Russian Invasion Exposes Need for Strategic Energy Policies in Pennsylvania and Across the U.S.

Pennsylvania Independent Oil & Gas Association President & Executive Director Daniel J. Weaver today (March 2, 2022) issued the following statement regarding the critical need to support domestic energy production locally in Pennsylvania and in the United States:

“In less than one week, Russia’s invasion of Ukraine has laid bare the tenuous nature of global energy supply and demand, with prices increasing and sanctions impacting the Nord Stream 2 pipeline intended to supply natural gas to European countries. In the face of this reality, Germany announced a new commitment Sunday to build up its reserves of coal and natural gas, including the construction of two new liquid natural gas terminals to allow imports, while maintaining its 2045 net-zero commitment.

Any effort by Russia to respond to continuing economic sanctions by cutting off the sale of oil to European nations will only exacerbate the energy crisis on that continent.

The United States – particularly Pennsylvania – has the supplies and capabilities to help meet the demand of Europe and other regions, but is facing unnecessary resistance at both the federal and state levels to achieve the country’s energy production potential. The prime example of this in Pennsylvania is Governor Wolf’s unilateral effort to force our state into the regional carbon tax program (RGGI) in which the cost of emission credits has already exceeded $13/short ton, more than four times the $4/short ton cost the Governor touted would remain through 2030. It is imperative that our nation and the Commonwealth recognize the need to encourage the production and transportation of oil and natural gas rather than stifle it.

Unfortunately, current policies have made it impossible for American energy producers to address the urgency of the moment created by Russia’s invasion of Ukraine. We cannot turn on a switch and instantly produce oil and natural gas. We can, and must, however, do much more to help both our country and other nations that need reliable energy and are at the mercy of countries such as Russia.”