December 2022
INDUSTRY LEADERS’ OUTLOOK 2023

Fiddling while Rome burns: As history repeats itself

As 2022 stumbles to a close, we should consider again that the oil & gas industry remains in the crosshairs of a political chess game to relegate it to the ash heap of history.
Robert Warren / Baclenna
ROBERT E. “BOB” WARREN, President, Baclenna, Inc.
ROBERT E. “BOB” WARREN, President, Baclenna, Inc.

The mind is like a parachute. It doesn’t work unless it’s open – Anonymous

The longer the explanation, the bigger the lie – Chinese Proverb

You’ve got to be very careful if you don’t know where you are going, because you might not get there – Yogi Berra

The end of 2022 & beginning of 2023: What’s changed? As 2022 stumbles to a close, we should consider again that the oil & gas industry remains in the crosshairs of a political chess game to relegate it to the ash heap of history. And 2023 is projected to continue the struggle for energy dominance—by different interests, without regard to the nation’s benefit.

Regardless of where you land on the political spectrum of America, however, there are indisputable facts that should drive our elected leaders to consensus and action—specifically, a clear and unshackled return to a robust oil and gas program for this nation. With numerous policy and regulatory barriers restraining the vigorous growth of oil and gas production, politicians are missing a golden opportunity here. With joint resolve and little effort, they—the elected leadership—could demonstrate they are indeed prioritizing employment by encouraging heavy, long-term investment in the oil and gas sector while moving firmly to link a sustainable expansion in national production to the security interests of this country.

Clearly, that is not the priority today, when powerful factions continue to demonize this industry, without objection (indeed, with encouragement) from the Biden Administration. That effort is further coupled by a President whose stated priority is maximum support for the development of alternative energy (at pretty much any cost) and a powerful regulatory presence, whose mission is so broad that delay and denial of approvals becomes a steering mechanism that—no surprise here—also works against the production of hydrocarbons.

Political footballmanship. There have been two occasions in recent decades where American society was united in this country’s common purpose: World War II (Fig. 1) and 9/11. Does it require another catastrophic event, or cascade of events, to overcome the polarization facing our future energy development? And does it require another change of administration to bring sufficient wisdom and courage to put in place a sustainable energy policy that is not ideologically driven? The answer to both continues to be, regretfully, “Yes.”

Fig. 1. Shown while under construction during 1942-1943, the Big Inch (24-in.) crude oil pipeline is an example of where the U.S. was united on a common purpose—winning World War II. Officially named the War Emergency Pipeline, it passed through 10 states and connected Baytown, Texas, on the Gulf Coast, with Linden, N.J. Image: Library of Congress.
Fig. 1. Shown while under construction during 1942-1943, the Big Inch (24-in.) crude oil pipeline is an example of where the U.S. was united on a common purpose—winning World War II. Officially named the War Emergency Pipeline, it passed through 10 states and connected Baytown, Texas, on the Gulf Coast, with Linden, N.J. Image: Library of Congress.

 

We should be asking, “why do the energy interests of this nation become a political football ever,” but most particularly now, at a time when unemployment, galactic national debt, and our national security scream out to be among the highest of national priorities. Energy jobs: Experience and competence in energy operations are critical to oil and gas jobs, not unlike any other industry across the planet. There are not sufficient workers today, and we will be unable to meet requirements when the crisis to expand develops. That’s very unfortunate, because as the emphasis continues to reduce the function of fossil fuels, the capability to produce will continue to erode. It will be too little too late, but it makes for a good sound bite until the day there is a bona fide U.S. energy crisis.

The Message and the Inconvenient Facts matter: Those who would have us riding bicycles and traveling by stagecoach are not dwindling in number, and their efforts at controlling the energy future of this nation—and the world—will not cease. Most who have been elected to public office and appointed to the regulatory bodies are open to hearing the facts when fairly presented with logic and scientific data. Industry representative groups are engaged daily with messaging and information on behalf their members. All would do well to increase their participation, direct support, and positive advocacy engagement whenever possible.

Outlook For 2023. Perilous Times lie ahead for a healthy industry, substantial employment opportunities, and our national security. Industry leadership and our associations have a greater role in the political arena than ever before, and if that means we all become political activists to determine the outcome of this national debate, so be it. The sound of many fiddles in the nation’s capital grow louder by the day.

Oil and gas tax policy will continue to be hammered as an investment benefit (for the wealthy and “Big Oil”), and we expect to see it continue as a centerpiece of “budget reform.” Look for efforts to increase and strengthen oil and gas production to remain hampered by the executive agencies of this administration. Two years from now, when American voters have again chosen their President for the succeeding four years, we should pray for reason, wisdom and focus in this arena, remembering that the interests against this industry are at work 24/7 to end it.

Between now and then, we predict the mix of domestic and international events will spin up an even more toxic petri dish, with the Party In Power pulling out all the stops to retain the White House, and the Opposition Party attempting to take back control. If only the interests of the vast silent majority mattered. And all the while, the nation continues sliding deeper into the quicksand.

There’s not much time left to get it right, since elections have consequences. Consider tonight then, as you set your thermostat for a comfortable night’s rest, say thank you to the hundreds of thousands of men and women working in remote operations around the country and around the world … who keep the lights burning and the wheels turning for the rest of us. God bless the fossil fuel industry—and the nations who make it a priority for their existence and security. WO

About the Authors
Robert Warren
Baclenna
Robert Warren is president of Baclenna, Inc., an energy consulting service based in Katy, Texas. He holds a BS degree in petroleum engineering from Texas Tech University, an MBA degree from the McCombs School of Business at the University of Texas, and has completed the Corporate Social Responsibility Program at Harvard Business School. Mr. Warren has over 45 years of industry experience in foreign operations and executive corporate management. His perspectives are his, alone, but may represent the views of others.
Connect with World Oil
Connect with World Oil, the upstream industry's most trusted source of forecast data, industry trends, and insights into operational and technological advances.