President Trump seems to be exercising his powers at blistering speed, signing more executive orders on the first day of his second term than any president in history. It is a fluid situation, so keep in mind what follows in this article could change in a matter of hours.
Among the orders signed by 47th President of the United States was the Unleashing American Energy order.
You can read that executive order here: https://www.whitehouse.gov/presidential-actions/2025/01/unleashing-american-energy/
Its aim is to boost domestic energy production by encouraging exploration and development on federal lands and waters. The order also seeks to streamline regulations that may hinder energy and economic development, and to revise the permitting process to fast-track traditional energy projects.
This policy could have several implications for our industry, though nothing is ever certain when it comes to politics and policy. Exactly how it affects the heating industry – whether positive or negative – remains to be determined. Experts can merely speculate at this point.
By increasing the supply of domestic energy resources, particularly fossil fuels, the executive order is likely to lead to lower energy prices. This could impact customers’ decision-making processes, and heating businesses should see increased demand for systems reliant on traditional energy sources. If oil prices fall, it’s possible that fewer oil-to-gas conversions will take place over the next few years, or conversions from standard-to high efficiency products.
With that said, if fossil fuel prices become more attractive, it’s also likely that the campaign to increase electric conversions will lose momentum. Some homeowners and property managers that had been considering heat pumps will take a harder look at updating their existing hydronic systems with new boiler models.
The “Unleashing American Energy” order will likely reduce operational costs for companies in the deliverable fuel business, allowing for more competitive pricing in areas where natural gas is not available.
The executive order emphasizes reassessing and potentially reducing regulations that might impede energy development. Areas of the country where natural gas moratoriums exist – or where moratoriums were planned – may see development of new gas supply infrastructure.
It should come as no surprise that this order may also result in decreased incentives or support for renewable energy heating solutions. Businesses specialized in solar thermal, photovoltaic, or heat pumps are likely to become less competitive, especially if Republicans succeed in repealing the related portions of the Inflation Reduction Act.
Mechanical contractors and home comfort specialists should be aware of potential public and customer perceptions regarding the environmental impact of this order and may still need to balance traditional offerings with sustainable practices.
Trump also repealed several of Biden’s climate-related executive orders, including the Interagency Working Group on the Social Cost of Greenhouse Gases. This was an agency that assessed the cost of greenhouse gases on community health.
According to the National Propane Gas Association, “an executive order (EO) directs the actions of the executive branch (inclusive of the White House and federal agencies), but it cannot override existing law or the Constitution. An EO has no authority over the legislative branch or the judicial branch of government, and both branches may pass laws or issue orders, respectively, to override it.”
While the "Unleashing American Energy” executive order aims to bolster traditional energy sectors, heating business owners should stay informed about regulatory changes, market shifts, and environmental considerations to effectively navigate the evolving energy landscape. Stay informed and make changes in your company accordingly.
