In his second term, Donald Trump is doubling down on competition with China across most sectors — except one glaring exception: clean energy. Here, he’s effectively ceded ground to Beijing.
The European edition of Politico reveals the Trump administration’s calculated retreat from the clean energy race, pivoting instead to America’s traditional energy strongholds — oil, natural gas, and coal. This pivot has ignited heated battles within the Republican Party, especially over the "Big Beautiful Bill Act," a legislative effort aimed at dismantling Biden’s clean energy subsidies under the Inflation Reduction Act (IRA).
Trump’s team views China as the undisputed leader in global supply chains for batteries, electric vehicles, solar panels, and wind turbines. Their logic? Pouring more US resources into green tech only fuels China’s rise. This zero-sum mindset marks a sharp departure from Trump’s first term, which embraced a more diversified energy approach. Daniel Simmons, an Energy Department official from Trump’s first administration, bluntly states this government "does not care" about clean energy. Within days of his January inauguration, Trump halted IRA funding via executive order and dismissed Biden’s green investments as a "green scam."
Chris Wright, United States Secretary of Energy, a fossil fuel stalwart and former oil magnate who helped unleash the shale gas revolution through fracking, has doubled down on this fossil-first agenda. Recently, he championed an "Energy Freedom Task Force" in Eastern Europe, urging countries like Poland to lean into fossil fuels and nuclear power. He insists fossil fuels are vital for lifting developing countries out of poverty, and dismisses the climate crisis urgency, arguing, “Nothing in the data shows climate change is the world’s most urgent problem.”
Meanwhile, Chinese clean energy titans BYD and CATL continue to outpace the US technologically. Their breakthroughs, such as EV batteries that can charge in five minutes and deliver 400–500 kilometers, underscore America’s growing lag in clean tech. The Trump administration’s rollback of clean energy subsidies threatens to cost American jobs. The IRA’s incentives could generate roughly 160,000 jobs, especially in Republican strongholds like the Sun Belt and Rust Belt. Former Australian diplomat Thom Woodroofe accuses Trump’s team of deliberately stalling clean energy progress, undermining US employment. Research from Johns Hopkins University warns that scrapping subsidies would collapse the planned $50 billion solar and battery export market by 2030, creating an $80 billion investment void that other countries will fill.
Within the GOP, fractures over the "Big Beautiful Bill Act" are widening. Hardliners push for a full repeal of green subsidies, while moderates worry about the economic fallout in local communities. The Rhodium Group think tank cautions that cutting subsidies could stifle next-gen nuclear and geothermal innovation, eroding America’s technological edge.
The takeaway? The global energy transition demands cooperation, not unilateralism. China has repeatedly reaffirmed its commitment to green transformation, urging developed nations to honour their climate pledges. It warns that protectionism and isolationism only harm shared global interests.
Deep Throat
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Trump wasted not one second after US forces grabbed Venezuelan President Nicolás Maduro. He made it clear that he was eyeing the country's oil riches. But here's the catch: America's biggest oil companies aren't biting. Industry analysts confirm what the companies won't say publicly—even if these firms wanted back in, Venezuela's crumbling infrastructure and chaos on the ground mean Trump's fantasy of quick oil profits is far from easy to come true.
Trump promises Big Oil will pour billions into Venezuela. The oil giants say they never got the memo. AP Photo
Minutes after the military operation wrapped, Trump stood at a press conference making promises. Major American oil companies would pour into Venezuela, he declared, investing billions to fix the country's shattered oil infrastructure "and start making money for the country". Meanwhile, he reiterated that the US embargo on all Venezuelan oil remains in full effect.
Those sanctions have crushed Venezuelan exports into paralysis. Documents from Venezuela's state oil company and sources close to the situation confirm storage tanks and floating facilities filled up fast over recent weeks. Multiple oil fields now face forced production cuts.
White House Courts Reluctant Executives
Reuters revealed the Trump administration plans meetings this week with executives from major US oil companies. The agenda: pushing these firms to restore and grow oil production in Venezuela following the military action. The White House sees this as a critical step toward getting American oil giants back into the country to tap the world's largest proven oil reserves.
But Trump's eagerness hasn't translated into corporate enthusiasm. Several major US oil companies are taking a wait-and-see approach, watching Venezuela closely. ExxonMobil, ConocoPhillips, and Chevron all denied any prior communication with the White House about Venezuela. This directly contradicts Trump's claim over the weekend that he had already met with "all" US oil firms both before and after Maduro's capture.
Venezuela sits on roughly 17% of the world's proven oil reserves—first place globally. Yet US sanctions and other pressures have gutted its production capacity. Current output runs around 1 million barrels daily, barely 0.8% of global crude production.
World's largest oil reserves, strangled by US sanctions. Trump's quick-profit scheme hits a hard reality. AP Photo
Only One Company Stays Put
Chevron remains the sole major US oil company still operating Venezuelan fields. The firm has worked in Venezuela for over a century, producing heavy crude that feeds refineries along the Gulf Coast and beyond. A company spokesperson said on the 3rd that the current priority centers on "ensuring employee safety, well-being, and asset integrity," adding they "will continue to operate in accordance with laws and regulations."
ExxonMobil and ConocoPhillips previously invested in Venezuela. In the 1970s, the Venezuelan government nationalized the oil industry, reopened to foreign investment by century's end, then demanded in 2007 that Western companies developing oil fields form joint ventures with Venezuelan firms under Venezuelan control. ExxonMobil and ConocoPhillips pulled out. Neither company has responded to Trump's latest remarks about US capital entering Venezuela.
One oil industry executive told Reuters that companies fear discussing potential Venezuelan business at White House-organized meetings due to antitrust concerns.
Benefits Flow to First Mover
Francisco Monaldi, director of the Latin America Energy Program at Rice University's Baker Institute for Public Policy, expects Chevron would likely benefit first if Venezuela opens oil projects to the US. Other oil companies, he notes, will watch Venezuela's political situation closely and observe the operating environment and contract compliance before making moves.
Mark Christian, business director at an Oklahoma energy consulting firm, lays out the baseline: US companies will only return to Venezuela if they're certain of investment returns and receive at least minimal security guarantees. Lifting sanctions on Venezuela stands as a prerequisite for US companies re-entering that market.
Reality Check on Oil Profits
Even with sanctions lifted, the Trump administration won't find making money from invasion-acquired oil that easy.
Industry insiders admit large-scale restoration of Venezuelan oil production demands years of time and billions in investment, while confronting major obstacles: dilapidated infrastructure, uncertain political prospects, legal risks, and long-term US policy uncertainty.
Peter McNally, global head of industry analysis at Third Bridge, said, "There are still many questions that need to be answered about the state of the Venezuelan oil industry, but it is clear that it will take tens of billions of dollars to turn that industry around." He then added that it could take at least a decade of Western oil majors committing to the country.
Ed Hirs, an energy expert at the University of Houston, pointed to a pattern: US military invasions of other countries in recent years haven't delivered substantial returns to American companies. The history of Iraq and Libya may repeat itself in Venezuela.
