battery manufacturing and supply chain security could receive attention, especially to counterbalance dependency on foreign sources for critical materials like lithium and cobalt.
• Hybrid and Alternative Fuel Vehicles: Policies may also support alternative fuel options, like hybrids or biofuels, to address different regions' needs and preferences.

Climate Adaptation and Resilience Funding

With an increasing frequency of extreme weather events, resilience in energy infrastructure will remain a priority. Anticipate efforts to:

• Bolster Resilient Infrastructure: Investments in infrastructure that can withstand natural disasters and extreme weather, including flood-proofing and wildfire resilience in vulnerable regions, may be prioritized.
• Public-Private Partnerships for Resilience Projects: These partnerships may emerge to fund resilient infrastructure projects, emphasizing securing the energy supply in critical areas and enhancing emergency response capabilities.

Environmental, Social, and Governance (ESG) Framework Adjustments

Shifts in the regulatory landscape could affect ESG reporting requirements for energy companies. Companies may face new or modified expectations regarding:

• Voluntary ESG Reporting: Federal support for standardized ESG reporting may be adjusted, with an increased focus on transparency around emissions, water use, and other sustainability metrics.
• State-Level ESG Requirements: States with strong ESG mandates may continue to drive reporting standards that impact nationwide companies, regardless of federal regulatory shifts.

Conclusion: A Year of Diverse Opportunities and Challenges

As the US energy sector navigates a new political landscape, combining traditional energy support, renewable integration, and clean technology innovation will drive the market forward. The industry's adaptability and investment in resilience, technological advancements, and a cleaner energy future remain critical to sustainably meeting energy demands. Contact the Dohrwardt Law Firm to discuss how the firm can help you with your energy needs.