By Arathy Somasekhar
HOUSTON, March 20 (Reuters) - U.S. energy permitting
delays and the need for streamlined new project reviews
dominated conversations among oil and gas executives and
lawmakers in meeting rooms and hallways at the CERAWeek energy
conference this week.
The fossil fuel industry historically has objected to red
tape that slows or raises development costs. But the topic has
moved higher on their agenda after U.S. President Joe Biden's
administration hit pause on reviews of permits of new gas export
plants as rules governing clean-energy incentives undercut
enthusiasm around the Inflation Reduction Act.
Permitting for pipelines to wind farms have all been
"equally daunting," said Colin Gruending, an executive vice
president at Enbridge ( ENB ), which transports fuels for refineries and
liquefied natural gas plants, and invests in solar and wind
farms.
"Policy is at bit of an intersection right now, given the
energy transition and uncertainties," he added.
The energy industry is facing "punitive executive orders,
punitive polities and punitive interpretations by agencies,"
said Toby Rice, CEO of top U.S natural gas producer EQT Corp ( EQT )
.
"Permit reform is the answer," he said.
The complaints have important allies in U.S. Senators Joe
Manchin and Daniel Sullivan, both if whom vowed to work on
legislation streamlining approvals for new infrastructure.
Manchin, a West Virginia Democrat, promised the legislation
addressing the industry's needs is at the top of his Senate
energy committee's agenda this year. "We want to get it done,"
he said.
Sullivan, a Republican of Alaska, agreed. "It is imperative
that we get it done and I do think there's the political will,"
he said.
U.S. Energy Secretary Jennifer Granholm and White House
climate advisor John Podesta said President Joe Biden's
administration is willing to advance permitting changes, but
blamed a lack of cooperation with legislators.
"We're doing what we can on the executive side," Granholm
said."
The Biden administration's pause on permit reviews for new
liquefied gas export plants was a punching bag for gas, pipeline
and energy trading executives.
Permitting reform is something they "desperately need", said
Michael Dunn, chief operating officer of pipeline operator
Williams Companies ( WMB ). "We cannot have this continue."
Executives regulatory uncertainty has hindered investment in
the oil and gas industry and encouraged global customers,
especially for liquefied natural gas, to seek supplies
elsewhere.
"There's potentially a view that there's an uncertain policy
for the long term and that inhibits or makes people take pause
on investments," said Corey Prologo, Trafigura's North America
Oil Trading chief. "There's less certainty around investment
decisions probably than there ever has been."
LNG buyers may sign deals with suppliers in Qatar, Australia
or Russia if the U.S. expansion is stalled.
"There are real world consequences happening right now. I
mean, Japan just signed a contract with Russia. So would they
have done that without this pause? I doubt it," said Mike
Sommers, president of energy trade group American Petroleum
Institute.
Asked about the LNG permitting pause, Secretary Granholm
said the reviews would be "long behind us" by this time next
year.