Presidential permits for cross-border energy facilities

Presidential permits for the import and export of energy resources across the United States' borders are critical to the development of cross-border energy facilities.

Millions of dollars of energy resources flow across the United States' borders every day.  Trade in energy resources with Canada and Mexico accounts for the bulk of these transactions.  Canada is the single largest foreign supplier of energy to the United States, providing about 20% of U.S. oil imports and 18% of U.S. natural gas imports according to the U.S. State Department.  Canada and the United States share an integrated electricity grid and provide all of each other's electricity imports.  Today and tomorrow, members and guests of the New England - Canada Business Council are meeting in Boston to discuss this close relationship.

Facilities spanning the border -- whether pipelines for oil or natural gas or transmission lines for electricity -- can only be built and operated once a federal approval called a "presidential permit" has been obtained.  Since a 1968 Executive Order, presidential permits have been issued by the State Department.  Presidential permits cover not only the facilities themselves, but also the commodities (oil, gas, electricity) transmitted over those facilities.

For example, the proposed Keystone XL pipeline from Canada to Texas will require a presidential permit.  In today's news, President Obama is reported as saying that he will be the one to make the final decision on whether TransCanada will obtain its permit.

November 8, 2010 - NECBC U.S.‐Canada Energy Trade and Technology Conference recap

I enjoyed the 18th Annual U.S.‐Canada Energy Trade and Technology Conference sponsored by the New England - Canada Business Council last Thursday and Friday.  I've been a regular attendee in recent years, and this year's program was as dynamic as any I've seen.  On Thursday afternoon, my colleague Steve Hudson moderated a roundtable discussion on Washington and Ottawa Energy and Environmental Policy Initiatives.  Friday, participants enjoyed a mix of high-impact speakers like Nova Scotia Premier Darrell Dexter and lively panels with key executives in regional energy businesses like Hydro-Quebec, TransCanada Power, and Tennessee Gas Pipeline.  The noontime panel held conference attendees rapt with a spirited discussion of some of the aspects of the Cape Wind offshore wind energy project and contracts for sale of its renewable power.  The sessions culminated with a keynote address on federal energy policy by a speaker from the US Chamber of Commerce.

It was very interesting learning from the speakers about their perspectives on energy issues.  To me, it was even better to reconnect with friends and get to know fellow conference attendees.  Hope to see you at the 19th annual NECBC energy meeting next year.