Oil and Gas Industry Continues to Build on Environmental Progress, While Supporting Economic Recovery and Increasing Energy Security

Oil and Gas Industry Continues to Build on Environmental Progress, While Supporting Economic Recovery and Increasing Energy Security

Austin, Texas ‚Äď Initially introduced in 2019, the radical ‚ÄúGreen New Deal‚ÄĚ policy was pushed to eliminate U.S. greenhouse gas emissions within a decade and transition the economy completely away from fossil fuels. Despite ultimately being dismissed by¬†elected officials¬†on both sides of the aisle, Democratic legislators, including Representative Alexandria Ocasio-Cortez¬†(D-NY)¬†and Senator Ed Markey¬†(D-MA),¬†reintroduced their resolution on Tuesday, including¬†a¬†set of aggressive climate goals intended to transform the U.S. economy. The announcement was timed to coincide with President Joe Biden‚Äôs Leaders Summit on Climate and Earth Day, both occurring this week. The following statement can be attributed to Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association (TIPRO).¬†

“Once again, this non-binding resolution, and variations of it, fails to address the massive spending, economic fallout and negative impact on both energy and national security that would result from such measures. Supporters of the Green New Deal also continue to avoid acknowledging the successful efforts by the U.S. oil and natural gas industry reducing energy emissions through voluntary actions, innovation, collaboration and the investment of literally hundreds of billions of dollars in greenhouse gas mitigating technologies throughout the oil and gas value chain. Domestic producers have announced aggressive goals and investment and will continue to prioritize these important efforts.  

As a result of this ongoing commitment and voluntary actions, methane emissions from oil and natural gas systems are down 23 percent since 1990, according to 2020 data from the EPA’s Inventory of U.S. Greenhouse Gas Emissions and Sinks. Also, since 2005, total U.S. GHG emissions have dropped by 12 percent and total GHG emissions from fossil fuel combustion have decreased nearly 15 percent. No other nation has cut carbon dioxide (CO2) emissions more than the U.S. since 2000. The increased use of market-competitive natural gas is also a key reason U.S. energy-related CO2 emissions are at their lowest levels in a generation.   

The oil and natural gas industry is leading in groundbreaking technologies positioned to reduce greenhouse gases, including large-scale commercial carbon capture, use and storage (CCUS), direct air capture, air to fuels, fuel cells and more. Furthermore, participants of the Texas Methane & Flaring Coalition (TMFC), a voluntary coalition of companies and organizations including TIPRO focused on improving the energy industry’s environmental performance, are collaborating on solutions to minimize flaring and methane emissions. Oil and gas producers and energy companies of all sizes are also taking action through other programs and initiatives to continue to achieve comprehensive environmental goals. 

Despite this progress, recent executive actions taken by the Biden Administration, and unrealistic policy proposals like the¬†‚ÄúGreen New Deal,‚Ä̬†threaten¬†our nation‚Äôs economic recovery and energy security. These measures will do nothing to¬†slow¬†global demand for oil and gas, and will ultimately result in¬†our country¬†becoming more reliant on foreign sources of energy, while ceding our leadership¬†on¬†energy production to other countries¬†that do not have the same environmental standards as the U.S.¬†¬†¬†

As we all celebrate Earth Day¬†and the unprecedented benefits provided by domestic production of oil and gas,¬†let‚Äôs¬†pause¬†the¬†politically-driven¬†rhetoric¬†and find a path to¬†work together on common goals, including protecting the environment.¬†energy security, economic expansion and job creation.¬†Experts from every energy sector deserve to be involved in decision-making that will shape our energy future.‚Ä̬†

Additional Facts:

  • According to TIPRO‚Äôs analysis, upstream employment in Texas continues to improve along with commodity prices and global demand, with an increase of over 5,000 direct jobs in this sector in the first quarter of 2021 compared to the fourth quarter of 2020. Despite a decline in oil and gas extraction jobs during this timeframe, the support activities sector added over 9,000¬†direct¬†positions in Texas.
  • TIPRO workforce trends data and analysis show‚ÄĮ30,645‚ÄĮtotal job postings for the Texas upstream sector between January 2021 to March 2021, of which‚ÄĮ4,184‚ÄĮwere unique. These numbers give a Posting Intensity of‚ÄĮ7-to-1, meaning that for every 7 postings there is 1 unique job posting. This is higher than the Posting Intensity for all other occupations and companies in the region (5-to-1), indicating that upstream companies may be trying harder to hire for this position. The average number of unique job postings for the first¬†quarter of 2021 was 2,948, an increase of over 200 positions compared to the fourth quarter of last year.
  • Halliburton Company had the highest number of unique job postings (838), followed by Occidental Petroleum Corporation (350), during this timeframe. Houston ranked number one for top cities by unique job postings (1,416), with Midland coming in second (370). The top occupation was Heavy and Tractor-Trailer Truck Drivers (210 unique postings), followed by Maintenance and Repair Workers (165 unique postings).
  • The Texas rig count, another key indicator of economic activity and status of the oil and gas industry, increased to 217 in the first quarter of 2021, compared to 162 in the fourth quarter of 2020, and 116 in the third quarter of last year. Current data for April has the total Texas rig count at 254. This upward trend is expected to continue as economic conditions and global demand for oil and natural gas improve in the coming months.

The Texas Independent Producers & Royalty Owners Association (TIPRO) is a trade association representing the interests of nearly 3,000 independent oil and natural gas producers and royalty owners throughout Texas. As one of the nation’s largest statewide associations representing both independent producers and royalty owners, members include small businesses, the largest, publicly-traded independent producers, and mineral owners, estates, and trusts. TIPRO membership provides networking and educational forums, marketing opportunities, industry intelligence, and extensive legislative and regulatory resources.

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