e21 Asks: What Is the Best Energy Policy?

Over the past week we have been asking e21 readers, “What is the most important energy policy government should pursue?” The results are now in. Approving the Keystone XL and other pipelines was the top response, receiving 25 percent of the vote.

Twenty-one percent believed that giving states greater control over energy policy was most important. Nineteen percent viewed speeding up the federal drilling approval process as most pressing. Eighteen percent advocated for a phased-in carbon tax. And 17 percent pushed for ending tax breaks for energy companies and fuel mandates. 

With the exception of implementing a phased-in carbon tax, e21’s editors recognize that all of these policy responses would be beneficial. But it is our view that the best way to stimulate the American energy sector would be giving states greater control over energy policy. 

The American energy boom has occurred in spite of, not because of, federal policy. According to a report released earlier this year by the Congressional Research Service, U.S. production of crude oil and natural gas has grown over the past three years. However, production on federal lands has fallen over this same period. The report concludes by stating that regulations applied to federal lands will likely remain more onerous than those applied to private lands and that “a more efficient permitting process” would help trigger investment in federal resources. 

The recent uptick in domestic energy production in places such as North Dakota is occurring overwhelming on private and state lands. Devolving more authority to states would likely result in a friendlier regulatory climate for energy production, potentially resulting in lower electricity bills for consumers. At the same time, states that did not want additional energy production, such as New York State, would be able to concentrate on other investments.

Representative Doc Hastings (R-WA) remarked at a House vote on November 20, “For far too long the Obama Administration has deliberately blocked increased energy exploration and development in America, causing both oil and natural gas production on federal land to decline since President Obama took office.” 

Hastings made this remark in a discussion about several energy bills working their way through Congress. However, giving more authority to the states—and not simply reforming federal involvement—may be a better stance to take. It is complicated and costly for Washington D.C. to make decisions on energy production exploration in Washington State, as well as the other 49 states. 

Taking full advantage of our vast energy resources will not be achieved with just one policy shift. We most certainly need to approve more pipelines, which is a safer method of transporting energy than the alternatives. It is imperative that we streamline the project approval process, which now can stretch to over four years. 

The editors of e21 hope the poll highlighted the multiple ways to increase American energy production and independence. If the U.S. economy is to get back to meaningful growth, policy makers need to encourage energy production.