An Update on Federal Energy Policy

Obama Rejects Keystone Pipeline

In a predictable but alarming move, President Obama is prohibiting construction of the long-debated Keystone Pipeline. While their is no “silver bullet” for U.S. energy policy, constant improvement in energy infrastructure is central to growth-based policy. In oil and natural gas, attention is more often given to production activity, but midstream and downstream assets are equally as important to a long-term, consumer-focused policy. The addition of transportation assets, like Keystone, will only help stabilize the U.S. energy portfolio. Read more here.

Ozone Rule Constantly Called into Questions

H. Sterling Barrett calls into question the EPA’s health reasons for backing the newly proposed Ozone Rule. The rule will place economic sanctions on additional counties across the U.S. with little reason to expect much in the way of benefits. Barrett goes on to say, “EPA should withdraw its proposal to tighten the ozone standard and acknowledge the current standard already protects Americans’ health—with room to spare.” Read his editorial here.

EPA Announces New Rules to Cut Methane Emissions

At a remarkable pace, EPA is issuing costly new rules adding more uncertainty and limiting U.S. industrial growth. Just this week, EPA has now proposed rules targeting methane emissions in the oil and gas industry.

To be clear, a huge share of economic growth in the U.S. since the recession has been the result of the shale energy revolution. The jobs generated in this sector and indirectly through growth in manufacturing pay 2-3 times the private sector average wage. Does it make sense for EPA to inject more uncertainty and cost burdens? Read more here.