President Donald Trump’s executive orders on energy have sparked discussions about the potential resurgence of the “drill, baby, drill” approach in Colorado and across the country. The oil and gas industry and environmental advocates are closely monitoring the situation to see how it unfolds. Trump has criticized the previous administration for promoting what he called “a precariously inadequate and intermittent energy supply,” targeting the increased deployment of renewable energy sources.
However, analysts are skeptical about whether the U.S., already the world’s leading producer of oil and natural gas, will see a significant increase in drilling activities despite Trump’s push. Environmental organizations emphasize that Americans, especially those in the West, have consistently supported the conservation of public lands and the protection of air, water, and wildlife in the face of increased development. On the other hand, national and state industry representatives have praised Trump’s orders, which aim to “unleash America’s affordable and reliable energy,” with a specific focus on oil and gas.
One of Trump’s orders requires federal agencies to expedite the issuing of permits on federal lands, arguing that burdensome regulations have hindered energy resource development in recent years. Kathleen Sgamma, president of the Western Energy Alliance, welcomed the move, criticizing the low volume of leases issued on federal lands under the Biden administration and what she called overly restrictive methane emissions regulations. Despite these challenges, Sgamma noted that producers have continued to operate using permits approved by the first Trump administration, stating that “the full effects of Biden’s policies have not come to fruition yet.”
Rachael Hamby, policy director at Western Priorities, a Colorado-based conservation group, highlighted that companies are sitting on leases covering more than 10 million acres of federal lands but have not begun production.
Hamby cited government data showing approximately 6,900 unused permits.
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Amanda Eversole, executive vice president and chief advocacy officer of the American Petroleum Institute, stressed the importance of maintaining an adequate inventory of leases for the industry, given the lengthy time required to develop new sites.
She expressed concern over the lack of offshore lease sales in 2024, marking the first absence of such sales since 1966. Energy demand is surging, and the industry must find supply across the board to meet this demand, according to Eversole. Sgamma also raised concerns about the increasing demands on the electric grid with the proliferation of data centers and efforts to electrify transportation and buildings.
However, Ryan Hill, a principal analyst at an energy analytics firm, suggested that rising domestic oil and gas production depends on more than just regulatory clearance. He pointed out that higher oil prices are necessary to drive new drilling activities, and current and projected oil prices may not be conducive to expansive growth. Colorado, a major player in the oil and gas sector, particularly in the Denver-Julesburg Basin, faces its own set of challenges.
A 2019 law that tightened state oil and gas regulations has created headwinds, although companies have adapted with innovative drilling practices to comply with environmental and community safety standards. Despite the potential increase in oil and gas production on federal lands due to Trump’s policies, experts like Kait Schwartz, director of API Colorado, argue that this will not significantly impact production within Colorado, which operates under what she describes as some of the strictest rules globally. As the oil and gas sector welcomes the opportunity to streamline the permitting process on federal lands, the balance between energy development and environmental stewardship remains a contentious issue.
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
