The EU Shows Us What Not To Do
Your Weekly Dose of “Common Sense“ Energy News
The Empowerment Alliance
February 4th, 2022
Michigan State Senator Dale Zorn introduced a bill recently to outlaw “ban on new natural gas connections for new construction.” This brings the total to 20 states that have similar laws preventing local jurisdictions from banning natural gas hookups to homes. These efforts from generally Republican controlled states exemplifies a real concern for the costs of President Biden’s green-at-all-costs agenda. By defending consumer’s right to access diverse energy sources these states are fighting to lower energy prices for their constituents. Affordable energy is fundamental to economic prosperity for all. It is a moral imperative to provide for families who are most vulnerable to increases in their energy budgets.
Bottom Line: America’s natural gas is the fiscally-sound, reliable and environmentally responsible bridge to our energy future. Cutting off access to this affordable fuel source will hurt the American households who need the most use from the money in their wallets.
The Biden Administration continued its all-of-the-above assault on domestic energy production. Ranging from international messaging to allowing federal approvals to languish in local jurisdictions, the assault continued in the Federal courtroom. The ruling curtailed energy exploration and production which will ultimately hurt America’s most vulnerable communities. A segment of Americans that the President claims to care about.
A nonsense move from the courts recently saw the judicial system vacate a sale of $190 million for a lease in the Gulf of Mexico. The federal government is required to hold auctions on a regular basis to enhance energy independence and generate revenue so the Biden administration begrudgingly executed the sale. Then despite a complete environmental impact statement, a judge ruled that the scientific assessment didn’t properly account for the impact on global warming.
This narrow assessment neglects that the demand for energy is filled by a global market. Eliminating supply in a highly regulated and environmentally friendly market like that in the United States means that the demand is going to be met by increasing supply somewhere else in the market that might not be as environmentally friendly. In short, the global environment will be worse off if the United States isn’t leading energy production.
In another consideration, Elizabeth Murrill, Solicitor General of Louisiana, which is an intervenor in the case, said the court and the Biden administration were hurting blue-collar workers.
“It is extremely disappointing that the Biden administration continues to sabotage oil and gas lease sales. These actions are crippling consumers, destroying jobs, and jeopardizing our national security,” she said.
Bottom Line: The ongoing court battle over oil and gas leases under the Biden administration is unacceptable. At a time where energy prices are rising across the board, the federal government should be doing everything they can to boost U.S. production.
Eastern Europe continues to drive media attention due to the mounting potential for conflict along the Ukraine border with Russia. Countries in Europe continue to stockpile LNG in anticipation of the conflict escalating and Russia reducing their supply to the continent. This growing fear about energy access and affordability is decades in the making. Broadly similar to green new deal style policies, the EU has been cutting off their own fossil fuel production and usage without a viable alternative to meet that baseline demand. With their domestic sources waning, Russia stepped in to meet that demand. For example, Germany now gets approximately 60% of its natural gas from Russia. With that supply threatened due to the conflict and renewable sources not able to meet demand, energy prices could continue to sharply increase across the continent. It is worth noting that while the United States generally doesn’t rely on Russian natural gas supplies, New England has occasionally imported fuel from our geopolitical adversary.
The lesson learned from Europe is that renewable energy sources are not ready to meet the national energy demand. Renewable capacity would need to exceed demand growth in order to meet new demand while replacing other sources of energy. Climate Envoy Kerry recently acknowledged that in a transitioning energy economy, “Gas is going to be important to the transition.”
Bottom Line: Over-reliance on renewable energy and Russian gas has been a recipe for disaster for the EU. President Biden should heed this as a warning of what his energy agenda will bring if he continues his war on American oil and gas.
Unfortunately for Americans, February has brought more pain at the gas pump. Over the past week, the average price of a gallon of gas has risen nearly 10 cents, up to $3.41, compared to $3.34 last week. Thanks, Joe!
Hearing On Equity In Environmental Policymaking: On Tuesday, February 8, the House Natural Resources Committee will hold a hearing on “Justice, Equity, Diversity, and Inclusion in Environmental Policymaking: The Role of Environmental Organizations and Grantmaking Foundations.”
Hearing On Oil Industry “Climate Pledges”: On Tuesday, February 8, the House Oversight and Reform Committee will hold a hearing on “Fueling the Climate Crisis: Examining Big Oil’s Climate Pledges.”
Hearing On Nuclear Energy: On Wednesday, February 9, the Senate Environment and Public Works Committee will hold a hearing “to examine S.2373, to reestablish United States global leadership in nuclear energy, revitalize domestic nuclear energy supply chain infrastructure, support the licensing of advanced nuclear technologies, and improve the regulation of nuclear energy, and S.1290, to assist communities affected by stranded nuclear waste..”
Hearing On Clean Hydrogen: On Thursday, February 10, the Senate Energy and Natural Resources Committee will hold a hearing “to examine the opportunities and challenges in using clean hydrogen in the transportation, utility, industrial, commercial, and residential sectors.”
On Episode 7 of the Empowering America Podcast, executive director Matt Hammond speaks with Congressman Troy Balderson (R-OH).
Matt and Rep. Balderson discuss the many ways that the oil and natural gas industry benefits local communities, and how the Biden Administration needs to do a better job at communicating information about how this industry’s efforts are helping save money, jobs, and emissions.
To listen to Episode 7 on Spotify, click here.
To listen to Episode 7 on Apple podcasts, click here.