It’s a new world for energy production. The shackles are finally off.

On his first day in office, President Donald J Trump fulfilled energy campaign promises by ending the Democrats’ war on fossil fuels. He issued executive orders promoting oil and gas production, ending requirements for electric vehicles and other electric appliances, and withdrawing from the Paris Agreement and other commitments of the United Nations Framework Convention on Climate Change.

The ease with which President Trump has reversed his predecessors’ energy agenda has stunned not only Democrats but also the global environmental establishment. Out with net zero, incentives for wind and solar, and offshore wind on federal lands. In with oil and natural gas production, domestic manufacturing, and the choice of old cars or Teslas, as well as gas or electric cookers.

The big question is whether the U.K. and Europe will be able to change their strict net zero laws and follow suit. Staying on the same path will sow social unrest as European GDP growth slows, unemployment rises, and differences in standards of living between America and Europe grow.

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American states are still free to impose their own restrictions on energy production, and many will continue to do so. But states that want to produce energy can now, in President Trump’s inimitable words, “drill, baby, drill,” and access “that liquid gold under our feet”. The direct consequences will be to lower the costs of American electricity and make it easier to attract energy-intensive manufacturing.

America has 360 billion barrels of technically recoverable crude oil resources, and almost 3,000 trillion cubic feet of technically recoverable natural gas resources, enough to use at home and export to Europe and Asia. President Trump has lifted his predecessor’s ban on new natural gas exports, and the floodgates are open for America to dominate world energy markets.

This 180-degree turn will give America leverage among energy-starved regions such as sub-Saharan Africa, Latin America, and South Asia, all areas that are affected by energy poverty. They will be able to purchase natural gas from Uncle Sam.

To encourage more fossil fuel use, President Trump will likely support loans for fossil fuel power plants in emerging economies, now penalized by the World Bank and other international organizations. He would do more for emerging economies by pushing for this common-sense change than by supporting current transfers of $100 billion for renewables arranged through annual Conference of the Parties meetings.

Poor people, farmers and businesses in the developing world that lack access to energy, despite sitting on huge resources of fossil fuels, could be financed by the World Bank and other financial institutions to produce energy from these resources, benefiting hundreds of millions of people without energy access. Trump’s energy policy may do more to permanently lift people out of poverty than any aid program tried before.

But the international consequences of President Trump’s energy revolution go beyond dominating export markets and reshaping foreign policy. By walking away from the net zero fiasco that has taken over the West, President Trump is quietly pressuring other countries to do the same. Uncuffing ourselves from net zero will cause American growth to accelerate, and lead other countries to take a clear-eyed look at their electricity prices to stop the giant sucking sound of manufacturing following the lowest energy prices.

Similarly, when President Ronald Reagan reduced America’s top tax rate from 50 per cent to 28 per cent in the Tax Reform Act of 1986, many other countries followed suit to remain competitive. The top rate in Britain declined to 40 per cent from 60 per cent; Canada’s top rate went from 34 per cent to 29 per cent; Japan lowered its rate from 70 per cent to 50 per cent; and New Zealand reduced its top rate from 66 per cent to 33 per cent.

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In addition to lowering energy prices, President Trump also promised during the campaign to reduce taxes below 2024 levels. Unlike with energy prices, this requires Congress to pass laws. But if he succeeds, he will have companies in Europe staring down both barrels—lower energy prices and tax rates.

Energy dominance might make the whole world more competitive. Companies that have factories in Europe and America could choose to expand their American operations. And decoupling from China, another of President Trump’s goals, will be far easier with lower energy prices and tax rates.

This is a far cry from the Biden era. Democrats were all in on electric vehicles, with billions of pounds spent on company tax incentives to make EVs and batteries, and on individual tax relief to buy the cars. In case people failed to respond to financial pressures, Democrats put in place new regulations that could have required almost 70 per cent of new cars and 25 per cent of new lorries sold by 2032 to be electric or hybrid, up from about 8 per cent today.

Further billions were spent on incentives for wind and solar power, raising the cost of electricity. California, which requires wind and solar, has electricity rates that are three times as high as nearby Utah, which has no such requirements.

But now President Trump is making U.S. energy dominance a key component of his foreign policy, while ensuring that domestic and international goals are aligned. His new path will allow the United States not only to secure affordable energy for its citizens, markets for its energy exports, and access to new energy natural resources—but to cause the rest of the world to go along.