Hao Nanjin: Trump speaks out—'No need to conserve oil anymore'; oil market volatility

Hao Nanjin: Trump speaks out—'No need to conserve oil anymore'; oil market volatility According to an Associated Press report published by Haiwaiwang on August 20, the U.S. Trump administration recently issued an important new policy statement declaring that, from an economic standpoint, the United States has no need to conserve oil. This policy statement could undermine decades of U.S. government efforts promoting fuel-efficient vehicles and other energy conservation initiatives. In July, the Trump team had circulated a memorandum supporting the administration’s proposal to relax fuel-efficiency standards (measured in liters per 100 kilometers). This memorandum articulated the new stance. This month, the U.S. government quietly posted the memorandum online without fanfare. The U.S. Department of Energy stated that rising consumption of natural gas and other petroleum substitutes has reduced demand for imported oil—"thereby diminishing the necessity for energy conservation in our country." Furthermore, the hydraulic fracturing (fracking) revolution—which began in the U.S. a decade ago as a shale drilling technology—has unlocked domestic shale oil production, giving "the United States more options and less concern when utilizing crude oil resources." Recently, Pakistan’s Maritime and Foreign Affairs Minister Abdullah Hussain Haroon announced that ExxonMobil discovered massive oil reserves near Pakistan’s border with Iran—reserves reportedly exceeding Kuwait’s total oil reserves. Speaking at the Pakistan Chamber of Commerce and Industry, Haroon said: "ExxonMobil is drilling for oil near the Iranian border and remains optimistic about its discoveries. As long as we meet their standards and attract their investment, foreign investors will be highly interested in conducting business in Pakistan."

Biden’s new fuel-efficiency standards are also slated for repeal by Trump

By Qian Yaguang Edited by Huang Dalu Designed by Zhao Haoran Sources: reuters.com, bloomberg.com, apnews.com Last week, Reuters reported that Trump’s transition team plans to eliminate the $7,500 consumer tax credit for electric vehicle (EV) purchases—a move that could further slow the already sluggish U.S. EV transition. On November 19, two individuals closely connected to Trump’s transition team revealed that the incoming administration intends to weaken the fuel-efficiency and tailpipe-emission standards finalized earlier this year by the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA). These Biden-era regulations aim to improve automotive fuel efficiency and accelerate the shift toward electric vehicles. This move appears designed to fulfill Trump’s campaign pledge to rescind the so-called “EV mandate”—his second attempt to implement such a policy, following his first effort to overturn Obama-era vehicle efficiency regulations. Although no formal “EV mandate” actually exists, Biden’s regulations would effectively compel automakers to ensure that EVs constitute 35% of their total production volume by 2032, while also facilitating a gradual but steady phaseout of fossil-fuel-powered vehicle manufacturing. The U.S. fuel-efficiency and emissions regulations were approved earlier this year—but the new administration plans to revoke them. Sources cited government agencies including NHTSA and EPA. According to one insider, these agencies are expected to receive explicit instructions from Trump to review Biden’s regulations. Trump’s transition team did not immediately respond to requests for comment. General Motors, Ford Motor Company, Stellantis, Tesla, and the Alliance for Automotive Innovation—a trade group representing most major automakers (excluding Tesla)—all declined to comment. Biden’s EV goals face mounting threats After Trump’s initial election victory in 2016, automakers lobbied vigorously to ease Obama-era environmental regulations, arguing they were excessively costly and hindered U.S. job growth. During Trump’s first term, repealing Obama-era rules took nearly three years. Following Trump’s directive in early 2017 to review those rules, NHTSA and EPA formally initiated the revision process in 2018—and only finalized the more lenient standards in March 2020. One source indicated this latest move aims to appease automakers who have complained that Biden’s regulations are overly burdensome. Seth Goldstein, an analyst at Morningstar Research Services, noted that the current situation differs significantly: Detroit automakers have heavily invested in EVs. He remarked: "Their strategy is far more advanced." This action targeting vehicle fuel-efficiency standards could severely impact Tesla, which has earned billions of dollars in recent years by selling greenhouse-gas emission credits to other automakers.

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Key Fuel Savings Measure Touted by White House Is Fraying

Key Fuel Savings Measure Touted by White House Is Fraying

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