Trump Plans to Fast-Track Mining and Drilling. Why Investors Should Expect Strong Pushback. -- Barrons.com

Dow Jones
25 Apr

By Avi Salzman

The Trump administration plans to approve mining and drilling projects on federal lands in 28 days or less, the Department of the Interior said in a notice, cutting environmental and endangered species reviews that tend to take much longer.

The department's decision could be a boon for companies like Freeport-McMoran, Chevron, and Rio Tinto that have drilled or mined on public lands -- but it relies on legal theories that will almost certainly be challenged in court.

The Interior Department manages 500 million acres of public lands, or about 20% of the country's land, and 700 million acres of subsurface minerals. It also oversees water exploration rights and manages treaties with Native American groups, which sometimes oppose fossil fuel projects. A little less than a quarter of the country's energy production takes place on public land.

The fast-track process is justified by President Donald Trump's declaration on his first day in office that the U.S. energy system is in an "emergency" situation, Secretary of the Interior Doug Burgum said in a statement.

In the notice, Burgum said that the country "cannot afford to wait" for reviews that can sometimes take multiple years. Several energy experts have challenged that assertion -- the U.S. is actually producing more oil and gas than ever and is a net exporter of those resources.

Emergency declarations are supposed to be used for much more dire circumstances, said Rebecca Riley, a managing director at the Natural Resources Defense Council.

"Theyre using those provisions that are designed for natural disasters and other really serious imminent threats to try to bypass our environmental laws," she said. "There's no way you can properly assess the impact of oil and gas exploration or drilling in 28 days."

The resources mentioned in Burgum's fast-track announcement include oil, natural gas, coal, uranium, biofuels, critical minerals and hydropower, but don't include the fastest-growing providers of U.S. electricity: wind and solar power.

In fact, Burgum stopped an offshore wind project last week that was already under construction, because he said the project was "rushed" through permitting by the Biden administration. That project went through 46 months of reviews.

Write to Avi Salzman at avi.salzman@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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April 24, 2025 13:55 ET (17:55 GMT)

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