NPC Report Warns Permitting Bottlenecks Threaten U.S. Energy Reliability
Study urges predictable, time-bound permitting reform to meet rising demand
America’s rapidly growing energy demand is colliding with outdated permitting processes, creating infrastructure bottlenecks that threaten reliability, increase consumer costs, and slow economic growth, according to a new study released by the National Petroleum Council (NPC).
The report, titled “Bottleneck to Breakthrough,” calls for comprehensive permitting reform that is predictable, time-bound, and legally durable to unlock investment in critical energy infrastructure while maintaining environmental protections and public trust.
The study was conducted at the request of U.S. Secretary of Energy Chris Wright and reflects mounting concern that existing regulatory processes can no longer keep pace with rising energy demand across the country.
Demand growth outpacing infrastructure capacity
According to the NPC, demand pressures across the U.S. energy system have outpaced the nation’s ability to permit and build new infrastructure, making reform essential to maintaining reliability and competitiveness.
Alan Armstrong, chairman of the NPC and executive chairman of the Williams Companies board of directors, said permitting delays are now a direct threat to the nation’s energy future.
“Demand pressures have outpaced infrastructure capacity,” Armstrong said, adding that permitting reform has become critical to U.S. energy reliability and economic competitiveness.
“Build, protect and engage” framework
The report recommends a multi-pronged approach aimed at creating a faster, more transparent permitting system while preserving environmental safeguards. NPC outlined a framework centered on three core principles: build, protect, and engage.
The study urges policymakers to take immediate action on near-term procedural improvements while also exploring long-term reforms to overhaul the permitting process. The goal, according to NPC, is a system that provides certainty for developers, accountability for regulators, and meaningful engagement for communities.
High energy prices driving political urgency
Armstrong pointed to the Northeast as a region where infrastructure bottlenecks are already translating into higher energy bills for consumers.
“It’s very clear to me from my engagement with governors in the Northeast that they understand high utility costs are becoming a political issue — regardless of party,” Armstrong said. “That reality is going to create momentum to pursue the solutions we’ve proposed.”
The NPC report argues that addressing permitting delays could ease infrastructure constraints, reduce energy price volatility, and improve regional reliability.
Specific reforms recommended
To achieve meaningful change, the NPC outlined several concrete steps, including:
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Clarifying requirements under the National Environmental Policy Act (NEPA)
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Streamlining Clean Water Act reviews
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Enforcing statutory deadlines at the Federal Energy Regulatory Commission (FERC)
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Expanding the use of categorical exclusions for qualifying projects
NPC said these measures would improve regulatory certainty without weakening environmental oversight.
Natural gas and electric grid misalignment adds risk
In addition to permitting concerns, the NPC highlighted findings from another recent study examining the growing interdependence — and misalignment — between natural gas systems and electric power markets.
As the electric grid relies more heavily on natural gas for dispatchable generation, gas infrastructure increasingly depends on electricity to operate. However, the two systems operate under separate regulatory, commercial, and operational frameworks.
NPC warned that this disconnect poses an escalating threat to U.S. energy reliability, affordability, and security if left unaddressed.
The council called for improved market incentives, operational coordination, and accountability frameworks to prevent disruptions that could cascade across both systems.
About the National Petroleum Council
The National Petroleum Council is a federal advisory committee to the U.S. Secretary of Energy. Founded in 1946, the NPC is composed of approximately 200 members appointed by the Secretary to provide advice and recommendations on matters related to oil, natural gas, and the broader energy industry.
More information about the NPC and its studies is available at npc.org.