Unreasonable regulations can negatively impact economy, energy supplies and advancements in energy developments.
Everyone agrees that proper regulation and oversight is good. But when those regulations become excessive, it does little more than drain economic resources, stifle American ingenuity and opportunity, and hinder progress. You know what excessive red-tape can do to a good idea.
At a time when other countries are providing incentives to develop their own energy resources, the United States is the only country actively discouraging it. The bottom line is that what happens in the oil and natural gas industry reverberates throughout the entire economic spectrum.
Here are some examples:
There are also at least ten agencies analyzing the impacts of hydraulic fracturing increasing the concern for more federal regulations for a process which is already regulated at the federal and state level.
In reality, we know that hydraulic fracturing is a safe and proven technology. While it has only come on most people's radar in the last few years, this technology has been in use since Harry Truman occupied the White House - over 60 years ago. There are stringent standards, procedures, and regulations in place to ensure the safety of natural gas production using hydraulic fracturing based on nearly a century of experience in oil and natural gas drilling. And, a recent EPA study of hydraulic fracturing found the process to have no impact on drinking water and ground water.
Any future regulatory actions should be taken at the state level since states are the most qualified to address the local geologic, environmental and economic impacts. Hydraulic fracturing is a proven, safe technology that drives economic growth. We must avoid moratoriums and burdensome federal regulations that prohibit or delay its use.
Renewable Fuel Standard/Ozone
The EPA continues to propose onerous regulations in an effort to reduce potentially harmful emissions. The good news is that our nation is already on a path to lower emissions, especially with natural gas, largely thanks to the remarkable technological advances that now allow us to reach previously unreachable stores of energy. Stricter standards that place undue burdens on the development of these unnecessarily hurt our economy and cost jobs.
The EPA has mandated renewable fuel standards which would raise prices, damage engines, and hurt businesses which rely on corn for feedstock. The EPA has also proposed new ozone standards that lower ground-level ozone from 75 parts per billion to 65-70, which if enacted, could become the costliest regulation in U.S. history, jeopardize millions of jobs, and make the U.S. more dependent on foreign sources of energy (see the effect it would have in your state).
It is critical for both America's national security and economic security interests that we avoid placing these kinds of onerous burdens on our energy industry, throwing up roadblocks in our path to American energy independence.
Keystone XL Pipeline
The proposed Keystone XL Pipeline would have consisted of a 1,700-mile crude oil pipeline and related facilities that would bring more than 700,000 barrels of oil from Canada and oil from the Dakotas, Montana, and Oklahoma to refineries along the Texas Gulf Coast.
But after the pipeline was in the approval process for over six years, subjected to multiple reviews, and exhaustive analyses including three environmental reviews and an economic study, the administration denied approval for what appeasrs to be political reasons alone. Throughout the process, no major issues were raised to prohibit the approval of the project. But approval for this needed project from the Department of State was denied.
Note: Bi-partisan members of Congress and nearly 70% of Americans supported the Keystone XL Pipeline.
At a time when America needs economic stability and increased energy security, the government should not impose new taxes and fees on the oil and natural gas industry. What the country needs is more investment - not taxes.
The Administration is considering new taxes on the oil and natural gas industry, reducing the industry’s ability to develop new energy and improving our infrastructure. This makes us more dependent on foreign imports, and more vulnerable. America's energy industry spurs economic growth through hundreds of billions of dollars in investments each year, creating jobs and generating millions of dollars in government revenue. The industry delivers on average around $85 million per day to federal treasury in rents, royalties, bonus payments and income tax payments, and pays more percentage in tax than other industries.