WASHINGTON: The Trump administration’s mass layoffs of federal workers have slowed the government’s ability to permit some new energy projects, posing a potential setback to Trump’s ‘drill, baby, drill’ agenda. The cuts, spearheaded by Elon Musk’s Department of Government Efficiency, are intended to slash wasteful public spending but are running counter to Trump’s vow to expand oil, gas, power generation, and electric transmission.
The cuts since mid-February have hit employees at agencies responsible for issuing permits for new federal and tribal energy production, including the Bureau of Land Management (BLM), the Bureau of Indian Affairs (BIA), and the Bureau of Ocean Energy Management (BOEM).
Permitting has slowed in top oil and gas states like New Mexico and Alaska, as well as among Native American tribes relying on fossil fuel extraction for revenue. Federal lands and waters account for nearly a quarter of US oil output, and the cuts have added to existing backlogs.
More than 20,000 federal employees have lost their jobs, and another 75,000 have taken buyouts. Over 2,000 workers in the Interior Department, including at BLM, have lost their jobs. The National Treasury Employees Union reports that at least 250 employees at BLM, overseeing energy and mineral production on 245 million acres, have been cut.
The Interior Department, however, claims the cuts are aimed at improving government efficiency. "By streamlining operations, we are strengthening our ability to serve the public while making government more effective and accountable," said a spokesperson.
Industry groups like the American Exploration & Production Council emphasise the need for staff to ensure smooth permitting. "Maintaining key personnel is critical to unleashing American energy dominance," said Wendy Kirchoff, AXPC senior vice president of policy.
Despite the administration’s cuts, there’s a growing backlog of drilling permit applications. Pending permits at BLM are expected to rise from 2,552 in 2017 to 5,500 by 2025. The US also faces delays in approving energy infrastructure projects like transmission lines.
Alaska's Senator Lisa Murkowski warned that energy and mineral development projects could be further delayed by workforce disruptions. Similarly, New Mexico’s BLM offices, which administer drilling permits in the Permian Basin, have been hit, slowing permitting and lease sales.
Tribal lands have also been affected. The Osage Minerals Council in Oklahoma expressed concern over the closure of the BIA Osage Agency Office, threatening to halt oil and gas permitting. Osage lands hold vast oil reserves, and the council insists that the Secretary of the Interior explain how such cuts will improve permitting. — Reuters
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