API’s 2025 State of American Energy highlights priorities
Olivia Kabell, Associate Editor World Oil
“American energy was on the ballot, and American energy won,” said API executives on a media call prior to Tuesday’s 2025 State of American Energy event. API was represented by President and CEO Mike Sommers and EVP and Chief Advocacy Officer Amanda Eversole, both of whom shared insights into the industry and where they expect it to head under 2025’s incoming Trump administration.
Though each of the two API executives brought unique insights—with Mike Sommers (Fig. 1) taking the lead for the most part—each hit on a central theme: the incoming administration has a lot of work to do. As many as eight in ten polled American voters want energy security to be a priority, and according to API, a return to a “common sense” energy policy requires focusing on five key areas, outlined in the 5 Point Policy Roadmap1.”
API’s policy roadmap areas of focus include:
- Protecting consumer choice
- Bolstering geopolitical strength
- Leveraging our natural resources
- Reforming our permitting system
- Advancing sensible tax policy.
Supportive regulation needed. Among the changes needed, Eversole highlighted several day-one priorities, which include rolling back current methane mandates, lifting Biden’s LNG permitting pause and preventing and/or reversing administration efforts to bar 625 million acres of protected federal lands from any future oil and gas projects. Moreover, Mike Sommers emphasized the importance of “legally durable” policy changes, such that the industry has a supportive regulatory environment that goes beyond any individual administration.
Security aspects. The interruption of Russian crude with the war in Ukraine showed—more than ever before—the importance of U.S. supply in the wider market. While Sommers noted that API plans to defer to the incoming administration when it comes to foreign policy, he also pointed out that strong U.S. production supports U.S. sanctions, making them more effective. Moreover, Europe imported more LNG in 2024 than in any other time in history, and that region is far from the only source of growing demand for the clean-burning fuel.
With greater focus on LNG than ever before, both Eversole and Sommers highlighted the urgent need for permitting reform. In the last few years, the time from project permit to operation has more than doubled, creating additional friction for new projects, on top of existing restrictions like Biden’s LNG permitting pause and methane regulation. This only reinforces the critical importance of “legal durability” when it comes to reform; API aims to work with Congress on getting reforms put into law, to promote an oil and gas regulatory environment than isn’t “at the whim of the swinging pendulum of politics,” in Sommers’ words. “We’re focused on durable action that stands the test of time,” he added.
Emissions status. Throughout the call, Sommers also emphasized that API is a long-time supporter of reducing emissions—particularly methane—across both large and small company membership. API’s climate policies have been responsible for a 37% reduction in U.S. emissions since 2017. The aim in shifting policy around the greenhouse gas, Sommers says, is “dialing the new methane rule so that it makes sense and allows for the continued production of these resources.” He also mentioned the 45Q tax credit for carbon sequestration and stated API’s confidence in backing Congress for similar credits, such as a hydrogen tax credit.
Policy angles. Beyond these concerns, Sommers noted that API plans to watch the future of other incoming administration policies, such as President-elect Donald Trump’s repeated threat of tariffs and an ongoing drilling moratorium on eastern Gulf of Mexico (GOM) waters, as well as ongoing industry legal cases involving EPA and emissions waver rules. Many day-one energy industry concerns will also have to contend with the ramifications of federal government budget reconciliation early this year. Yet, as Sommers pointed out, resolving access to federal lands could present greater government revenue, easing budget concerns and thus providing a strong first step to creating regulation that will work with the industry for a cleaner and more secure energy future, rather than fight against it.
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