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Interior should be industry 'partner' supporting energy projects, Zinke says

U.S. "energy dominance" will not happen if the industry and regulators do not work together, said Interior Secretary Ryan Zinke, who told a large industry audience March 6 that federal regulators are looking to develop a better relationship with U.S. oil and gas producers after eight years of hostility.

"Our regulatory environment is changing," Zinke said in Houston at CERAWeek by IHS Markit. "Interior should not be in the business of being an adversary. It should be a partner. Our regulatory framework should not be a burden. Together, we should be developing a regulatory environment that encourages innovation."

The U.S. Department of the Interior has taken significant criticism from environmentalists since President Donald Trump took office. Zinke said the department is "pro-oil and gas ... pro-energy across the board," and harked back to his time as a Navy SEAL in articulating his security-based defense of the DOI's change since the Obama administration. "I don't want your children to see what I've seen," he said. "Morally, it's better to develop energy at home."

Zinke said he intends to help revamp an old agency that has become "a regulatory nightmare," including speeding up permitting. "The permitting process has to be supportive of infrastructure," he said. "If you're an investor, you should have an answer within two years whether you can move forward or not."

An improved relationship with the industry and the desire to remove regulations that are considered unnecessary does not mean producers are off the hook when it comes to enforcement, Zinke said. The DOI will continue to enforce venting and flaring regulations, which have been the source of multiple legal disputes as the Trump administration has attempted to alter an Obama-era rule. "Personally, I think flaring is wasteful. It is a waste of material and potential," he said. "We want to incentivize capture."

The interior secretary also defended his handling of the proposed five-year offshore oil and gas lease plan, which drew significant backlash from both environmentalists and administration allies. Zinke said the idea behind opening up virtually all offshore planning areas to potential exploration was to give the American people an idea of the nation's offshore drilling potential, but reductions to the plan were expected from the start.

"We'd talk to governors and local communities and shape it to reflect their desires," he said of the initial idea for the lease program.