By EDWARD CROSS
Kansas Independent Oil & Gas Association
Debate continues across the country on our nation’s energy future. What is our best energy policy going forward?
Even during periods when much of the world suffers economic stagnation, most of us would agree that we still have a very high standard of living. Compared to previous generations, we are wealthier, healthier, have better technology, more mobility, and many more opportunities for a better life.
Several factors contribute to a higher standard of living, but one of the most important is access to reliable and inexpensive energy. Affordable energy is essential for almost every aspect of our modern lives. Affordable energy is needed to run the hospitals and laboratories that improve our health. Affordable energy is required to deliver electricity to our homes and put fuel in our vehicles. And it supports the millions of jobs associated with all of these things.
Concerns About Carbon
In general, the most affordable forms of energy come from fossil fuels, such as oil, natural gas, and coal. Compared to these energy sources, alternative fuels such as solar and wind power are considerably more expensive and less reliable.
Burning fossil fuels to generate electricity or provide power necessarily releases carbon dioxide (CO2) into the atmosphere. Carbon dioxide is a gas we exhale every time we breathe. Erupting volcanoes, decaying trees, wildfires, and the animals on which we rely for food all emit CO2. This by-product, which is essential for plant life and an unavoidable aspect of human life, is at the center of today’s climate change controversies.
There is vigorous debate about what effects carbon emissions may or may not have on our future climate. Recent studies suggest that future warming is likely to be substantially lower than computer model-simulated projections on which many climate scientists rely. The Intergovernmental Panel on Climate Change (IPCC) said eliminating all CO2 emissions in the U.S. would only reduce global temperatures a negligible 0.08o Celsius by 2050. But the damage to our economy and the well-being of American families would be enormous.
Those who believe that increased CO2 emissions inevitably lead to global warming believe this change is directly attributable to the widespread use of fossil fuels. Because they believe further warming will have catastrophic effects, they have waged a war on carbon for many years. They advocate restricting carbon-based fuels in favor of subsidized alternative energy and encourage policymakers to make fossil fuels more expensive in hopes of discouraging their use.
If the goal is really to reduce carbon emissions, it’s worth noting that the U.S. is already doing a good job of achieving that goal. A recent Energy Information Administration study indicates the U.S. emitted 23% fewer energy-related CO2 emissions in 2015 than in 2005. Furthermore, ozone concentrations have dropped by 17% since 2000.
Beware of Crocodile Tears
All too often state and federal proposals to tax carbon directly or launch new carbon tax schemes have much more to do with raising revenue than helping our environment. For those who prefer higher taxation to spending cuts, having an entirely new source of revenue is appealing. However, taxing carbon only takes more resources from the private sector to support swelling state and federal government.
A recent study analyzed probable effects of a U.S. carbon tax that starts at $20 per ton and then rises 4% per year, which is in line with recent proposals. The study suggested that such a tax would decrease household consumption, due to the increased cost of goods. The average household would have to pay 40% more for natural gas, 13% more for electricity, and more than 20 cents per gallon extra for gasoline. Costs would rise even more in subsequent years.
Price hikes like these can only mean lower standards of living and less opportunity. Families that spend a bigger portion of their household income on transportation, utilities and household goods are hurt, not helped, by carbon tax schemes that make traditional forms of energy more expensive.
Fossil Fuels are needed throughout the world to lift people up, which is different than a philosophy of embracing a zero-emissions world. Over 80% of the energy that the peoples of the world use to survive come from fossil fuels, because that is the cheapest, most plentiful, most reliable source ever developed. More than a billion people around the world face challenges for adequate food, clean water and protection from heat and cold due to a lack of access to energy. Anyone who cares about our environment and climate recognize that cheap, plentiful, reliable energy is essential.
A Better Way
As the oil and gas industry has shown, there is a better way. 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. The oil and gas industry has proven that over the long-term it is possible to lead in energy production and in environmental stewardship. By focusing on more efficient use of energy, it is possible to lower emissions without imposing even more environmental restrictions. An American energy policy that values innovation over regulation can turn energy policy challenges into great opportunities for economic growth and energy security. This approach is not just good business, it’s good stewardship and a much better strategy for improving the quality of life for all.