How the Next Conservative Administration Can Restore American Energy Dominance

COMMENTARY Energy

How the Next Conservative Administration Can Restore American Energy Dominance

Feb 16, 2024 3 min read
COMMENTARY BY
Diana Furchtgott-Roth

Director, Center for Energy, Climate, and Environment

Diana is Director of the Center for Energy, Climate and Environment and the Herbert and Joyce Morgan Fellow.
China, India, Russia, Africa, and Latin America are increasing their consumption of fossil fuels, so American production is increasingly irrelevant to total global emissions. Terry Vine / Getty Images

Key Takeaways

The Biden administration is whittling away American energy dominance with regulations and executive orders.

The ban on liquid natural gas exports raises natural gas prices in Europe, benefiting Russia and Qatar, and harms the economies of American allies.

Faster infrastructure permitting and approval of export terminals would enable oil and natural gas to travel to where they’re needed.

The Biden administration is whittling away American energy dominance with regulations and executive orders that favor Chinese-made electric batteries, wind turbines, and solar panels and discourage domestic oil and natural gas production. But because these actions aren’t laws, a future Republican administration could reverse them.

The Biden administration openly wants to stifle oil and gas production and encourage wind and solar power through Environmental Protection Agency and Department of Energy regulations, monument designations, and climate czars in multiple agencies. China, home to half of the largest wind turbine and solar panel manufacturers, makes 80% of the world’s electric batteries. Requiring renewable energy and electric vehicles makes America dependent on China.

The stated rationale for the Biden agenda is that fossil fuels are causing climate change. But if America stopped using all fossil fuels, temperatures would decline by only 0.2 degrees Celsius by 2100, according to government models run by the Heritage Foundation. Meanwhile, China, India, Russia, Africa, and Latin America are increasing their consumption of fossil fuels, so American production is increasingly irrelevant to total global emissions.

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In addition, America’s emissions are declining through the use of clean natural gas. Between 2005 and 2021, U.S. carbon dioxide emissions fell by 1 billion metric tons, while China’s emissions rose by 5 billion metric tons.

Yet on Biden’s first day in office, through executive order, he limited offshore drilling, enlarged boundaries of national monuments, and stopped the Keystone XL pipeline. Biden repeatedly has said America is transitioning away from domestically-produced fossil fuels—whether it wants to or not.

To that end, last month, the Biden administration halted future exports of liquid natural gas, pending a future study by the Department of Energy, driving up the price of Russian and Qatari natural gas to American allies abroad. The ban on liquid natural gas exports raises natural gas prices in Europe, benefiting Russia and Qatar, and harms the economies of American allies in Europe and Asia. The ban also raises global carbon dioxide emissions because coal is used instead of gas.

The administration is forcing its agenda on American consumers as well. Proposed regulations from the EPA and the Department of Transportation would require 60% of all vehicles to be electric by 2030 and 66% by 2032, compared to 7% today. Ford announced this month that it lost $65,000 per EV sold in the fourth quarter of 2023. A National Automobile Dealers Association letter to Biden indicated that EVs are piling up on dealers’ lots because people don’t want to buy them.

EVs are more expensive than gasoline-powered vehicles, and poor people, farmers, and small businesses are disproportionately affected. The electric version of the base Ford F-150 pickup truck, the bestselling vehicle in America, costs an additional $17,000. Tesla’s base prices start at $42,000 for a Model 3 and go up to almost $100,000 for a Model X.

Further, batteries lose 20% to 40% of their range in cold climates. As was seen in Chicago earlier this winter, charging stations also freeze in cold weather, leaving EVs powerless and their drivers stranded.

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Charging these vehicles also costs more due to additional EPA regulations on power plants. The new proposed rule would regulate carbon dioxide and other so-called greenhouse gas emissions from new and existing natural gas- and coal-fired power plants and mandate carbon capture systems or a switch to hydrogen fuels by 2039. If the power plants do not comply, they will have to close down.

In addition to dramatically higher energy costs, this rule would make the electricity grid less reliable and cause more blackouts at a time when America needs more power for Biden’s planned vehicle electrification. People die from blackouts—and there would be thousands of deaths if the EPA triggers a failure of the grid.

These policies are disastrous for America. They strengthen China, Russia, and Qatar, hurt America’s allies, and disproportionately raise energy and transportation costs here at home—all without lowering global temperatures, their stated purpose.

There is a better solution staring policymakers in the face. If producers could access more areas for leases and drilling, production would increase, and prices would decline. Faster infrastructure permitting and approval of export terminals would enable oil and natural gas to travel to where they’re needed and help to lower global emissions as gas replaces coal. Rolling back regulations on vehicles would reduce transportation costs.

These are policies a new conservative administration should make a priority if it hopes to reverse the harm caused by Biden’s agenda.

This piece originally appeared in Restoring America by the Washington Examiner