The United States is facing an imminent energy crisis due to resistance against infrastructure development and pipeline capacity constraints. The Mountain Valley Pipeline (MVP) has been delayed until next year, escalating the cost from USD 3.5 billion to USD 7.2 billion.
Nov 06, 2023
Mr. Toby Rice, CEO of EQT Corporation said, “The United States is facing an imminent energy crisis due to resistance against infrastructure development and pipeline capacity constraints. The concerns come as a record low build out of interstate natural gas pipelines was marked last year, with capacity down to 897 million cubic feet per day from 28 billion in 2017.” This is due in part to opposition from environmental groups such as the Sierra Club and regulatory hurdles. The Mountain Valley Pipeline (MVP), a project that was supposed to be completed in 2018, has been delayed until next year and its costs have escalated to USD 7.2 billion. Mr. Rice has drawn parallels between the potential US energy crisis and Europe’s post-Ukraine invasion situation due to stalled infrastructure development. Pipeline company Williams also faced challenges when former New York Governor Andrew Cuomo’s administration denied water quality permits for its USD 1 billion Constitution pipeline despite federal approval. CEO Alan Armstrong criticized this as an example of permitting misuse in Democratic states. Consultancy firm Wood Mackenzie warned that these delays and cancellations could lead to inflated gas prices, decreased demand, and a downgrade in north-east gas production by reminding about the soaring gas prices in Boston due to limited gas flows from Appalachia into New England.