Leasing ban puts Montana’s economy and future in jeopardy

Intermittent relationships can be messy and have many unintended consequences – so can a federal moratorium on oil and gas leases.

As courts back-and-forth over the legality of the Home Department’s federal oil and gas rental ban, Montana energy companies and others across the country have come under scrutiny. long periods of uncertainty, damaging local economies and state revenues. Oil and gas operations on federal lands have been repeatedly halted, then restarted, then stopped again as this matter unfolds in court, and it remains to be seen what the final verdict will be.

The idea behind this possible rental ban is that the ramifications of oil and gas operations are potentially damaging to the environment and will delay our country’s inevitable energy transition – but that couldn’t be further from the truth.

As Executive Director of the Treasury State Resource Association, I have long worked with the oil and gas industry – in addition to task forces, agriculture and recreation – to work together on issues that affect the use of land, conservation and resource development in Montana. Many of our members and other businesses across the state benefit from the money provided by oil and gas operations, especially through investments in the communities they serve.

The oil and gas sector has generated billions in state revenue over the past few years, most of which is for critical capital spending like education, healthcare, and infrastructure – and of course, preservation efforts. Without the financial contributions and royalties collected from oil and gas operations, Montana’s communities, environment and way of life would be forever changed. Energy states like ours can’t afford a blanket and blanket federal lease ban – the repercussions are too dire.

First, with rising gas prices in Montana and the Organization of the Petroleum Exporting Countries (OPEC +) opposition to calls by federal authorities to increase production levels, there is an urgent need to preserve the energy independence of states. -United. Protecting domestic oil and gas operations is essential to maintaining our country’s energy reserves and ensuring that we do not have to depend on other countries, including rivals like Russia, to meet our energy needs.

But a ban on leasing would reduce domestic production and instead leave us to the whims of our foreign counterparts. An analysis of the end of federal leases by the American Petroleum Institute found that until 2030, the United States would spend $ 500 billion more on energy from foreign suppliers and oil imports from foreign sources. foreign exchange would increase by 2 million barrels per day.

This not only harms job creation, the economy and our energy independence, but also has environmental impacts. Outsourcing our oil and gas needs means that countries with less stringent environmental regulations will increase production, resulting in additional air and water pollution in those countries and around the world than if the production remained here.

In addition, ending the leasing of federal lands would have devastating consequences for communities that depend on oil and natural gas revenues to support local investment and development. Revenues from oil and gas activities represent 5.6% of the budget of the Montana General Fund, which finances national and local programs such as education, conservation, health care and infrastructure.

We cannot withdraw essential funding from communities without a solution and expect there to be no consequences, especially with the precarious financial situations many find themselves in as a result of the pandemic. Workers are still recovering, businesses are struggling to keep their doors open, and students are soon returning to school. Our lawmakers must prioritize helping our communities and their recovery rather than pursuing a misguided tenancy ban that puts economies at risk and undermines growth and development.

A federal moratorium on leases would also exacerbate economic hardship due to jobs and economic activity lost as a result of such action. The oil and natural gas industry supported more than 50,000 jobs, many of which provide reliable, well-paying work, and contributed more than $ 6.2 billion to Montana’s economy in 2019. This impact Notable economy is matched by any other professional industry in the state, we cannot afford to see its dues reduced.

Montana workers, businesses, and communities have a long and prosperous relationship with the state’s oil and gas industry. The state revenues provided by industry operations have been essential to growing our state’s economy and stimulating business for some time and will continue to be so in the future, but only if lawmakers come to their senses and say no to a federal rental ban.

Peggy Trenk is Executive Director of the Treasure State Resource Association.