Sometimes, seemingly simple solutions create even bigger problems.
Take the Biden administration's campaign to tackle climate change, for example.
On Jan. 27, President Biden signed Executive Order 14008, Tackling the Climate Crisis, declaring a "pause" on leasing on federal lands and waters for oil and gas development, including the Outer Continental Shelf in the Gulf of Mexico (GoM). This short-sighted effort, as well as any other regulatory burdens to curtail domestic greenhouse gas emissions, has devastating consequences on American workers, the economy and coastal restoration right here in south Louisiana. Ironically, this unnecessary sacrifice of U.S. oil and gas supply for the sake of emissions reductions will actually increase - not decrease - carbon emissions around the world.
Global demand for oil and gas is on its way back up on the heels of the pandemic, and if the U.S. supply is curtailed, that demand will be filled by other countries with oil produced at much greater carbon intensity and without the stringent environmental policies followed by American operators. This effectively defies the intent of the battle against climate change. Continued, responsible GoM offshore production is clearly the most effective way to truly achieve global emissions reductions.
We live in a global economy, and the pandemic has made our dependence on economic activity and output around the world even more apparent. Of course, we also live in a global environment.
Climate change is a global challenge and the achievements that really matter are reductions in global carbon emissions. Samantha Gross of the Brookings Institution wrote in January, "Any 'solution' that aims to reduce U.S. emissions but escalates global emissions is no solution at all." At LMOGA, we echo that conviction and are working hard to restart oil and gas leasing in the Gulf as soon as possible so Americans and consumers everywhere benefit from the safest and most environmentally responsible oil and gas production in the world.
According to the EIA, the world consumed 101 million barrels of oil per day in 2019, and the EIA projects global consumption to fully recover from the pandemic and reach the 101 million barrels of oil per day consumption mark again in 2022.
GoM oil and gas producers supply 16 percent of our nation's energy needs at one of the lowest carbon-intensive rates in the world. In fact, a federal report issued during the Obama administration found that curbing federal oil and gas leasing in the Gulf would increase global emissions, as U.S. demand would be filled with foreign oil, produced and delivered with a higher carbon intensity than volumes produced in the GoM. Such a result would directly conflict with our shared goal of reducing emissions.
Gulf producers also adhere to some of the most stringent rules and regulations in the world, further mitigating any harmful impacts to the atmosphere. For example, U.S. regulations limiting venting and flaring have dramatically reduced emissions in the Gulf. In 2018, according to the EIA, Gulf oil and gas production accounted for only 2.95 percent of energy-related methane emissions in the U.S., while meeting nearly 20 percent of domestic energy demand. Clearly, continuing Gulf oil and gas development has tremendous benefits with disproportionately small costs compared to virtually all competing basins.
Oil is an easily transferable commodity, produced in countries around the world with varying levels of environmental and carbon emissions standards. While Louisiana's oil and natural gas industry shares the Biden administration's desire to tackle climate change and reduce emissions, halting domestic energy development in one of the lowest carbon-intensive energy-producing regions in the world is not the answer. That move will shift production and capital investment overseas, undermine decades of environmental progress and ultimately increase - not decrease - global carbon emissions.
For real progress on climate change around the world, oil and gas lease sales must resume and any additional impediments should be off limits in America's Gulf.
For more information about LMOGA and its work to protect and grow Louisiana's oil and gas industry, visit www.lmoga.com or call (225) 387-3205.
