U.S. energy policy is in dire need of a course correction. Our nation grapples with growing energy demands and challenges, and a second Trump administration faces the daunting task of undoing an array of harmful regulations and ill-conceived decisions enacted by its predecessor. Since some of these policies won’t be quickly unraveled, the work to undo them must begin without delay.
Earlier this year, the Biden administration finalized a power plant rule requiring current coal-fired plants and new gas-fired plants to control 90% of their carbon emissions through a process called carbon capture sequestration (CCS). This technology has not been “adequately demonstrated,” a potential violation of section 111 of the Clean Air Act. In fact, CCS has failed to sufficiently perform.
These impossible standards will force numerous plants to close and make it difficult for new ones to open, leaving millions in the dark, literally. A so-called transition to intermittent wind and solar (the ultimate objective) has led to shortages and skyrocketing electricity rates for areas with ambitious renewable energy goals. This rule needs to go.
Additionally, the electric vehicle (EV) mandate – EPA and NHTSA edicts – will result in EVs comprising roughly two-thirds of all new car sales by 2032. Sales have yet to hit 10%. Only popular among certain demographics, the EV is failing to garner excitement from most motorists due to high price tags, limited range, lack of charging infrastructure, and reliability issues. Consumer surveys report that only 18% of U.S. adults are “likely” to purchase one as their next car; 63% are “unlikely or very unlikely.” Nearly half of EV owners will probably switch back to internal combustion.
EVs are piling up on car lots and manufacturers are sustaining substantial losses; Ford reported losing $132,000 per vehicle during this year’s first quarter. Over 4,000 dealers signed letters begging the administration to tap the breaks.
Consumer choice is paramount and should not be denied or influenced by government officials. The EV rule needs to be eliminated.
Another destructive EPA rule involves the National Ambient Air Quality Standards (NAAQS) for fine particulate matter (PM2.5). Traditionally reviewed every five years, the newly ushered in EPA unprecedently initiated an additional NAAQS review merely 33 days after the December 2020 one was completed and the numbers deemed perfectly adequate. The new PM2.5 standard was lowered by more than 25%.
The estimated potential loss of $270 billion in GDP and roughly 2.9 million jobs or job equivalents per year poses a serious threat to the manufacturing industry and U.S. economy. With the strictest standards in the world, companies may move overseas to less stringent environments; new investments will be deterred. This EPA action should never have taken place and must be rescinded.
In January, the Biden administration stunned the energy industry by placing a pause on pending and future liquified natural gas (LNG) export projects. The politically motivated decision has only served to hurt our European allies who were forced to turn to adversarial actors like Russia for natural gas. Contrary to claims that LNG harms the environment, studies demonstrate it can reduce emissions by 40-50% by replacing dirtier forms of energy, like coal.
After becoming the No.1 LNG exporter last year, we are positioned to supply cleaner fuel all over the world and weaken Russia’s control. This mandate must be undone.
Biden leased 95% fewer acres for oil and gas in fiscal year 2023 than Trump’s highest figure in 2019, representing the lowest ever in U.S. history. Despite the drop, companies managed to produce more oil and natural gas. Estimates, however, indicate this decision will result in $33.5 billion loss in GDP by the end of Biden’s term; we could have produced so much more.
Fossil fuels have and will continue to serve 82% of our energy needs. That has not changed in the past several decades nor will it change in the coming ones. It is imperative we unleash the possibilities to meet surging demands by recommitting to oil and gas leases on public lands. Becoming a net exporter of oil was a monumental achievement in 2019; we need to keep that standing. Energy security is national security.
The use of wind and solar should be relegated to a minor portion of the overall energy portfolio. Having the lowest capacity factors of all energy forms and causing grid instability where widely adopted as a replacement for fossil fuels or nuclear, they are not meant to be a primary energy source. Nor should they be receiving massive handouts, which will require gutting the subsidy-rich Inflation Reduction Act. Our European friends have learned the hard way the folly of such a strategy. Their prioritization must end.
An unwillingness to mine and process critical minerals, used for countless technologies and energy projects, on our soil needs reexamination. China currently dominates the supply chains, keeping every other nation at their mercy. Tapping into our own vast supplies would not only enhance national security but would benefit the environment due to superior standards here. We should open our lands to more exploration.
Energy is the lifeblood of the economy and consumers deserve to have it be abundant, reliable and affordable. With energy demand on the rise, this can only be accomplished through pragmatic and sensible solutions that maximize energy output and focus on a true all-of-the-above strategy. The disastrous Biden policies that have shackled our supplies and crippled economic prosperity must be eradicated. A course correction come January will be most welcome.
• This article was originally published by RealClearEnergy and made available via RealClearWire.
