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We need permitting reform to unlock U.S. energy security

by · The Washington Times

OPINION:

Global energy markets are once again facing renewed uncertainty as tensions in the Middle East raise concerns about the reliability of key supply routes, including the Strait of Hormuz.

The disruption through these corridors has quickly rippled across global oil and liquefied natural gas markets. Now more than ever before, U.S. energy development plays a stabilizing role, but that potential cannot be realized without timely and effective permitting.

In practice, delays and uncertainty in the current permitting system can stall projects for years before development even begins.

After a two-year intermission, the first oil and gas leasing sale during the Trump administration was held in December. Thirty companies, including BP, Chevron and Woodside Energy, submitted hundreds of bids totaling $372 million across 80 million acres, according to the Department of the Interior.

This reflects continued interest in offshore development, but interest alone does not ensure projects will move forward.

Last year, significant strides were made to boost U.S. energy development. This is a dramatic shift from the previous administration’s energy strategy, which directed the cancellations of three high-profile offshore oil and gas leasing sales. That decision severely damaged domestic production and available supply.

Decisions such as these don’t just affect activity in the moment; they also shape the trajectory of future energy development. Offshore projects depend on consistency and long-term planning, and disruptions in leasing can delay investment, limit future supply and make it more difficult to meet growing energy demand.

More than 2,200 active oil and gas leases are underway on the Outer Continental Shelf across more than 12 million offshore acres, with thousands of associated permitting authorizations.

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The scale and breadth of this activity reinforce the need for a more streamlined and predictable permitting process.

As global energy demand grows and allies seek stable suppliers, expanding responsible U.S. energy development remains critical. A predictable and reliable domestic energy supply not only strengthens resilience at home but also enables the United States to support allies abroad and contribute to a more balanced global energy market.

Leasing is only one step. Without a predictable permitting process, projects can stall for years before development begins.

For instance, without timely authorizations to proceed under the Marine Mammal Protection Act, offshore operators often cannot advance to basic exploration activities, let alone apply for permits to install infrastructure. As a result, the success of any leasing sale is inherently limited.

Simply expressing interest through lease bids does not guarantee that projects will happen. Securing the necessary environmental and operational approvals can take years, delaying or preventing the development of even the most promising resources.

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Recent legislative efforts reflect growing recognition of this challenge. The U.S. House of Representatives passed the SPEED Act as part of a broader effort to address permitting bottlenecks that have long stifled the deployment of energy and infrastructure projects.

Additional efforts aim to modernize and digitize environmental review processes, improve coordination, increase transparency and reduce unnecessary delays.

With the most recent Outer Continental Shelf oil and gas leasing sale now complete, the opportunity to expand offshore development is clear. The auction included more than 141,000 acres in federal waters of the Gulf of America and received just under $70 million in bids from 13 companies.

This highlights the scale of untapped potential and the scope of the permitting challenge.

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Again, the Marine Mammal Protection Act is where this dynamic is most visible. It has become a source of delay rather than a pathway for responsible development. Although the law was intended to provide a clear framework for managing offshore activity, its current structure has become a roadblock to energy and infrastructure projects.

Energy exploration has coexisted with marine mammals for decades, with no demonstrated link between geoscience activity and adverse impacts. This track record shows that responsible development and marine protection can and do coexist.

Offshore leasing can be a source of significant energy and economic activity, but without timely and effective permitting, that potential will not be realized. Ensuring that U.S. energy projects can move forward is critical to our nation’s energy security.

Lawmakers should prioritize targeted permitting reforms, including advancing legislation such as the SPEED Act and addressing inefficiencies in regulatory frameworks, such as the Marine Mammal Protection Act, to provide clarity, reduce delays and ensure that projects can move forward.

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• Dustin Van Liew is senior vice president of Global Policy at EnerGeo Alliance.

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