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Gov. Rick Perry's letter to President Obama

RICK PERRY
GOVERNOR
May 16,2014
The Honorable Barack Obama
President of the United States
The White House
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500


Dear Mr. President
In your State of the Union address, you reassured the American people of your commitment to
an all-of-the-above energy strategy to bring our nation closer to energy independence while
creating needed jobs. Mr. President, your words promise an energy renaissance while your
policies are strangling the energy industry. You are waging awar on coal; kicking the can down
the road on the Keystone XL pipeline and ueating obstacles to onshore and offshore oil and gas
production.
Americans deserve affordable and reliable energy and the jobs that come with it. American
businesses need stable and predictable regulations if they are to compete globally, and if our
economy is to grow. Mr, President, you have given us mandates that will incapacitate - and
possibly eliminate - critical sources of energy while stifling job creation and threatening
American energy security.
I am deeply concerned that your Environmental Protection Agency (EPA) behaves more like a
den of activists than a repository of even-handed regulators. Most recently, EPA has targeted
coal plants with the Mercury and Air Toxics Standards and Cross-State Air Pollution Rule. Coal
plants produce about 40 percent of the energy used in American homes and businesses, and were
critical in ensuring grid reliability atpeak demand during the "polar vortex." More than 100 coal
plants employing 15,000 Americans are closed or closing due to EPA regulations under your
administration, and proposed new regulations will directly affecl more than 37,000 employees
across the nation, in addition to jeopardizingthe reliability of our nation's eleƧtrical grid and
increasing energy costs for families. This, despite your assurance of a renewed emphasis on
American economic recovery,

The Honorable Barack Obama
May 16, 2014
Page 2

Your procrastination on the Keystone XL pipeline continues this troubling trend. After five
years and a legion of environmental studies, you've allowed politics to trump a common-sense
decision to build the Keystone Pipeline, a decision clearly in the best interests of our nation, The
State Department has concluded that the project is environmentally sound and that construction
alone would contribute approximately $3.4 billion to the U.S. economy, supporting more than
2,000 direct jobs and inducing another 40,000 indirect jobs. Your continued inaction on this
critical project is delaying opportunity for thousands of American families, and that is simply
unacceptable.
Contrary to your administration's actions, pursuing an all-of-the-above energy strategy requires
allowing for the exploration and production of resources both on land and at sea. Your
administration has taken credit for the economic benefits of the shale boom, which has occurred
largely on state and private lands. For example, while production in Texas has more than
doubled in the last five years, production on federal lands has declined, and is further threatened
by the Bureau of Land Management's attempts to usurp state regulatory oversight of oil and gas
production. In addition, Mr. President, your administration has locked up 85 percent of the
Outer Continental Shelf to energy exploration and production, obstructing huge potential for
economic expansion and job creation.
While the domestic benefits of a thoughtful energy strategy are undeniable, we cannot
underestimate the global impact these policies would have as well, The U.S. energy boom has
dramatically increased our ability to compete in global energy markets. U,S. terminals
constructed to import natural gas just a few years ago are now working swiftly to reverse that
flow. Expanded Liquefied Natural Gas (LNG) expofis will provide net economic benefits to the
United States, including the creation of thousands of American jobs. However, the current
process for approving LNG exports to Non-Free Trade Agreement (NIFTA) countries - many of
whom are our allies - is outdated and has failed to keep pace with domestic development, Only
six applications to export LNG to NFTA countries have been approved, with24 more still
pending. In a world roiled by newfound Russian aggression, the ability to trade our energy
resources freely is an urgent diplomatic tool, as well as an economic force that must not be
ignored.
One-size-fits-all mandates are blunt instruments, serving only to curb innovation and diminish
the opportunity and livelihood of American citizens. Texas employs a true all-of-the-above
energy strategy, producing one third of the nation's crude oil and natural gas and accounting for
more than one quarter of the nation's petroleum refining capacify. Texas produces more
electricity than any other state with natural gas, coal, nuclear, wind, solar, biofuel and
hydroelectric generation. They've also installed more wind energy capacity than any other state
and all but five countries. Even as our population has grown by more than 5 million since 2000,

The Honorable Barack Obama
May 16, 2014
Page 3

we've led the U.S. energy revolution while protecting our environment and reducing harmful
pollutants in the air like nitrogen oxide by 62.5 percent, and ozone by 23 percent - a reduction
that is 12 percent greater than the national average.
The success we've seen in Texas shows that energy production and environmental protection are
not mutually exclusive. If adopted, the Texas approach could createjobs, contribute billions of
dollars to the economy, strengthen our energy security and make the United States a global
energy powerhouse today and for future generations. I encourage you to act quickly to free up
these resources and remove the barriers to our nation's economic resurgence and opportunity for
families across America.


Sincerely,
Rick Perry
Governor
RP:kwp

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