Senior executives from oil and gas companies including ExxonMobil, bp, and Chevron have called on Congress to pass the bipartisan American Jobs and Costs Act, which is intended to improve the permitting process and facilitate investment in energy projects. This request was articulated in statements gathered by the American Petroleum Institute (API).
Challenges in the Permitting System
The executives of these companies have stated that this legislation could modernize the permitting system, which currently causes delays in energy infrastructure projects, increases costs, and reduces the willingness to invest. Darren W. Woods, Chairman and CEO of ExxonMobil, said: "America cannot build the energy projects it needs if approvals take years and outcomes remain uncertain. A fast and predictable permitting process is vital for providing affordable energy and enhancing U.S. competitiveness."
Support for the Legislation and Its Impacts
This request is not limited to producers; midstream operators and service companies have also expressed their support for this legislation. Toby Rice, President and CEO of EQT, emphasized: "America has no shortage of energy. We have a shortage of permits to build." Greg Abel, CEO of Enbridge, also highlighted the importance of building projects, stating: "If we can’t build it, we can’t finance it." Mary Ann Mannan, President and CEO of Marathon Petroleum, added that this legislation could "reduce legal barriers to project development, including the expansion of oil and gas pipelines."
Other companies that have supported this legislation include bp, ConocoPhillips, Devon Energy, Halliburton, Plains All American, Shell USA, TC Energy, Williams, and Woodside Energy. These companies have stressed that greater certainty in the permitting process is essential to unlock investment and meet the growing energy demand.
This legislation has been negotiated by White House officials and a bipartisan group of senators, including Democrats Martin Heinrich from New Mexico and Sheldon Whitehouse from Rhode Island, and Republicans Shelley Moore Capito from West Virginia and Mike Lee from Utah. The U.S. Senate is expected to address this legislation after the November midterm elections.
