American Oil and Gas Reporter - June 2019 - 25

Oil, Gas Indispensable To
Every Realistic Policy Attempt
To Tackle Climate Change
The national conversation on climate change has moved dramatically. Not long ago, the differing views could be described
as those who questioned the existence of climate change versus
those who accepted its existence and were determined to stop it.
Today, most in Congress largely accept the existence of climate
change. Now, the conversation focuses on how to address it.
All the Democratic presidential candidates appear to be trying
to outdo each other with "green" proposals. At the beginning of
her candidacy, Senator Elizabeth Warren, D-Ma., announced that,
on her first day in the Oval Office, she would sign an executive
order to place a total moratorium on new federal oil and gas
leases. Banning fossil fuel production on federal lands then
became the litmus test for other Democratic candidates. Fellow
Democrats mocked former Vice President Joe Biden for expressing
his intention to formulate a "middle ground" climate change
policy. We already are seeing Democratic candidates decline campaign contributions from companies producing fossil fuels.
These positions and many like them are not grounded in fact
or practicality. In 2017, almost 24 percent of U.S. crude oil production and about 13 percent of natural gas output originated
from federal lands. No Democratic candidate has put forth a
concrete plan for meeting America's immediate energy demand
without these supplies, much less for making up the supplies
the country would forego if it implemented the other onerous
environmental provisions they advocate. Instead, Senator Warren
seeks to prioritize new renewable energy projects with power
produced from wind towers, solar farms and other clean energy
projects built on federal lands.
Some would argue that, logically, the Democrats' entrenched
position makes a rational climate change conversation impossible.
Most significantly, a fair-minded conversation would acknowledge
how U.S. natural gas production is addressing climate change, not
only in the United States but worldwide. Accurate methane
emissions data demonstrates natural gas constitutes a linchpin to
any effective climate strategy. In mid-May, the National Oceanic
and Atmospheric Administration released its analysis of a decade's
worth of data, stating: "While we do find some increase in methane
downwind of oil and gas activity, we do not find a statistically significant trend in the United States for total methane emissions."
Natural gas is essential for producing biofuels, both as a fuel
and a component of fertilizers. It is the feedstock or the process
heating source for the manufacture of energy conservation materials, energy efficient products and alternative energy technologies. No climate change approach should be adopted unless
it includes mechanisms to assure American natural gas can be
produced and used. Far from being banned, new American production should be encouraged.
Second, we must acknowledge that a strong economy hinges
on energy. The United States consumes about 16.5 percent of
the world's energy, but it also produces about 15 percent of the
world's gross domestic product.
Third, since all forms of energy are essential to economic
health, both in the United States and elsewhere, each nation

"No climate change approach should be
adopted unless it includes mechanisms to
assure American natural gas can be
produced and used. Far from being
banned, new American production
should be encouraged.

should be able to choose an energy supply mix that best suits its
needs. For the first time in decades, the world stands at a threshold
where abundant fossil energy-particularly natural gas and oil-
can provide emerging economies with alternatives that can
eliminate the common practice of deforesting land for fuel. Fossil
energy has the potential to create energy options that improve
community health, reduce water pollution, improve potable water
supply and enhance sustainable economic development.
Fourth, America's energy supply and its national security
are inextricably linked. Natural gas and oil provide about 65
percent of America's energy and will continue to be major contributors for the foreseeable future. We have changed from a
nation that imported more than 60 percent of its oil to slashing
imports to about 12 percent, a level that reflects U.S. refineries'
need for specific crude oils.
At the same time, we have increased exports of petroleum
and become a net exporter of natural gas. These U.S. petroleum
and natural gas exports can weaken foreign countries' ability to
manipulate the global marketplace. No so-called climate change
solution should diminish America's ability to stabilize world
energy markets. In particular, no policy should disadvantage
America's marginal well production. Individually, these wells
produce less than 15 barrels a day, yet collectively, they account
for 10 percent of U.S. crude oil production. They are unique to
the United States and once they are shut in, cost considerations
will prohibit any future revival.
Senator Warren espouses the end of U.S. fossil fuel production.
Boston policymakers recently discussed restricting or even
banning the use of internal combustion engine automobiles.
The climate debate must adjust to incorporate reality. And that
reality must include the continued smart and efficient production
and use of America's oil and natural gas resources.
❒

SUSAN GINSBERG is vice

president of crude oil and natural gas regulatory affairs for
the Independent Petroleum Association of America. She covers legislation and regulation,
focusing on the CFTC and
FERC. Her experience in natural gas regulatory affairs spans
more than three decades.
JUNE 2019 25

American Oil and Gas Reporter - June 2019

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