House Republicans Urge Energy Agencies to Approve Permits for Natural Gas Pipelines and LNG Facilities

Strategic Insights -

Cathy McMorris Rodgers, Republican Leader of the House Energy and Commerce Committee, and Fred Upton, Republican Leader of the Energy Subcommittee, have sent letters to the Secretary of Energy, Jennifer Granholm, and the Federal Energy Regulatory Commission (FERC) to expedite the approval of permits for natural gas pipelines and liquefied natural gas (LNG) export facilities. Their aim is to strengthen America's energy security and reduce Europe's dependency on Russian oil and natural gas.

The Republican leaders argue that the current energy policies of the Biden administration have weakened the country's energy security by revoking the Keystone XL pipeline permit, imposing a moratorium on fossil energy development, and stifling U.S. energy production through bureaucratic delays and regulatory uncertainty. As a result, crude oil prices have reached seven-year highs, U.S. inflation is surging, and Russia has increased its grip on European energy supplies and global markets.

Key Takeaways:

  • The House Energy and Commerce Committee's Republican Leader Cathy McMorris Rodgers and Energy Subcommittee's Republican Leader Fred Upton have sent letters to Secretary of Energy Jennifer Granholm and FERC Commissioners urging them to expedite the approval of natural gas pipelines and LNG facilities.
  • The goal is to strengthen America's energy security and reduce Europe's dependency on Russian oil and natural gas.
  • The Biden administration's energy policies have been criticized for weakening energy security, including the revocation of the Keystone XL pipeline permit, imposition of a moratorium on fossil energy development, and stifling U.S. energy production through bureaucratic delays and regulatory uncertainty.
  • The policies have resulted in seven-year high crude oil prices, surging U.S. inflation, and Russia's increased grip on European energy supplies and global markets.
  • The United States is the world's leading producer of natural gas and is on track to be the world's largest exporter by the end of 2022.
  • However, a lack of pipeline and LNG export capacity is hindering the country's ability to respond to global energy price spikes and support allies in Europe.
  • Regulatory uncertainty and delays have led to the cancellation of at least four major U.S. pipeline projects, restricting nearly 10% of U.S. natural gas production.
  • Members request a response from Secretary Granholm and FERC Commissioners by March 9, 2022, explaining the delays and outlining steps to expedite authorizations.

Statistics:

  • The United States is the world's leading producer of natural gas.
  • The country is on track to be the world's largest exporter of natural gas by the end of 2022.
  • At least four major U.S. pipeline projects have been canceled due to regulatory uncertainty and delays, restricting nearly 10% of U.S. natural gas production.
  • The cancelation of these pipelines has impacted over 25 million homes.
  • Crude oil prices have reached seven-year highs.
  • U.S. inflation is surging.

Sources:

  • House Energy and Commerce Committee press release, [no date provided]
  • Letter from Cathy McMorris Rodgers and Fred Upton to Secretary of Energy Jennifer Granholm, [no date provided]
  • Letter from Cathy McMorris Rodgers and Fred Upton to FERC Commissioners, [no date provided]