The Permian Basin Petroleum Association and the Houston-based Energy Workforce & Technology Council are backing a new bill in the U.S. Senate that would cut red tape, enhance development opportunities in the oil and natural gas industry and lower energy costs for all Americans.
Introduced by Democratic Sen. Joe Manchin of West Virginia and Republican Sen. John Barrasso of Wyoming, the Energy Permitting Reform Act of 2024 would accomplish all those things and more, say PBPA President Ben Shepperd and EWTC Co-President Tim Tarpley.
“The PBPA is greatly encouraged by the efforts of Sen. Manchin and Barrasso regarding the bipartisan Energy Permitting Reform Act of 2024,” Shepperd said. “Unnecessary red tape has limited developmental opportunities and increased energy costs for everyone in the U.S.
“Although our country is blessed with abundant natural resources, for too long the outdated federal bureaucratic permitting system has strangled economic growth, limited our nation’s geopolitical strength and stood in the way of our ability to reduce international emissions.”
Shepperd said Manchin and Barrasso wrote legislation that would improve coordination, reduce permitting wait times, remove the LNG export ban, strengthen the nation’s electric grid, restore certainty to the leasing process on federal properties and increase American energy security.
Tarpley said the Permian Basin often finds itself at the mercy of federal government policies.
“As a prolific producer the Permian is central to America’s energy strategy,” Tarpley said. “However, the current permitting process is bogged down by bureaucratic delays and legal challenges. “As global energy demand surges the need for streamlining the permitting process has never been more urgent.”
Tarpley said the bill is pivotal to ensuring that the growing demand is efficiently met.
“Streamlining the permitting process is critical to building the necessary infrastructure to produce and export oil and gas quickly and efficiently,” he said. “This reform is essential to maintaining America’s energy leadership and global competitiveness.
“Far too often projects in the Permian are delayed for years due to unwarranted federal legal challenges and bureaucratic red tape, significantly extending project timelines and escalating costs for this critical energy-producing region.”
Tarpley said pipeline capacity carrying crude oil from the Basin to the Gulf Coast is currently operating at between 88- to 92-percent capacity.
“Permitting processes can take several years to complete, delaying project start times and increasing costs,” he said. “This prolonged timeline can be attributed to multiple layers of review, numerous regulatory requirements and the need for extensive documentation and assessments.
“The ongoing permitting reform legislation is about securing America’s position as a global leader in energy innovation and production.
“The security and stability of America’s energy future depend on passing this package. By reducing unnecessary delays and fostering a more efficient regulatory environment, we can ensure that the Permian Basin continues to thrive as a key contributor to national and global energy markets.”
Tarpley said ensuring timely project approvals would not only bolster domestic energy supplies but would also support American allies abroad, solidifying the United States’ role as a reliable energy partner amid increasing geopolitical tensions.
“The Energy Permitting Reform Act of 2024 is not just beneficial but essential for the sustainable growth and security of our energy sector,” he said. “It’s critical to pass this bill before the end of this Congress.
“It cannot wait until next year.”
