Carlsbad Current-Argus - Moving our energy economy forward

Op-Ed

Date: April 2, 2017
Issues: Energy

By U.S. Senator Martin Heinrich

In New Mexico, thousands of jobs and a sizable portion of the state's economy are supported by the oil and gas industry, which plays a critical role in meeting our nation's energy needs. The industry has been a driving force for southeastern New Mexico, which is why when oil was trading as low as 30 dollars a barrel, it was a big hit to communities like Carlsbad, Hobbs and Artesia. The downturn delivered a major blow to our state as a whole and especially to families who rely on energy industry jobs.

Even during a period of low oil prices, however, this region remains a leading producer of our nation's domestic oil and natural gas supplies. Oil and gas will continue to play a critical role in meeting our nation's energy needs and supporting this region's economy for years to come. That's why I have worked in the Senate Energy and Natural Resources to pass bipartisan policies to help New Mexico maintain its role as a leading producer of our nation's oil and natural gas supplies well into the future.

Increasing cooperation between federal agencies and the private sector is key to expanding domestic energy production in our state. That's why I helped pass legislation to streamline the Bureau of Land Management's (BLM) oil and gas permitting process while strengthening the review system that helps meet important environmental and safety standards. That new law should also help keep the Carlsbad and Farmington BLM Offices fully staffed and reduce the backlog of oil and gas permits. That will largely depend, however, on President Trump reversing his federal hiring freeze, which has left agencies like the BLM unable to fill essential positions.

I am also proud of my work to forge a major bipartisan energy deal that is already helping New Mexico. That agreement ended the outdated crude oil export ban while also extending key wind and solar energy tax incentives. This was the biggest thing to happen in congressional energy policy in years. The agreement allowed oil produced in New Mexico to compete in the global market. And it provided substantial certainty to our state's growing clean energy industry, which has been plagued by a one year at a time tax policy. This both preserved and created jobs in New Mexico at a time when we really need them.

We need to find concrete ways to diversify our state's energy economy. As New Mexico becomes a major producer and exporter of wind and solar energy, that will mean thousands of new jobs for rural communities across our state. The Roswell and Chaves County Solar Energy Centers and the Sterling Wind Project in Lea County are two great examples of large-scale renewable energy projects that are employing hundreds of workers and generating much needed economic activity in southeastern New Mexico counties.

Many of the local companies in the region with a long track record of providing services to oil and gas operations could also stand to benefit greatly if they are able to compete for contracts to provide services to our state's Department of Energy facilities. Last year, I hosted a small business information meeting in Carlsbad with the Department of Energy's Supply Chain Management Center to discuss subcontracting opportunities at sites like the Waste Isolation Pilot Plant (WIPP).

At the start of a new Congress and a new administration in Washington, I will continue to work with my colleagues from both parties to try to advance the next major national energy bill. Last year, I was at the table to negotiate the first comprehensive bipartisan energy package to pass in the Senate in almost a decade.

That bipartisan energy package included my amendment to improve and expedite the environmental review of new solar, wind and geothermal projects on public lands. And it included my bill to speed up the Department of Energy's approval process for exports of liquefied natural gas (LNG), something I have worked closely on with Republican Senator John Barrasso of Wyoming. Improving the process for reviewing permits to export U.S. natural gas to our allies would create jobs in states like New Mexico because we're rich in the resource. If the U.S. does not aggressively market LNG abroad, many of these countries may have no choice but to purchase energy from Russia or other nations that are not aligned with our own national interests.

The Energy Policy Modernization Act was full of common-sense provisions. It promoted energy workforce development, incentivized energy efficiency, reduced the federal government's energy use, and protected the security of our electric grid. Although it came up just short last year, I will continue working with Republicans and Democrats to pass similar common-sense energy legislation across the finish line and to the president's desk for a signature.

The economic challenges our state faces are significant, but there are concrete goals that we should be working toward. As the Ranking Member on the Joint Economic Committee, I am working to refocus Congress on policies that make the economy work for everyone. Fighting for our energy industry and jobs is one thing we should all agree on in that larger effort. I won't stop fighting until every New Mexican who is willing to work hard to support their family and their community can find a good job.


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