“While 80% 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 gas production and use are incompatible with environmental progress,” American Petroleum Institute president Jack N. Gerard said this week. The trade association commissioned the report.
“Their vision is one of constrained energy choices … ,” Gerard said, adding API wants to “replace rhetoric with reality.”
API hired OnLocation Inc., a Vienna, Va., firm with experience providing technical support for Energy Information Administration modeling, to conduct the new study, Kallanish Energy learns.
OnLocation used EIA’s economic model software and the base case inputs from its 2016 Annual Energy Outlook to examine what would happen if the U.S. stopped all new federal oil and gas leases, banned hydraulic fracturing, prohibited new or expanded coal mines, and stopped issuing permits for energy infrastructure, including pipelines and import/export facilities.
The study found by 2040, adopting all the policies anti-fossil fuel activists promote to “keep it in the ground” and improve environmental quality would:
- Cost 5.9 million jobs and $11.8 trillion of cumulative gross domestic product.
- Potentially increase prices for crude oil by $40 per barrel, and for natural gas by $21 per million Btus.
- Potentially raise retail electricity prices by 56.4%.
Gerard said as fossil-fuel opponents move their challenges from the federal to state and local governments, petroleum councils API supports in more than 20 states and a grass-roots network will need to step up with accurate information.
“When you look at what’s taking place, it’s time to move from the rhetoric and present the reality to state legislatures and county commissions. Many local communities haven’t faced issues like this before. When you bring in the reality, it helps their governments reach more intelligent decisions,” he said.