Oil Industry Perplexed by Trump’s Unpredictable Cabinet Selections

Some unexpected nominees have raised questions among industry stakeholders and lawmakers about whether the president-elect plans to appoint an unconventional candidate to one of the key energy positions.

Oil Industry Perplexed by Trump’s Unpredictable Cabinet Selections
President-elect Donald Trump’s selections for significant Cabinet roles have created uncertainty among lawmakers and energy executives regarding leadership in essential agencies.

“Shell shocked,” one oil industry lawyer remarked about Trump’s decision to appoint now-former Rep. Matt Gaetz as attorney general. Another energy consultant expressed surprise at the selection of New York Rep. Lee Zeldin to head the EPA, stating, “Never saw it” coming. An oil trade association employee questioned, “Who’s that?” when discussions surfaced about Trump's interview with oil executive Chris Wright for a position at the Energy Department.

Many in the sector had expected former EPA Administrator Andrew Wheeler to easily reclaim his previous role in a second Trump administration, but that expectation is fading.

“Never saw Zeldin going to EPA,” said an anonymous industry consultant discussing Trump’s transition efforts. “It exposes the folly to try and guess Trump nominees.”

Another anonymous oil industry lawyer with connections to those involved in the transition revealed that Zeldin’s appointment took many by surprise. “So people are less confident in the communication chains” out of Trump’s transition team, the lawyer noted.

The announcement of Gaetz, a former Florida representative previously investigated by the DOJ and Congress for allegations of drug use and sex trafficking, left industry figures feeling “a little shell shocked,” according to the lawyer. Reports indicated that Trump made this decision spontaneously while aboard his private plane.

However, energy industry watchers were caught off guard again when Trump offered a glimpse of normalcy by announcing at Mar-a-Lago that he intends to nominate North Dakota Gov. Doug Burgum to lead the Interior Department. The governor, who gained national attention during his presidential primary campaign, had been mentioned as a potential “energy czar” or for roles overseeing the Interior, Energy, or Commerce departments—positions crucial to fulfilling Trump’s promises of bolstering oil and gas production and reducing U.S. energy costs.

Burgum, well-known in oil-rich North Dakota, had also advocated for carbon capture technologies aimed at reducing greenhouse gas emissions from fossil fuel production and other industries. Sources indicated that Burgum had shown hesitations about the potential energy czar position lacking sufficient formal authority.

North Dakota GOP Sen. Kevin Cramer, as well as others who recently spoke with Burgum, suggested that the governor, who built wealth from his software company, might reconsider accepting an administration role if it didn’t meet his standards. “One thing Doug Burgum doesn’t need is a job,” Cramer said, adding that Burgum seemed “a little” skeptical about the czar role and was leaning toward more conventional Cabinet positions.

Trump has previously lauded Burgum, calling him “great” and “a high-quality person” after one of last year’s Republican primary debates. A member of the Trump transition team declined to comment on private discussions with Burgum.

Numerous other candidates have been mentioned as potential leaders for the Energy and Interior departments under Trump.

“We are going to see people at Energy and Interior who are readily confirmable,” said Sen. Cynthia Lummis, who has engaged with the Trump transition team regarding the Interior position yet plans to remain in the Senate. “With one exception, everybody he [Trump] has put forward so far is readily confirmable,” she noted, alluding to Gaetz.

In the energy sector, speculation continues about several candidates for the Department of Energy, which oversees nuclear weapons, national research labs, and natural gas exports. Among those discussed are former Energy Deputy Secretary Mark Menezes, Texas GOP Rep. Wesley Hunt, and Chris Wright, CEO of fracking service firm Liberty Energy.

Additionally, Ray Washburne, a Republican fundraiser appointed by Trump to the Overseas Private Investment Corp. in 2017, has met with transition team co-chair Howard Lutnick about the top Energy Department role, according to sources.

While Menezes and Hunt are familiar names in Washington, Wright is relatively unknown but is being supported by prominent Trump fundraiser Harold Hamm, executive chair of oil company Continental Resources.

Wright, who has financially backed Trump and the Republican National Committee, has been vocally opposed to climate change initiatives, asserting that it does not pose a real threat despite widespread scientific consensus. He claims that the expansion of solar, wind, and other renewable energy sources has not significantly altered energy production. “There is no climate crisis, and we’re not in the midst of an energy transition either,” Wright stated in a LinkedIn video.

Potential candidates for the Interior Department also include former Deputy Secretary Katharine MacGregor, Alaska GOP Gov. Mike Dunleavy, and Oklahoma GOP Sen. Markwayne Mullin. However, Mullin informed PMG that he hadn’t discussed any role with Trump or the transition team.

Concerns have arisen among the Trump transition team about the necessity for an energy czar role. Nonetheless, there may be pressure from Republicans and energy sector advocates to streamline the federal government’s permitting process, highlighting the potential need for someone to coordinate among the EPA, DOE, Interior, and Commerce departments to advance Trump’s energy policies.

The Biden administration has utilized figures like former Secretary of State John Kerry and John Podesta for similar roles focused on climate change. “You’ve got so many cross-cutting things going on with energy,” remarked Rep. Garret Graves, who has spoken with the transition team about various positions, including Transportation secretary. “I actually think it’s advisable to have someone who is lead and can help coordinate these actions across government from within the White House.”

Betsy Woodruff Swan contributed to this report.

Ian Smith contributed to this report for TROIB News