Trump calls for infrastructure bill in State of the Union speech
US President Donald Trump asked Congress in his 2018 State of the Union address to generate legislation that will produce at least $1.5 trillion to rebuild crumbling US infrastructure. “Any bill must also streamline the permitting and approval process, getting it down to no more than 2 years, and perhaps even one,” Trump added during the Jan. 30 speech.
The president also called for every federal dollar to be leveraged by partnerships with state and local governments and, where appropriate, private sector investment. US oil and gas industry leaders have emphasized the positive contribution their businesses can make in that regard for weeks. They reminded the White House of this in the hours leading up to Trump’s address.
“Promoting American infrastructure is critical to delivering the energy that Americans demand every day and will help our country further realize the benefits of natural gas and oil including cleaner air, more jobs, and economic growth,” American Petroleum Institute Pres. Jack N. Gerard said. “Private investment in US energy infrastructure is a more than $1-trillion proposition and could support more than 1 million jobs/year through 2035.”
Gerard said a new ISO New England study found there’s a better than 80% chance that some or all of the region could face rolling blackouts in the near future, chiefly because it does not have enough pipeline capacity to get enough gas during winter demand peaks. “For a country that leads the world in oil and gas production, having an entire region at the mercy of cold weather is unacceptable. We desperately need to modernize this region’s infrastructure,” Gerard declared.
Gerard and four other oil and gas association presidents who comprise the Natural Gas Council urged Trump to continue advocating for more interstate gas transportation systems. “Pipelines are critical to providing reliable heat and electricity for homes and businesses, but we must have sound policies in place enabling our industry to invest in and build those pipelines,” said Natural Gas Supply Association Pres. Dena L. Wiggins, who leads the council.
“Unlike many other infrastructure projects, natural gas pipelines are financed with private capital,” noted Interstate Natural Gas Association of America Pres. Donald F. Santa. “Gas pipeline companies are ready, and eager, to invest billions of dollars in infrastructure and can deploy this capital more quickly and efficiently if we have a rational, timely, and predictable process for reviewing and permitting. We hope the administration and Congress move forward with effective permitting reforms.”
Independent Petroleum Association of America Pres. Barry Russell said, “With new pipeline infrastructure, additional carbon reductions can be made and can benefit communities across America. Increased use of gas not only benefits the environment, but also provides national security and economic benefits, such as jobs and tax revenue.”
American Gas Association Pres. Dave McCurdy said, “There are communities in our nation that have limited or no access to gas service and the comfort and affordability that it provides. Addressing our nation’s infrastructure challenges would enable these communities to participate in the energy revolution that is helping us achieve our national goals of boosting our economy, protecting our environment and enhancing our national security.”
Other oil and gas association leaders responded following the president’s remarks. National Ocean Industries Association Pres. Randall B. Luthi said that his organization’s members stand ready to work with Trump and Congress to help fuel the US economy. “Together, and with policies in place that maximize American’s access to federal offshore areas, we can strengthen our economy, keep energy affordable for hardworking American families and consumers and cement our position as the global energy leader,” he said.
In a comment on Jan. 31, NGSA Pres. Wiggins pointed out that the average permit processing time for interstate gas pipelines, which are built with private capital, “is an unnecessarily long 4 years.” She expressed hope that Congress and the Trump administration would work together on reforms to make gas pipeline permit processing timelier.
“We welcome the president’s recognition of our growing energy exports,” Center for Liquefied Natural Gas Executive Director Charlie Riedl said on the morning after Trump’s speech. US LNG has reached 26 nations in less than 2 years, and exports continue to grow, he noted. “Providing a clear path forward for the industry would signal project developers that the US is the best place to make multibillion dollar investments to help deliver clean natural gas around the world,” Riedl said.
In his address, Trump also called for more work force development programs and vocational training “so our future workers can learn a craft and realize their full potential.” API and other oil and gas trade associations have said they are working already to replace retiring professionals with more women and minorities to create a more diverse work force in the future.
Contact Nick Snow at [email protected].
Nick Snow
NICK SNOW covered oil and gas in Washington for more than 30 years. He worked in several capacities for The Oil Daily and was founding editor of Petroleum Finance Week before joining OGJ as its Washington correspondent in September 2005 and becoming its full-time Washington editor in October 2007. He retired from OGJ in January 2020.