The Continued Need for Oil and Gas in Indutry

While the debate rages on about terminating oil and gas exploration and extraction from US lands and waters, we need to not ignore what other industries and products are dependent on oil and natural gas.  Thus far our attention has been keenly focused on the burning of those fuels and the environmental damage.  The movement’s strategy today is simple:  Take away the ability to drill for petroleum and that will, by default, eliminate the combustible uses.  This is the reverse of what the strategy should be…

There are several problems with the current approach, not the least of which is that our appetite for energy from petroleum won’t just “shut off” like the car engine we seem to be targeting for retirement.  We will and must obtain those fuels from somewhere else; in this case, from other countries that have far less environmental controls for their exploration and extraction, which means, as a result, that by cutting our ability to be self-sufficient and a net-exporter of these products (as we were until January of 2021), we are encouraging increased global harm. 

The other main problem with the desire to eliminate our exploration and extraction, is that literally hundreds of products and industries rely on petroleum to made their products.  Here is a (very) partial list (and the list is growing every month) of those products made from oil and natural gas.  Many will surprise you; it’s far most than critically needed gas and industrial lubricants:

Solvents, Diesel fuel, Motor Oil, Bearing Grease, Ink, Floor Wax, Ballpoint Pens, Football Cleats, Upholstery, Sweaters, Boats, Insecticides, Bicycle Tires, Sports Car Bodies, Nail Polish, Fishing lures, Dresses, Tires, Golf Bags, Perfumes, Cassettes, Dishwasher parts, Tool Boxes, Shoe Polish, Motorcycle Helmet, Caulking, Petroleum Jelly, Transparent Tape, CD Player, Faucet Washers, Antiseptics, Clothesline, Curtains, Food Preservatives, Basketballs, Soap, Vitamin Capsules, Antihistamines, Purses, Shoes, Dashboards, Cortisone, Deodorant, Footballs, Putty, Dyes, Panty Hose, Refrigerant, Percolators, Life Jackets, Rubbing Alcohol, Linings, Skis, TV Cabinets, Shag Rugs, Electrician’s Tape, Tool Racks, Car Battery Cases, Epoxy, Paint, Mops, Slacks, Insect Repellent, Oil Filters, Umbrellas, Yarn, Fertilizers, Hair Coloring, Roofing, Toilet Seats, Fishing Rods, Lipstick, Denture Adhesive, Linoleum, Ice Cube Trays, Synthetic Rubber, Speakers, Plastic Wood, Electric Blankets, Glycerin, Tennis Rackets, Rubber Cement, Fishing Boots, Dice, Nylon Rope, Candles, Trash Bags, House Paint, Water Pipes, Hand Lotion, Roller Skates, Surf Boards, Shampoo, Wheels, Paint Rollers, Shower Curtains, Guitar Strings, Luggage, Aspirin, Safety Glasses, Antifreeze, Football Helmets, Awnings, Eyeglasses, Clothes, Toothbrushes, Ice Chests, Combs, CD’s & DVD’s, Paint Brushes, Detergents, Vaporizers, Balloons, Sun Glasses, Tents, Heart Valves, Crayons, Parachutes, Telephones, Enamel, Pillows, Dishes, Cameras, Anesthetics, Artificial Turf, Artificial limbs, Bandages, Dentures, Model Cars, Folding Doors, Hair Curlers, Cold cream, Movie film, Soft Contact lenses, Drinking Cups, Fan Belts, Car Enamel, Shaving Cream, Ammonia, Refrigerators, Golf Balls, Toothpaste, Gasoline, Lubrication, Plastics.

It’s important to note that all plastics come from petroleum foundations…  and today there are over 6,000 products that come from one barrel of oil (not including all the plastics in the vast majority of durable goods we use every day).

With this extensive set of uses in mind, our position on this is simple:  We support the continued exploration and extraction of oil and natural gas – by US companies, within US borders – for use in all industries.  The concern for the environment actually, and ironically, drives this position:  The products (including gasoline, jet fuel, etc.) are going to be needed for an extended period of time, and the US companies, under federal regulatory oversite, have and will produce this cleaner than any other country that would supply these products to us.  Additionally, local production will help control the energy prices, making them cheaper and more insulated from foreign events and market reactions (note the last 2 weeks in February ’21 almost doubling of crude oil prices).  We further know and expect a decrease in that extraction as demand for combustible products (gas and oil) continues to decline, and we support mandating that demand decline (note the prior position on Energy for Transportation).

Side note – what does this mean for Colorado?

In Colorado’s case, the oil and gas industry represents roughly 10% of our economy, and employs over 90,000 people (directly and indirectly).  This industry has been on a slow decline, until recent moves by newly-elected politicians to hasten the departure of the industry from the state.  In Colorado in 2019, there were 33,000 direct workers in the industry; today that number is quickly dropping to 20,000.  There were international moves between Russia and Saudi Arabia that also had impacts, but not nearly to the level of our own political moves.  This poses a risk for Colorado communities and schools that have benefited from the well-over $1 billion in tax revenues from the industry; with the hastened pace to attack the industry, no backfill source for the tax revenues have been found by those same politicians.  Additionally, with the latest Biden administration moves to cease Federal Land Leasing, those royalties that also fed into K-12 budgets (and other governmental endpoints in the state) are now also being eliminated.

Food for thought.