International
President’s Order To Speed Oil And Gas Infrastructure Permits A Winning Move
During his campaign and as president, Donald Trump promised to take bold action to support American energy supply. Now he’s delivering. Last week the president issued two new executive orders to aid permitting of much-needed oil and gas pipelines. With energy demand rising across the country, the administration’s move is critical to ensuring that additional oil and gas supplies continue creating jobs, spurring innovation, new tax revenue and economic growth.
Why is pipeline permitting so critical? Consider, for example, that a 124-mile pipeline project from Pennsylvania to New York has been stalled for six years, despite earning approval by federal regulators in 2014. Using their powers under the Clean Water Act, New York officials have shelved the project. Using similar tactics, state and tribal leaders on the West Coast have erected roadblocks to important coal export terminal and hydropower projects.
Clearing a path to modernize the nation’s energy infrastructure network should be a priority. After all, natural gas now occupies a prominent place in our energy-centric lives, providing cleaner electricity generation, home heating for American families, and power supplies for our nation’s manufacturers and other businesses that allow them to realize billions in cost savings. Abundant supplies of American natural gas, unlocked by new technologies, now dominates the U.S. energy mix. And with production growing by 11 percent from 2017 to 2018, natural gas is projected to remain our leading energy sources for decades to come. More than 60 percent of U.S. electric generating capacity installed in 2018 was fueled by natural gas.
Unfortunately, American policy on oil and gas pipeline permitting hasn’t caught up with reality. For example, it appeared to everyone a decade ago that the United States would remain a significant importer of natural gas. Today, the opposite is true, with the United States serving as the world’s largest natural gas producer since 2012, buoyed by massive new natural gas supplies. Last year, we even became a net natural gas exporter and continued to increase exports of liquefied natural gas to friends and allies globally.
Despite those advances, the state of our nation’s energy transmission infrastructure is nowhere close to where it needs to be to meet growing demand. U.S. policy must evolve into setting the appropriate tone on pipelines and other transmission infrastructure so that we can take advantage of the energy renaissance underway in the upstream oil and gas industry. The president’s latest action is a substantial first step signifying that something must be done.
The truth is that natural gas is not just a driver for the economy, but is also critical for meeting environmental goals. Consider that U.S. carbon emissions have fallen to their lowest level in a generation, even as global emissions have risen 50 percent since 1990, an accomplishment driven largely by moving toward natural gas and away from coal for power generation. Methane emissions dropped, as well, decreasing 14 percent from 1990 to 2017, even as natural gas production increased more than 50 percent. Natural gas remains an indispensable tool in the effort to reduce our carbon footprint and combat climate change.
Recognizing the role that cleaner fuels play in environmental efforts, the energy industry in recent years has spent millions on research and innovation, technical work, and industry partnerships on climate-friendly fuels, establishing The Environmental Partnership in 2017 to specifically target key emissions sources. The 59 companies that comprise the Partnership, representing about 40 percent of total U.S. natural gas production, are taking the threat of climate change seriously and helping drive progress toward viable solutions. They recognize, as President Trump does, that while alternative energy sources will be a big part of our future, we must do everything we can to support America’s natural gas producers that are fostering environmental progress today.
It is a hard line to take, but the president should be applauded not only for following through on his pledge to support American energy but on his administration’s recognition of the importance of fostering an environment that holds other lawmakers accountable when it comes to permitting approvals. Demand for energy in the United States will only increase in the coming years. We can’t afford to play politics with projects that deliver the clean, safe, reliable, and affordable energy that we need. Rather, we should do everything we can to streamline energy infrastructure, including natural gas pipelines, that build a stronger nation.