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Global energy leadership

Hydrocarbon Engineering,


‘The US has surpassed all expectations and achieved a level of domestic energy production that was unthinkable even five years ago. While we can thank the hard work and entrepreneurial spirit that made this possible, we must ensure that politicians in Washington respect the opinions of voters in Louisiana and across the nation and work with us to ensure that our nation achieves its full energy potential.

‘What we need from our elected leaders are smart energy policies that promote our nation’s position as a leader in energy production. Think about that for a moment. The US IS or soon will be THE leading crude oil producer on the plant. Not Saudi Arabia, not Russia, the United States of America. This change in circumstance was not due to government policies or foresight. In fact, all too often, it has been in spite of federal government policies.

‘We are a global energy leader thanks to innovations in hydraulic fracturing and horizontal drilling, and encouraged by America’s unique private property and free market system, our nation’s energy landscape has dramatically improved: we’ve gone from scarcity to abundance. Entrepreneurs in the private sector and smart, state led policies have created and will continue to drive American energy production leadership. And no state is a better example of what good energy policy can mean than Louisiana.’

Louisiana

‘For decades Louisiana has been at the forefront of all aspects of the American energy sector. In transportation, refining, storage, export and import Louisiana continues to be a leader. Today more than 16% of your state’s workforce, 412 000 and growing, is in the oil and natural gas industry, which provides US$ 24 billion in wages to the Louisiana economy. And your state’s natural gas production accounts for a little more than 5% of the nation’s production.’

‘In my view, lawmakers and regulators in Washington could learn much from how Louisiana’s oil and natural gas industry, state regulators and Louisianans from every part of the sate and of all political persuasions work together to create energy policies that encourage safe and responsible energy development, protect the environment and provide well playing jobs.

‘Nationally, America’s oil and natural gas industry supports approximately US$ 1.2 trillion in US gross domestic product and provides US$ 85 million a day to the federal governments in the form of royalties, bonuses paid at lease sales and taxes. And the industry supports 9.8 million jobs, 5.6% of total US employment, but we could do much more than the right energy policies. Further, with the right energy policies the industry could support as many as an additional 1 million American jobs in seven years and more than 1.4 million by 2030 in the oil and natural gas and petrochemicals industries. In Louisiana national pro energy development policies could result in almost 89 000 additional jobs by 2035, which would bring in an additional US$ 308 million in state government revenue.’

Offshore

‘Today, 87% of federal offshore areas remain off limits to oil and natural gas production. According to the Bureau of Land Management, from 2008 – 2013, the number of drilling permits issued on federally controlled onshore land dropped by 40% while the actual number of wells drilled dropped 50%, which of course further depresses production. Further, a Congressional Research Service study found that in federal areas, production from 2009 through 2013 was down 6% for crude oil and 29% for natural gas. In contrast, on private and state lands, where development does not need permission from the federal government, oil production is up 59% and natural gas production is up 33%.’

‘The fact is expanding access could create 1 million new jobs, generate US$ 127 billion in government revenue in under a decade and dramatically increase domestic energy production.’

‘Our view is that all states should get a fair share of the revenue collected by the federal government and API will continue to work with our allies in Congress, including your bipartisan congressional delegation to that end specifically and more broadly to take the politics out of energy policy.’

Politics should not drive energy policy

‘We will continue to work hard to counter the nay sayers, and will press our elected leaders for policies that support energy development, job creation, energy security and cement our nation’s place as global energy superpower. However, forward looking pro energy development policies are only half of the equation. We need to ensure that the next generation of energy industry workers is ready to make the most of our nation’s vast energy resources. One of the ways the oil and natural gas industry is leading the change we seek is by ensuring that our industry attracts and retains the best talent from every region, state and demographic group in the nation.’

‘To stay ahead of the curve, the industry is working with education, union and community leaders along with elected officials to increase the participation in and to improve the educational achievement of women and minorities in science, technology, engineering and math related disciplines. Because fundamentally, if the oil and natural gas industry is to take full advantage of North America’s vast energy resources, we’ll need to ensure that our workforce fully reflects this nation’s diversity; an objective that’s best achieved through public/private cooperation.’

‘As the generation that will decide this nation’s energy path for decades to come, we must demand that those who act on our behalf, at all levels of government, use those principles as the foundation for their energy policy decisions. We must demand that they reject the outdated political ideology of the professional environmental fringe and refuse to let political orthodoxy drive the rulemaking or decision on energy policy. We must demand that those who seek to represent us ignore the irresponsible and unrealistic off fossil fuel agenda, pushed by some.

‘We must make it clear to our elected leaders that energy policy should not be a partisan talking point because it is too important and fundamental to our way of life. And help them understand that this game changing energy and economic opportunity is not a given. Other nations are ready to take our place if we falter. The decisions our country makes in this area will chart this nation’s energy course for generations to come. Ultimately we want to create an American consensus on energy policy that will allow our nation to take full advantage of its nation’s bright energy future.’


Adapted from speech by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/22072014/api-us-global-superpower/


 

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