API’s Sommers: Oil and Natural Gas Today and in the Future

Mark Green
Posted October 7, 2024

American energy leadership has never been more important – to our country and the world – than right now, amid heightened geopolitical tensions and policy uncertainty in Washington about the best ways to ensure reliable, affordable energy continues to be available to power economic growth and strengthen America’s energy security.

API President and CEO Mike Sommers touched on those points and others in remarks Monday at the annual meeting of the New Mexico Oil and Natural Gas Association in Santa Fe.

Sommers’ speech was timely, given world events and America’s upcoming election choices to determine control of the White House, Congress and state legislatures. The venue was appropriate given New Mexico’s prolific oil and natural gas production – Lea County produces more oil than five OPEC nations combined – and the economic benefits the industry provides.

Key points:

• Energy from oil and natural gas is needed today and will be needed tomorrow to meet growing energy demand.
• Abundant U.S. oil and natural gas resources have built an American energy advantage relative to the rest of the world that must be supported or it could wither away.
• Clear policy choices await the next presidential administration on whether to strengthen American energy security and economic growth.

Excerpts from Sommers’ speech (as prepared for delivery):

Oil and Natural Gas – Critically Important Today and Tomorrow

“[T]his great industry is in this for the long haul. Regardless of what happens on Election Day, the natural gas and oil industry is here to stay. … Despite the noise from doomsday scenarios, the reality is that oil and natural gas will be needed for decades to come – not just years. At API, our message is simple: Because global demand for energy is rising, there’s no better place to produce it than here in America.”

American Energy is Security

Despite chaos around the world, the United States is energy secure because of its innovative, resilient oil and natural gas industry and the work of 11 million Americans whose jobs are supported by it.

“These men and women ramped up production when the world needed it most, even in the face of challenging policies from Washington. Their efforts kept the Lights On around the world – something every state and federal policymaker should commend. But our energy security should never be taken for granted, and we need policies that ensure we can meet our energy needs tomorrow, not just today.”

U.S. Must Meet Demand Growth Challenges

Global population is projected to reach 10 billion by 2050 – and along with it, demand for energy. Even with the most optimistic projections for renewable energy, oil and natural gas are forecast to supply nearly half of the world’s energy in 2050, roughly their share today.

“With energy demand set to increase, we need energy from all sources. Thus, it has never been more important for America to emerge as the runaway top supplier of both crude oil and natural gas.”

In the future, the world will need more energy from more energy sources. Oil and natural gas will be leaders, as they are today. The question, Sommers said, is whether energy will come from America or from nations that “do not share our values,” including a commitment to environmental protection.

“Some argue that the world no longer needs natural gas or oil – that we can move past them entirely. Others in Washington are pushing policies that restrict access to public lands, make us dependent on China for critical minerals, limit consumer choices, and threaten the very infrastructure that keeps our energy system running. These policies are misguided. They discourage investment in energy projects and impose unrealistic timelines and mandates. What Americans need are choices, not mandates – and honesty about the consequences of losing our energy advantage, or sowing the seeds of a new energy crisis.”

Energy Policy Choices on the Horizon

Whoever wins on Election Day, the energy imperative will be to enact policies that recognize America’s energy advantage and a U.S. global responsibility to lead in ways that advance security – for America and its allies. Sound policy must recognize the value of U.S. oil and natural gas.

“The next administration must focus on protecting consumer choice, fixing our broken permitting system, restoring permits for [liquefied natural gas] exports, expanding access to our vast energy resources and advancing sensible tax policy. These are not just popular positions – they’re essential. Polling in political ‘swing’ states shows that eight in 10 voters, across party lines and including independents, support increasing U.S. production of oil and natural gas. …

“Together, let’s imagine a future where American energy leadership not only powers our homes but fuels our dreams, where our innovations light the path for the world to follow.”