Presidential vote big for energy industry

The Nov. 5 presidential election is fewer than four months away and the occupant of the White House for the next four years will play a big role in the energy industry as American oil and natural gas producers labor to meet domestic and global power demands.

Odessa oilman Kirk Edwards, State Rep. Brooks Landgraf and Waco economist Ray Perryman say the federal regulatory burden would lighten if former President Trump succeeded President Biden.

“The leadership in the White House affects how the domestic energy industry is treated and shaped for the four years of a presidency,” Edwards said. “The perfect examples are the last two administrations and how each took a much different approach to the industry.

“President Trump embraced more domestic production and even selected former Texas Gov. Rick Perry to oversee the Department of Energy, which Perry carried out well. President Biden from day one took a negative approach to the domestic U.S. energy industry and implemented many hurdles that the industry had to overcome.

“But in the end the industry did overcome them to have record domestic production today.”

Edwards said Biden let environmental activists do whatever they could to thwart domestic production on many fronts, especially through arcane endangered species language.

“The president has tremendous sway in how the domestic energy industry is treated and always will,” he said.

Landgraf said the Texas energy industry continues to thrive regardless of who is in the White House.

“Our great state has been blessed not only with an abundance of natural resources but also with some of the most driven men and women who have chosen to live and work in the oil patch,” the Odessa Republican said. “No president can take that away from us.

“The proof of this fact has already been made crystal clear in the three years of the Biden administration. Again and again the Texas energy industry has been attacked by extreme federal regulations and leftist propaganda, yet we continue breaking records for crude oil and natural gas production.”

For a litany of reasons, Landgraf said, including the fact that it would help to reduce regulatory barriers and allow the Texas energy industry to grow even more, his hope is that Trump will be elected.

“But ultimately I believe the bottom line is that the destiny of Texas energy lies in the hands of hardworking Texans,” he said.

Irrespective of who wins in November, Perryman said, global demand for oil and gas will support significant development.

“Production has risen rapidly of late during a Democratic administration and it is difficult to imagine the growth in oil and natural gas production being more rapid in the next four years that it has been in recent years,” the economist said. “The bottom line is that even with growth in renewables, meeting future energy needs will come down to an all-of-the-above approach.

“The sources of energy usage in the United States have changed significantly in recent years. Renewables are on the rise, though not as rapidly as natural gas, nuclear has been basically flat for decades and coal has fallen rapidly by half over the past 20 years.”

Perryman said renewables have now surpassed both coal and nuclear to become the third-largest source.

“Even so, each of these three components comprises less than 9 percent of total consumption,” he said. “About three-fourths of domestic energy is derived from petroleum, about 38 percent, or natural gas, 36 percent.

“It should be remembered that petroleum products include not only the fuels of gasoline, diesel, jet fuel and propane but also industrial chemicals, plastics, paints, adhesives, cleaning products, lubricants, synthetic fibers and some pharmaceuticals, to name but a few.”

Perryman said these essential items are used across the economy and by industries and households alike.

“Natural gas is also crucial to our quality of life,” he said. “Natural gas as a source of energy has surged, thanks largely to its usage in electric power generation.

“Since overtaking coal in usage in the 1950s, supplies have increased in response to advances in drilling technologies and the identification of substantial additional resources. Consumption reached a record level in 2023, largely because of increased demand for electricity.

“It is also used extensively in fertilizer production, helping to increase crop yields and feed the world.”

Perryman said the responsible development of fossil fuels will be required even as the energy industry deals with climate issues.

“The policy environment would likely be somewhat more favorable in a Republican administration, but both parties recognize the need for energy and neither party wants to see shortages or price spikes,” he said. “Moreover the major energy companies have universally embraced a more diverse portfolio of resources and are investing massively in this outcome.

“The world must address climate issues while assuring adequate energy to support growth and development and the Permian Basin is an indispensable part of that equation. No matter who is in the White House, there is no escaping these basic facts. When something has to happen, it will.”