Energy Secretary’s Petroleum Council Remarks – and a Sincere Policy Dialogue

Mark Green
Posted December 20, 2022

First, let’s commend U.S. Energy Secretary Jennifer Granholm for doing yeoman’s work as a bridge between the Biden administration and America’s natural gas and oil producers, transporters and refiners.

As she did earlier this year, Secretary Granholm talked about the continuing importance of domestic natural gas and oil production, telling the National Petroleum Council last week that the administration and energy producers share the goal of working for the public good.

Granholm said that while the administration is as committed as ever to transitioning America to renewable energy sources, U.S. natural gas and oil will continue to be an important part of the energy mix for decades to come. Granholm:

“Further ahead this transition hinges … on making sure it’s done well, making sure we acknowledge that fossil fuels are not going to go away anytime soon …”

Granholm also mentioned the need for future energy diversification but also noted the importance of meeting energy demand in the near term – for U.S. energy security, economic growth and climate progress. Looking to the future, she said natural gas and oil have an important part in widening America’s energy choices:

“We need this industry to play a lead role in developing, deploying these additional resources. Some of you are [already doing this], of course. This is an industry that's full of innovators, and I know many of you are rising and can rise to this challenge.”

These are some important reassurances for natural gas and oil, which provided 68% of the energy Americans used in 2021 and which will provide 68% of our energy in 2050, according to the U.S. Energy Information Administration’s Annual Energy Outlook. The unfortunate reality is that it has been difficult for the administration to voice a consistent energy approach that acknowledges this.

At different turns the administration has demanded more natural gas and oil production – which indeed is needed – but has consistently pursued policies that have worked against increased production while falsely vilifying producers as un-American, opportunistic profiteers. Administration calls for more natural gas and oil right now, indicating a view that oil and natural gas have a short future, have not helped new investment in projects that are necessarily longer-term.

Granholm is correct that the administration’s relationship with natural gas and oil producers has been challenging. But often it has been more challenging than it needed to be.

Natural gas and oil companies share the administration’s goal that Americans should have access to reliable, affordable energy. This is fundamental to the American way of life. Increased natural gas and oil production is critical to U.S. energy security today and in the future and should be seen that way in Washington.

At the same time, natural gas and oil companies are committed to doing their part to build a lower-carbon future through cleaner products and operations – as well as supporting solutions such as carbon capture, utilization and storage and emerging blue hydrogen. API’s Climate Action Framework details how governments, industries and consumers can work together to help build the lower-carbon future.

Natural gas and oil are key to modern lives today and will be tomorrow. They are foundational to an energy future that is realistic and less risky. It is an energy future that is attainable and will continue to reduce emissions. Our companies are committed to such an approach and to a sincere policy dialogue. Darren Woods, ExxonMobil CEO and chairman, who spoke after Granholm at the National Petroleum Council:

“We are collectively committed to many of the same objectives in terms of significantly reducing emissions, both from our operations and the products that we sell. [The discussion/debate is how best to achieve goals in a managed way] that meets all of society’s needs, including reduction of emissions, including affordable and reliable energies …”