
President Trump has said he wants to make America a dominant player in world energy markets. Over the past year, the Trump Administration has moved forward with policies designed to deregulate and encourage American energy development.
The Trump administration eliminated 22 unnecessary regulations for every new one it created. This regulatory rollback will save Americans from more than $8 billion in lifetime costs from wasteful, expensive regulations.
President Trump’s economic policy agenda has added 2.1 million jobs and reversed job losses in critical sectors, most notably in manufacturing. The unemployment rate fell to 4.1%, the lowest in 17 years. Congress passed the historic tax reform bill, which will unleash an unprecedented wave of American prosperity, thanks to the more than $5 billion in cuts.
While much has been accomplished, much work remains to free our energy markets and empower consumers and businesses to make their own energy choices. As the Trump Administration moves forward, it is clear that their approach to energy policy could not be more different than the previous administration’s. With the change in policy come new opportunities.
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.
Just a few 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. 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 drive smarter regulations that focus on protecting the environment and growing the economy. All Americans benefit from a safe, environmentally responsible, and thriving oil industry. And it is important to let market forces, not government mandates, drive energy policies.
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.
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. According to the International Energy Agency (IEA) worldwide energy consumption will increase by 27% by 2040, and 77% of that energy consumption will be met by fossil fuels. 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.
Trump Administration environmental policies are building 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. They 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 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. We need a new American understanding of energy and with it a national energy policy based on science, the free market, and entrepreneurial spirit.
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.