Perry’s oil industry ties include two Dakota pipeline developers
WASHINGTON — Rick Perry, P r e s i d e n t - e l e c t D o n a l d Trump’s choice for energy secretary, has close ties to the Texas oil industry and corporate roles in two petroleum companies pushing for government approval of the proposed 1,200-mile crude oil pipeline that has stoked mass protests in North Dakota.
Perry’s current position as board director at Energy Transfer Partners LP and a l s o at Sunoco L o g i s t i c s Partners LP, which jointly developed the controversial Dakota Access Pipeline project, is a strong indicator of the pro-oil industry sentiment that will likely take root at the Energy Department under his oversight. The former Texas governor is close to Texas energy industry executives, and his political campaigns, including two failed presidential bids, benefifited substantially from their donations.
Pe r r y woul d n o t h ave a u t h o r i t y t o i n t e r v e n e directly after the U.S. Army Corps of Engineers’ decision last month to delay the pipeline to allow talks with the Standing Rock Sioux and other project opponents. The Army will decide whether to grant an easement near the Sioux reservation in North Dakota, and the departments of Energy, Interior and Justice and the Environmental Protection Agency have had lesser supporting roles.
Trump announced hi s choice of Perry on Wednesday, calling him “one of the most successful governors in modern history, having led Texas through a sustained period of economic growth and prosperity by developing the state’s energy resources and infrastructure.”
Perry’s close relations with energy executives and his long-time dependence on them for politic al contributions signal an abrupt c h a n ge o f c o u r s e a t t h e Energy Department. Perry is expected to welcome the four- state pipeline and similar projects and set an opendoor policy for oil industry interests.
During his unsuccessful 2012 run for the presidency, Perry proposed eliminating the Energy Department. As secretary, he would be involved in policy decisions on nuclear security, increasing the nation’s domestic supply of oil and investments in oil exploration research and technology.
The department maintains and secures U. S. nuclear weapons and plays a major regulatory role in overseeing nuclear power and natural gas. It also manages 17 national labs charged with developing science and technology to further the nation’s energy sector.
Perr y ’s involvement in the Dakota Access Pipeline began when he joined as a director of Energy Transfer Par t ners in Febru ar y 2015, and its general part- ner, Sunoco Logistics, one month later. Energy Transfer Partners is owned by Kelcy Warren, a Dallas billionaire who donated $500,000 to the Opportunity and Freedom super PAC backing Perry’s run for the White House. The oil and gas industry was Perry’s largest donor, giving more than $1.6 million.
Perry’s net worth of about $3 million does not compare to the fortunes of Trump and other corporate leaders named to Cabinet positions in his administration. But he could face similar questions about potential ethics conflflicts unless he divests his assets into a government-approved blind trust.
Energy Transfer’s 2016 annual report showed that P e r r y o w n e d $ 1 5 4 , 0 0 0 worth of partnership units. At Sunoco Logistics, Perry was awarded units worth about $101,000.
Perry’s wife, Anita, also owned u p to $ 15,0 00 i n shares in Warren’s flflagship fifirm, Energy Transfer Equity LP, and a similar amount in Sunoco Logistics, according to Perry’s 2015 presidential fifinancial disclosure. In addition, the couple reported owning two other energy-related investments worth as much as $150,000.
T h e i n c o mi n g T r u mp administration has said it plans to approve the controversial pipeline project, which was stalled in recent months by defifiant protests by Native American and environmental opponents. The Army Corps ruled last month that it was delaying a decision on an easement for the project.