Oil and gas industry coalition issues urgent call for permitting reform
By Bruce Beaubouef, Managing Editor
A coalition of oil and gas trade associations, representing over 80% of US domestic production, has issued an urgent call to House Speaker Mike Johnson for immediate action on permitting reform before the close of the 118th Congress.
The coalition, comprised of Energy Workforce & Technology Council, Gulf Energy Alliance, International Association of Drilling Contractors, Independent Petroleum Association of America, National Ocean Industries Association, Texas Alliance of Energy Producers, US Oil & Gas Association, and Western Energy Alliance, warns that delays in reform threaten America’s energy security and economic growth.
In a letter to Speaker Johnson, the coalition highlights an alarming trend: the average time for energy infrastructure projects to go from initial permitting to operation has more than doubled, from two years in 2000 to over five years in 2021. The letter argues that such a “significant delay” is deterring investment, impeding the nation’s ability to meet future energy demands, and jeopardizing national energy security.
“We’re at a critical juncture for American energy,” said Energy Workforce President Tim Tarpley. “Permitting reform isn’t just about cutting red tape – it’s about securing our energy future, creating jobs, and maintaining our competitive edge globally. The recent election results clearly demonstrate the American people’s support for unleashing the power of domestic energy production, and they want action now.”
The coalition’s letter advocates for the passage of the Energy Permitting Reform Act of 2024, which they say will expedite the federal approval process for major energy infrastructure projects and accelerate agency reviews. This legislation is seen as a crucial first step towards comprehensive reform that could unlock billions in infrastructure investments.
“Permitting reform would reduce energy inflation by enabling access to more of our nation’s resources, particularly on federal lands in the West,” said Kathleen Sgamma, president of Western Energy Alliance. “Oil and natural gas require multiple federal approvals for everything from exploration and leasing to drilling, transportation, and export. The bipartisan Manchin/Barrasso plan reduces many points of bureaucratic delay and red tape. We hope Congress will move quickly to remove these impediments and improve the delivery of energy to all Americans before the current session ends.”
Jason McFarland, President of the International Association of Drilling Contractors, said: “The current trajectory of the permitting process is not sustainable. Congress should rein in inefficient practices, cut bureaucratic red tape, and eliminate growing confusion. There is tremendous opportunity for bipartisan support given the widespread impacts of permitting delays across all facets of the economy. Lawmakers have the opportunity to come together and show the American people that Washington can still accomplish great things, when necessary.”
Erik Milito, President, National Ocean Industries Association, said: “The Energy Permitting Reform Act must be treated as an urgent priority. With the transition to a new Congress and Administration on the horizon, this legislation is crucial for establishing a strong national energy and permitting policy framework that will drive federal support for American offshore energy well into the future. By simplifying the permitting process, we can boost our domestic energy production while maintaining stringent environmental safeguards. These reforms reaffirm America's commitment to leading the world in energy production, global economic prosperity, and robust stewardship of the environment.”
The letter also expresses support for additional NEPA reforms being drafted by Chairman Westerman in the Natural Resources Committee, will ensure that America can get back on track as quickly as possible.
Dan Naatz, Independent Petroleum Association of America COO and EVP, said: “As the association that represents independent oil and natural gas producers in more than 30 states across the United States and offshore, our member companies are developing the wells that bring Americans the oil and natural gas we need. With permitting reform, our members can more efficiently, safely and reliably move their product to market so the United States has a reliable energy supply. IPAA urges swift action by Congress on legislation to improve permitting and the NEPA process.”
US Oil and Gas Association President Tim Stewart said: “Looking down the road for the next hundred days and beyond, the new Administration and Congress have a very, very full plate of things that need to be done. It makes sense to clear a path that allows rapid implementation of some very big ideas in the future. While it’s not everything, it is a lot of what most industries need. Let’s get this done.”
The coalition remains committed to working with Congress to achieve the common goal of American energy dominance. This push for reform comes as the US faces increasing pressure to bolster its energy security amid global instability, the letter argues. Streamlined permitting is essential for the US to fully leverage its vast energy resources and maintain its position as a global energy leader, the trade groups say.
The full letter to Speaker Johnson detailing the coalition’s call for action is available here.
Bruce Beaubouef | Managing Editor
Bruce Beaubouef is Managing Editor for Offshore magazine. In that capacity, he plans and oversees content for the magazine; writes features on technologies and trends for the magazine; writes news updates for the website; creates and moderates topical webinars; and creates videos that focus on offshore oil and gas and renewable energies. Beaubouef has been in the oil and gas trade media for 25 years, starting out as Editor of Hart’s Pipeline Digest in 1998. From there, he went on to serve as Associate Editor for Pipe Line and Gas Industry for Gulf Publishing for four years before rejoining Hart Publications as Editor of PipeLine and Gas Technology in 2003. He joined Offshore magazine as Managing Editor in 2010, at that time owned by PennWell Corp. Beaubouef earned his Ph.D. at the University of Houston in 1997, and his dissertation was published in book form by Texas A&M University Press in September 2007 as The Strategic Petroleum Reserve: U.S. Energy Security and Oil Politics, 1975-2005.
