In his op-ed in yesterday’s Wall Street Journal  (“Toward a 21st-Century Regulatory System”), President Obama opened with the following statement: “For two centuries, America’s free market has not only been the source of dazzling ideas and path-breaking products, it has also been the greatest force for prosperity the world has ever known.”

We could not agree more. Free markets drive innovation and growth across all sectors of our economy, including the energy sector. Well-developed rules and regulations are essential to the proper functioning of free markets – but can also hinder economic progress if they become onerous or arbitrary.

President Obama recognized this situation when he said: “Sometimes, those rules have gotten out of balance, placing unreasonable burdens on business – burdens that have stifled innovation and have had a chilling effect on growth and jobs.”

At a time when U.S. corporations are subject to a broad array of complex tax, financial, operating and liability regulatory requirements – and with American jobs and economic recovery on the line – we welcome the president’s efforts to better “strike the right balance” between regulations and free market principles, as outlined in his new executive order.

In an industry like the oil and gas sector – which supports more than 9.2 million jobs in the U.S. and contributes more than $1 trillion a year to the U.S. economy – a review to ensure that regulations are fair, balanced and reasonable holds promise for new investment and opportunity.

For example, oil and gas exploration and production generate significant amounts of U.S. economic activity through employee wages and government revenue from taxes and royalties. Efforts to improve regulations related to access and permitting could help the industry develop new projects in a safe and timely manner – while Americans will benefit from more jobs, revenues and affordable energy supplies.

The president’s initiative to look at regulation in the context of a 21st-century economy offers promise to open up new opportunities for growth and investment at a time when our economy needs it most.