Criticism of current US federal energy policy is all the more telling for its origins: energy players right from the heart of Big Oil country.
The Federal Reserve Bank of Dallas published an energy survey in September with anonymous comments from various energy players, one of whom is quoted as saying that “the noise and chaos is deafening! Who wants to make a business decision in this unstable environment?” Another says that “uncertainty from the administration’s policies has put a damper on all investment in the oilpatch. Those who can are running for the exits”.
According to a third unnamed person, “the sword being wielded against the renewables industry right now will likely boomerang back in 3.5 years against traditional energy”.
The Trump administration’s push for cheaper oil, as well as tariffs on imported metals and equipment, are disincentivising US investment while non-US producers flood the market.
Investment in clean water is a quieter version of the same story. The US Environmental Protection Agency’s plans to deregulate the sector look likely to drive down US water standards, with few to no commensurate economic benefits. And they certainly discourage new investment in better US water infrastructure.
Infrastructure investors and developers work in timelines that run into decades. They cannot afford to be jerked around by the soundbite-driven exigencies of kneejerk gesture politics. And the historic opportunity for institutions to invest in the badly-needed regeneration of US infrastructure looks likely to be sacrificed to these.
Meanwhile, China has taken pole position in defining the future of global energy, and Asia Pacific is already the leading region in clean water supply development. Even without all their other advantages of population size, growth momentum and so on, all they need to do to maintain and extend those leads is to be a little more consistent and predictable in their policies than the Trump administration. That surely isn’t a big ask.
