API letter calls on Biden administration to support American energy leadership
Ahead of Tuesday’s State of the Union Address, American Petroleum Institute (API) President and CEO Mike Sommers sent a letter to Department of Energy (DOE) Secretary Jennifer Granholm and other administration officials outlining steps key regulatory agencies should take to ensure long-term American energy leadership and security at a time of increased geopolitical volatility.
“Recent developments illustrate the importance of the government working collaboratively with industry to ensure U.S. energy and economic security, as well as that of our allies in Europe and around the world,” API President and CEO Mike Sommers said. “Now more than ever, the administration should speak clearly and without equivocation that the United States will be a reliable producer and supplier of oil and natural gas to our allies around the world both now and in the future.”
The United States is now the world’s leading producer of oil and natural gas and exporter of liquefied natural gas (LNG). In fact, for a period last month, US LNG exports to Europe exceeded Russian pipeline deliveries. At the same time, in recent weeks, decisions across the administration, including at the Department of Energy (DOE), the Federal Energy Regulatory Commission (FERC), the Department of the Interior (DOI), Environmental Protection Agency (EPA), and other agencies, have introduced significant uncertainty that will negatively impact American energy investments.
“We commend the administration’s focus on addressing climate change and share the goal of reducing emissions across the economy, but we cannot let that objective detract from the clear and present need for continued responsible investment in oil and natural gas development,” Sommers continued.
In the letter, Sommers outlined a list of concrete policy solutions that the administration should immediately implement to ensure long-term American energy leadership and security.
- The administration should clearly commit to the continued export of crude oil, natural gas, and refined petroleum products.
- The DOE, along with FERC, should swiftly approve all LNG applications and establish clear and consistent timelines to approve future applications.
- The DOI should issue a final notice of lease sale (NOS) under the current five-year offshore oil and gas leasing program by March 2, 2022. This will provide sufficient time to hold the lease sale prior to the expiration of the current program on June 30, 2022.
- The DOI should complete the new five-year program with regularly scheduled Gulf of Mexico lease sales to minimize the unprecedented gap in offshore lease sales.
- The DOI should schedule, and complete, quarterly onshore leasing sales as required under the Minerals Leasing Act, with sufficient acreage and equitable terms.
- The administration should work with FERC, US Army Corps of Engineers, and other relevant agencies to ensure NEPA, CWA Sec. 401, the FERC policy statement, and other permitting processes for oil and natural gas infrastructure are designed and implemented in a manner that ensures consistency, transparency, and timeliness in their application.
- The administration should work through the Commerce Department and our US allies to encourage investment in the full range of energy projects around the world and especially in Eastern Europe.
API also submitted a letter to Secretary Deb Haaland seeking clarification on DOI’s response to Louisiana v. Biden regarding leasing and permitting delays and urging the department to prioritize and move forward with its statutory requirements to issue quarterly lease sales and issue a five-year plan for offshore development.
