While the push is on for more electric vehicles, solar panels, wind turbines, and other forms of cleaner energy aimed at reducing the rate of climate change, the oil and gas industry doesn’t want Americans to lose sight of the fossil fuels it produces to maintain the country’s energy security.
During its annual State of American Energy event on Wednesday, the American Petroleum Institute laid out a new plan for policies intended to make, move, and improve access to domestically produced oil and natural gas.
“The state of American energy is strong and resilient,” Mike Sommers, API president and chief executive officer, said in his keynote address. “But we need policies to enhance the American energy supply chain and not hinder it.”
He called for more bipartisan support from President Biden and Congress to reduce uncertainty. Even with the enthusiasm for cleaner fuels, there needs to be continued investment in oil and natural gas because of how the world’s post-pandemic demand and Russia’s invasion of Ukraine led to rapid inflation in energy costs, he said.
During a question-and-answer session with reporters after API’s presentation, Mr. Sommers told The Blade that he is counting on Ohio to continue playing a key role in energy distribution and production given its proximity to America’s heartland.
“Ohio is a key state and a large producing state,” he said. “Ohio has always been, as the motto says, the ‘heart of it all.’ It certainly is for the oil and gas industry.”
Mr. Sommers also said he is hopeful that Canadian-based Enbridge, one of North America’s largest pipeline companies, will continue making progress in its efforts to encapsulate the portion of its Line 5 pipeline that runs beneath the Straits of Mackinac.
Enbridge is trying to build a tunnel that will house a new section of the pipeline there. Line 5 traverses 645 miles across much of Canada and Michigan’s two peninsulas. It serves PBF Energy’s Toledo refinery, among many others.
“All of us recognize how important it is,” Mr. Sommers told The Blade. “We are hopeful we can get the improvements done.”
Last March, the U.S. Army Corps of Engineers announced it had hired a consultant to do a required environmental impact statement for the proposed Line 5 tunnel. Such a broad assessment is expected to take at least two years.
The API event began like a pep rally, with a video in which Dustin Meyer, API vice president of natural gas markets, was shown extolling the virtues of natural gas.
The trade group stated that oil and natural gas still account for 68 percent of America’s energy, despite the gains made by other sectors, and said the world consumes 100 million barrels of oil a day on average.
In the video, Mr. Meyer said that about 40 percent of America’s natural gas is now used to produce electricity. Home usage for things such as stoves and heating account for about 30 percent, and industry other than natural gas power plants also use 30 percent.
Natural gas puts out 50 percent fewer greenhouse gases than coal, he said.
The United States has quickly become the world’s leading exporter of the refrigerated form of that fuel, liquified natural gas. Those exports began in 2016, barely six years ago. The timing has made a big difference in the world economy because U.S. LNG export has helped soften by blow of Russia’s decision to end its natural gas exports to much of Europe after it invaded Ukraine almost a year ago. Russia normally provides 40 percent of Europe’s natural gas, Mr. Meyer said.
“American LNG helps displace that Russian gas,” he said. “This was the result of innovation. That’s what enabled this to happen.”
Mr. Sommers agreed.
“Last year, Europe learned the hard way that energy security is national security,” Mr. Sommers said.
Frank Macchiarola, API senior vice president of policy, economics, and regulatory affairs, echoed calls from Mr. Sommers for more bipartisan support from Washington during a news conference in which the two addressed reporters.
“All of the incentives are there to produce more oil and gas,” Mr. Macchiarola said. “We need signals from policymakers that ensure we’re going to have a longtime market for oil and natural gas.
He said the industry “is committed to reducing methane emissions” from natural gas and needs to keep funding in place for production and pipelines. Carbon dioxide is the most common greenhouse gas accelerating the rate of climate change, but methane is the most potent.
Climate Power, a clean energy advocacy group, called the API event another example of “greenwashing.”
It accused the oil and gas industry of spending $91 million on lobbying in 2022, and donating more than $34 million to elect representatives in government “who deny the reality of the climate crisis and support policies that only benefit Big Oil.”
First Published January 11, 2023, 8:21 p.m.
