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Researched by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The 303-mile Mountain Valley natural gas pipeline in West Virginia received special treatment in the proposal to resolve the debt ceiling impasse, showcasing the desire to cut through red-tape delays in energy.
Lawmakers during the weekend managed to deliver a compromise agreement on the debt ceiling, cutting back on demands for long-term spending cuts but including provisions on work requirements for those covered under some social welfare programs.
Sen. Joe Manchin, a West Virginia Democrat who often sides with his Republican colleagues on energy-related issues, managed to get momentum moving in favor of the Mountain Valley gas pipeline, where opposition in the courts from environmental groups has created headwinds.
Construction is nearly completed. Provisions in the bill on energy reform call for streamlining the process for more energy storage and expedites the pipeline's completion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed reports for related projects.
"The Congress hereby finds and declares that the timely completion and operation of the Mountain Valley Pipeline is required in the national interest," the bill's text reads. Serving the Mid-Atlantic region, including Manchin's home state of West Virginia, the pipeline "will allow natural gas producers to access additional markets for their product, and will reduce carbon emissions and facilitate the energy transition."
The pipeline, led by Equitrans Midstream (NYSE:ETRN) (Pittsburgh, Pennsylvania), would draw on the Marcellus and Utica shale formations, collectively referred to as the Appalachia Basin by the federal government. The Appalachia Basin is by far the most prolific natural gas reservoir in the Lower 48, eclipsing the output from the mighty Permian Basin by more than 10 billion cubic feet per day.
Elsewhere, the provision calls for the acceleration of construction projects across the country by streamlining permit processes.
"The agreement includes provisions to better coordinate NEPA (National Environmental Policy Act) reviews to designate a single lead agency for a single project, charged with developing a single environmental review document--not multiple ones--according to a clear and public timeline," a White House official said.
Last year's bipartisan Inflation Reduction Act featured numerous tax incentives designed to facilitate a move away from fossil fuels, and the streamlined permitting process would, in theory, help niche programs from hydrogen to direct-air capture move to the mainstream.
President Joe Biden, like many of his peers, has adopted a net-zero strategy for the economy, but has recognized that many of the energy alternatives aren't quite ready for prime time. Meanwhile, those in the fossil fuel industry have long argued that administrative delays were creating headwinds for their business.
An executive responding to the latest energy survey from the Federal Reserve Bank of Dallas said the government was in effect holding the industry hostage.
"Permitting delays by the administration's policies have caused us not to drill two wells we had hoped to drill this year," the respondent said.
Both measures--Mountain Valley and streamlined permitting--should be enough to garner support from many of the would-be holdouts on both sides of the aisle, though some dissent is certain.
With thin majorities in both chambers of Congress, support is critical. U.S. Treasury Secretary Janet Yellen warned of an economic catastrophe should the government default on its debt obligations, which would happen as early as next week without consent from Congress.
Both chambers are expected to vote on the measure this week.
Outside the political circus, Tamas Varga, an analyst at London oil broker PVM, said the reception to the agreement was "lukewarm" at best, though he expects it to pass.
"One reason for this is that the agreement will first have to go through both the House of Representatives and the Senate, and as one can imagine there are fierce objections from right-wing conservatives," he said. "Nonetheless, there are probably a sufficient number of moderate politicians on both sides who would endorse the deal and prevailing anxiety will be laid to rest."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Lawmakers during the weekend managed to deliver a compromise agreement on the debt ceiling, cutting back on demands for long-term spending cuts but including provisions on work requirements for those covered under some social welfare programs.
Sen. Joe Manchin, a West Virginia Democrat who often sides with his Republican colleagues on energy-related issues, managed to get momentum moving in favor of the Mountain Valley gas pipeline, where opposition in the courts from environmental groups has created headwinds.
Construction is nearly completed. Provisions in the bill on energy reform call for streamlining the process for more energy storage and expedites the pipeline's completion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed reports for related projects.
"The Congress hereby finds and declares that the timely completion and operation of the Mountain Valley Pipeline is required in the national interest," the bill's text reads. Serving the Mid-Atlantic region, including Manchin's home state of West Virginia, the pipeline "will allow natural gas producers to access additional markets for their product, and will reduce carbon emissions and facilitate the energy transition."
The pipeline, led by Equitrans Midstream (NYSE:ETRN) (Pittsburgh, Pennsylvania), would draw on the Marcellus and Utica shale formations, collectively referred to as the Appalachia Basin by the federal government. The Appalachia Basin is by far the most prolific natural gas reservoir in the Lower 48, eclipsing the output from the mighty Permian Basin by more than 10 billion cubic feet per day.
Elsewhere, the provision calls for the acceleration of construction projects across the country by streamlining permit processes.
"The agreement includes provisions to better coordinate NEPA (National Environmental Policy Act) reviews to designate a single lead agency for a single project, charged with developing a single environmental review document--not multiple ones--according to a clear and public timeline," a White House official said.
Last year's bipartisan Inflation Reduction Act featured numerous tax incentives designed to facilitate a move away from fossil fuels, and the streamlined permitting process would, in theory, help niche programs from hydrogen to direct-air capture move to the mainstream.
President Joe Biden, like many of his peers, has adopted a net-zero strategy for the economy, but has recognized that many of the energy alternatives aren't quite ready for prime time. Meanwhile, those in the fossil fuel industry have long argued that administrative delays were creating headwinds for their business.
An executive responding to the latest energy survey from the Federal Reserve Bank of Dallas said the government was in effect holding the industry hostage.
"Permitting delays by the administration's policies have caused us not to drill two wells we had hoped to drill this year," the respondent said.
Both measures--Mountain Valley and streamlined permitting--should be enough to garner support from many of the would-be holdouts on both sides of the aisle, though some dissent is certain.
With thin majorities in both chambers of Congress, support is critical. U.S. Treasury Secretary Janet Yellen warned of an economic catastrophe should the government default on its debt obligations, which would happen as early as next week without consent from Congress.
Both chambers are expected to vote on the measure this week.
Outside the political circus, Tamas Varga, an analyst at London oil broker PVM, said the reception to the agreement was "lukewarm" at best, though he expects it to pass.
"One reason for this is that the agreement will first have to go through both the House of Representatives and the Senate, and as one can imagine there are fierce objections from right-wing conservatives," he said. "Nonetheless, there are probably a sufficient number of moderate politicians on both sides who would endorse the deal and prevailing anxiety will be laid to rest."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
