Jan 30, 2018 IPAA’s Barry Russell Emphasizes America’s Energy Leadership Ahead of President Trump’s State of the Union Address
WASHINGTON, D.C. – Independent Petroleum Association of America (IPAA) President and CEO Barry Russell issued the following statement ahead of President Donald Trump’s State of the Union address:
“As we reflect on the past year of economic growth, our nation has witnessed a tremendous shift from energy scarcity to energy abundance. For the first time in nearly a decade, the United States, under President Trump’s administration, has begun recognizing and utilizing our own energy resources as a strategic, American asset. The impacts of America’s energy resurgence are being felt around the world. Thanks in no small part to Congress lifting the ban on U.S. crude oil exports, our nation’s energy security and its role as an energy leader are strengthening. In addition to the significant economic and trade advantages, the resurgence of energy production here at home is creating new, high-paying jobs for hardworking men and women from the well pad to the local car dealer and corner grocery store. Additionally, the United States now has the ability to use its affordable, dependable energy resources as a diplomatic tool to help our allies and trade partners around the world offset their dependence on foreign, authoritarian, and oftentimes unstable sources of energy.
“This growth in both economic progress and energy production comes as industry’s commitment to the environment has resulted in new technologies and practices to further limit our footprint on the land and air we all cherish. For instance, oil and natural gas companies are taking voluntary steps to reduce methane emissions. This commitment to our environment is made possible through both a responsibility to the land and communities we operate in, but also smart infrastructure that enables energy companies to safely produce, transport, and supply energy to American homes and businesses. Opposition to these types of projects stands to only hurt, not help, the environment, our workers, and our national energy security.
“IPAA also supports efforts by the Trump administration to return the government regulatory structure back to a state and federal partnership, where it has traditionally been in this country. Our environmental laws are designed for the states to serve as the primary regulators, with the federal government being responsible for setting and supporting national standards and priorities. States should continue to take the regulatory lead, as they are in the best position to improve and adapt their regulations to address the unique characteristics within their states.”
A few points to consider:
The shale boom is fueling a manufacturing resurgence in our country. The benefits associated with the safe development of clean-burning American natural gas are overwhelmingly clear. Access to abundant American natural gas has given U.S. industrial companies a competitive advantage over their global competitors, where energy costs in other countries can be two- or three-times more expensive. This has led to the resurgence of natural gas-intensive manufacturing in the United States and the creation of more jobs to build and occupy these new industrial facilities. Employment across the entire upstream unconventional oil and gas sector will support nearly 3.5 million high-quality, high-paying jobs by 2035, according to an IHS study that includes over 750,000 supply chain jobs by 2025 (IHS study) related to the shale boom. In addition, unconventional oil and gas activity is expected to contribute $475 billion in value added contributions to the U.S. Gross Domestic Product (GDP) by 2035. Further, the net petroleum imports are down 315 percent from a decade ago, while average oil exports have grown extraordinarily since Congress lifted the U.S. oil export ban in 2015. Beyond the numerous economic benefits, this market growth has given the United States geopolitical leverage and flexibility, while keeping prices stable in the face of risks associated with supply interruptions from unstable regions of the world.
The U.S. oil and natural gas industry is leading the effort to reducing emissions. America’s energy developers are committed to reducing methane emissions. Through its own leadership and investments, the industry is achieving strong results in capturing emissions with the help of new and innovative technologies and without raising energy costs. According to the U.S. Environmental Protection Agency’s own data, methane emissions from oil and natural gas systems have declined 19 percent since 1990. At the same time, clean-burning American natural gas production has risen 52 percent and U.S. oil production has increased 28 percent since 1990. Keeping in mind, methane emissions from production-related activities account for less than two percent of all of greenhouse gas emissions in the United States. As these government findings have clearly demonstrated, the increased use of clean-burning natural gas is leading to cleaner air and improved public health. As we look to the future, the best way to achieve continued emissions reductions is through technology, innovation, and collaborative efforts – not government intervention.
Updated energy infrastructure is needed to safely get our product to markets and into American homes and businesses. Energy infrastructure is of vital importance to America’s independent oil and natural gas producers. Our nation’s ability to provide this reliable fuel for electricity generation not only creates opportunities at the wellhead but all along the supply chain in new infrastructure projects, U.S. manufacturing, and affordable utility bills at home. Pipelines are built with private funds – not federal dollars – and are the safest way to deliver natural gas and oil throughout the United States. They are constructed to strict state and federal regulations and adhere to stringent regulatory oversight, allowing for cheaper, cleaner generation of electricity and fuel to get to American consumers safely and efficiently. Recently, pipeline-opposing New England states chose to violate the spirit of U.S. sanctions and import liquefied natural gas from Russia to heat U.S. homes during the cold weather snap. The real problem is that environmental activists are protesting pipelines in the New England area, causing New England’s consumers to pay more than is necessary to heat their homes and power their daily lives. The solution is to expand our nation’s energy infrastructure and safely expand or construct new pipeline capacity to keep energy in the United States affordable and uninterrupted.
About the Independent Petroleum Association of America
The Independent Petroleum Association of America (IPAA) is a national upstream trade association representing thousands of independent oil and natural gas producers and service companies across the United States. Independent producers develop 90 percent of the nation’s oil and natural gas wells. These companies account for 54 percent of America’s oil production, 85 percent of its natural gas production, and support over 2.1 million American jobs. Learn more about IPAA by visiting www.ipaa.org and following @IPAAaccess on Twitter.