Few anticipated America’s rapid rise as a world energy leader. During the past decade, American crude oil production jumped 88 percent and natural gas production increased 46 percent, catapulting the United States to our current position as the world’s leading oil and natural gas producer. It’s paying off for consumers.
In 2015, drivers saved an average of over $550 in gasoline costs. Additionally, households saved $1,337 through lower home energy costs and lower costs for other goods and services. And it’s paying off for American manufacturers, whose electricity costs are 30-50 percent lower than those of foreign competitors. We also lead the world in reduction of carbon emissions, which are near 20-year lows due to the increased use of clean-burning natural gas.
We may not have seen the American energy revolution coming, but we know how to sustain it.
The U.S. model provides a blueprint for future energy policy, demonstrating that market-based solutions are the most effective path for achieving success in both energy production and our environmental goals, all while generating economic growth and delivering significant savings that provide relief to household budgets and competitive advantages to businesses.
U.S. Department of Energy statistics show “up to 95 percent of new wells drilled today are hydraulically fractured, accounting for more than 43 percent of total U.S. oil production and 67 percent of natural gas production.”
In other words, the American energy renaissance, and millions of jobs and numerous economic benefits it has made possible, would not have happened if not for technological advances in hydraulic fracturing and horizontal drilling that have unlocked previously inaccessible resources in shale formations.
Hydraulic fracturing, in combination with horizontal drilling, has made the United States the world’s leading producer of oil and natural gas, while generating significant job growth.
A 2013 IHS study found that energy from shale and other tight-rock formations supported 2.1 million jobs in 2012, and that number was projected to increase to 3.9 million jobs by 2025, including 500,000 manufacturing jobs. By helping to lower power and materials costs, as well as stimulating economic activity for a variety of businesses like service and supply companies, hydraulic fracturing has supported economic growth in an otherwise struggling economy. What’s more, hydraulic fracturing is a primary factor in emissions reduction achievements.
The EIA cites “increased use of natural gas for electricity generation” as the primary reason carbon emissions have dropped.
Preliminary findings from a landmark EPA study released in June 2015 confirm that the technology is safe. The five-year, $31 million study of hydraulic fracturing “did not find evidence that these mechanisms have led to widespread, systemic impacts on drinking water resources in the United States.” The EPA’s exhaustive study is the most complete compilation to date of scientific data on the issue, including more than 950 sources of information, published papers, technical analysis, contributions from stakeholders and peer-reviewed EPA scientific reports. Revisions released in December 2016 do not change the fact that the science and data demonstrate that hydraulic fracturing is safe.
The EPA study is just one of many during the course of the technology’s 65-year history to affirm the effectiveness of industry standards and strong state regulations in keeping hydraulic fracturing operations safe for the environment. In February 2016, the University of Cincinnati completed a three-year study in which researchers examined water samples three to four times per year from 23 wells in the Utica shale region. The study found no evidence linking fracking to groundwater contamination.
The current regulatory approach – a combination of federal oversight through multiple regulatory agencies, plus strong state regulations tailored to local geology and hydrology – is effective for keeping hydraulic fracturing safe and successful.
A 2014 report from the Groundwater Protection Council documented “continuous and significant regulatory improvement by state oil and gas agencies across the county” and concluded “the risk of fracture fluid intrusion into groundwater from the hydraulic fracturing of deeper conventional and unconventional oil and gas zones can be considered very low.” As the driving force behind the American energy renaissance, hydraulic fracturing has helped lower fuel, utility and manufacturing costs while also contributing to reduced greenhouse gas emissions through an abundance of affordable, clean-burning natural gas. The optimal policy approach to this integral technology is one that recognizes the emissions reductions that industry has and will continue to achieve, recognizes the effectiveness of state regulations, accepts the scientific evidence and avoids additional regulations that could discourage production while providing little or no additional environmental or safety benefits.
Energy Brief: Good Standards Make Good Neighbors
Thanks to technological advances in hydraulic fracturing and horizontal drilling that have unlocked previously inaccessible energy resources, more and more communities are taking part in America’s ongoing energy revolution – and the new jobs and economic growth it brings.
To facilitate community engagement in oil and natural gas development areas, API developed a first-of-its-kind “good neighbor” industry standard, which includes recommendations to:
- Help local leaders and residents prepare for energy exploration
- Minimize interruption to the community
- Conduct public meetings on safety
- Work with local educational institutions to discuss training for new job opportunities
- Develop relationships with mineral owners
- Enhance the long-term benefits of local development
- Ensure that oil and gas production is done in a way that complements community goals
The Natural Gas Solution
Emissions reductions, reliability and affordability – the shale revolution is delivering major benefits to the power generation sector, and all signs point to continued advantages. U.S. natural gas production over the past three years has exceeded even the high-end resource projections from the U.S. Energy Information Administration.[i]
Market-driven natural gas generation growth is projected to continue, and emissions per megawatt of total electricity generation are projected to decline. Continued increases in reserve estimates and industry technological advances since 2010 make clear that natural gas will remain an affordable, environmentally friendly option for the nation’s power plants.
In fact, API’s analysis of the potential impacts of the EPA’s Clean Power Plan on cost, generation and capacity found that the lowest cost compliance pathway was always the solution that relied upon the most natural gas generation.[ii] Policy choices that promote market solutions over government mandates will allow continued growth in natural gas generation, providing a solution for regulators responsible for ensuring a clean, reliable, affordable generation mix.
Case Study: Building the Workforce of the Future
Although the global market conditions are challenging, keeping pace with American energy needs will require a substantial increase in the workforce long term – in part due to demographic trends. The U.S. Census Bureau projects one in five Americans will be age 65 or over by 2030. In the oil and natural gas industry, that means the next two decades will bring us closer to the “Great Crew Change” we’ve been anticipating for years, when up to 50 percent of the industry’s most experienced workers are expected to retire.
A report from consulting firm IHS projects 1.9 million new oil, natural gas and petrochemical job opportunities by 2035, including 707,000 positions projected to be held by African American and Hispanic workers, and 290,000 jobs filled by women.
Among the projected 1.9 million new job opportunities, 57 percent are projected to be in blue-collar occupations, indicating great opportunity for workers with high school diplomas and some postsecondary training. According to the U.S. Census Bureau, only 40 percent of working-age Americans have at least a two-year degree, making Americans without college education the majority. The oil and natural gas industry is a bright spot for these workers. In fact, IHS projects more than 1 million job opportunities in the industry. In occupations such as construction workers, truck drivers, welders, electricians and mechanics – providing individuals without formal college education the opportunity for meaningful and well-paying careers.
Another 32 percent of job opportunities in the industry are projected to be in management and professional fields. In addition to the engineers and geoscientists most people picture when they think of the energy industry, attorneys, business leaders, architects, communications specialists and health and safety experts are also in demand.
The industry is partnering with schools, labor organizations and the government to increase awareness of energy job opportunities and to promote greater participation in science, technology, engineering and math (STEM) subjects. We’re working with Hispanics in Energy and the American Association of Blacks in Energy to spread the word about the IHS report’s findings that 707,000 positions are projected to be held by African American and Hispanic workers. And we’ve started a Veterans Energy Pipeline programs to connect veterans with career opportunities compatible with their unique skill sets.
With above-average salaries and an abundance of career opportunities projected over the next two decades, the oil and natural gas industry offers solutions to wage stagnation and income inequality, which remain major concerns in our still-struggling economy. Capitalizing on energy job opportunities doesn’t require a government program or taxpayer funding. All it takes are smart energy policies and increased awareness of job opportunities to ensure the “Great Crew Change” is the game changer it can be for America’s workers.
As the world’s leading producer of oil and natural gas, the United States has a valuable opportunity to expand our economy and geopolitical influence by exporting a portion of our abundant oil and natural gas resources. Allies seek U.S. energy as a reliable alternative to energy supplies from less stable regions, and expanded access to additional international markets promises positive impacts on economic growth, job creation and the trade balance.
The lifting of the crude export ban in December 2015 paved the way for new opportunities for U.S. producers – and demonstrated the positive outcomes possible when policymakers come together to advance bipartisan, commonsense energy policies. A relic of ‘70s-era energy scarcity, the ban was rendered obsolete by the American energy revolution, and studies show that maintaining it would have meant missing out on significant economic benefits – an estimated 300,000 American jobs and $5.8 billion per year in consumer savings by 2020 in gasoline, heating oil and diesel costs, according to ICF International.
In 2014, the number of nations buying American crude oil was eight. In 2016, after export restrictions were lifted, the number rose to 22. U.S. crude has shipped to the United Kingdom, France, Germany, Italy, Switzerland, the Netherlands, Israel, China and Panama – further diversifying global supply options, boosting the U.S. economy through increased trade activity with Europe and providing an outlet for U.S. producers. Further, the fuel cost increases predicted by those who opposed lifting the ban did not materialize.
Last year also saw a milestone for exports of liquefied natural gas (LNG) as the first cargo carrying U.S. LNG left port in February, bound for Europe. Another landmark development occurred in July, when the first U.S. LNG shipment passed through the newly expanded Panama Canal. The canal expansion is a major enhancement for U.S. competitiveness, reducing transit time from Gulf Coast export terminals to Japan to 20 days, compared to the previous 31 to 34 days (moving either through the Suez Canal or around the southern tip of Africa, respectively) and also reducing travel time from the Gulf Coast to potential South American LNG markets.
Energy Exports Enhance National Security
“When more supply originates from producers who are not vulnerable to political instability, conflict or threats to their energy infrastructure, the overall market becomes more stable. …[A]llowing U.S. oil exports would enhance the energy security of key U.S. partners, from Poland to India, to Japan. Indeed, our closest allies in Europe and Northeast Asia would welcome – and have asked for – the unrestricted export of U.S. crude oil … Enabling U.S. oil exports would strengthen our geopolitical influence, leadership and leverage with allies and adversaries alike.”
Former Undersecretary of Defense
After a decade that saw U.S. natural gas production jump 50 percent, the advent of natural gas exports to strategic allies represents a significant expansion of U.S. global energy leadership.
The United States is projected to become the world’s third-largest LNG supplier in five years, behind Qatar and Australia, according to an International Energy Agency (IEA) report. LNG exports could contribute up to 452,000 jobs nationwide between 2016 and 2035 and add up to $73.6 billion annually to the GDP, according to an ICF International study.
Just as greater use of natural gas for U.S. electricity generation has reduced our carbon emissions to levels not seen in more than two decades, U.S. natural gas can bring emissions reduction progress to other nations. A 2014 Department of Energy study found that exporting U.S. LNG will reduce global greenhouse gas emissions, because U.S. natural gas consumed in Europe or Asia has lower life-cycle GHG emissions than power generation from locally sourced fossil fuels. Greater natural gas production and use also lowers emissions of other air pollutants, such as mercury, sulfur dioxide, nitrogen oxide and particulate matter.
U.S.-produced natural gas can provide the same security advantages as those associated with crude oil exports. Access to U.S. LNG is a key aspect of renewed European Union efforts to improve energy security for European nations that “are still far too vulnerable” to supply disruptions, according to EU officials.
“Like shale gas was a game changer in the U.S., American gas exports could be a game changer for Europe,” said Maros Sefcovic, who heads the EU’s “Energy Union” project team.
The mayor of a Lithuanian town that just opened a natural gas import terminal to break reliance on Russian natural gas explained the geopolitical implications succinctly, commenting:
“U.S. LNG is more than just about gas. It’s about freedom.”
Our ability to expand the economic and strategic benefits of our position as the world’s leading natural gas producer is tied to our ability to expeditiously approve exports. In addition to the extensive environmental review process required for the largest LNG export facilities, exports to non-Free Trade Agreement nations require an additional approval from the Department of Energy that has proved to be a lengthy, sometimes unpredictable, process. As of December 2016, more than 20 U.S. facilities still awaited approval, and more than half of those applications were sent to the Department of Energy in 2014 or earlier. Meanwhile, dozens of LNG export projects are currently planned or under construction in other nations.
The international competition to meet global LNG demand is well underway, and streamlining the approval process is critical to U.S. ability to capitalize on our production advantages. 2016 was a breakthrough year for expanding U.S. energy leadership through exports of crude oil and natural gas. Through policies that remove export delays and barriers, we can build on that progress and ensure that the economic, geopolitical and security benefits from U.S. exports reach their full potential.
America’s game-changing production increases would not have the same positive impact on consumers’ daily lives without infrastructure to deliver affordable, reliable energy to homes and businesses.
Energy infrastructure consisting of pipelines, storage, processing, rail and maritime resources is an often underappreciated component of the American energy revolution, yet it is essential to delivering its benefits to every state.
Over 500,000 miles of natural gas and petroleum products transmission pipelines cross the United States, and that capacity must be expanded to keep pace with 21st century production trends and to ensure that Americans from every state share in the benefits of affordable domestic energy. As the world’s leading producer of oil and natural gas, U.S. energy infrastructure needs have changed. According to a study from Energy Policy Research Foundation Inc., shipments of crude oil from the Gulf of Mexico to the Midwest decreased 500,000 barrels per day (b/d) between 2008 and 2013, while shipments from the Midwest to the Gulf jumped from just 50,000 b/d to over 380,000 b/d.
With production growth in areas like the Midwest and Pennsylvania, expanding our pipeline system will ensure that we move energy efficiently, maximizing the economic and environmental advantages of our status as a world energy leader.
Multiple studies illustrate the potential economic benefits. According to a report released by the University of Illinois at Urbana-Champaign, oil and natural gas projects related to the Marcellus shale region from 2008 through the first half of 2014 were responsible for more than 72 million man hours of direct and indirect labor construction. This translates into more than 40,000 construction jobs. If energy infrastructure needs are adequately prioritized, those jobs are just the beginning. According to a study by IHS, updating America’s energy infrastructure could generate up to $1.15 trillion in new private capital investment, support 1.1 million new jobs and add $120 billion, on average, per year to our nation’s GDP between 2014 and 2025.
Energy Infrastructure Benefits Communities
Beyond state and local taxes, energy infrastructure can be an economic lifeline to local communities. At a 2015 congressional hearing, Jackie Root, Pennsylvania farmer and president of the National Association of Royalty Owners, told lawmakers: “The constant stress of fluctuating commodity prices and unpredictable weather is softened a bit with additional income from leasing, royalties and pipeline right-of-way. Over the long term, I believe natural gas development will actually preserve our precious open space; successful farmers will farm the land rather than subdivide it.”
Working with federal and state regulators, the oil and natural gas industry has processes in place to ensure that pipeline construction is safe. State and federal policies that facilitate transparent and timely project review, as well as set and maintain realistic deadlines for pipeline approval, will do much to expedite construction and expand infrastructure to enhance the delivery of affordable energy that consumers and businesses need.
There’s no question; the American energy renaissance has delivered significant economic and environmental benefits – so significant that it can be easy to take our new energy reality for granted. With gas prices low and imports down, adding production capacity may not seem as urgent. But, just as today’s energy security is the result of production set in motion years ago, now is the time to lay the groundwork for energy security in future decades.
World energy consumption will increase 48 percent by 2040, and 78 percent of energy needs will be met by fossil fuels, according to the latest projections from the EIA.
The question is not whether the United States has the resources to maintain our position as a world energy leader, along with the myriad economic and security benefits that confers; it is whether we will implement policies to capitalize on our ample oil and natural gas supplies.
Government policy keeps 87 percent of federally controlled offshore acreage off-limits to energy development. Opening areas in the Atlantic, Pacific and Eastern Gulf of Mexico could lead to production of more than 3.5 million barrels of oil equivalent per day, according to research by Quest Offshore Resources. The economic benefits associated with that level of production are significant. Between 2017 and 2035, expanded offshore production could create nearly 840,000 new American jobs, grow our economy by up to $70.2 billion per year and raise over $200 billion in cumulative revenue for the government.
Access to resources in the Arctic Ocean is just as critical. The Beaufort and Chukchi seas off the coast of Alaska contain more technically recoverable oil and natural gas than the Atlantic and Pacific coasts combined, according to government estimates. Access to the world’s largest remaining conventional, undiscovered oil and natural gas reserves – 13 percent of recoverable oil and 30 percent of recoverable natural gas resources – is at stake.
U.S. Manufacturers: Energy Access Critical to American Competitiveness
“For manufacturing to succeed, access to reliable and affordable energy is essential,” states the National Association of Manufacturers, noting that “our oil and natural gas production has been a boon for manufacturing growth and productivity in recent years.”
The American Chemistry Council concurs, commenting, “A supply strategy that includes OCS (Outer Continental Shelf) energy will support the manufacturing renaissance taking place in the United States.”
Given the long lead time required to develop offshore projects, taking production opportunities off the table is shortsighted and jeopardizes our energy security for at least the next decade. As other nations pursue their own future energy security priorities in the Arctic, a U.S. presence means strict U.S. safety standards and best practices are also there.
Dedicated efforts to improve safety systems and capabilities ensure offshore development is safer than ever. Further, decades of experience operating in Arctic environments shows the oil and natural gas industry has the technology and expertise to safely develop Arctic offshore resources.
The ability to take full advantage of America’s oil and natural gas resources hinges on periodically updated leasing plans developed by the Bureau of Ocean Energy Management (BOEM). A draft plan for 2017-2022 announced in 2014 by BOEM would have opened the Atlantic to exploration. But in March 2016, the administration backtracked, removing the Atlantic despite strong statewide public support for offshore development in North Carolina (64 percent), South Carolina (67 percent) and Virginia (65 percent). The final plan announced in November 2016 dealt a further blow to future energy security, setting additional restrictions on Arctic exploration.
To maintain American energy leadership, build energy security for future decades and create jobs, expanding access onshore and offshore must be a top priority in the next Congress and presidential administration.
Military Leaders: Arctic Access is Critical for Security, Geopolitical Priorities
Former Clinton administration Defense Department Secretary William Cohen, along with 14 other military experts, wrote the Department of Interior in 2016, urging the Obama administration to maintain energy exploration options in the Arctic because removing them “would harm our ability to protect our interests and to promote cooperation in the region.”
While Russia and China have significantly increased their presence and activity in the area, “Arctic capabilities of the U.S. have dramatically declined ... [and] our reduced Arctic presence and capabilities challenges the U.S. ability to positively influence all developments in the region,” the letter continued.
“Arctic offshore energy development will occur,” the military leaders pointed out, “whether or not the U.S. participates, as other countries pursue the Arctic’s large energy resources to meet long-term energy needs.”
Pro-growth Tax Policy
Tax policy can have just as much impact on energy security as access decisions can, and the relationship between taxes and energy production is a two-way street that can lead to either mutual benefit or mutual detriment.
On the positive side, pro-energy policies – including smart tax policy but also expanded access, infrastructure investment and export capability – can increase government revenue and jobs. Shortsighted energy policies, like duplicative regulatory constraints and industry tax hikes, can reduce government revenue and job opportunities.
The oil and natural gas industry contributes about $70 million a day, on average, to the federal government in revenue from taxes, rents and royalties. The government’s interest in maintaining or increasing this revenue is best served not by increasing taxes but by increasing energy production, which in turn can serve the even more important purposes of economic and energy security growth.
An analysis by Wood Mackenzie found pro-development energy policies could grow government revenues by $111 billion. Shortsighted energy policies, like duplicative regulatory constraints, could reduce government revenue by $260 billion.
The U.S. oil and natural gas industry pays its fair share. From 2011 to 2015, oil and natural gas industry income tax expenses (as a share of net income before income taxes) averaged 38.5 percent, compared to 25.8 percent for other Standard & Poor’s Industrial companies. Rather than invest where the best tax regime can be found, oil and natural gas companies invest where the resource is located, continuing to spend billions of dollars on new and existing domestic projects each year despite U.S. tax rates that are the highest in the developed world.
Maintaining tax policies like the deduction for intangible drilling costs is an important way to avoid stifling energy investments. Oil and natural gas companies deduct operating costs when filing taxes, just like every business in America. These business expenses for the drilling and preparation of wells are a direct investment in the U.S. economy, creating jobs and stimulating state and local economies. The ability to recover those costs, similar to research and development deductions used by other industries, is key to maintaining cash flow that helps companies drill more wells.
From property taxes that supply revenue for schools, to state and local taxes that fund road and bridge improvements, water and sewer projects, local housing initiatives and environmental programs, to even royalty payments that can sustain family farms and businesses – oil and natural gas development generates local economic benefits well beyond producing affordable, reliable energy.
Tax policy is about more than balancing revenues with expenditures. At its most effective, tax policy can support job growth and encourage investments in America’s future. That’s especially true for capital-intensive industries like oil and natural gas. Given energy’s central place in family budgets and U.S. economic and security objectives, the best tax approach is the one that encourages robust oil and natural gas development.
Energy security means not just availability of fuels but affordability and choice.
America’s refining industry supplied 132 billion gallons of gasoline and 56 billion gallons of ultra-low sulfur diesel in 2015 that fueled the economy. Billions of dollars are invested each year by U.S. refineries, which are the most technologically advanced in the world, making fuels cleaner and more efficient and meeting the needs of consumers for their cars, lawnmowers, power equipment and boats. Maintaining maximum affordability and choice should be a top policy priority for regulators an legislators.
For the Renewable Fuel Standard (RFS), that means aligning ethanol volume requirements with market realities. The Environmental Protection Agency’s mandated volume for 2017, which will force an additional nearly 1.2 billion gallons of ethanol and other biofuels into the nation’s fuel supply, does not reflect consumer preferences. Availability of ethanol-free gasoline (E0) has declined due to the RFS. However, significant demand remains. Americans purchased 5.3 billion gallons of E0 in 2015, but the EPA 2017 volume requirements incorporate only 200 million gallons.
To meet its targets, the EPA anticipates increases in the use of higher ethanol blends that experience shows are unrealistic. In 2015 hearing testimony, the Society of Independent Gasoline Marketers of America/National Association of Convenience Stores told Congress: “To date, very few retailers selling mid-to high-level ethanol-gasoline blends such as E15 or E85 have seen substantial sales of these products. Quite the opposite: Most retailers that sell E15 or E85 have seen minimal sales of these products. Indeed, retailers have found that even consumers with E85-compatible flex-fuel vehicles tend to purchase E10.”
The current trajectory for ethanol requirements pushes us closer to the blend wall, the point at which federal mandates require more ethanol in the fuel supply than can be safely blended as standard E10 gasoline. About 85 percent of vehicles were not designed to use higher blends like E15, which studies show can potentially cause engine damage. In fact, use of higher ethanol blends could even void warranties of some vehicles.
In addition to potentially limiting consumer choice by jeopardizing availability of lower ethanol blends, the RFS could lead to increased fuel costs. A 2015 NERA Economic Consulting study projected a possible 30 percent reduction to the fuel supply and “severe economic harm.
A diverse coalition of restaurant associations, grocers, producers of poultry, pork and beef, environmental non-profits, and anti-hunger groups have called for repeal or significant RFS reform, and editorial boards of major newspapers concur. Arguing that “there is no doubt it should be repealed,” the Washington Post editorial board explains: “Blending more and more ethanol into gasoline will require spending money on infrastructure that is not yet in place and selling more fuel that older and more specialized engines cannot take.”
USA Today calls the mandate a “folly” that “forces consumers to buy billions of gallons of ethanol, a costly and inferior fuel produced mostly from corn.”
When Congress approved the current RFS in 2007, the U.S. energy outlook was vastly different. Today, U.S. success as the world’s leading producer of oil and natural gas has helped advance the primary goals of the RFS. Increases in domestic production have helped drive down energy imports, fuel costs and – through greater use of clean-burning natural gas – greenhouse gas emissions. To preserve consumer choice, maintain affordability and prevent potential engine damage and economic harm, federal ethanol policy should be overhauled to reflect consumer preferences, vehicle needs and America’s 21st century energy reality.
The American people want, and the economy and future generations deserve, affordable, reliable and abundant energy that can be developed and delivered safely and with respect for our environment.
The only way we will achieve that important goal is through a true all-of-the-above, market-based and consumer-focused national energy policy. Fortunately, what it takes to remain a world leader in energy production is not a matter of guesswork or abstract theory. We know what works when it comes to American energy because in just a few short years our nation has emerged from decades of energy scarcity, dependency and uncertainty into this new era of American energy abundance and leadership.
At the beginning of a new presidency and a new Congress, we urge our nation’s leaders to embrace the American energy revolution already underway. Future generations of Americans deserve nothing less.
As we look to the future, the oil and natural gas industry stands ready to offer solutions that help meet the energy needs of our nation and the world, and to work with elected leaders at all levels of government to ensure that the American consumer continues to benefit from affordable and reliable domestically produced energy. Above all, we will remain responsible stewards of the natural resources we develop and a good neighbor and citizen to the communities in which we operate. The oil and natural gas industry is committed to forging a consensus on energy policy that drives economic growth, increases American competitiveness and provides to our allies an energy partner that uses its considerable energy resources as a way to lift people up.
Our central message to President Trump, members of Congress, and state and federal regulators is straightforward: Energy is fundamental to our society. Thanks to American innovation and entrepreneurial spirit, the United States is the world’s leading producer of oil and natural gas, as well as the leading refiner of fuels and petrochemicals. And we welcome the partnership of anyone who shares our vision of a brighter, prosperous and environmentally responsible energy future for our nation.
We believe that our nation’s best future will only be achieved through an all-of-the-above national energy strategy that recognizes the fundamental role of oil and natural gas.
What the State of American Energy report makes abundantly clear is that American energy is American progress. And that energy is fundamental to our quality of life in ways both small and large.