With a few unresolved House and Senate races left to determine the balance of power in Congress, most Americans probably are ready to see Washington’s political temperature come down.
Certainly, swapping out the recent campaign’s hot rhetoric for a cooler, more pragmatic approach to policy making benefits American energy – and by extension, American families and businesses.
So, while President Biden told reporters this week he will not “change anything in any fundamental way,” the hope here is that there will be real opportunities for bipartisan progress in strengthening Washington’s support for U.S. natural gas and oil – which could bring significant benefits in terms of energy production, economic growth and energy security, today and tomorrow.
America and the world face daunting energy challenges that American natural gas and oil leadership is uniquely positioned to address – bringing relief from tight energy markets that will benefit consumers here and abroad.
As we say, Washington support for natural gas and oil in the near- and long-term future is needed to improve the climate for capital acquisition and investment in new production and infrastructure. Policies leading to increased access to resources, offshore and onshore, and increased infrastructure development should follow.
Our hopeful expectation is that whatever the power balance between Democrats and Republicans in Congress, there will be more focus on substantive energy solutions for American families and businesses.
This should help reduce partisanship – such as the president’s “no more drilling” comments, which simply isn’t a realistic stance for the world’s leading natural gas and oil producer – and a distraction from the serious policy conversations that should be held.
Put permitting reform on the wish list. Maybe now Congress will revisit previously proposed improvements that are needed not just by natural gas and oil development, but for other energy sources as well. Rapidan Energy’s Bob McNally on CNBC’s Squawk Box:
“That proposal had a lot that the [natural gas and oil] industry wanted. The environmentalists wanted it even more, because you really need that permitting proposal to get building the transmission we need to get renewables.”
Conversely, we can hope the end of the election campaign means the end of some counterproductive ideas that were floated, including restricting U.S. energy exports. Helima Croft, RBC Capital Markets managing director, told CNBC that restricting refined products exports would leave European allies, dependent on American fuels, in a “very terrible position.” McNally called a product export ban “one of the dumbest ideas in energy policy.” He added:
“I don't know of an energy expert who thinks it's a good idea. It would be a gift for Putin, a gut punch for our allies and wouldn't lower gas prices. There are folks in the administration, to be fair, who are opposed. There's an internal debate, but they're ready to hit the panic button and prices go back up.”
Again, however the remaining congressional races pan out, America’s natural gas and oil producers continue to be committed to advancing U.S. energy. If properly supported by policy, American natural gas and oil’s value as a strategic asset can help increase global supplies, help drive down prices, increase stability in energy markets and protect against dangerous geopolitical crosscurrents.
