Odessa oilman Kirk Edwards and the Texas Independent Producers & Royalty Owners Association say the re-election of President Trump should harbinger a new day in the oilfield with a cessation of politically motivated federal regulations and an emphasis on maximizing liquefied natural gas exports.
“Donald Trump easily wins and everyone assumes it will be ‘drill, baby, drill,’ but first we have to overcome many negative policies that are now staunchly in place,” Edwards said in a LinkedIn post. “Under the Biden administration the energy sector faced some serious regulatory challenges, especially in the oil and gas industry, which led to disruptions in the growth of domestic oil and gas production.
“For example, restrictions on new drilling leases, the pause on permitting LNG export terminals and tougher, arcane environmental regulations on drilling operations were stifling to our industry’s development.”
TIPRO President Ed Longanecker said the election’s results signify a new chapter for the Texas energy landscape, especially for the growing LNG industry, which has faced significant uncertainties and challenges under the current administration.
Edwards said one of the big opportunities with a new Trump administration will be to ease some of the regulatory bottlenecks, allowing oil and gas companies to ramp up production and infrastructure development particularly with respect to the Permian Basin.
“The current pipeline capacity constraints and the LNG export terminal limitations are real hurdles, but with the right policy shift those could be addressed, unlocking a much larger flow of energy exports,” he said. “This can and will help counterbalance Russia’s influence in Europe by providing more natural gas alternatives to the continent.
“We also need to rebuild the Strategic Petroleum Reserve. The Biden administration’s decision to tap into the reserve to reduce gasoline prices during a time of soaring energy costs was politically driven, but it did leave the U.S. with less strategic inventory, which could be a vulnerability in the event of future geopolitical tensions or supply disruptions.”
Edwards said refilling the SPR, especially now with oil prices relatively lower than they were at the height of the pandemic, should be a priority for national security reasons, particularly given global instability.
“To me this is a win-win scenario for the Trump administration ahead: leveraging our domestic energy resources to ensure both energy independence and security while also advancing our competitive position on the global stage,” he said. “The focus on energy infrastructure like pipelines and LNG facilities is key to unlocking the full potential of the country’s natural resources.
“With the right policy environment in place this could indeed be a major area of economic growth. I do see the Trump administration addressing more of a broad all-of-the-above energy strategy where fossil fuels continue to play their important role.”
With more certainty around the political climate and regulatory approach, Edwards said, energy companies will likely be more willing to make long-term investments that benefit everyone in the energy chain.
“It’ll be interesting to see how the new Trump administration balances these priorities, but it’s clear that many in the industry are eager to get started on the opportunities ahead,” he said. “God bless Texas, President-elect Trump and our domestic oil and gas industry.”
From pauses on LNG export terminal permits to the revocation of existing permits for major Texas LNG projects, Longanecker said, the unpredictable regulatory landscape has hindered industry growth, impacting the economy and putting energy security at risk.
“Unlocking the full potential of our Texas energy industry now hinges on the Trump administration reestablishing a clear and supportive regulatory environment,” Longanecker said from Austin. “For the Texas natural gas and LNG industry this would mean the ability to continue expanding pipeline capacity, increasing export terminal availability, enabling the U.S. to play a larger role in global energy stability and providing our allies with a reliable and clean energy source.
“It would also mean more jobs, infrastructure development and economic benefits for our state.”
Longanecker said the future looks bright for the energy industry and it is exciting to consider what can be achieved in the coming years with the right strategy and regulatory support from the incoming administration.
