Future U.S. administrations may reverse Trump’s policies, but even if they do, policy whiplash will hamper America’s ability to catch up with China in the race for new energy dominance.
A fossil‑fuel‑centric strategy carries other risks as well, such as the simple fact that these resources are finite. Oil and gas fields get depleted, requiring constant reinvestment, raising the risk of price volatility.
Renewables require heavy upfront investment and still require backup systems – often powered by gas or coal – to cover periods of low sun and wind. This can also trigger bouts of volatility. But renewables have far more potential upside and greater ability to benefit from technological breakthroughs.