The Energy Collective

The world's best thinkers on energy and climate

  • Home
  • Post Here
  • Columns
    • Electricity Markets & Policy Group
    • Full Spectrum
    • Energy and Policy Developments
    • Game Changers
    • Energy for Human Development
    • Seeking Consensus
    • Green Growth
    • New Energy Voices
  • Fuels
    • Oil
    • Wind
    • Nuclear Power
    • Coal
    • Natural Gas
    • Solar Power
    • Renewables
    • Biofuels
    • Geothermal Energy
    • Wave & Tidal
    • Hydro Power
  • Environment
    • Carbon and De-carbonization
    • International Climate Conferences
    • Sustainability
    • Climate
    • Public Health
    • Water
    • Recycling
  • Grid
    • Smart Grid
    • Electricity
  • Tech
    • Cleantech
    • Green Building
    • Storage
    • Rare Earth Minerals
  • Business and Economy
    • Cap-and-Trade
    • Agriculture
    • Efficiency
    • Green Business
    • Utilities
    • Finance
    • Green Jobs
    • Subsidies
    • Risk Management
  • Politics
    • Environmental Policy
    • Energy Security
    • Communications and Messaging
    • China
  • Transport
  • Help
    • FAQ
  • Account
    • Login
    • Register

Leadership Needed to Improve the Energy Regulatory Landscape

September 26, 2012 by Mark Green

Print Friendly, PDF & Email

Image

In its blueprint for American-made energy – a plan based on safe and responsible oil and natural gas development – API calls for common-sense energy regulation. What a sharp contrast with the regulatory landscape fostered by the administration, which simply has not made good on promises to promote regulatory predictability and reduce uncertainty. Upstream Group Director Erik Milito and Howard Feldman, director of regulatory and scientific affairs, made the case in a conference call with reporters.

Milito listed ways administration policies, as well as regulations it is considering, have hindered energy development and job creation:

  • A status quo five-year plan for offshore oil and natural gas drilling that leaves 85 percent of our offshore acreage off limits to exploration and development.
  • A decision to redo its commercial oil shale regulations.
  • A plan for the National Petroleum Reserve-Alaska that keeps about half of the reserve closed to exploration and development.
  • Unnecessary hydraulic fracturing regulation that could erect a major hurdle to shale oil and natural gas development on public lands.
  • Delayed action on seismic activity off the Atlantic coast
  • Failure to approve the full Keystone XL pipeline project.

Milito:

“We have seen numerous examples of regulatory decisions that simply move in the wrong direction and that contribute to uncertainty and inefficiency. …  Our industry could do much more of these good things if allowed to produce at home more of the energy our nation will need spared from the burden of unnecessary, costly regulations.  Unfortunately – judging from its policies – the current administration doesn’t see regulations as a problem and has little or no interest in expanding development.”

Milito said there has been a “flight” of investment capital from federal lands under the administration’s control to private and state lands, where projects can get under way faster and where a return on investment can be realized sooner. The average wait for a drilling permit on federal lands currently is 200 days – compared to about 20 days on state lands, he said. An effective all-of-the-above energy approach should include predictable leasing and permitting rules and regulatory certainty. Milito:

“We (industry) are not opposed to regulation. We support sensible, cost-effective regulation that provides actual environmental benefit.”

Feldman said industry faces a regulatory “tsunami” in other areas. Refineries have invested about $125 billion in making their operations safer, cleaner and more efficient. Air quality has been improved while creating and preserving jobs. Yet the EPA has plans for new rules that could make production more difficult and costly – without demonstrable environmental benefit – including a Tier 3 gasoline rule lowering sulfur content in fuel, greenhouse gas rules for refineries and new fine particle air pollution standards. Feldman:

“Now is not the time to impose still more requirements unless the need is indisputable.  Yet that is exactly what the administration seems bent on doing.  A slew of new rules, applicable only to U.S. refineries but not their competitors overseas, may put some U.S. refiners out of business, diminish U.S. fuel manufacturing capacity, and increase our reliance on imported fuels.”

The issue isn’t whether industry has an important role to play in protecting the environment. Feldman:

“Addressing our environmental challenges is not discretionary.  We get that.  But with so great a burden already being shouldered, America’s refineries don’t need excessively costly regulations that do not account for progress already made, regulations without a sound science-based justification, or regulations for the sake of regulations…The President said we should see streamlining in the regulatory area. We’re not seeing that.”

The U.S. has the energy wealth to make its future more secure while creating jobs, producing additional revenues for government and helping more Americans prosper. But it will take bold energy leadership, a holistic approach that increases access to American reserves and manages development in a common-sense manner. So far, the administration hasn’t provided that kind of leadership. Milito:

“The United States is in a position to be a leader around the world in energy development…We need to see real leadership on oil and natural gas.”

Image: Regulation Concept via Shutterstock

Related posts:

EPA Proposes to Limit Cancer-Causing Toxic Air Pollution From Petroleum Refineries EPA’s New Power Sector Climate Rules: A Brewing Political and Legal Storm Setting State Carbon Pollution Targets In the Clean Power Plan, the EPA and States can Count on Advanced Energy to Do More

Mark Green

Mark Green joined API after 16 years as national editorial writer in the Washington bureau of The Oklahoman newspaper, capping a 30-year career in print journalism. At API he is responsible for writing and editing blog posts, as well as engaging other bloggers on energy-relevant issues. He has a degree in journalism from the University of Oklahoma and a masters in journalism and public affairs from American University. He teaches communictions courses at George Mason University.

Filed Under: Energy, Environmental Policy, Risk Management Tagged With: environmental protection agency (epa)

The Energy Collective Columns

Full Spectrum: Energy Analysis and Commentary with Jesse JenkinsEnergy and Policy Developments with John Miller
Game Changers column badgeEnergy for Human Development Column
Seeking Consensus with Schalk CloeteGreen Growth with Silvio Marcacci
New Energy VoicesMore coming soon...

Latest comments

  • Bas Gresnigt on The Dangers of Green Technology-Forcing There are no fundamental limits that will restrict wind and solar to moderate market shares! With: (April 23, 2018 at 11:13 PM)
  • Mark Heslep on New Solar Capacity Exceeded All Other Fuel Sources Combined in 2017, Study Finds More Scherb (x4 this time), more reference free nonsense narative. (April 23, 2018 at 9:46 PM)
  • Mark Heslep on The Secret of the Great American Fracking Bubble Berman was wildly wrong about peak oil 10 years ago, refusing mounting contrary evidence all the way (April 23, 2018 at 9:35 PM)
  • Roger Arnold on The Secret of the Great American Fracking Bubble I'm happy to see this take on the situation finally getting so main stream attention. A few analysts (April 23, 2018 at 7:28 PM)

Advisory Panel

About the panel

Scott Edward Anderson is a consultant, blogger, and media commentator who blogs at The Green Skeptic. More »


Christine Hertzog is a consultant, author, and a professional explainer focused on Smart Grid. More »


Elias Hinckley is a strategic advisor on energy finance and energy policy to investors, energy companies and governments More »


Gary Hunt Gary is an Executive-in-Residence at Deloitte Investments with extensive experience in the energy & utility industries. More »


Jesse Jenkins is a graduate student and researcher at MIT with expertise in energy technology, policy, and innovation. More »


Jim Pierobon helps trade associations/NGOs, government agencies and companies communicate about cleaner energy solutions. More »


Geoffrey Styles is Managing Director of GSW Strategy Group, LLC and an award-winning blogger. More »


Featured Contributors

Rod Adams

Scott Edward Anderson

Charles Barton

Barry Brook

Steven Cohen

Dick DeBlasio

Senator Pete Domenici

Simon Donner

Big Gav

Michael Giberson

Kirsty Gogan

James Greenberger

Lou Grinzo

Jesse Grossman

Tyler Hamilton

Christine Hertzog

David Hone

Gary Hunt

Jesse Jenkins

Sonita Lontoh

Rebecca Lutzy

Jesse Parent

Jim Pierobon

Vicky Portwain

Willem Post

Tom Raftery

Joseph Romm

Robert Stavins

Robert Stowe

Geoffrey Styles

Alex Trembath

Gernot Wagner

Dan Yurman

 

 

 

Follow Us

32-linkedin 32-facebook 32-twitter 32-rss

Content for personal use only. Distribution prohibited. Republication in part or in whole is strictly prohibited. © All rights reserved Energy Central © 2018

Recent Comments

  • Bas Gresnigt on The Dangers of Green Technology-Forcing
  • Mark Heslep on New Solar Capacity Exceeded All Other Fuel Sources Combined in 2017, Study Finds
  • Mark Heslep on The Secret of the Great American Fracking Bubble

Recent Posts

  • The Dangers of Green Technology-Forcing
  • Without Ambitious Energy Efficiency Goals, the EU Will Fail Paris Targets
  • Egypt’s $60 Billion Bet on Nuclear Energy

Useful Pages

  • Terms of Use
  • Comments Policy
  • Privacy & Cookies
  • Help
  • About and Contact Us
Copyright © 2018 Energy Central. All Rights Reserved
This site uses cookies, for a number of reasons. By continuing to use this website you accept the use of cookies. Find out more.