Energy & Entrepreneurs

Positive Steps on Energy Policy from House Committee

by Raymond J. Keating

As energy costs rise, and uncertainty persists in the key oil-producing areas of North Africa and Middle East, the U.S. has not exactly been aggressive in altering public policy to boost domestic production. Indeed, the policies emphasized by the Obama administration - including EPA greenhouse gas regulation and keeping vast offshore energy resources off limits - have been explicitly anti-domestic production.

However, some positive signals have been emerging from the new Congress.

For example, on April 13, the House Natural Resources Committee approved three pieces of legislation that would be clear plusses for domestic energy investment and production.

• The Putting the Gulf Back to Work Act (HR 1229) was approved by the committee by a vote of 27-16. The act would set a clear timeline for issuing drilling permits in the Gulf of Mexico, with the Interior secretary having 30 days to issue a decision (with the option of extensions for two 15-day periods).

• The Restarting American Offshore Leasing Act Now (HR 1230), which passed the committee by 29-14, would require the administration to move ahead with offshore lease sales in the Gulf of Mexico and offshore Virginia that have been put off or canceled by the President.

• The Reversing President Obama's Offshore Moratorium Act (HR 1231) would lift the President's ban on new offshore drilling, specifically, as noted in the legislation, it would "require that each 5-year offshore oil and gas leasing program offer leasing in the areas with the most prospective oil and gas resources." HR 1231 also passed the committee by a vote of 29-14.

Committee Chairman Doc Hastings (R-WA) declared: "For the past two years the Obama Administration has actively blocked access to our American energy resources, increasing our reliance on foreign countries to meet our energy needs and costing American jobs. I hope the full House will soon consider these bills to unlock our energy resources in order to lower energy costs, create good-paying jobs and strengthen our national security."

Chairman Hastings is on target in his observations. Indeed, at the moment, 85% of U.S. offshore resources are off limits to development. How does that make any sense in terms of energy policy? Clearly, it does not.

Energy policy needs to lay a sound foundation whereby market players are free to explore and develop energy resources that meet the demands of consumers and businesses. Unfortunately, the President is caught up in playing politics, including listening to special interests that prefer taxpayer subsidies for non-economic energy sources, rather than simply clearing the path for domestic energy development that makes economic sense. The House Natural Resources Committee, however, is working in a far more productive direction. We need Congress and the White House to follow. If so, investment, entrepreneurship, economic growth and job creation will benefit accordingly.

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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.