DOGE’s Real Impact on the US Economy: Removing Half of Federal Regulations

August 1, 2025 Clark Savage CCUS, Climate Crisis, CO2 & GHG, ENB Pub Note, Energy Crisis, Energy Policy, Energy Regulations, Finance, Financial Crisis, Fossil, Industry Insights, Net Zero, Political, Regulations, Top News, US Energy News
DOGEs Real Impact on the US Economy Removing Half of Federal Regulations - Created by Grok on X
DOGEs Real Impact on the US Economy Removing Half of Federal Regulations - Created by Grok on X
In a bold move that’s sending shockwaves through Washington, the Department of Government Efficiency (DOGE), spearheaded by Elon Musk and Vivek Ramaswamy, is leveraging artificial intelligence to dismantle half of the federal regulatory framework. This isn’t just bureaucratic housekeeping—it’s a seismic shift poised to unleash trillions in economic growth by loosening the deep state’s stranglehold on American innovation and productivity. As economist Peter St. Onge highlighted in a recent video post, DOGE’s AI-driven assault targets 100,000 illegal regulations costing Americans a staggering $3.3 trillion annually—more than the entire federal income tax haul and nearly equivalent to Japan’s GDP.

The ironic part of the DOGE using AI to cut regulations and save trillions of dollars every year is that we will not win the AI race without nuclear energy. We will not advance nuclear energy without overhauling the cripling regulatry chokehold on the industry. You will want to check out this interview with Jon Brewton, CEO of Data Squared and their new patents on trust and verification of AI. Building Trust in AI: Data Squared’s Breakthrough for Energy & Defense

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The Birth of DOGE and Its Mission

Established under President Trump’s administration in late 2024, DOGE was tasked with slashing government waste, reducing spending, and eliminating unnecessary regulations. Led by tech visionary Elon Musk and entrepreneur Vivek Ramaswamy, the initiative operates outside traditional federal bureaucracy, drawing on private-sector expertise to identify inefficiencies. While Congress has passed some regulatory cuts through bills like the REINS Act and targeted reforms, these legislative efforts often scratch the surface, bogged down by partisan gridlock and lobbyist influence. DOGE, however, dives deeper, using cutting-edge AI to systematically review and repeal rules that were never authorized by law. The centerpiece of this effort is the “DOGE AI Deregulation Decision Tool,” an AI system developed by Musk’s engineers. According to internal documents, the tool analyzes approximately 200,000 federal regulations, recommending the elimination of up to 100,000 deemed unlawful or obsolete. This automation has already proven its mettle: at the Department of Housing and Urban Development (HUD), it processed 1,083 regulatory sections in under two weeks, and at the Consumer Financial Protection Bureau (CFPB), it drafted 100% of proposed deregulations.

The process is backed by Trump’s executive order mandating agencies to repeal 10 rules for every new one, with a deadline for agencies to submit repeal lists by September 1, 2025.

AI: The Superbot Revolutionizing Deregulation

What sets DOGE apart is its embrace of AI to tackle the “deep state” regulations—those entrenched rules enforced by unelected agencies that critics argue exceed congressional intent and stifle economic freedom. Traditional deregulation relies on human reviewers sifting through mountains of legalese, a process that could take 3.6 million man-hours for 100,000 rules. DOGE’s AI slashes this by 93%, requiring just hours of human oversight per repeal.

This efficiency isn’t just about speed; it’s about precision, identifying regulations that violate the Administrative Procedure Act or lack statutory backing.St. Onge’s analysis underscores the scale: these 100,000 rules impose a $3.3 trillion annual burden on the economy, dwarfing the $2.3 trillion in federal income taxes.
Sources like the National Association of Manufacturers (NAM) peg the total cost of federal regulations at $3.079 trillion in 2022 alone, equivalent to 12% of U.S. GDP.
By targeting half, DOGE could reclaim trillions, boosting household incomes and business competitiveness.
Key Figures on Regulatory Costs
Amount
Comparison
Total Federal Regulatory Cost (NAM Estimate)
$3.079 Trillion
12% of U.S. GDP
DOGE’s Targeted Savings
$3.3 Trillion Annually
More than Federal Income Tax ($2.3T)
Man-Hours Saved by AI
3.36 Million (93% Reduction)
Equivalent to 1,680 Full-Time Workers per Year
Regulations Targeted for Removal
100,000
Half of All Federal Rules

Breaking the Deep State’s Grip on the Economy

The “deep state”—a term for entrenched bureaucratic power—has long been accused of using regulations to expand control, often at the expense of economic vitality. These rules, layered over decades, create compliance nightmares that disproportionately hit small businesses and innovative sectors. Legislators have chipped away with bills like the Economic Growth, Regulatory Relief, and Consumer Protection Act, but these reforms are incremental and often diluted. DOGE’s AI approach circumvents this, enabling wholesale streamlining that could dismantle barriers erected by agencies like the EPA, SEC, and DOE. The economic ripple effects are profound. Regulations distort markets, inflate costs, and suppress growth. For instance, the Competitive Enterprise Institute estimates a $2.155 trillion annual drag, while Heritage Foundation analyses highlight how new rules under prior administrations added $18.8 billion in costs from just 188 major regulations.

By removing half, DOGE could supercharge GDP growth, create jobs, and reduce inflation, savings that Musk’s team projects at $3.3 trillion yearly.

A Game-Changer for the Energy Sector

Nowhere is the regulatory stranglehold more evident than in the energy industry, where federal rules have driven up costs and hampered domestic production. EPA emissions standards, permitting delays, and subsidies for renewables have distorted markets, making fossil fuels less competitive and raising energy prices for consumers.
State officials have blamed these policies for higher electricity and fuel costs, with proposed limits on fossil plants threatening reliability.
DOGE’s deregulation could unleash American energy. The Energy Department has already slashed 47 burdensome rules,and broader repeals could accelerate permitting, lower compliance costs (estimated at $277,000 per manufacturing employee annually),and boost output. Rhodium Group analyses show that rolling back regulations could cut industrial energy costs by reducing mandates and subsidies that inflate prices.
For the utilities sector, fewer rules mean faster innovation and lower bills—critics of overregulation argue it drives up costs and restricts production.
The White House’s “Unleashing American Energy” initiative echoes this, noting how regs inflate transportation, heating, and manufacturing costs.
EPA’s recent deregulatory push promises cheaper cars and home heating, directly benefiting energy-dependent households.
Challenges and the Road AheadSkeptics, including some federal employees, question the AI tool’s accuracy and the legality of mass repeals, fearing court battles.
Yet, with DOGE’s momentum and Trump’s backing, the initiative presses on, aiming for completion by January 2026. If successful, it could mark the end of regulatory overreach, freeing the U.S. economy from trillions in hidden taxes. Elon Musk and the DOGE team’s vision isn’t just about cuts—it’s about restoring freedom and prosperity. As St. Onge puts it, the “superbots” are coming for the regulatory state, and the savings could redefine America’s economic future.
I
n our day jobs working on oil and gas deals, we see the costs of regulations in the oil and gas sector. Don’t get me wrong, reasonable regulations are needed to help protect the environment, but the deep state overreach has been painful.

For the energy sector and beyond, this is the deregulation revolution we’ve been waiting for.

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