Texas Railroad Commissioner Wayne Christian
The American energy industry has always taken great pride in being innovative, independent, and committed to free market principles. Recently, however, executives at some of the nation’s biggest oil and gas companies are publicly embracing the same corporate welfare schemes that have propped up unreliable so-called “green” energy for decades. This is discouraging because government subsidies distort markets, encourage dependency, and waste taxpayer dollars, whether they are handed to wind farms or carbon capture projects.
As an energy regulator, my position is simple: I am agnostic on technological innovation, but I am categorically opposed to corporate welfare for energy production. I oppose it for “green” energy, and I oppose it for oil and gas. Why? Because I am not a hypocrite. If a technology is viable, it shouldn’t need subsidies; and if it needs subsidies, it is not viable. Economically workable technologies will thrive on their own—they don’t need billions or trillions of debt-financed, taxpayer-funded handouts.
This debate isn’t new. Here in Texas, we saw firsthand how carbon capture projects, like Petra Nova, fold without government support. In 2017, Petra Nova proudly opened its doors for business, with many Texas leaders –me included– attending in support. Three short years later, the company completely shut down. In 2022, Petra Nova announced it was re-opening for business conveniently after the Biden Administration oversaw increased federal funding, through the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, for carbon capture projects.
Instead of playing the same game as the “green” energy grifters fighting to enrich themselves from the government trough, major oil and gas companies should fight to level the playing field by eliminating all subsidies for all forms of energy. If they spent even half as much time and resources fighting for free markets instead of virtue-signaling to shareholders with windmills, solar panels, and empty rhetoric about a “carbon-free future,” energy would be cheaper, cleaner, and more reliable for consumers.
Supporters of carbon capture justify subsidies as a way to reduce carbon emissions, yet the facts don’t support the hysteria. Over the last two decades, U.S. CO₂ emissions have already dropped by 16 percent[1], and our oil production is 23 percent[2] cleaner than the global average. The U.S. accounts for about 16 percent[3] of global carbon emissions, while China and other countries continue increasing their emissions unchecked. Even President Biden has admitted, “Even if we do everything perfect, it’s not going to matter.” So why are some in the oil and gas industry aligning with Democrats to push for subsidies that will only invite more government control, more regulation, and ultimately, more attacks on the ability to produce oil and gas? You’d think an industry that helps power 80 percent[4] of the world’s energy would be proud of their contribution that drives mankind forward.
President Donald Trump and Elon Musk have for the first time in decades really shined a spotlight on dangers of runaway government spending, and it’s time for the oil and gas industry to stand with them by fighting against government waste. No one likes corporate welfare, especially not the American taxpayers who are footing the bill. It is time to stop playing defense against radical environmentalists and go on offense: end all energy subsidies, eliminate market distortions, and let innovation and competition determine the future.
The bottom line is that America’s energy policy shouldn’t be tipping the scales, it should be a hands-off approach and meritorious by having consumers reward success. If we don’t take a stand now, we’re surrendering leverage to our adversaries for them to dictate the future of American energy. I urge you to reject misguided subsidy schemes and reaffirm a commitment to a strong, independent energy sector—one that thrives on its own merits, not government favoritism.
References:
https://www.iea.org/regions/north-america/emissions
New Report: U.S. Gulf of Mexico Oil Production Leads with Lower Greenhouse Gas Emissions Intensity
https://www.iea.org/regions/north-america/emissions
https://oilprice.com/Energy/Energy-General/Fossil-Fuels-Still-Account-For-82-Of-Primary-Global-Energy-Consumption.html
Source: www.worldoil.com
Author: Commissioner Wayne Christian