Free market has proved a boon to consumers and environment
Independence Day gas prices last month were at their lowest levels in 11 years , and carbon emissions are near 20- year lows thanks largely to greater use of clean-burning naturalgas.
America’ s energy resurgencehas been a bo on for consumers and for climate goals , with the United States leading the world in both production of oil and natural gas and in reduction of green-house gas emissions.
Maintaining those achievements should be a top priority for Republicans and Democratscrafting their party platforms for the 2016 election . But reports indicate party officials are consideringpolicies that could de rail U.S . energy leadership.
According to Carol Brown er , a former Environmental Protection Agency head and a current member of the Democratic platform drafting committee, the party’s draft 2016 platform “moves decisive ly beyond an ‘ all-of-the-above ’ energy strategy ” and includes an amendment to “phase down fossil fuel production.”
Despite the proven success of natural gas in reducing emissions , it doesn’ t appear to be part of the plan , which seems geared toward leaving oil and natural gas out of the energy strategy equation.
The problem? Relying solely on renewables like wind and solar is not realistic . According to the federal Energy Information Administration , oil and natural gas will still supply 60 percentof U.S . energy needs in 2040 even under optimistic scenarios for renewable energy growth.
Attempts to circumvent this reality inevitably involve meddling with the free market — usually a costly and disruptive proposition for consumers.
Take the Renewable Fuel Standard, or RFS, which forces ethanol into the fuel supply. Voting with their wallets, drivers have made it clear that they’re not interested in higher ethanol blends, which require more frequent fill-ups and can cause engine damage.
Nevertheless, the EPA doggedly increases ethanol requirements each year, threatening to increase ethanol volumes beyond the standard 10 percent blend (E10) to 15 percent (E15) or higher.
Approximately 90 percent of vehicles on the road today were not designed to use higher ethanol blends, and automakers warn ethanol-related engine damage may not be covered by warranty.
On top of mechanic bills, continuing to increase ethanol volumes could drive up prices at the pump — by 26 cents per gallon, according to the nonpartisan Congressional Budget Office.
More market disruptions could be on the horizon.
The EPA’s Clean Power Plan would impose additional regulations on the nation’s power plants in order to reduce carbon emissions. But we’ve already cut carbon, and it didn’t take command-and-control government mandates.
Since 2005, greenhouse gas emissions from power generation are down about 17 percent, more than halfway to the 32 percent reduction EPA claims the new regulations will achieve by 2030.
The EIA attributes much of this reduction to “increased use of natural gas for electricity generation.” The government didn’t force power plants to switch to clean-burning natural gas; its affordability and lower emissions were all the incentive needed.
Natural gas has reduced both emissions and consumer electric costs — at least where infrastructure is in place to deliver it.
In New York, which just rejected a natural gas pipeline that could have created jobs and lowered electricity rates, residents pay almost 60 percent more than the national average for power.
That’s what happens when energy policy is driven by political ideology instead of free market principles. When the free market is allowed to work you get an American energy renaissance that has added $1,337 to the average American family budget and cut costs for manufacturers.
We’ve also cut greenhouse gas emissions more than any nation on earth. To maintain that progress — and America’s status as a global energy superpower — both parties should adopt market-based, consumer-focused platforms.
Jack Gerard is the president and CEO of the American Petroleum Institute, the national trade association that represents all aspects of America’s oil and natural gas industry.