Scott Angelle: This Labor Day, unleash workers to tame inflation, strengthen security

Published 12:53 pm Sunday, September 3, 2023

As we observe Labor Day, a day to appreciate all workers throughout the country who make the American dream possible, let us consider the current direction that questions our future economy and our position as a strong nation. Where challenges exist, there are also opportunities for leadership and strategic actions which can prepare for the future. Now is the time for a course correction from our nation’s current policy of favoring OPEC+ energy workers. USA energy workers are right for the job and up to the challenge. No one does it better and more environmentally sustainable than the USA energy worker.

As we transition to a different mix of an energy portfolio with additional sources, there must be a phase-in period. Global energy companies have acknowledged this and continue to support, even increased the development of conventional sources of energy such as oil and natural gas. Earlier in 2023, Bernard Looney, BP’s chief executive shared plans to increase its investment in fossil fuels, citing changes in the geopolitical environment.

Once such policy which can unleash USA energy workers while strengthening national security is to increase liquefied natural gas exports to the European Union. It also allows the exporting of our values.

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In July 2023, a Forbes article identified benefits to the U.S. from meeting the call to export LNG to Europe. “This energy crisis in Europe has positioned the U.S. to reach some key milestones: First, position America as a reliable and strategic energy ally; second, loosen Russia’s grip on European gas; and third, enhance the U.S. ability to claim global energy leadership.”

Progress requires reliable access to our energy natural resources. Currently, there is an attack on access to federal offshore energy. Offshore leasing has been a bipartisan policy for over five decades with 13 different presidents prior to this administration. An additional course correction would be to return to the long-standing policy of regular scheduled offshore lease sales as part of a comprehensive Five-Year Leasing Program. A 5-year plan includes a schedule of oil and natural gas lease sales and size, timing, and location of proposed leasing activity.

The facts clearly show USA offshore oil and gas is a viable source of energy at lower emissions. Considered one of the most climate advantaged energy-producing provinces in the world, recent research regarding carbon emissions reveals that USA Gulf of Mexico production has approximately half the carbon intensity per barrel of other producing regions worldwide. When it comes to flared or vented methane, the USA offshore industry has consistently been one of the best performing provinces in the world with a ratio of less than 1.25% of flared or vented to produced gas.

Furthermore, when comparing import volumes and sources  to a 2020 Wood Mackenzie report, one can conclude that at least 73.4% of the oil imported to the United States had a higher carbon intensity than Gulf of Mexico production.

America has long had advantages with a predictable domestic energy policy. As we move forward with energy additions, there has to be a forward-looking analysis of all consequences when adopting new technology. One such consequence is the ceding of our energy superiority to China. With the innovation of the electric vehicle (EV), a whole new inventory of resources is required including rare Earth minerals. Let us be mindful of creating yet another dependency on China. In an apparent reference to China, John Kerry, President Biden’s climate envoy described to CNBC, “It’s absolutely correct there is a cornering of the market with lithium and other rare minerals.”

We need to think hard before becoming dependent on these resources whose supply can be pulled leaving the U.S. at a great disadvantage. Remember just a few years ago how the powerful American automobile industry was brought to its knees due to a shortage of foreign-manufactured microchips. We don’t even want to imagine a transition without a plan where we are forced to rely on a Chinese cornered market.

Today, the U.S. energy program is at a crossroads with energy additions bringing promising prospects for the future. However, we need to be strategic and thoughtful with an approach which uses the country’s strengths and considers all impacts of advances. Having proven their dedication and work ethic for the past 60 years, USA energy workers, including our traditional oil and gas workers, are an important part of any strategic and thoughtful approach. Recall, during the 2023 State of the Union address, President Biden acknowledged the role of oil and gas, “We’re going to need oil and gas for at least another decade, and that’s going to exceed, and beyond that. We’re going to need it. Production.”

During this month of September where we celebrate the contributions of working men and women, let us unleash the innovation, inspiration, and dedication of our USA energy workers to balance the 3Es® of environment, energy, and economy.

Scott A. Angelle, founder of USA Energy Workers, and host of Balancing the 3Es® podcast, the voice of the USA Energy Worker. Angelle has served as former Louisiana Lieutenant Governor and Secretary of Natural Resources, and the nation’s longest serving director of the U.S. Bureau of Safety and Environmental Enforcement.