Yes, Daniel Sullivan is a U.S. senator serving the state of Alaska. But he is also a preacher -- a preacher of "the gospel of optimism," he said.
"Yes, there's a lot of chaos in D.C., but if you get behind the daily headlines and the daily tweets [and see] what is actually being accomplished in Washington, it's clear that there's never been a more exciting time for the American energy sector," Sen. Sullivan said.
This optimism is being driven by what he refers to as the "three P's" of American energy policy.
The first "P" stands for policy itself.
"At the end of 2017, we passed historic tax reform that has numerous provisions in it that we think will help spur investment in the energy sector," Sen. Sullivan said, addressing delegates at CERAWeek by IHS Markit, held recently in Houston. "There is a whole host of things in this bill that we think will help drive good policy."
The second "P" stands for permitting.
"We have moved from a federal government that for eight years purposely tried to delay energy projects for as long as possible to a federal government that now views [the energy sector] as partners in opportunity for American energy and the good jobs it produces for our country," Sen. Sullivan said in the session titled "The Politics of Infrastructure."
The third "P" stands for personnel.
"If you look at the Trump administration's cabinet," Sen. Sullivan continued, "whether it's the Secretary of Energy and former governor of Texas Rick Perry, Secretary of the Interior Ryan Zinke, the EPA Administrator Scott Pruitt, and under secretaries and assistant secretaries -- this is a team in the federal government that is very focused on the opportunities in this sector."
As an example of the impact this change in policy has made on his home state of Alaska, Sen. Sullivan again cited the tax reform bill, calling it responsible for "an Alaskan comeback."
"We did something in Congress that we have been trying to do in Alaska for the last 40 years," he said. "We opened the Arctic National Wildlife Refuge (ANWR) for responsible resource development. And as we speak, Trump administration senior officials at the Department of the Interior are in Alaska, looking at the opportunities in my great state. I'm hopeful that we have our first lease sale in ANWR as soon as 2019; it's one of the most important lease sales in a long time."
The bottom line, Sen. Sullivan said, is it is clear "the American Energy Renaissance is in full swing and now, importantly, is being supported by actual government policies. There are opportunities -- and certainly challenges -- on the horizon, especially as it relates to infrastructure and trade."
"Now is the time to seize these energy opportunities in America," Sen. Sullivan concluded.
Challenges remain
While he agrees with Sen. Sullivan there is reason for the energy industry to be optimistic, Greg Armstrong, chairman and CEO of Plains All American Pipeline, remains aware of challenges still facing the industry regarding developing infrastructure.
"We need to understand and secure supply-and-demand balances in terms of suppliers that will fill our pipelines and also contracts within users," Armstrong said.
Armstrong also noted challenges pertaining to shifting needs, financing, international trade, states' rights versus the federal interest, and regulatory issues.
"When you roll all those up, it adds uncertainty. It's not so much the industry challenge," Armstrong concluded. "It's the political uncertainties of the process. It takes time, and that translates into delays and incremental costs."
For ongoing industry updates, visit BICMagazine.com.