U.S. Energy Red Tape Gives China an Edge | OilPrice.com
Tsvetana Paraskova
What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,…
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By Tsvetana Paraskova – Oct 21, 2026, 5:00 PM CDT
- Former advisers to six U.S. presidents are urging Congress to pass permitting reform, warning that infrastructure delays threaten America’s competitiveness with China.
- The bipartisan bill would accelerate energy and industrial projects, streamline environmental reviews, and require data centers to fund new transmission infrastructure.
- Energy giants and industry groups back the reforms, while environmental organizations warn they could accelerate fossil fuel expansion and weaken environmental protections.
Congress needs to pass the bipartisan bill on permitting reform to accelerate energy infrastructure buildout so that the United States can compete economically and industrially with China, say former economic policy and national security officials who have served six U.S. presidents.
The Bipartisan American Affordability and Jobs Act of 2026 was introduced in the Senate at the end of September and is expected to be debated after the mid-term elections when Congress returns from the recess on November 9.
The bill would reinforce statutory deadlines for key reviews, overhaul environmental rules, and require data centers to pay for the new transmission built to serve them, among other proposals.
The permitting reform has been long supported by the American Petroleum Institute (API) and major energy companies, which argue that the bill provides greater investment certainty for energy infrastructure projects needed to maintain America’s economic and industrial leadership.
Opponents of the bill say it is anti-environmental permitting legislation and a “back-door deal” to drive a massive buildout of hyperscale AI data centers and the fossil fuel infrastructure to power them.”
When Congress returns from recess, both the House and Senate could have dramatically changed numbers of Republican vs Democrat representatives. Related: Higher Oil Availability Pressures Middle East Crude Benchmarks
But a group of former economic and national security advisers of six presidents, including Presidents Trump and Obama, say the U.S. cannot afford to have energy infrastructure projects stalled for years, as it would lose the competition with China.
“While the United States retains enormous advantages in technology, capital markets, attracting the world’s talent, entrepreneurship, and natural resources, those advantages matter less if a company cannot build a factory quickly enough to reach market or if the infrastructure required to power it takes five, ten, or fifteen years to plan and complete,” the former officials wrote in a letter to Congress leaders on Tuesday.
“Our inability to build threatens our national security and economic growth, and procedural barriers stymie efforts to correct course,” wrote the officials, including President Trump’s former Secretary of State and CIA director Mike Pompeo, and President Biden’s former Treasury Secretary Janet Yellen.
While the U.S. energy and industrial buildout is hindered by permitting issues, China “has made energy infrastructure central to its industrial strategy,” the former U.S. officials said.
China, for example, has built more high-voltage transmission in the last 15 years than the U.S. has built in all of its history, they wrote in the letter.
In 2024, China accounted for 31.5% of global knowledge- and technology-intensive manufacturing value added, compared with 20.7% for the United States, the ex-officials said, citing data by the National Science Foundation.
“Permitting reform is critical to America’s economic competitiveness and our national security,” Pompeo said.
The signatories, who also include economic advisers of Presidents George W. Bush and Bill Clinton, “all believe the permitting reform bill is essential for America to build, grow, tackle climate change and maintain our technological lead,” commented Jason Furman, who served as Chair of the Council of Economic Advisers under President Obama.
The U.S. enters the competition with China with great advantages including world-leading companies and universities, abundant energy resources, deep capital markets, and an unmatched ability to innovate and attract talent, the former officials said in the letter.
“But these advantages are insufficient if we cannot turn investment into physical infrastructure. If America can build at the speed our aspirations demand, it will be very hard for us to lose. If we cannot, it will be very hard for us to win.”
API urged lawmakers to bring the legislation to the floor upon their return in November, saying that “Congress has a rare bipartisan opportunity to enact meaningful permitting reform that will help lower costs, strengthen American competitiveness and enable the construction of the energy and infrastructure projects needed to meet growing demand.”
Oil and gas supermajor BP, which has an extensive footprint in the U.S., has also called on Congress to pass permitting reform this year.
“Comprehensive permitting reform will help unlock the full potential of American energy and strengthen domestic energy security,” CEO Meg O’Neill said in a statement last week.
“This legislation would bring the certainty needed to build energy infrastructure to meet rising demand.”
By Tsvetana Paraskova for Oilprice.com
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Tsvetana Paraskova
What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,…
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