The Subcommittee on Energy on July 13 held a “Pathways to Lower Energy Prices,” hearing to discuss sustainability and affordability in US energy.
According to the U.S. Senate Committee on Energy and Natural Resources, the committee heard witness testimony from a variety of experts like President of North Dakota Petroleum Council Ron Ness, proposing various ways to create more affordable and sustainable fuel and business more local.
“If we are going to find solutions, we must recognize where the problems exist,” Ness said, according to the release. “The White House will tell you this is a result of Russia’s war on Ukraine. While this has enhanced the price increases, the increase in gas prices is a direct result of increased demand coupled with production restraints caused by anti-oil and gas policies put into place by the Biden Administration.”
Ness asserts that America needs to be more energy independent—supporting fossil fuel drilling in the states and US territories. He argued that the shift to renewables has caused rising energy prices and that, with global uncertainty such as the Russian-Ukrainian War, America needs to look inward to obtain oil and gas. He stated that “we all know that fossil fuels will be around for decades to come. But we need positive reinforcement from the leaders in our country to assure all Americans that they are committed to our energy security.”
Opening remarks were given by Subcommittee Chair Senator Maize Hirono and Ranking Member John Hoeven. Aside from Ness, other witness testimonies were delivered by The Honorable Julie Fedorchak, David Bissell and John Larsen.
In her congressional testimony, Julie Fedorchak, chairwoman of the North Dakota Public Service Commission, discussed three key energy interests: affordability, reliability, and timing. Discussing affordability, she noted that sustainable energy sources are driving up gas and electric prices, and that using fossil fuels is a necessary cost of keeping fuel costs down. Discussing reliability, Fredorchak asserted that axing thermal generators and rapidly replacing them with renewables is hurting the reliability of power grids. Finally, discussing timing, Fredorchak argued that—while sustainable energy sources are the ideal form of power production—the government must be patient when adapting current power grids to sustainable models, lest they drive up prices and reduce reliability.
In his congressional testimony, John Larsen, a Partner at Rhodium Group, provided statistics on average energy expenses for families in America. He notes that “Rhodium Group estimates that national average household costs for home energy and transportation will be approximately $5,100 this year. That’s a 23% increase compared to 2020 during the height of the pandemic.” Larson asserted that this drastic increase was caused by rising fossil fuel prices, especially “petroleum products such as gasoline, diesel fuel and heating oil, which have increased by 34%, 48%, and 60%, respectively on a national average basis over the past 12 months.”
David Bissell, president and CEO of the Kauai Island Utility Cooperative, argues that transitioning to renewable energy sources is achievable without major grid disruption. To evidence this claim, Bissell pointed to the Kauaʻi electrical grid—which was heavily subsidized by state and federal government and executed in a primarily rural environment.
