"Delays in permit approvals increase project costs, risk, and uncertainty. Delays can increase the chances that a project ultimately is downsized-as happened with ConocoPhillips' Willow project in Alaska -or canceled altogether. Longer timelines increase financing and carrying costs, because capital is tied up without generating revenue, and developers must pay interest on the debt while waiting for approvals. Delays also lead to higher project costs, eroding project economics and sometimes preventing the project from turning a profit."
"Unlike in some countries, such as with Saudi Arabia's Aramco, Norway's Equinor, or China's CHN Energy, the US does not have a national oil or gas company. All of the major energy producers in the US are privately owned and answer to shareholders, not the government. Executive orders or political slogans may set a tone or direction, but they cannot override the fundamental requirement for profitability. Investments can't be mandated by presidential decree: Projects must make economic sense."
Efforts have reversed the Biden administration's go-slow approach to oil drilling, reducing—though not completely eliminating—the backlog of onshore and offshore drilling permit requests. Permit delays raise project costs, risk, and uncertainty, and can lead to projects being downsized or canceled, as with the Willow project in Alaska. Longer approval timelines increase financing and carrying costs because capital remains tied up and interest accrues. Higher costs erode project economics and can prevent profitability. Major U.S. energy producers are privately owned and require clear, long-term paths to profit before investing. Industry seeks policy stability and faster approvals for supporting infrastructure to enable investment.
Read at Ars Technica
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