Senate Energy Committee Approves Measures to Enhance Domestic Energy Production and Exports

The U.S. Senate Energy Committee has approved two measures to enhance domestic energy production and exports, the Offshore Production and National Security (OPENS) Act and the Liquefied Natural Gas (LNG) Permitting Certainty and Transparency Act. These measures aim to lift the ban on crude oil exports and improve the approval process for exporting liquefied natural gas (LNG) to countries that do not have free trade agreements with the United States.

Key Takeaways:

• The OPENS Act lifts the ban on crude oil exports, which is supported by studies from the U.S. Energy Information Administration, the Brookings Institute, and the Harvard Business School.
• The LNG Permitting Certainty and Transparency Act improves the approval process for exporting LNG, requiring the Secretary of Energy to make a decision within 45 days of a completed environmental review document.
• The act is a compromise between LNG export proposals offered by Republicans and Democrats, resulting from negotiations between Energy Secretary Ernest Moniz and Senator John Hoeven.
• The bipartisan energy bill approved by the Senate Energy Committee includes the LNG Permitting Certainty and Transparency Act.
• The legislation aims to reduce flaring by opening up markets for natural gas produced in the United States.
• Senator John Hoeven helped introduce the Energy Supply and Distribution Act of 2015, which lifted the ban on crude oil exports, with Senate Energy Committee Chairman Lisa Murkowski in May 2015.
• Senator Hoeven also introduced the LNG Certainty Act in the last Congress, which required the Department of Energy to make a decision within 45 days of a company completing an LNG export application with the Federal Energy Regulatory Commission (FERC).

Statistics:

• The U.S. Energy Information Administration estimates that lifting the ban on crude oil exports will support the continued growth of the domestic oil industry.
• The Brookings Institute estimates that lifting the ban on crude oil exports will lead to lower gasoline prices at the pump for consumers.
• The Harvard Business School estimates that lifting the ban on crude oil exports will lead to more economic growth and jobs.
• The LNG Permitting Certainty and Transparency Act aims to improve the approval process for exporting LNG by reducing the time it takes to make a decision from an average of 228 days to within 45 days.

Sources:

• Senator John Hoeven's press release
• U.S. Senate Energy Committee
• Energy Supply and Distribution Act of 2015
• Brookings Institute
• Harvard Business School
• U.S. Energy Information Administration