INSTITUTE FOR 21ST CENTURY ENERGY
THROUGH THE DEPTHS of our economy's recent recession, the oil and gas industry was hiring, investing, and setting the stage for an American energy renaissance. This revolution was brought about by innovation, technology, and entrepreneurship, not government subsidies or even permissive federal policy. Most of it happened on President Obama's watch, but in spite of, not because of, any actions by his administration. After all, his administration was laser focused on crafting a green energy legacy, not the rebirth of the US oil and gas industry.
Now with a new president in town, the energy industry is getting new oxygen and relief. President Donald Trump's full-throated embrace of US energy promises to be a marked departure from the previous eight years. While affordable energy is already a force for American greatness-US industry pays two to four times less for gas and electricity than most other developed countries-opportunities to expand that competitive advantage abound. Advancing regulatory relief and streamlining permitting for pipelines and energy infrastructure will help unleash resources that can help revive manufacturing jobs that were critical to the president's election victory.
Moreover, at the time of this writing, numerous additional measures were just set in motion, including an executive order declaring energy independence a strategic national priority, initiating withdrawal of EPA's Clean Power Plan, reversing the Obama Administration moratorium on federal lands coal leasing, and repealing National Environmental Policy Act (NEPA) guidance aimed at making mitigation of upstream and downstream greenhouse gas emissions a condition of federal environmental permitting.
Candidate Trump made no secret of this during the campaign, devoting significant attention to his "America First" energy plan while on the stump. And since his inauguration, the president has reportedly been focused on keeping his campaign promises. Indications are that he is willing to spend his own political capital to advance his energy agenda. As of press time, the Trump administration has already taken executive action to:
- advance permitting decisions for the Keystone XL and Dakota Access pipelines;
- rescind an EPA data-collection program on methane emissions for oil and gas facilities-a precursor to eventual regulation;
- withdraw the Environmental Protection Agency's "Waters of the US" rule;
- repeal restrictions on fracking on federal lands; and
- sign Congressional Review Act legislation repealing the Bureau of Land Management's anti-coal "Stream Protection Rule."
Moreover, at the time of this writing, numerous additional measures appear imminent, including actions declaring energy independence a strategic national priority, initiating withdrawal of EPA's power plant regulations, reversing the Obama administration moratorium on federal lands coal leasing, and repealing National Environmental Policy Act (NEPA) guidance aimed at making mitigation of upstream and downstream greenhouse gas emissions a condition of federal environmental permitting. Additionally, stakeholders remain optimistic that the president will be able to sign legislation revoking a post-election Obama administration "midnight rule" regulating oil and gas venting and flaring.
To be sure, final relief from these rules will not come without its share of complications. Well-funded keep-it-in-the-ground litigants will challenge every move in court. Small but powerful blocs of career bureaucrats appear determined to slow-walk, if not outright undermine, the administration's approach to right sizing regulations. But these are generally surmountable obstacles, and in due time each of these costly anti-energy rules that appeared destined for implementation just a few months ago will instead slowly fade out of sight.
Reining in federal agencies, however, is no substitute for legislation. Many of the administrative actions the president has taken are subject to similarly straightforward reversal by future chief executives. Even with a supportive administration in office, this policy uncertainty spooks capital investment up and down the energy supply chain. Accordingly, a top priority for those of us in the energy and broader business community is to secure more enduring protections in the form of new laws that can provide regulatory certainty and withstand the pendulum of political parties' alternating stints in power.
The good news is that members of Congress are eager to get to work and motivated by the opportunity to collaborate with a supportive president. Groundwork is underway. Key congressional leaders have announced their intent to pursue updates to the Clean Air Act, Clean Water Act, Endangered Species Act, and NEPA-not to undermine important environmental protections, but to prevent regulators and activists from perverting statutory intent as a means to block investment and energy production. We are even more optimistic about changes to the way regulations are developed, through the Regulatory Accountability Act, and bipartisan infrastructure legislation that could help ease energy bottlenecks.
It's difficult to handicap the prospects for any of these reforms. Congress is dealing with countless competing agenda items and is subject to political gridlock that allows a filibustering minority to halt most legislative activity. However, the combination of pent-up legislative energy, political winds and-most of all-President Trump's willingness to devote political capital to the issue, make the prospects for lasting improvements as strong as any time in the last 20 years.
Karen Harbert is president and CEO of the US Chamber of Commerce's Institute for 21st Century Energy.
