As the nation approaches the November 5 presidential election, the energy sector’s future hangs in the balance. The next occupant of the White House will significantly influence the path American oil and natural gas producers take to meet both domestic and global power demands.
Odessa oilman Kirk Edwards, State Representative Brooks Landgraf, and Waco economist Ray Perryman suggest that a shift in federal leadership could alleviate some of the regulatory pressures faced by the industry, particularly if former President Trump were to succeed President Biden.
“The leadership in the White House fundamentally impacts the treatment and direction of the domestic energy industry throughout a presidential term,” Edwards explained. “The stark contrast between the last two administrations is a prime example. President Trump promoted increased domestic production and appointed former Texas Governor Rick Perry to lead the Department of Energy, a role Perry executed effectively. Conversely, from day one, President Biden adopted a stance perceived as adversarial to the U.S. energy sector, instituting numerous regulatory challenges. Despite these hurdles, the industry has achieved record domestic production.”
Edwards criticized Biden for enabling environmental activists to obstruct domestic production through intricate regulations, particularly concerning endangered species.
“The president’s influence on the domestic energy sector is profound and enduring,” he added.
State Rep. Brooks Landgraf emphasized that Texas’s energy industry thrives regardless of federal leadership. “Our state is blessed with abundant natural resources and driven individuals committed to working in the oil sector,” said the Odessa Republican. “No president can take that away from us. The resilience of Texas’s energy industry under the Biden administration, despite severe federal regulations and leftist narratives, is proof of this resilience as we continue to set new records in crude oil and natural gas production.”
Landgraf expressed his hope for Trump’s re-election, citing the potential for reduced regulatory barriers that would further spur the growth of Texas’s energy industry. However, he maintained that the true strength of Texas energy lies with its workforce.
Economist Ray Perryman offered a broader perspective, noting that global demand for oil and gas will sustain significant development, irrespective of the election outcome. “Production has surged recently, even under a Democratic administration, and it’s unlikely that growth in the next four years will surpass the recent pace,” he stated. “Ultimately, meeting future energy needs will require an all-encompassing approach, balancing renewables with traditional energy sources.”
Perryman highlighted the evolving energy landscape in the United States, where renewables are gaining ground but not as swiftly as natural gas. He pointed out that nuclear energy has stagnated for decades, and coal usage has dramatically declined by half over the past 20 years. Renewables have now overtaken both coal and nuclear to become the third-largest energy source, though each still represents less than 9 percent of total consumption. In contrast, petroleum and natural gas together account for about three-fourths of domestic energy use.
“Petroleum products are essential, encompassing fuels like gasoline, diesel, jet fuel, and propane, as well as a wide range of industrial chemicals, plastics, and other everyday products,” Perryman noted. “Similarly, natural gas is vital to our quality of life, especially in electric power generation and fertilizer production, which boosts agricultural yields.”
Perryman emphasized that responsible fossil fuel development remains crucial, even as the industry navigates climate issues. “While a Republican administration might create a more favorable policy environment, both parties acknowledge the necessity of energy and strive to prevent shortages or price surges. Major energy companies are investing heavily in a diverse energy portfolio to address climate challenges while ensuring sufficient energy supply.”
“The Permian Basin will continue to play a critical role in this global energy equation, regardless of who occupies the White House,” Perryman concluded. “When something must happen, it will.”
