The White House Council of Economic Advisers released a study on Thursday detailing that the Trump administration’s energy policies could add nearly two points to the U.S. Gross Domestic Product (GDP) by 2035.
The 24-page report highlights in its executive summary the many actions Trump has taken to unleash America’s energy potential, from deregulation to expediting permits:
These actions include reforming burdensome regulations, reducing review and approval timelines for permits, resuming federal lease sales for energy development, issuing permits for new Liquefied Natural Gas (LNG) export terminals, supporting advanced nuclear technology development and knowledge transfer, modernizing and securing the electricity grid, and streamlining funding decisions, among others.
The council estimates that pro-American energy dominance policies can boost “GDP by at least 0.56-1.90 percent by 2035 or 0.31-1.23 percent without deregulation effects” and provides a breakdown of where certain policies can contribute to growth:
- Removing restrictions on commingling in offshore oil reservoirs could increase GDP by 0.03-0.13 percent by 2035
- Increased production from federal lands could increase GDP by 0.025-0.11 percent per year
- Increased LNG exports could raise GDP by at least 0.03 percent by 2035
- Removing excess regulation could increase GDP by 0.25-0.67 percent or more by 2035
The report also highlights the numerous ways in which the One Big Beautiful Bill Act supports the president’s energy agenda, including allocating funds to replenish America’s Strategic Petroleum Reserve and developing Artificial Intelligence models to advance new energy technology.
Additionally, the report underscores that the legislation “Reboots oil, gas, and coal leasing with regular lease sales and lower royalties” and “Increases the scope of Department of Energy’s (DOE) loan guarantee program to include all projects that improve availability of electricity supply and thus increase grid reliability and adequacy.”
Trump and top officials, like Interior Secretary Doug Burgum, have long spoken about the need for an increase in energy supply to support America’s AI development, especially as it pertains to the AI race with China.
“Affordable, reliable and sustainable electricity supply will be a crucial determinant of AI development, and countries that can deliver the energy needed at speed and scale will be best placed to benefit,” the report notes.
“If half of U.S. businesses engage in widespread use of AI by 2034, the annual productivity growth of labor could be 1.5 percentage points higher starting in 2034 than it would otherwise be without widespread AI adoption… This boost in labor productivity could, in turn, increase GDP growth by 0.4 percent in 2034,” it adds.
In a statement to Breitbart News, White House Deputy Press Secretary Kush Desai emphasized the importance of energy abundance to the president’s agenda.
“Unleashing energy abundance was key to the historic job, wage, economic, and investment growth that President Trump delivered during his first term,” Desai said. “Energy abundance is again key for President Trump’s second term push to cement America’s dominance in AI and restore our industrial base, and the Administration is committed to pulling every stop to power the restoration of American Greatness.”
