Watching Government: Policies, priorities, and patience

April 24, 2017
Oil and gas association officials were in a peculiar environment as spring belatedly arrived in Washington, DC. Signals from the new administration remained positive, especially compared with those toward the end of Barack Obama's presidency.

Oil and gas association officials were in a peculiar environment as spring belatedly arrived in Washington, DC. Signals from the new administration remained positive, especially compared with those toward the end of Barack Obama's presidency. But key second-tier management positions in many departments remained vacant, and agencies without directors continued to be limited.

The US Federal Energy Regulatory Commission's situation was particularly dramatic. It suspended its monthly agenda meetings in early February after it lost its quorum when its former chair resigned, leaving it with only an acting chair and one member. Its staff has continued to issue guidance, and technical meetings continue to be scheduled.

Career employees who are filling in as agency directors can only do so much, however. Appointees need to be nominated, and many require congressional approval. Not knowing who will be in charge creates uncertainties for both agency staffs and regulated entities awaiting fresh policies and directions.

US Sec. of the Interior Ryan Zinke moved ahead on Apr. 6 when he named Katharine McGregor his Deputy Assistant Sec. for Land and Minerals Management. She will oversee the US Bureaus of Land Management, Ocean Energy Management, and Safety and Environmental Enforcement, the three Interior Department agencies that affect federal oil and gas activity most. All still await new directors.

At the US Environmental Protection Agency, Administrator Scott Pruitt began a review of its oil and gas new source performance standards to determine whether they are duplicative, and stopped the methane information collection request that the Obama administration initiated. But he still has only acting deputy, assistant, and regional administrators.

Donald J. Trump's administration understandably wants to get the most qualified people for these jobs, and probably is moving slowly as a result. Oil and gas association officials are trying to be patient. They have tried to establish the best possible priorities as agency positions are filled so policy changes can be implemented effectively once they are developed.

Consequences of cuts

Implementation could prove difficult if some departments' budgets are slashed and workforces are reduced to divert money elsewhere. The US Pipeline & Hazardous Materials Safety Administration, BSEE, and BLM have hired more inspectors in recent years. Will some of them have to be let go?

As the White House prepared to release its initial fiscal 2018 budget proposal in mid-March, Office of Management and Budget Director Mick Mulvaney said agency directors would have "a tremendous amount of flexibility" in meeting the lower numbers.

Doing this might be easier once more appointees are in place. Several association officials have said they look forward to working with the new administration. Some now want to know with whom it will be