President and CEO of the U.S. energy industry body API, Jack Gerard, has stressed the need for forward-looking energy policies that embrace the U.S. energy renaissance as API released a new study examining the negative impacts of policies that restrict the production of fossil fuels.
“U.S. energy leadership is generating major economic benefits for American families and businesses,” said API President and CEO Jack Gerard. “Increased energy production and infrastructure investment could create hundreds of thousands of additional jobs. Restrictive policies would take the United States back to an era of energy dependence – all based on the false idea that we must choose between energy self-sufficiency and environmental progress.”
API’s study assumes a scenario including no new private, State, or Federal oil and natural gas leases; a complete ban on hydraulic fracturing; no new coal mines or expansion of existing mines; and no new energy infrastructure including pipelines.
“Freezing the American energy revolution in its tracks means the average American household could see its costs jump $4,550 in 2040 due to increased costs for transportation fuel, electricity, home heating, and goods and services. Electricity prices alone could increase an average 56 percent,” says Gerard.
Key findings of the study include:
• Loss of 5.9 million jobs
• Loss of $11.8 trillion in cumulative GDP
• Potential increase of $4,552 annual energy expenditures per household
• Potential increase of $40 in the price of a barrel of crude oil (WTI)
• Potential increase of $21 in the cost of natural gas (MMbtu)
• Potential increase of 56.4 percent in retail electricity prices
“Cutting U.S. oil and natural gas production wouldn’t magically reduce world energy demand,” said Gerard. “But it could raise costs significantly for American families and manufacturers, profoundly damage the U.S. economy, diminish our geopolitical influence, and severely weaken our energy security. With forward-thinking energy policies, we can ensure the U.S. energy renaissance continues to provide benefits for American consumers, workers and the environment.”
While 80 percent of American voters support increased U.S. oil and natural gas production, a vocal minority are working to obstruct energy development and infrastructure projects, reducing our energy options under a false belief that oil and natural gas production and use are incompatible with environmental progress, says Gerard. Their vision is one of constrained energy choices, with less energy certainty and reliability, and with less assurance on affordable power.
“Lower U.S. energy production and higher energy prices could reduce cumulative GDP by $11.8 trillion,” says Gerard.
The report is available here.
The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.