Energy policy has become a revolving door as each presidential administration unravels the previous approach and attempts to assert its agenda. The last four years have starkly contrasted to the previous four, and November 5 will determine how the coming four will play out.
Deregulation became the blueprint for the Donald Trump administration, undoing restrictions put in place by his predecessor and unleashing an energy dominance not seen in decades. Permitting bottlenecks and major bureaucratic hurdles were eased, allowing for speedier infrastructure project completion. Access to federal land became easier for oil and gas development.
By midterm, the United States became the world’s No. 1 oil producer and maintained its position as the top producer of natural gas. In 2019, the nation reached energy independence, “marking the first time in 67 years that our annual gross energy exports exceeded our gross energy imports.”
The abundance of energy production not only met the needs of the American public but kept prices relatively low. Reliability and affordability became pillars of the administration, and economic growth and stability were mainstays.
Even with an increase in oil and gas production, overall emissions did not rise during this time; air quality (regulated emissions) improved by 7 percent, totaling 77 percent since the passage of the Clean Air Act. Energy can be produced responsibly in America.
However, the 2021 change in leadership brought about significant shifts in energy priorities.
The closing of major pipeline projects, on top of numerous moratoriums for drilling on federal land, set the stage for a new administration. The centerpiece legislation, the Inflation Reduction Act, featured unlimited government subsidies for “clean energy” sources such as wind, solar and electric vehicles. Solar and wind farms are springing up nationwide, and an increasing number of EVs are hitting the pavement as folks cash in on the handouts.
An aggressive pursuit of these policies has been in tandem with the retirement of coal and natural gas plants from coast to coast. If we remain on this course, half of our coal generation capacity — which peaked in 2011 — will be shut down by 2026.
While oil production is still at high levels, capital investment in the fossil fuel industry is decreasing, partly because of the narrative that this source is immoral. Yet, oil demand is increasing. We are not producing at the levels necessary to satisfy economic needs; the overall global supply is insufficient.
Electricity shortfalls are occurring nationwide, with brownouts and blackouts becoming common. Instead of the lower electricity prices we were promised, rates are skyrocketing in states with a significant proportion of power coming from wind and solar.
With sharp increases in electricity and gas prices, energy poverty in the United States is on an upward trajectory. Some households pay 30, 40 or even 50 percent of their income to power their homes and cars, leaving them little discretionary funds.
Mandates that two-thirds of all vehicles sold to be electric by 2035 are running into snags. EVs are not only stacking up in dealer lots due to low demand but nearly 50 percent of motorists who drive one want to switch back to a combustion engine.
Despite the massive regulations and subsidies, emissions are on the rise. Reducing production here and allowing other countries to take that lead only increases global pollution. China and India have the least restrictive environmental standards in the world.
Continuing to push renewable energy sources will further stifle supply, drive up prices and impede reliability. We need energy that is abundant, cheap and dependable. We face incredible challenges ahead, especially with an increase in energy demand. An all-hands-on-deck approach that includes all primary energy sources will be essential.
Consumers care about what they pay at the pump, fueling their homes with reliable and affordable energy, prices on everyday products, and the ability to choose the type of car they drive.
A recent study indicates voters want an all-of-the-above approach that provides inexpensive and reliable energy. They are unwilling to pay more for climate mitigation and want to keep consumer costs low.
We need leaders who will look out for the consumers’ best interests rather than what is politically popular.
