August 4th, 2023

• Stay up to date on all things energy by visiting the TEA Newsroom.
• Natural Gas CARES: It is the world’s Cleanest, Affordable, Reliable Energy Source.
• Energy industry fears Biden will declare a climate emergency, seize powers.
• Oil and natural gas industry upset by the snub to the methane summit.
• Top utility group opposes emissions plan for existing gas plants.
• Companies complete first processing of oil from plastic waste at scale.
• Why every serious environmentalist should favor fracking.
• Fitch downgrades U.S. long-term rating to AA+ from AAA.

Republicans and Democrats joined forces last week in an effort to reverse the anti-fossil fuel provision in President Biden’s climate package.

A large bipartisan coalition in the House is introducing legislation that would reverse a provision in the Inflation Reduction Act (IRA) targeting oil and gas producers.
The Promoting Domestic Energy Production Act — authored by Reps. Mike Carey (R-Ohio) and Vicente Gonzalez (D-Texas) and joined by more than a dozen fellow members — would aim to ensure the oil and gas industry is able to enjoy the same tax benefits as other capital-intensive industries.

Specifically, it allows companies to receive tax deductions on intangible drilling costs.

This is welcome news and it coincides with a new poll that shows an overwhelming majority of voters support the production of more American energy. It indicates that voters not only support the production of more American energy, but also want the economic contributions of oil and natural gas to inform US energy policies.

• The poll found that 88 percent of voters believe it is important to produce natural gas and oil in the United States, and 90 percent believe producing natural gas and oil strengthens the US economy.
• 85 percent agree that producing natural gas and oil here helps make our country more secure against actions by countries such as China and Russia.
• 80 percent support increased development of the country’s energy infrastructure.

The natural gas and oil industry supported 10.8 million jobs and contributed nearly $1.8 trillion to our economy in 2021, meaning it’s good for the economic stability of our nation.

This week California, with the most ambitious climate goals in the nation, said it relies on natural gas to support the grid at peak demand.

This legislation could represent the effort chipping away at the IRA with the highest likelihood of success. The bill could also be included in a broader tax package when Congress returns from its summer recess.

Bottom Line: It’s encouraging to see a bipartisan effort to undo Biden’s policies that unfairly target oil and gas producers. They are listening to the 90% of Americans who agree – producing our own energy makes us stronger.

New York braces for gas, electric bill shock amid a green push. Con Edison announced that the state had approved its plan to raise customer rates and acquire more than $11 billion by 2025 to fund initiatives contributing to the state’s clean energy goals.

Con Edison, the utility company responsible for providing energy to 10 million people in New York City and Westchester County, justified the decision to raise rates in an interview with Fox News Digital.
“Our customers demand safe and reliable service and increasingly renewable energy. This investment from customers is going to allow us to redesign and rebuild the grid, to move it towards electrification,” a Con Ed spokesman said.

A few facts:

• Under the new rate plan, the average resident would see a $14.44 increase — or 9.1% — to their monthly bill beginning in August, according to the New York State Public Service Commission analysis.
• The rate gradually will get larger and a report from the New York Post claimed customers’ monthly bills could double by 2025, which the utility refuted as “inaccurate.”

In any event, customers are unhappy and rightfully so. A White Plains woman whose family is struggling month to month summed it up:

“It’s definitely going to add to the financial strain of New Yorkers. I think that we’re all really struggling to get ahead… it’s not just the Con Ed bill, it’s also buying a car, buying a house, buying groceries. It’s impossible. We can’t afford anything.”

Con Ed firmly supports a transition to delivering 100% clean energy by 2040. In its press release announcing the rate hike plan, its chairman and CEO called the shift “critical” to mitigate the impacts of climate change.

What is critical is stopping these green-at-any-cost policies that are driving up rates and hurting people like these:

• More than 35% of New York households with an annual income less than $50,000.
• The 536,682 small businesses with fewer than 1,000 employees.
• There are 3.5 million people aged 65 or older in New York.

Bottom Line: When you make unrealistic climate goals mandatory, utilities have to increase prices to try to meet those goals. New York is a perfect example of this green-at-all-costs mindset.

Prices at the pump climbed another 10 cents this week, with the national average for a gallon of gasoline currently sitting at $3.83. This is the highest average since October 2022. Oil analyst Patrick De Haan predicts that this rise will slow down in the coming days, with prices leveling out around $3.85. One thing is certain – Americans are feeling the pain at the pump once again and it will only get worse if prices break the $4/gallon threshold.

Nothing on the calendar for next week as Congress is still in summer recess!

“American energy independence is neither a right nor left issue, but one that should unite us all.”

— Rep. Mike Carey (R-Ohio)