Early in President Biden’s term, he appeared to have a tense relationship with the oil and gas industry, imposing restrictions on drilling as part of his climate agenda but also approving a massive oil project in Alaska. Despite the record profits the industry was experiencing, Biden’s decision to pause new permits for liquefied natural gas export facilities in January created tension between the administration and industry lobbyists. This issue will be a focal point at a fundraising lunch in Houston that will benefit former President Trump, who is running against Biden.
The pause on new gas export permits by Biden was seen as a significant blow to the industry by groups like the American Energy Alliance, potentially affecting billions of dollars in long-term contracts. Energy Transfer executive chairman Kelcy Lee Warren, along with other oil executives like Harold G. Hamm and Vicki Hollub, are hosting the fundraising luncheon in support of Trump. Trump has been vocal about dismantling Biden’s climate regulations, including the pause on permits, and has received significant financial support from the oil and gas industry for his campaign.
Biden’s decision to pause new gas export permits was aimed at studying the effects of gas exports on national security, the economy, and climate change. While this move was celebrated by climate activists and environmental groups like the League of Conservation Voters, it was viewed negatively by the oil and gas industry. Oil executives like Hamm expressed concerns that stalling new liquefied natural gas terminals could lead to allies seeking alternative suppliers and impacting U.S. exports.
The oil industry’s growing support for Trump, seen through fundraising efforts and donations, comes as Biden pushes for a shift away from fossil fuels and towards cleaner energy sources like wind and solar power. Trump’s focus on American energy dominance and rolling back climate regulations has resonated with executives like Hamm and Warren, who have supported him in the past. However, Biden’s campaign has pledged not to accept contributions exceeding $200 from oil, gas, or coal industry executives.
House Democrats have opened an inquiry into a dinner hosted by Trump at Mar-a-Lago where he reportedly asked oil executives to donate $1 billion to his campaign. Governor Newsom of California has criticized this approach as “open corruption,” and Representative Raskin has written to several companies present at the event to inquire about potential quid pro quo agreements related to U.S. energy policy. Despite this scrutiny, industry figures like Mary Landrieu are not convinced that the gas industry will overwhelmingly support Trump, as the event was framed as an energy roundtable to discuss policy rather than an explicit show of endorsement.
