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Trump’s Administration Can Supercharge America’s Energy Comeback Even Further

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From the Daily Caller News Foundation

By Curtis Schube

One of the first executive orders President Trump issued was “Unleashing American Energy.”

It begins an effort to undo the harm caused by the Biden administration’s unprecedented assault on the American energy sector. It overturns President Biden’s own destructive executive orders, including those canceling oil leases and prioritizing environmental regulations over the good of the economy and producing reliable energy.

It also orders that unduly burdensome energy regulations be rescinded. Trump’s EO forthrightly states that its goal is to encourage energy production “to meet the needs of our citizens and solidify the United States as a global energy leader.”

This executive order takes the nation in a whole new direction. It orders the agencies to audit their policies to weed out burdensome regulations that impact energy development. It terminates the infamous Green New Deal. It prioritizes employment and economic impacts in energy policy. It also revokes a Jimmy Carter Executive Order to reduce the burden on environmental studies that notoriously hold up energy projects.

One reform that met less pomp and circumstance, but is not lacking in impact, is permitting reform. President Trump’s Order instructs agencies to “eliminate all delays within their respective permitting processes including … the use of general permitting and permit by rule.”

This type of permitting reform should impact all American lives for the better. We all know how difficult permits can be to obtain, even if on a smaller scale than energy. When making an addition to a house, for example, one must submit it to government and pray that everything is correct.

Then, the waiting game begins as the government reviews the application, requires possible alterations at the its whim, then, eventually at some point, the project can move forward. It can be expensive and time consuming, and sometimes may deter people from even trying.

The same applies on a larger scale. Permits for major projects, like an oil well, can take years, even a decade or longer, to jump through all of the hoops. And, as the federal government is the gatekeeper to many different varieties of activities that require a permit, whoever is in charge of the executive branch can cripple a project.

Permits by rule and  general permits simplify the process drastically and ease the burden on both the applicant and the government. They are simple and predictable. For both types of permits, the government will first pre-determine the required criteria for someone to meet before the permitted conduct can commence. The government will promulgate the standards for all to see and know.

The applicant, knowing exactly what is required to perform the permitted conduct, can get a project moving quickly. For a general permit, no contact with the government is even needed. A permittee can begin a project so long as it satisfies the pre-set standards.

For a permit by rule, the applicant simply has to certify to the government, in writing, that all the criteria have been met. In response, the government can only check to see if the correct certifications are made and then either approve it or return the certifications with an explanation of which ones are not met. This is done in a short period of time, such as 30 days.

In both cases, the government has no discretion on a case-by-case basis. Instead of focusing its efforts as a gatekeeper for permits, the government will only focus on permittees who have not met the criteria, but after the permittee has begun its project. The government’s role is focused on enforcement actions.

Both sides benefit from this system. For those who behave correctly, the permitting process does not hold up projects. For the government, the resource drain for overseeing permitting is drastically reduced. The government only has to focus its attention on the minority of parties.

This system also has a built-in deterrent. If a permittee were to begin a project, only to have the government shut the project down at a later time through an enforcement action, the permittee would lose a significant investment.

The true benefit is to the American people. If energy companies can have a quick and expedited form of permitting, then the supply of energy can expand quicker. This makes the cost of energy, and all products, cheaper. In the wake of natural disasters, rebuilding can happen quicker. Infrastructure can be put in place faster. The benefits go on and on.

Permitting reform, such as that referenced in President Trump’s Executive Order, is a fantastic first step toward a more efficient government. His agencies should take full advantage and convert as many permits as possible to a permit by rule or general permit as soon as possible.

Curtis Schube is the Executive Director for Council to Modernize Governance, a think tank committed to making the administration of government more efficient, representative, and restrained. He is formerly a constitutional and administrative law attorney.

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Misguided Climate Policies Create ‘Real Energy Emergency’ And Permit China To Dominate US

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From the Daily Caller News Foundation

By Mariane Angela

Interior Secretary Doug Burgum warned on Fox Business Tuesday about America’s deepening energy shortfall and said that misguided climate policies could give China the upper hand in both the global energy race and artificial intelligence development.

House lawmakers voted 246-164, with support from 35 Democrats, to overturn a Biden-era EPA rule that lets California enforce a de facto national ban on gas-powered cars by 2035. During an appearance on “Kudlow,” Burgum said that U.S. energy shortfalls could allow China to outpace America in artificial intelligence and other power-hungry technologies.

“The real energy emergency that we have right now is that we don’t have enough energy in this country. We’re losing the AI arms race to China, and we’ve got to have more energy and more power right now in the country. And so that’s one of the things that we’re focused on right now,” Burgum told host Larry Kudlow.

Burgum blasted California’s aggressive emissions standards, which he said have effectively become national policy.

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“Let’s start with California, Larry. That would be a great idea, because there’s 14 other states that followed California. So basically we’re stuck right now. Automakers feel like they’ve got to build two kinds of cars in America, one for California standards and one for the rest of the country,” Burgum said. “Of course, we know that the California standards are based on a bunch of falsehoods around emissions, because if we want zero carbon fuels, it’s much cheaper.”

Burgum took particular aim at electric vehicle subsidies, calling them a boondoggle built on climate ideology. He also called electric vehicle subsidies economically reckless since the cost of avoiding a single ton of carbon dioxide exceeds $900.

“It’s 10 to 15 times cheaper to have zero carbon liquid fuels than it is to subsidize EVs. The EV subsidies, where the real bank was, the thing that was really breaking the bank, over $900 for an avoided tonus of CO2, and all of that built around climate ideology,” Burgum said.

Republican Pennsylvania Rep. John Joyce introduced a resolution under the Congressional Review Act to stop California’s zero-emission vehicle mandate, which several other states have adopted. If the Senate doesn’t act, the Environmental Protection Agency would face a lengthy rulemaking process to reverse the policy that will allow California’s stricter standards to remain in effect for years.

The states that have opted in to California’s auto rules include Colorado, Delaware, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, and the District of Columbia.

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Energy

It’s time to get excited about the great Canadian LNG opportunity

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  By Stewart Muir

Canada has a rare window to join the big leagues of LNG exporters—Qatar, Australia, and the United States are not waiting around, and neither should we.

I sometimes catch myself staring out over the waters of British Columbia’s coastline — so calm, so vast, so brimming with unspoken opportunity — and I can’t help but wonder how anyone could fail to notice the promise that Liquefied Natural Gas (LNG) represents for our nation’s future. This country sits atop some of the largest gas reserves on Earth, and we have two coasts eager to connect our product to global markets.

I’m a quietly enthusiastic type by nature, and I don’t often indulge in the “I-told-you-so” routine, but whenever I encounter someone who just hasn’t cottoned on to the excitement around LNG, I feel compelled to stage a gentle intervention.

In my day-to-day role as CEO of Resource Works, I work with communities from Fort St. John to Kitimat, and beyond. Let me assure you, if you want to see Canadians at work, proud of their craft, and eyeing a brighter future, you’ll find them along the pipeline routes and port terminals that are part of our budding LNG industry. And they’re just as commonly found in Vancouver, Victoria and the other cities, just harder to spot with no blue coveralls.

I’ve been following the natural gas story in British Columbia for more than a quarter of a century, going back to my days in the media field. As an editor at The Vancouver Sun, I created the paper’s first-ever energy beat after we noticed something big was stirring in the North East gas fields. It turned out to be an industry animated by regulatory innovation, rich geology, ambitious investors, and some of the most capable people you’ll ever meet.

When talk of LNG exports began to stir in 2011, I dove in with both feet. Over the past 15 years, I’ve followed the LNG file across Canada, around the world, and deep into the heart of British Columbia.

Along the way, I’ve met First Nations chiefs who proudly showed me the schools and businesses they built through new partnerships. I’ve also sat down with those who remain skeptical and had honest, sometimes searching conversations. I’ve learned something from all of them. This is an industry that, at its best, brings people together to solve problems, create opportunity, and build a future worth caring about.

Why am I still so enthused after all these years? LNG is not a flash in the pan, for starters. Through cyclical ups and downs—natural phenomena in any commodity game—international forecasts consistently show that LNG demand won’t be evaporating tomorrow or, quite likely, for several tomorrows yet. The International Energy Agency, the Canada Energy Regulator, and even the U.S. Energy Information Administration all point to steady growth in global LNG trade.

On top of that, if you follow the money, you’ll see billions of dollars flowing into new regasification terminals and record orders for LNG carriers. I may be old-fashioned, but I’ve always found that when so many investors plunk down their capital in one place, it’s seldom a fluke. The world has more than 700 LNG ships plying the seas these days, and hundreds more under construction. That’s not a small bit of confidence.

And let’s talk local: from where I sit, Canada’s jobs outlook tied to LNG looks like a real tonic for communities seeking new opportunities. Construction alone can employ entire regions. Then come the careers that last decades—plant operators, engineers, port and shipping managers, the works. It’s the sort of diversified prosperity that a resource economy yearns for.

We’ve even seen First Nations communities take equity stakes in major LNG projects, forging new partnerships that benefit everyone involved. That’s the model of inclusive economic development that Canadians like to talk about. It’s called walking the walk.

Those voices of skepticism — bless their hearts — sometimes say, “But what about price volatility? The commodity cycles? Are we sure this is sustainable?” Truthfully, no commodity is immune to upswings and downswings. But open a newspaper — digitally or in paper form, your choice— and you’ll find that countries all over the world are expanding their LNG-import infrastructure. Many of them, especially in Asia and Europe, see Canada as a steady, well-regulated, and (importantly) speedy supplier.

Yes, “speedy” might be an odd descriptor for us easygoing Canadians, but let’s not overlook that a West Coast port is only about eight or nine sailing days from major Asian markets, versus more than 20 from the U.S. Gulf Coast. You’d think we’d have lines of ships lined up right now, just for that advantage.

There’s another subtlety that some folks overlook. Right now, much of our gas still flows to the United States, often at discounted prices, only to be converted into LNG down there and sold globally at a premium. If that doesn’t make you shake your head in wonder, I’m not sure what will. Canadians have every reason to want to keep some of that up-chain value right here at home, funneling more of that revenue into local jobs and public coffers. That’s exactly the sort of well-to-customer supply chain we’re poised to build.

And if you’re still not impressed, consider the big jolt to GDP whenever a massive energy project crosses the finish line. Look no further than the Trans Mountain pipeline expansion: once it was substantially complete last year, the national GDP got a measurable jolt. It’s extremely rare that a single anything shows up that way. Now, with the first shipment of Canadian LNG preparing to leave Kitimat in the coming weeks, we can expect a repeat performance. It’s the real economic equivalent of an encore, if you will. And who doesn’t love an encore that boosts paycheques and government revenues?

Canadians may be known worldwide for politeness and hockey, but let’s not forget that boldness is also in our national DNA. Building a robust LNG sector that ties Western and Eastern Canada to major global markets is about as bold an economic strategy as we could pursue right now. Some might call it visionary, others might say it’s just common sense in a world that still demands substantial amounts of energy. Either way, Canada has a rare window to join the big leagues of LNG exporters—Qatar, Australia, and the United States are not waiting around, and neither should we.

At the end of the day, seeing Canadians capture more of the value from our natural resources rather than shipping it across the border at a discount is, for me, both pragmatic and patriotic. It’s the kind of deal that makes you wonder why anyone would hesitate. Perhaps that hesitation is just a bump in the road of public discourse—something we can gently, politely, and persistently overcome.

I, for one, am excited for the first shipment of LNG out of Canada’s West Coast, due any week now. A top executive with the project once whispered to me that the maiden cargo would be worth $100 million, but lately I’m hearing a single shipload is now probably worth double that.

So yes, I’m looking forward to the day when it’s not just a handful of tankers leaving our ports, but a regular fleet serving global customers. It will lift up the whole country, just as it has contributed to America’s tearaway economy in recent years and elevated Qatar from desert outpost to World Cup host nation.

Soon, maybe all the doubters will have recognized the obvious — and joined the rest of us on the bandwagon with front-row seats to Canada’s LNG future. Sure, I’m biased, but only because the facts keep reinforcing that this sector is poised to do a world of good for Canadians from coast to coast.

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