Released January 15, 2025 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The American Petroleum Institute (API) is "excited" by the "pro-energy" officials that voters sent to Washington last November, and the organization looks forward to working with President-elect Donald Trump and GOP majorities in the House and Senate to implement five clusters of energy priorities, API President and Chief Executive Mike Sommers told reporters Monday in a conference call.
"American energy was on the ballot in November, and energy won," Sommers said. "Voters wanted lower inflation and increased energy production." They "rejected" President Biden's "assault on energy development," he continued, and they "welcomed Trump's plan to increase energy production."
Accompanying the media outreach, the API released its five-point recommended energy policy roadmap for the new Congress and administration. The actions the group supports are clustered under these five headings:
Each cluster of the API's recommended initiatives had several parts. In all, the group recommended 70 initiatives. Here is a rundown on the major elements.
Protect Consumer Choice: The API wants to repeal the Biden-era rule requiring that electric vehicles (EVs) account for 67% of new vehicle sales by 2035. Sommers said voters "roundly rejected" Biden's attempt to determine what kind of vehicles they can drive. The API also called for repealing the final rule on vehicle tailpipe emissions from the Environmental Protection Agency (EPA), repealing the higher Corporate Average Fuel Economy (CAFE) vehicle mileage requirements enacted by the National Highway Traffic Safety Administration, and rescinding the practice that allows California to adopt on vehicle emissions that are more-stringent that federal regulations.
"These policies are out of step with consumer demand and deepen our dependence on China," the roadmap report said. "Smart policy certainly has a role to play in reducing emissions from the transportation sector, but these efforts should instead take a life-cycle approach, be technology-neutral and implemented on a workable timeline."
Click on the image at right to see information from the International Energy Agency (IEA) on China's share of minerals necessary for EVs.
Bolster Geopolitical Strength: The API roadmap urged the Trump administration and Congress to: lift the Department of Energy's (DOE) liquefied natural gas (LNG) permitting pause; swiftly process all pending export applications now at the DOE; and ensure the open access of American energy to global markets.
"America benefits enormously from being a net energy exporter and (the incoming) administration should continue to speak clearly and without equivocation about our intention to remain the supplier of choice for allies around the world," the report said.
It continued: "Nowhere is the value of energy as a geopolitical strength clearer than U.S. LNG. Increased U.S. LNG exports are critical to reducing America's trade deficit and are a key competitive edge against China, Russia and other bad actors. It is also a proven way to reduce emissions via displacing dirtier fuels--the same winning recipe that has allowed the U.S. to lead the world in emissions reductions."
Leverage Natural Resources: Greater geopolitical strength can be achieved, in part, by leveraging domestic energy resources, the roadmap said. The API called for: enacting a new five-year offshore leasing program from the Bureau of Ocean Energy Management (BOEM), repealing restrictive onshore leasing rules and repealing the methane fee enacted by the EPA.
Sommers was particularly critical about the Biden administration's recent decision to ban future lease sales in 625 million acres of federal offshore waters on the Outer Continental Shelf (OCS). For more on that decision, see January 7, 2025, article - Biden Bans Oil & Gas Development Along Outer Continental Shelf. He distinguished Biden's permanent ban from the temporary, 10-year moratorium Trump enacted during his first administration.
He urged Trump to reverse this ban on the first day of his new administration, January 20.
"Oil and natural gas production from federal lands and waters offers tremendous benefits to all and is using the highest safety and environmental standards," said the roadmap report. "Given the scale of our resource base, opportunities for development stretch decades into the future."
"Our allies must know that they can rely on U.S. energy leadership," Sommers told reporters. He added that some of the "Day 1" actions Trump could take include ending the "pause" on LNG permitting and overturning the Biden administration's decision to permanently ban oil and gas lease sales across 625 million acres of federal waters on the Outer Continental Shelf (OCS).
Reform the Permitting System: "Americans can't drive down the road without witnessing firsthand our failing infrastructure," the roadmap said. "Unfortunately, it is even worse than potholes and crumbling bridges. Burdensome regulations and government red tape have made it impossible to build anything in this country. Billions of dollars of investment and tens of thousands of American jobs are squandered because of our broken permitting process."
"We need smart, comprehensive permitting reform that ensures transparency, predictability, timeliness and durability," the report continued. "The permitting process has been weaponized by opponents of energy progress to stop projects before they even start. Reform will ensure we can build the infrastructure needed for today and for the future."
The "Lights on Energy" report urged the incoming president to "work with Congress to pass comprehensive energy permitting reform, including repealing the Biden administration updates to the National Environmental Policies Act (NEPA), reforming NEPA, reforming the Clean Water Act and clarifying when, where and who can file legal challenges to federal permitting decisions.
Advance Sensible Tax Policy: The report said the U.S. oil and natural gas industry "supports nearly 11 million jobs and is responsible for billions of dollars of domestic investment in 2025. But capital flows where capital is welcome, and U.S. tax policy must be competitive with other countries."
The group urged Congress and the incoming president to retain the 21% corporate tax rate, maintain and extend tax provisions for domestic infrastructure investment and preserve crucial international tax provisions.
Click on the image at right to see the U.S. capital outlays made by oil and natural gas companies since 2015.
Sommers said some actions can be undertaken by the incoming president by executive order on the first day of his administration while others may require a budget reconciliation act by Congress. "The reconciliation act appears to be the fastest train moving out of the station," he said. Still other rules that have been finalized will need to be undone according to the Administrative Procedure Act, which can take years. Sommers said his group would participate in the APA process to reverse finalized federal rulemakings.
"Durable actions that stand the test of time often means congressional action," the API chief told reporters.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"American energy was on the ballot in November, and energy won," Sommers said. "Voters wanted lower inflation and increased energy production." They "rejected" President Biden's "assault on energy development," he continued, and they "welcomed Trump's plan to increase energy production."
Accompanying the media outreach, the API released its five-point recommended energy policy roadmap for the new Congress and administration. The actions the group supports are clustered under these five headings:
- Protect Consumer Choice
- Bolster Geopolitical Strength
- Leverage Our Natural Resources
- Reform Our Permitting System, and
- Advance Sensible Tax Policy
Each cluster of the API's recommended initiatives had several parts. In all, the group recommended 70 initiatives. Here is a rundown on the major elements.
Protect Consumer Choice: The API wants to repeal the Biden-era rule requiring that electric vehicles (EVs) account for 67% of new vehicle sales by 2035. Sommers said voters "roundly rejected" Biden's attempt to determine what kind of vehicles they can drive. The API also called for repealing the final rule on vehicle tailpipe emissions from the Environmental Protection Agency (EPA), repealing the higher Corporate Average Fuel Economy (CAFE) vehicle mileage requirements enacted by the National Highway Traffic Safety Administration, and rescinding the practice that allows California to adopt on vehicle emissions that are more-stringent that federal regulations.
"These policies are out of step with consumer demand and deepen our dependence on China," the roadmap report said. "Smart policy certainly has a role to play in reducing emissions from the transportation sector, but these efforts should instead take a life-cycle approach, be technology-neutral and implemented on a workable timeline."
Bolster Geopolitical Strength: The API roadmap urged the Trump administration and Congress to: lift the Department of Energy's (DOE) liquefied natural gas (LNG) permitting pause; swiftly process all pending export applications now at the DOE; and ensure the open access of American energy to global markets.
"America benefits enormously from being a net energy exporter and (the incoming) administration should continue to speak clearly and without equivocation about our intention to remain the supplier of choice for allies around the world," the report said.
It continued: "Nowhere is the value of energy as a geopolitical strength clearer than U.S. LNG. Increased U.S. LNG exports are critical to reducing America's trade deficit and are a key competitive edge against China, Russia and other bad actors. It is also a proven way to reduce emissions via displacing dirtier fuels--the same winning recipe that has allowed the U.S. to lead the world in emissions reductions."
Leverage Natural Resources: Greater geopolitical strength can be achieved, in part, by leveraging domestic energy resources, the roadmap said. The API called for: enacting a new five-year offshore leasing program from the Bureau of Ocean Energy Management (BOEM), repealing restrictive onshore leasing rules and repealing the methane fee enacted by the EPA.
Sommers was particularly critical about the Biden administration's recent decision to ban future lease sales in 625 million acres of federal offshore waters on the Outer Continental Shelf (OCS). For more on that decision, see January 7, 2025, article - Biden Bans Oil & Gas Development Along Outer Continental Shelf. He distinguished Biden's permanent ban from the temporary, 10-year moratorium Trump enacted during his first administration.
He urged Trump to reverse this ban on the first day of his new administration, January 20.
"Oil and natural gas production from federal lands and waters offers tremendous benefits to all and is using the highest safety and environmental standards," said the roadmap report. "Given the scale of our resource base, opportunities for development stretch decades into the future."
"Our allies must know that they can rely on U.S. energy leadership," Sommers told reporters. He added that some of the "Day 1" actions Trump could take include ending the "pause" on LNG permitting and overturning the Biden administration's decision to permanently ban oil and gas lease sales across 625 million acres of federal waters on the Outer Continental Shelf (OCS).
Reform the Permitting System: "Americans can't drive down the road without witnessing firsthand our failing infrastructure," the roadmap said. "Unfortunately, it is even worse than potholes and crumbling bridges. Burdensome regulations and government red tape have made it impossible to build anything in this country. Billions of dollars of investment and tens of thousands of American jobs are squandered because of our broken permitting process."
"We need smart, comprehensive permitting reform that ensures transparency, predictability, timeliness and durability," the report continued. "The permitting process has been weaponized by opponents of energy progress to stop projects before they even start. Reform will ensure we can build the infrastructure needed for today and for the future."
The "Lights on Energy" report urged the incoming president to "work with Congress to pass comprehensive energy permitting reform, including repealing the Biden administration updates to the National Environmental Policies Act (NEPA), reforming NEPA, reforming the Clean Water Act and clarifying when, where and who can file legal challenges to federal permitting decisions.
Advance Sensible Tax Policy: The report said the U.S. oil and natural gas industry "supports nearly 11 million jobs and is responsible for billions of dollars of domestic investment in 2025. But capital flows where capital is welcome, and U.S. tax policy must be competitive with other countries."
The group urged Congress and the incoming president to retain the 21% corporate tax rate, maintain and extend tax provisions for domestic infrastructure investment and preserve crucial international tax provisions.
Sommers said some actions can be undertaken by the incoming president by executive order on the first day of his administration while others may require a budget reconciliation act by Congress. "The reconciliation act appears to be the fastest train moving out of the station," he said. Still other rules that have been finalized will need to be undone according to the Administrative Procedure Act, which can take years. Sommers said his group would participate in the APA process to reverse finalized federal rulemakings.
"Durable actions that stand the test of time often means congressional action," the API chief told reporters.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
