Resource Development Council
 
 

Producing states should drive energy policy,

not non-producing, consumptive states

By Representative Charisse Millett

United States reliance on foreign energy continues to be a hot button issue for most Americans, especially here in Alaska, but doesn’t seem to bother the folks occupying the White House. Announcements like the U.S. offering to lend billions of dollars to Brazil’s state-owned oil company, Petrobras, to finance exploration of offshore discoveries in Brazil, is a policy decision that only adds insult to injury for those states that stand ready to provide responsible American energy if allowed.

While the White House is eager to buy all the oil Brazil can pump out of the ground, its attitude is much different towards responsible American energy exploration and production. At every step in the exploration and development process, road blocks are created to increase costs, slow down and ultimately stop any new responsible American energy production. Shell’s Alaska offshore permitting delays are a prime example of the hypocrisy.

In 2009 the State of Wyoming and the University of Wyoming’s School of Energy Resources hosted the Western States Energy and Environment Symposium. Alaska and thirteen western states organized in Jackson, Wyoming focusing on themes and issues collectively facing our states concerning energy and the environment.

The first day a pattern of discussion had emerged separating the energy producing states and the non-producing states. Those that were energy producers faced similar problems, roadblocks and government regulations in delivering energy. The non-producing states were more interested in stricter regulations, reduction in hydrocarbons and increased government oversight. A larger challenge to this reality was that the non-producing states had the population and therefore, the votes in Washington D.C. to control and write our national energy policy.

Throughout the symposium the energy producing states legislators compared our similar obstacles. We discussed the frustration that producer states were experiencing dealing with federal policy driven by non-producing states’ political muscle. It became glaringly obvious the non-producing states did not make the connection on where or how their energy is produced.

At the closing session of the symposium the Alaska delegation strongly vocalized the producer state position. We pointed out the distinct disconnect from non-producing states and how it was time to change the conversation on a national level by joining as a producer state action group. Each producer state enthusiastically supported the Alaska delegation and as we parted the conference we pledged support to “do something”.

After the symposium I sent letters to Legislators of producer states asking them if there was a true interest in our “do something” conversation. I suggested the idea of a “Producer State Compact” to strengthen our national voice through cooperation and strategy. Representative Tom Lubnau of Wyoming, the symposium chair, took the lead and has been tireless in his efforts and continued on the path to organize the group of legislators. He wrote back, emailed, passed legislation in Wyoming and ultimately organized our legislative group. We just had our second meeting of the newly formed Energy Producer State Coalition (EPSC) here in Anchorage. Legislators from North Dakota, Wyoming, Utah, and Texas attended and we all agreed it is the beginning of a coalition that can send America’s energy policies in a new and more sensible direction.

The goal of the EPSC is to give a voice to states that are responsible producers of energy and the issues that we face, and to support the exploration, and production of responsible American energy. During our organizational meeting last month legislators from member states drafted a mission statement to guide the group’s efforts.

Our mission statement contains two primary goals. First, establish state primacy on energy and environmental matters. The second goal is to support the exploration and production of responsible, affordable American energy resources therefore providing for increased national security.

Legislators from energy producing states are encouraged to participate; responsible American energy production is not a partisan issue. It is staggering the amount of energy produced from just the states that are currently participating in the EPSC, and the potential, if allowed these states could produce. Our energy producing states should be front and center when policies that affect us are being considered, not New York, Massachusetts or Illinois.

Individual states are in the best position to decide how to safely extract oil, coal, and natural gas. State officials and regulators have a knowledge and understanding of the resource that bureaucrats thousands of miles away don’t have. The benefits of state primacy over energy production will mean millions of new jobs, tax revenue and a stronger economy. All of us encourage renewable energy production, but the fact is the technology does not yet exist to replace coal, oil, and natural gas.

Strategizing as a coalition on like issues that face our energy producing states will allow for a unified message to Washington D.C. and a voice when legislation, regulation, government oversight and restrictions are being considered.

As we develop and continue to make progress our goal is to add to the number of energy producing states participating, and ensure responsible American energy will be produced for decades to come.

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