As the Trump Administration begins it is clear that their approach to energy policy could not be more different than the previous administration’s.
With the change in policy comes new opportunity for the energy industry to achieve its full potential.
Energy is so thoroughly woven into our daily lives that few will ever question whether it will be there, or where it comes from. Petroleum plays an integral role in nearly every aspect of our lives.
Oil-based products are likely the first thing you touch at the beginning and end of each day, whether it is your alarm clock, television remote, cellphone, or even the toothpaste and toothbrush you use to brush your teeth. Those who wear makeup or synthetic fibers, such as polyester or nylon, are using or touching petroleum nearly 24 hours a day. As a key component in heart valves, seat belts, helmets, life vests, and even Kevlar, petroleum is saving tens of thousands of lives daily. Furthermore, oil and gas are key components in many medicines and antibiotics such as antiseptics, antihistamines, aspirin, and sulfa drugs.
Energy production in the U.S. has increased dramatically over the last decade because the
independent oil and natural gas industry is committed to investment and job creation in the U.S. and are using technology and innovation access more oil and natural gas reserves. In addition to leading the world in the production of oil and natural gas, the U.S. also leads the world in emission reductions.
Just five years ago, no one would have imagined the U.S. could increase production of oil and
natural gas while cutting greenhouse gas emissions, which are now near 25-year lows. According to the EPA, oil and gas methane emissions now account for only 3.63% of total U.S. greenhouse gas emissions. A recent study by the Energy Information Administration indicates the U.S. emitted 23% fewer energy-related CO2 emissions in 2015 than in 2005. Further, thanks in part to the increased use of domestic natural gas, ozone concentrations have dropped by 17% since 2000. The oil and natural gas industry has proven that over the long-term it is possible to lead in energy production AND in environmental stewardship.
The fundamental change under the Trump Administration is that market realities and a respect for consumers and their preferences will drive smarter regulations that focus on protecting the environment and growing the economy. The Trump Administration understands that all Americans benefit from a safe, environmentally responsible, and thriving oil industry. And they recognize the importance of letting market forces, not government mandates, drive energy policies.
The change in administration means we have the opportunity to achieve America’s true energy potential by embracing the market-driven innovation and entrepreneurial spirit embodied by the millions of men and women who work in the American oil and natural gas industry.
What Americans expect and deserve are the facts. And the fact is, recent history has disproved the false premise that economic growth and significant increases in energy production must, necessarily, come at the expense of environmental improvement.
What would it mean for consumers, the economy, and future job creation if we substantially
limited exploration, development, and use of fossil fuels in America’s energy supply mix? A recent study by the Energy Information Administration indicates the average American family would see their energy costs increase by $4,550 by 2040. It could mean a cumulative loss of $11.8 trillion in the nation’s GDP and the loss of 6 million jobs.
That’s just a few of the costs to America’s families and economy of an energy policy based on less energy. What’s more, the vision of less energy in the future contradicts the overwhelming consensus of experts who agree that we will need more energy for decades to come. In the U.S., oil and natural gas will supply 60% of U.S. energy needs by 2040, even under the most optimistic scenarios for renewable energy growth. Worldwide energy consumption will increase by 48% by 2040, and 78% of that energy consumption will be met by fossil fuels.
We hope the Trump Administration will pursue environmental policies that build on the progress our nation has made in the last several years thanks in large part to the American oil and natural gas energy renaissance. We also hope the Trump Administration will recognize that the innovation and core commitment to American energy security displayed by America’s oil and natural gas industry is a national asset that should be encouraged and promoted.
The U.S. has a unique opportunity to show the world how energy abundance can be used as a
positive force to lift people up. More than a billion people around the world face challenges for adequate food and education, clean water and protection from heat and cold due to a lack of access to energy. We should work to ensure more people have access to safe, affordable, and reliable energy, no matter which state, nation, or continent they reside. Because to rise out of poverty and enjoy health and safety, people need more energy, not less.
We need a new American understanding of energy and with it a national energy policy based on science, the free market, and entrepreneurial spirit. We should set aside the acrimony and
division that has marked too much of past national energy policy discussions and work together as one nation on a positive forward-looking energy future based on the understanding that our nation’s best energy future can only be achieved through a true all of the above energy strategy.
Future generations are looking to us to get our nation’s energy policy right. They’re counting
on us to leave them with a country that is second to none in energy production, security, and
economic prosperity.
Edward Cross is president of the Kansas Independent Oil & Gas Association.
