American Petroleum Institute president Jack Gerard delivered his State of American Energy address Tuesday in Washington to coincide with the opening of the new congress.

The video is worth watching. Alternatively you can read the written version of his remarks.

Jack lays out a thoughtful case for an all-of-the-above energy policy that fully acknowledges the position of global energy leadership America now occupies. Thanks to the new supplies brought online from America’s shale regions, we have entered an era of energy abundance fundamentally different from the atmosphere that prevailed during the previous four decades.

As Jack notes, it’s long past time to overhaul current policies that are rooted in notions of scarcity and overdependence on foreign sources of energy.

That would require a new approach on everything from oil and gas exports to environmental regulations.

Two passages in particular struck me that I want to highlight (the emphasis in each is mine):

Created at a time of energy dependence and domestic energy scarcity, [the Renewable Fuel Standard] has outlived its usefulness, and could create serious fuel supply disruptions and by some estimates a rise in the cost of gasoline by as much as 30 percent and diesel fuel by as much as 300 percent.

As it stands, EPA’s inability to manage this program – they are two years behind mandated timelines for renewable fuel volumes – leaves U.S. refiners in the dark about regulatory requirements. Multi-billion dollar industries cannot run on guesswork.

and

The needlessly protracted fight over the Keystone XL pipeline only deprives tens of thousands of hardworking Americans of well-paying jobs and our nation of a safe and efficient means of transporting much needed North American energy resources.

Furthermore it has a chilling effect on infrastructure investment reminding all that government’s indecision must be a part of a risk calculus when deciding whether to invest in infrastructure. 

Both comments make clear that Washington has responsibilities when it comes to sound energy policy. How policymakers meet those responsibilities carries profound consequences for the economy. As recent experience shows, the government’s failure to meet its obligations can harm industry and consumers alike.