Administration Regulatory Hurdles Halting Energy Development

Jeff Eshelman // President and CEO, Independent Petroleum Association of America

March 9, 2023

While the Biden administration consistently claims it has made emissions reduction a significant priority, its actions behind the scenes with permitting delays, a rapid decline in oil and natural gas leases, and other regulatory roadblocks tell a different story. These backlogs are obstructing growth across the energy value chain and preventing progress on the very low-carbon goals the administration has claimed to support. The Department of the Interior announced Wednesday that it will not issue the next five-year offshore oil and gas leasing plan until December. In addition to oil and gas leasing, the Biden administration is also halting progress on key emissions reduction programs by delaying Carbon Capture and Sequestration (CCS) permitting. While the administration boasts about new tax credits that promote carbon capture with the passage of the IRA, these incentives are meaningless if developers are unable to actually implement projects.Energy projects across the country – including grid transmission lines, natural gas pipelines, as well as wind and solar farms – are also facing significant permitting delays. On Monday at CERAWeek, White House Energy Advisor John Podesta recognized these issues when he stated: “The permitting process for clean energy infrastructure, including transmission, is plagued by delays and bottlenecks. To be sure, plenty of delays happen at the state local level and those need to be addressed. But there’s plenty that we can do and must do federally.” Read more.