Unintended consequences of the national energy policy

February 6, 2023

OPINION by PAUL C. HERTEL

On day one in office, our President Biden cancelled the Keystone Pipeline and set the tone for our national energy policy and his entire administration.

The energy companies got the message. They knew that new leases would be difficult to secure, and if they did, the regulatory headwinds were not in their favor. They also saw the pressure the administration put on big lending institutions to limit capital to large energy companies unless they had green energy incorporated into their expansion plans.

There’s a reason these companies have been around for a long time. They are smart and strategic. They shifted their paradigm and curtailed their expansion plans, paid down debt, and returned more to shareholders. This has created a reduced supply when demand has increased. This in turn has increased prices to consumers.

Increased prices have help drive a big portion of inflation. Everything we touch, digest, or experience involves fossil fuels. The increase will also slow down and drive up the cost of our transition to green energy. This transition involves mining, transportation, manufacturing, and building the new green infrastructure.

Instead of having a sane gradual transition to clean/green energy with a sound policy, this administration has failed the American citizens. The poor and middle class are suffering from the high prices, we’ve lost our national energy security, and we’re asking countries who despise us and are environmentally irresponsible to produce more energy for us.

We need to eventually transition to a cleaner way of living, but let’s do it responsibly without having the American taxpayer go broke.

Paul C. Hertel is an Arroyo Grande resident.