opinion Biden’s Big, Bold, Surprising Plan for a Green Transition (I Hope)

Lance: Although the administration regularly meets with environmental groups that want to immediately end all use of fossil fuels, there is little interaction with the oil and gas industry. We’ve had a few meetings – but to be honest, real discussions on energy supply issues, energy security, regional North American cooperation, and planning for a rational and coordinated energy transition to a low-carbon economy. Has not happened.

Oil and gas together Today, it provides 68 percent of US energy., while renewables provide only 12 percent, even after decades of wind and solar construction encouraged by government mandates and tax breaks. As oil and gas will continue to be in the energy mix beyond 2050, we need to have constructive discussions with the administration, Congress and the American people on energy supply security, diversity, affordability, energy transition and low-carbon technologies. Demonizing the industry does not solve the problem.

Friedman: If there was a “Biden Green Transition Plan,” what would you want and what do you think the industry could provide?

Lance: We need stability and predictability from the government. Sensible, predictable regulatory policies can foster a better investment climate. For example, from December 2019 to April 2020, oil prices fell from around $70 to $19 per barrel. Few industries have ever seen such a large percentage of revenue disappear so quickly.

Permitting drilling alone is not enough. To encourage investment, the government should resume systematic and permanent leasing—not sporadic and inconsistent—of federal lands for exploration and development. and expedite permitting not only for drilling, but also for pipelines, roads and other infrastructure needed to facilitate new oil and liquefied natural gas production. These investments are typically long-term and require even greater regulatory certainty..

Friedman: And what green commitments should the oil industry make?

Lance: All producers must have net zero commitments. And our industry—and that means everyone, public and private companies—must forever deal with methane emissions, leaks and flares, while maintaining our needs for energy affordability and security. We must ensure that all “orphan” wells are plugged in a timely manner, make real progress on carbon capture and storage, explore low-carbon sources such as hydrogen, and explore the potential for nature-based carbon offsets. .