- API outlines a Five-Point Policy Roadmap to secure U.S. energy leadership, focusing on consumer choice and resource utilization.
- Emphasis on reforming permitting systems and maintaining favorable tax policies for energy investments.
- Advocates for lifting restrictions on LNG exports and streamlining offshore and onshore leasing processes.
The American Petroleum Institute (API) has published a comprehensive Five-Point Policy Roadmap with the goal of securing American energy leadership, protecting consumers, and reducing inflation. This roadmap, addressed to President-Elect Donald Trump and the 119th Congress, outlines strategic actions to leverage U.S. energy resources and maintain its position as a global energy leader.
Below is a detailed look at each of the five points.
Protecting Consumer Choice
API’s first priority is to safeguard consumer choice in the energy market. They advocate for repealing the EPA’s Tailpipe Rules, which mandate a steep shift to electric vehicles (EVs) by 2032, arguing this limits choice and drives up costs.
Similarly, API opposes California’s Advanced Clean Cars II rule, requiring 100% EV sales by 2035, which they believe overly restricts options and increases dependence on Chinese mineral supply chains crucial for EV production.
API also calls for repealing Corporate Average Fuel Economy (CAFE) standards that align with California’s EV goals, fearing they will heighten costs and narrow consumer options. API’s stance is that EV mandates are premature, considering current infrastructure and market limitations. Instead, API supports a technology-neutral approach that lets consumers choose vehicles best suited to their needs without restrictive regulatory mandates.
Bolstering Geopolitical Strength
The second priority emphasizes the strategic role of U.S. energy exports in global stability. API urges the Department of Energy (DOE) to lift the pause on liquefied natural gas (LNG) permitting, a policy they see as detrimental to U.S. influence abroad.
Open access to global markets for U.S. oil and natural gas exports, API argues, would support allies and counteract the energy leverage held by adversarial nations like Russia and China. They highlight that increased exports not only bolster geopolitical strength but also help balance trade and create domestic jobs. API underscores that U.S. energy exports are an effective tool to strengthen alliances and reduce reliance on unstable foreign energy sources.
Leveraging Natural Resources
API’s third priority is to maximize U.S. natural resources on federal lands and waters. They call for a predictable, five-year offshore leasing program to reflect global energy demands accurately and the repeal of restrictive onshore leasing rules that limit investment in energy development.
Additionally, API recommends working with Congress to repeal the EPA’s Methane Fee under the Inflation Reduction Act, which they believe adds unnecessary financial burdens.
By reforming leasing regulations and addressing high regulatory costs, API argues the U.S. can enhance long-term energy security and economic growth through increased domestic energy production.
Reforming the Permitting System
API’s fourth objective involves streamlining the permitting process for energy projects. They call for comprehensive reform to make the process transparent, predictable, and efficient.
Specifically, API advocates for the repeal of recent Biden-era changes to the National Environmental Policy Act (NEPA), which they claim have introduced additional delays and uncertainties.
API believes that an optimized permitting system will benefit not only the energy industry but also other infrastructure-dependent sectors, fueling broader economic growth and creating jobs. Simplifying the permitting process, according to API, would help keep development timelines and costs manageable.
Advancing Sensible Tax Policy
The final priority in API’s roadmap focuses on tax policy. They support retaining the 21% corporate tax rate to ensure U.S. global competitiveness.
Additionally, API seeks to maintain and extend critical tax provisions, such as immediate deductions for intangible drilling costs and 100% bonus depreciation, to support infrastructure investment. They also advocate for the preservation of international tax provisions that protect companies from double taxation on foreign earnings.
API’s goal is to create a stable, favorable tax environment that attracts both domestic and international investment in U.S. energy, fostering innovation and bolstering economic growth.
Conclusion: A Vision for U.S. Energy Security
API’s roadmap aims to enhance U.S. energy independence, economic resilience, and global standing. By addressing regulatory, tax, and policy challenges, API presents a strategy that emphasizes consumer choice, geopolitical strength, resource utilization, streamlined infrastructure development, and a stable tax environment.
Through these actions, API envisions a robust U.S. energy future that supports sustainable economic growth and strengthens the nation’s position on the global stage.
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