American Oil and Gas Reporter - April 2021 - 33

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Combating climate change requires a global
partnership and a global solution. As
manufacturers drive down emissions, we also
must continue to support and protect families
and American jobs. We want to expand
American energy production. To accomplish
this goal, we need a true global partnership
on energy and environmental policy.
infrastructure of all types, including Keystone XL. Manufacturers have a strong
commitment to responsible environmental
stewardship, and protecting our environment
does not require us to walk away from
this job-creating opportunity. "
In the days leading up to the misguided
revocation, the NAM and several labor
unions wrote to President Biden on the
impact of rescinding the permit for the
Keystone XL project and the ways the
project has evolved in recent years. Manufacturers will continue to be a strong
voice in support of critical energy infrastructure projects.
Ullman: The Biden Administration
has also affected leasing on federal land-
on and off shore-how does this impact
American manufacturing?
Jones: Fortunately, the executive order
to temporarily freeze new leases on federal
lands-on and off shore-did not halt existing leases. But I would not say we
dodged a bullet just yet. If the leasing restrictions endure, the restrictions could
raise energy prices for manufacturers at
a time when global competition is fierce.
States such as New Mexico, Wyoming
and Utah obviously would see the negative
impacts on local communities more immediately, but the impact would be much
broader over time.
Manufacturing communities across
the country are making pumps, valves,
construction equipment, pipes, concrete
and more, and they rely on a healthy energy industry. Many understand that any
policy decision to restrict or halt new
leases and permits can have lasting neg-

ative consequences for those states that
have large tracts of federal lands, but the
impact also would be felt across the country's entire manufacturing supply chain.
Ullman: Rebuilding our economy from
the damage caused by the COVID-19
pandemic will require infrastructure investment of all types. IPAA has partnered
with NAM recently on efforts for strong
nationwide permitting for infrastructure
projects. NAM has really taken the lead
there-can you tell us about this ongoing
initiative?
Jones: Given the diverse industry sectors that NAM represents and the interdependent nature of sectors of our economy, a problem for one sector is a problem
for others. Understanding this and bringing
people together to achieve a common
goal is one of our strengths. Last year,
NAM brought together a broad coalition
of stakeholders, from labor unions and
downstream energy users to producers
and builders.
Representing interests in infrastructure
and development of all stripes, we filed

comments with the U.S. Army Corps of
Engineers in support of a strong nationwide
permitting program. While an updated
set of permits was finalized at the end of
the Trump administration, there is still
work to be done. We will continue to
work with the new Biden administration
to strengthen the critical program.
Ullman: To open it up to you now,
Rachel, what else should independent oil
and natural gas producers know about
U.S. manufacturers and manufacturing?
Jones: NAM released its first " Manufacturers' Outlook Survey " of 2021 and
the first since the Biden administration
took office. The survey showed manufacturers' optimism increasing to nearly
88%, the highest reading in two years,
and up from 76% in the Q4 2020 survey.
This steady improvement represents an
increase of 54 percentage points since
the first survey after the pandemic began
(34% in Q2 2020). According to NAM
President and CEO Jay Timmons, " As
vaccines roll out at a faster pace and we
see signs of an improving economy, manufacturers' optimism is rising fast. "
Our industry is creating new jobs and
investing in new projects, buoyed by
signs that we finally may be getting
COVID-19 under control. Of course,
our industry knows we are not out of
the woods yet. That is why we continue
to lead by example, wearing face coverings and promoting vaccination. The
smart health protocols are more important
than ever. This is our shot-not just to
end the pandemic but to build a new
and stronger economy that creates opportunity for all. "
❒

If the leasing restrictions endure, the
restrictions could raise energy prices for
manufacturers at a time when global
competition is fierce. States such as New
Mexico, Wyoming and Utah obviously would
see the negative impacts on local
communities more immediately, but the
impact would be much broader over time.
APRIL 2021 33

American Oil and Gas Reporter - April 2021

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