Top Industry Policy Issues
The United States is the world's leading producer of oil and natural gas, and as a result of greater use of clean-burning natural gas and cleaner, more efficient fuels, we are also a world leader in reducing carbon emissions and other air pollutants.
On May 18, 2016, the Environmental Protection Agency (“EPA”) released its Proposed Renewable Fuel Standards for 2017 and the Biomass Based Diesel Volume for 2018. As policymakers and the public consider this proposal, it is important to provide an overview of current Renewable Fuel Policy and a roadmap for fundamental policy change. Renewable Fuels have been mandated under federal law for over a decade, and our current renewable fuels policy is outdated, and ineffective. Government fuel blending requirements are constraining free market forces, supporting uneconomic activity, and limiting consumer choice.
The Energy Independence and Security Act of 2007 included an expanded Renewable Fuel Standard, which the EPA used to develop a final rule effective July 1, 2010. To comply with the Standard, biofuel producers and importers must blend increasing amounts of biofuels into gasoline and diesel.
Our nation’s economy continues to improve while America has become a world leader in energy production and in the reduction of greenhouse gas emissions, achievements long thought to be mutually exclusive. America’s 21st century energy revolution is the result of industry-led innovations and entrepreneurial spirit, not government regulation and mandates. America’s brighter energy reality benefits consumers and our economy by providing abundant, affordable and reliable energy and a cleaner environment. To continue America’s positive energy, economic and environmental progress, we need to get our nation’s energy policy right today.
Today, America is a global energy leader. A fundamental reordering of the world’s energy markets has elevated the importance of North American energy production and reduced what had been the once-dominant roles of OPEC and Russia on the world energy stage. The energy policy decisions we make today will either keep us on the road to years of American energy leadership or reverse course back to an era of energy scarcity, uncertainty and dependence.
The U.S. Environmental Protection Agency (EPA) describes President Obama’s Clean Power Plan (CPP) as a “historic” step forward in reducing carbon emissions from power plants. However, a closer look reveals yet another government preference for renewable power that ignores the current contributions and future potential for natural gas, nuclear and hydroelectric power.
A vast opportunity exists for the oil and natural gas industry to attract, retain, and develop lifelong careers for veterans in the industry. Veterans come to the civilian workforce with extensive technical and nontechnical skills gained through military experience and training. Many of these skills have direct applicability to the oil and gas industry, making them ideal candidates to fill the projected 1.3 million job opportunities available in the oil and natural gas industry.
The Administration’s FY2017 Budget includes proposals that again target the U.S. oil and natural gas industry for tax increases. Between proposed tax reform “reserves” and other provisions, the industry would be burdened by over $400 billion in additional taxes.
A new state-by-state analysis shows that 18 U.S. states could gain over 5,000 jobs each in 2020 from exports of U.S. crude oil. The U.S. is poised to become the world’s largest oil producer, and access to foreign customers will create economic opportunities across the country.
This report examines the employment outlook of African American and Hispanic workers and employment by gender in the oil and natural gas and petrochemical industries over the period 2010 to 2030.