Playing Politics with America's Energy Security?

Mark Green
Posted March 13, 2023

Splitting the difference between political considerations is no way to craft America’s strategic energy policy. Unfortunately, that’s what the Biden administration appears to be doing with our country’s valuable oil and natural gas resources in Alaska.

The administration rightfully gave the go-ahead for the Willow project in the National Petroleum Reserve-Alaska (NPR-A). But it also is announcing the withdrawal of 2.8 million acres of the Beaufort Sea in the Arctic Ocean from future oil and natural gas leasing while moving to prevent future leasing in more than 13 million acres elsewhere in the NPR-A, which was created by Congress as a petroleum reserve.

A meaningful step forward, but two huge steps back.

Some in Washington may see this as savvy political navigation. But in the real world, where safe and secure access to reliable, affordable energy is critically important to economic growth and overall security, the administration’s continued mixed messaging on oil and natural gas is counter-productive and troubling.

The administration calls for more domestic production – to meet needs at home and abroad – yet keeps taking steps to make that production more difficult and costly.

Frank Macchiarola, API senior vice president of Economics, Policy and Regulatory Affairs:

“While we applaud the Biden administration for approving the Willow MDP project, we continue to see mixed signals on energy policy with its latest move to restrict the responsible development of federal lands and waters. By imposing these restrictions, the Department of the Interior appears to be treating their statutory obligations as a bargaining chip.

“Our members are taking action every day to drive down emissions and protect the environment, all while delivering the energy American families and businesses rely on. We urge the administration to end the mixed signals on energy policy and focus instead on real solutions for the American people.”

Kara Moriarty, president of the Alaska Oil and Gas Association:

“While we appreciate the President recognizing the value of the Willow project, locking up federal lands to future projects is not in the best interests of the country and is not in the best interests of the environment. Global demand for oil and gas is not going away anytime soon. Shutting off access to additional federal lands will not stop future oil production. Instead, the President’s actions will actually increase oil production from foreign countries who have horrendous environmental records and abysmal human rights policies. We will review the proposed actions and work with the same broad coalition of Alaskans who supported Willow to continue advocating for environmentally and socially just projects in Alaska.”

Seen in these statements is this reality: Confused messaging on oil and natural gas – our leading energy sources today and projected to provide about half of the energy the world uses for decades to come – is not a sound, forward-looking strategy that supports the interests of American families, businesses and manufacturers.

Certainly, the go-ahead for Willow is a positive. ConocoPhillips praised the decision and pointed to the project’s energy and economic benefits, including an estimated 180,000 barrels of oil per day at its peak, between $8 billion and $17 billion in new revenue for the federal government, 2,500 construction jobs and 300 long-term jobs. ConocoPhillips Chairman and CEO Ryan Lance:

“This was the right decision for Alaska and our nation. Willow fits within the Biden Administration’s priorities on environmental and social justice, facilitating the energy transition and enhancing our energy security, all while creating good union jobs and providing benefits to Alaska Native communities.”

Indeed, the administration deserves credit for considering the needs of Alaskans. U.S. Rep. Mary Peltola (D-Alaska):

“I would like to thank the President and his administration for listening to the voices of Alaskans when it mattered most … and most importantly, our entire movement of Alaska Natives, laborers, state legislators, and everyday Alaskans who never gave up on this goal. Now, it’s on us here in Alaska to make sure that we make the best of this opportunity—that we use the revenues and jobs and economic opportunity from this project to make investments in the future of Alaska.”

Nagruk Harcharek, Voice of the Arctic Iñupiat president:

“The decision reaffirms the widespread support across Alaska Native communities for the carefully designed resource development project and the long-term economic stability it offers for the people of Alaska’s remote North Slope. … The Willow Project is a new opportunity to ensure a viable future for our communities, creating generational economic stability for our people and advancing our self-determination.”

Still, the political game the administration is playing – simultaneously restricting access to critical oil and natural gas resources – undermines important investment in oil and gas development, which can take up to a decade to begin production after expensive regulatory and legal battles for companies.

The established policy pattern from the White House of both giving and taking discourages American producers from committing precious capital to new multi-billion-dollar projects – from which Washington might suddenly withdraw its support to mend political fences.

Ultimately, America’s energy security is put at risk, as is the reliability and affordability of energy to Americans.

The clear lesson of the past couple of years, crystallized in the European energy crisis, is that America needs realistic energy policies that strengthen safe and responsible oil and natural gas development while building out other energy sources and reducing emissions.

America has the oil and natural gas resources to meet needs here at home, help stabilize world markets and assist allies abroad. But Washington has to help. The administration’s back and forth on oil and natural gas – again, the essential part of America’s energy mix today and tomorrow – is hurting more than helping.