New Study: Reforms to Amplify and Extend U.S. Energy Boom
Policy changes can strengthen energy markets and open access to new resources larger than those driving the current shale boom.
New York, NY — A new study by the Manhattan Institute outlines 11 policy reforms to double down on the explosion in America’s oil and natural gas production. These reforms ensure resources are put to their most efficient use and lay the groundwork for a new wave of production from federal lands and waters to follow the shale boom. The result will be lower energy prices, more jobs, faster economic growth, and greater geopolitical power for America. To take advantage of these opportunities, policymakers must look beyond the current glut in oil and gas markets and plan for the years and decades to come—the time to invest is now.
Oren Cass, senior fellow at the Manhattan Institute, argues that the energy landscape has changed dramatically since our energy regulations were written. In the past 8 years the U.S. has transitioned from a dependent importer to a powerful producer, and everything we knew about our energy resources has been flipped on its head. Power in global markets has shifted from OPEC to U.S. producers. Plunging prices for both oil and gas are saving the average household at least $1,500 per year.
But failure to update policy accordingly has already cost America in foregone royalties, wasted subsidies, and missed opportunities to create jobs and lower prices further. And with global demand forecast to rise faster than U.S. output for the foreseeable future, we must decide whether we will pursue the opportunity aggressively or let the pendulum swing away again. Updating our outdated energy policies can strengthen America’s new status as an energy superpower and set in motion exploration and investments by industry that will pay enormous long-term dividends.
Cass’s recommendations include:
- Reforming environmental laws and review processes for new projects
- Updating transport rules (including for pipeline construction and the Jones Act)
- Promoting exports and accelerating the infrastructure to support them
- Managing federal lands and waters under a new framework to encourage development
- Tying federal royalty revenue from fossil fuels to federal funding for energy R&D
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