Only Congress Can Reverse America’s Declining Regulatory Stability
Energy companies doing business in the United States increasingly cite diminished stability in the U.S. regulatory system as making it harder to finance and execute big domestic projects. It is a complaint I’ve heard from every executive I’ve interviewed since 2021, one that was recently echoed by the head of Shell Americas, Colette Hirstius.
“I think uncertainty in the regulatory environment is very damaging,” Hirstius said. “However far the pendulum swings one way, it’s likely that it’s going to swing just as far the other way.”
Hirstius’s observation is spot-on. Regulatory certainty and faith in the uniform application of prevailing laws across multiple presidencies of both parties is crucial for management teams to properly plan their companies’ business. This is especially important as it relates to major projects that require the allocation of billions of dollars in capital and years to complete. From oil and gas, to mining, to LNG exports, to nuclear power plants, to big wind and solar developments, such major projects are increasingly common in the U.S. as demand for all kinds of energy expands.
