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Trump’s wildcard options leave the oil industry scrambling
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Trump’s wildcard options leave the oil industry scrambling

President-elect Donald Trump’s nominations for key Cabinet positions have left lawmakers and energy industry executives less certain than ever about who might lead some key agencies.

“Shell shocked,” an oil industry attorney said of Trump’s pick of former Rep. Matt Gaetz (R-Fla.) for attorney general. “I never saw it” coming, an energy industry consultant said when the president-elect tapped New York GOP Rep. Lee Zeldin to lead the EPA. “Who is it?” asked an oil trade association staffer after talk emerged that Trump had interviewed oil industry executive Chris Wright for a possible Energy Department job.

Many in the industry assumed former EPA Administrator Andrew Wheeler would take his old job for a second Trump administration. Now he even gives up reading tea leaves.

“I’ve never seen Zeldin go to the EPA,” said an industry consultant who spoke on condition of anonymity to discuss Trump’s transition efforts. “Discover the madness of trying to guess Trump’s nominees.”

An oil industry attorney who spoke with people directly involved in the transition effort and was granted anonymity to discuss private conversations said Zeldin’s appointment caught many people off guard.

“So people are less confident in the chains of communication” in Trump’s transition team, the person said.

News that Trump had chosen Gaetz, the former Florida representative who has been investigated by the DOJ and Congress over drug and sex-trafficking allegations, left industry officials “a bit shell-shocked,” this person added. POLITICO reported that Trump apparently made the decision in a snap decision while on his private jet.

For energy industry watchers, the biggest question remains whether North Dakota Gov. Doug Burgum will join the new Trump administration. The Republican, who rose to national prominence during his presidential run, has been billed as the “energy czar” or secretary of the Interior, Energy or Commerce departments. Burgum visited Mar-a-Lago on Thursday, three industry sources familiar with the trip told POLITICO.

All of these roles are expected to be key to Trump’s campaign promises to increase oil and gas production and cut US energy costs in half.

But Burgum questions whether a czar role would have enough formal power, sources familiar with the talks said.

North Dakota GOP Sen. Kevin Cramer and others who spoke to Burgum recently say the governor, a self-made software billionaire, could decide to walk away and not take an administration position if he doesn’t see fit.

“It’s entirely possible because one thing Doug Burgum doesn’t need is a job,” Cramer said, adding that he felt Burgum was “a little” skeptical of a potential role as czar and focused more on the traditional Cabinet positions.

Trump has praised Burgum in the past, calling the governor “great” and “a person of high quality” after a Republican primary debate last year. A member of Trump’s transition team said he would “not comment on private meetings” with Burgum. A spokesman for Burgum had no comment.

A host of other candidates have been floated as potential heads of Trump’s Energy and Interior departments.

“We’re going to see people from Energy and Interior who are easily confirmed,” the senator said. Cynthia Lummis (R-Wyo.), who has had discussions with Trump’s transition team about leading the Interior, but plans to stay in the Senate. “With one exception, everyone that (Trump) has introduced so far is easily corroborated,” she added, referring to Gaetz.

For the DOE, the agency charged with maintaining the country’s nuclear weapons, overseeing its 17 national research laboratories and approving natural gas exports, several names of potential candidates have been floated among Trump’s transition staff, according to industry sources and reports from the press.

Among them is former deputy energy secretary Mark Menezes, Republican of Texas. Wesley Hunt and Wright, CEO of fracking services company Liberty Energy.

Ray Washburne, a Republican fundraiser whom Trump appointed to the Overseas Private Investment Corp. in 2017, he also met with transition team co-chairman Howard Lutnick about the top Energy Department job, a person told POLITICO.

While Menezes and Hunt are well-known figures in DC, Wright is a relative unknown being pushed by Harold Hammanother major Trump fundraiser and the executive chairman of oil company Continental Resources, according to people familiar with the matter who spoke on condition of anonymity to discuss private conversations.

Wright, who campaign finance filings show has raised money for Trump and the Republican National Committee, has been one of the industry’s loudest voices against efforts to fight climate change, which he does not believe poses a threat , despite the scientific evidence. He also said that the growth of solar, wind and other renewable energy sources does not represent a major change in energy production.

“There is no climate crisis, nor are we in the midst of an energy transition,” Wright said in a video uploaded to LinkedIn.

“We have seen no increase in the frequency or intensity of hurricanes, tornadoes, droughts or floods, despite what the media, politicians and activists fear endlessly,” he said in the video. “The only thing resembling a climate change crisis is regressive, opportunity-killing policies justified in the name of climate change.”

Other candidates’ names that have been floated as possible Interior Department chiefs include former Assistant Secretary Katharine MacGregor, Republican Alaska Gov. Mike Dunleavy and GOP Sen. Oklahoma. Markwayne Mullin.

But Mullin told POLITICO Thursday that he has not discussed with Trump or the transition team the possibility of him taking a position in the new administration.

Some people on Trump’s transition team have also raised questions about the need to create a new position for the energy czar, people familiar with the conversations said. But given the likely push from Republicans and energy industry players to streamline the federal government’s permitting process — and the potential need to have an intermediary to coordinate Trump’s energy policy with his potentially demanding trade officials — the administration might want someone to coordinate among the EPA, DOE, Interior, and Commerce Departments to push policies to promote domestic energy production.

The Biden administration tapped former Secretary of State John Kerry and John Podesta in similar roles dedicated to the fight against climate change.

“You have so many cross-cutting things going on energetically,” said Rep. Garrett Graves (R-La.), who has communicated with the transition team about various roles in a second Trump administration, including transportation secretary.

“In fact, I think it’s advisable to have someone to lead and help coordinate these actions within the government within the White House, and certainly the governor (Burgum) is a good candidate for that position.”

Betsy Woodruff Swan contributed to this report.