COP28: Push to Phase Out Natural Gas and Oil is Unrealistic, Ignores Industry Progress

Mark Green
Posted December 7, 2023

If:

• According to the U.S. government, increased use of natural gas deserves much of the credit for reducing American carbon dioxide emissions from the power sector, a growing trend that dates to 2005, and;
• American families and businesses have seen decreased retail prices for natural gas compared to this time in 2022, thanks to robust domestic production – with parts of Pennsylvania reporting natural gas prices down as much as 65% compared to this time last year, and;
• U.S. natural gas shipments to Europe in 2022 – 141% more than in 2021 – helped allies avoid an energy disaster after Russia cut natural gas flows to retaliate against nations that opposed the war of aggression in Ukraine …

Then WHY:

• Are delegates to the COP28 summit discussing phasing out natural gas along with other fossil fuels? American officials are in on it, too, with John Kerry, President Biden’s climate envoy, saying the U.S. “largely” supports the initiative.

The gap between climate officialdom and the realities facing nearly everyone else sometimes is canyon-like.

Indeed, the European Commissioner for Climate Action, who supports a phaseout, and the European Commissioner for Energy, who last year acknowledged the role of liquefied natural gas (LNG) in bolstering Europe’s security, even as businesses talked about draconian steps to avoid an energy crisis, ought to talk.

The solution is not to run away from natural gas and oil, the world’s leading energy sources today and projected to lead decades from now. That might be chic for a week’s worth of media coverage in Dubai but makes little sense everywhere else.

The realistic approach acknowledges the leading roles of natural gas and oil and includes them in an all-energy strategy to meet rising global demand while also reducing emissions. As we’ve often noted, natural gas is essential to the health and stability of the electricity grid as intermittent fuel sources grow. At COP28, Kerry said without “some phasing out” of fossil fuels, there is no way to reach emissions targets. But that ignores progress energy companies already are making through industry-led initiatives such as The Environmental Partnership – deploying new technologies and innovating to manage flaring.

Aaron Padilla, API vice president of Corporate Policy, talked about energy realism before traveling to United Arab Emirates as a COP28 observer:

“If we take a ‘consumer mindset,’ then we truly internalize the significant challenge of addressing climate change and decarbonizing our economies … Oil and natural gas accounted for 70% of the energy Americans used last year and are projected to supply 64% of it in 2050, according to the U.S. Energy Information Administration. Globally, they’re projected to meet more than half of the world’s energy needs in 2050. Oil and natural gas simply have characteristics – namely energy density and portability – that are valuable to modern societies. We cannot and are not transitioning immediately nor completely away from oil and natural gas.”

Instead of generating headlines, nations should focus on the fact that global demand for energy will continue to increase as population rises. More energy sources, including natural gas and oil, will be needed in the future, not less. This includes parts of the world still trapped in energy poverty.

Alexa Burr, API vice president of Standards & Segment Program, also observing in Dubai:

“Electric power generation is key to lifting regions and entire countries, in some cases, out of energy poverty that stems from limited or zero access to electricity. So, the practical question is, how do we help these nations transition away from dirtier fuels and toward natural gas, which can help them reduce emissions from power generation – as it has in the U.S.?”

America is rich in natural gas and oil. We lead the world in their production, and our nation is uniquely positioned to help bring stability to global markets, assist allies and advance climate goals with sensible policy choices.

Phasing out natural gas and oil is not among them.