U.S. Oil and Gas Pipeline Projects Face A Series of Setbacks

U.S. Oil and Gas Pipeline Projects Face A Series of Setbacks

July 8, 2020

This week the oil and gas industry has faced a succession of setbacks for vital energy infrastructure projects in the U.S.

On Sunday, Duke Energy Corp. and Dominion Energy Inc. pulled the plug on the Atlantic Coast Pipeline, a 600-mile conduit to carry fracked gas from West Virginia through Virginia and North Carolina. Both companies said they were abandoning the proposed $8 billion pipeline after facing a series of legal challenges that caused significant project cost increases, almost doubling its estimated cost and timing delays.

On Monday, less than 24-hours after the ACP cancellation announcement, a federal judge ordered the Dakota Access pipeline to shut down and empty because the Army Corps of Engineers had failed to do an adequate environmental impact study. The same day, the U.S. Supreme Court blocked construction on the proposed Keystone XL line from Canada pending a deeper environmental review.

Reuters reports:

The latest setbacks have increased the difficulty for developers of billions of dollars worth of pipeline projects in getting needed permits and community support. The oil industry says the pipelines are needed to expand oil and gas production and deliver it to fuel-hungry markets, but a rising chorus of critics argue they pose an unacceptable future risk to climate, air and water.

“Any company that is going to look to invest that kind of money into our infrastructure is really going to have to take a hard look,” said Craig Stevens, spokesman for Grow America’s Infrastructure Now, a coalition comprised mainly of chambers of commerce and energy associations.

During such times of hardship where the dependence on reliable and affordable domestic energy has been highlighted more than ever, it is mind-boggling the eco-left continues to block infrastructure critical to the security and daily functions of American households.

These necessary infrastructure projects would not only bring energy resources to communities who need it but would also create hundreds of thousands of American jobs during a time where unemployment is at an all-time high. It’s time for the left to stop thinking of their own political agenda, but instead of the interests of the constituents they represent.