US debt deal to have lasting consequences for oil and gas

Approval of Mountain Valley Pipeline could set a legal precedent, while permitting reform may make it easier for other projects to advance

The US averted an unprecedented federal debt default in early June, after President Biden signed the Fiscal Responsibility Act (FRA) into law with just two days to spare following months of acrimonious negotiations. A default would have had catastrophic economic and financial consequences for the US and other nations. Republicans refused to raise the borrowing limit unless Democrats agreed to reduce spending, leading to a standoff that was resolved only at the 11th hour after agreement was reached between Biden and House Speaker Kevin McCarthy. The FRA suspends the debt limit until 2025—after the next presidential election—and also introduces significant provisions affecting the energy secto