DV Journal

On this edition of the Delaware Valley Journal podcast, David Callahan, president of the Marcellus Shale Coalition talks about the benefits Pennsylvania and America get from the abundant, clean natural gas found in the Keystone State. DVJournal News Editor Linda Stein asked about PA’s different system of taxing natural gas compared to other states, and the revenue benefits from the energy sector for local governments.

And if you’re looking for a good-paying job in Pennsylvania — some with a six-figure salary — David Callahan knows who you should call!

Hosted by Michael Graham.

The Republican hoping to unseat Congresswoman Mary Gay Scanlon (D-Delaware/Philadelphia) thinks she and President Joe Biden are getting the natural gas issue wrong.

Republican David Galluch says he will fight to not only encourage the sector but expand it.

“We have more natural gas under our feet than Saudi Arabia has oil,” says Galluch. “Natural gas is the cleanest fossil fuel there is, and if you liquefy it, it gets even cleaner.”

And, he notes, it keeps hundreds of thousands of people working across the state.

“The job multiplier for the energy sector is 18.3. That means for every one job we create in the energy sector, we create 18.3 jobs downstream,” says Galluch. “We are talking construction, manufacturing, high-skill, high-productivity, high wage enhancing employment, a lot of it union and skilled labor.”

Biden has pushed for what he calls “good-paying union jobs.” Still, the president’s critics say his energy and environment plans are threatening union jobs. Many of the workers impacted by Biden’s cancellation of the Keystone XL oil pipeline were union jobs, for example, part of a package of anti-oil and gas policies Biden put into place when he first took office.

“There is nothing wrong with investing in and developing alternative forms of energy,” said Galluch. “But if we are doing so at the expense and well-being of working families or driving up the price of fossil fuels to wean people onto different sorts of energy production, I do not think that is the right answer,” says Galluch. “Putting working families through a world of hurt in this inflationary environment more generally is not the right answer.”

Pointing to Scanlon’s voting record, Galluch added she has been against the energy sector from the very beginning.

“Not just her voting record, but even her lack of advocacy I should say for an energy producer in our own district,” Galluch noted. “Monroe Energy in Trainer supports the employment of about 9,000 people in our region and they are really being hurt by a broken regulation called the Renewable Fuel Standard (RFS).”

Scanlon–in office since 2019–has been endorsed by the Sierra Club, the League of Conservation Voters, and the AFL-CIO. She voted for the Build Back Better Act, which includes multiple bans on drilling and energy development while spending more than half a trillion dollars on green energy plans.

Neither Scanlon’s office nor her campaign responded DVJ’s emails seeking comment. Galluch said he was not surprised by Scanlon’s silence.

Rep. Mary Gay Scanlon (D-Pa.)

“A representative who valued Monroe Energy’s presence in the district would have been lobbying the Biden administration to alter the terms of the RFS, but the Biden administration kept the RFS,” said Galluch. “The administration renewed it last week in its current form, which puts 9,000 of those jobs in jeopardy, so I think Congresswoman Scanlon’s lack of action and lack of public advocacy for changing the RFS says all you need to know about her stance on energy.”

Monroe Energy may not be the only thing up for debate in this election. A $6.4 billion liquefied natural gas (LNG) export terminal is proposed for the city of Chester. If constructed, the plant would provide more job opportunities for working people and families in the Fifth District. Penn LNG is responsible for the project and claims the operation will be “the greenest and cleanest” export facility of its kind in the nation.

“People in the community of Chester should have a say,” Galluch noted. “We need to openly debate this, it should not be done behind the scenes, and it has to be a transparent process.”

Still, Galluch said that, “If we make the case properly” and show the economic benefits, people will see the positives of having the LNG plant.

“We know as our own energy production has been curtailed, the reliance of our allies on our foes for energy, specifically Russia, has put them in a very vulnerable position,” Galluch, a Navy veteran, said.“So, I think if we explain to people, ‘Look, there are safe ways to ensure that we do not pollute the environment, we do not make a community unsafe, that we are going to benefit from it economically, and then we’re going to benefit from it from a national perspective,’ I think people are going to see that this is a step in the right direction for us.”

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Pennsylvania’s tax on natural gas development generated $234 million in 2021, marking the second-largest amount ever returned to communities across the commonwealth, the Pennsylvania Public Utility Commission (PUC) said Friday.

The natural gas impact fee has generated $2.2 billion in the last decade.

Most of the money goes to county and local governments, however some state agencies also receive funds. The money funds infrastructure, emergency response and environmental programs.

“Generating $2.3 billion in essential funding for state and local governments across all 67 counties, Pennsylvania’s unique natural gas tax is an effective policy that yields impactful results,” Marcellus Shale Coalition president David Callahan said.

Some $234.4 million will be distributed to the state and counties in 2022, with all 67 counties receiving an allotment.

“The nearly 60 percent increase in this year’s distribution is directly related to heightened activity levels and the commodity price environment, underscoring the importance of policies that encourage domestic natural gas development, transportation and use. Our members continue to be focused on responsibly developing clean, abundant Pennsylvania natural gas, which is even more important today in keeping America and our allies’ energy secure,” Callahan said.

American Petroleum Institute Pennsylvania (API PA) Executive Director Stephanie Catarino Wissman said, “Every corner of the commonwealth has directly benefitted from Pennsylvania’s impact fee. This tax on natural gas wells has generated new revenue – totaling more than $2.2 billion over the past decade – for a wide variety of environmental, conservation, infrastructure, public safety and recreation projects. The report shows how natural gas production in Pennsylvania provides hundreds of millions annually in essential revenue while strengthening our economy.”

The impact fee revenue depends on the average annual price of natural gas on the New York Mercantile Exchange (NYMEX), which increased in 2021 compared to 2020, when the demand for natural gas declined due to the COVID-19 pandemic and a mild winter. Impact tax revenue reached $234 million in 2021, nearly 60 percent more than 2020, one of the highest collections since the impact tax was imposed ten years ago.

“As the demand for energy rebounds, policy certainty and long-term energy solutions are needed to help ensure that Americans have access to affordable and reliable energy,” said Wissman. “Pennsylvania’s abundant shale gas presents a unique opportunity to bolster domestic supply while funding critical infrastructure and environmental programs across the state, even in areas without natural gas development.”

This announcement comes when energy companies are under attack by the Biden administration over “excess” profits, a charge that economists dismiss.

Biden took steps to hamstring the energy companies at the onset of his administration, blocking the Keystone XL pipeline and signed executive orders to halt new oil and gas leases on public land, favoring green energy alternatives.

“Getting on a plane right now to go meet with a murderer to talk about the Saudis picking up their production, or writing a letter to the CEOs of Chevron and Exxon to say ‘super-duper large profits won’t be tolerated’ is simply inexcusable,” said economist David L. Bahnsen about Biden’s energy policy.

And while Biden has blamed high gasoline prices on Russian President Putin and the war in Ukraine, he recently pivoted to blame oil companies. But gasoline prices were at an average of $2.27 a gallon nationwide on Jan. 20, 2021 when Biden took office. On Jan. 3, a month before Putin invaded Ukraine, the national average gas price stood at $3.28 a gallon and as of Friday, the average price was $5 a gallon.

And it’s not just Biden.

Congresswoman Madeleine Dean (D-Montgomery) tweeted in March: “The price of crude oil is falling, and that should be reflected at the pump. We must be certain that energy companies are not using an unjust war to profit and price gouge.”

And in a let them eat cake moment, Transportation Secretary Pete Buttigieg said families who buy electric vehicles “never have to worry about gas prices again.”

Meanwhile, the sale price for an EV, on average, was $60,054 in February. That compared to $45,596 on average for all new vehicles, including electric ones, according to data from Edmonds.

Also, there’s the convenience factor. On a recent road trip, a Wall Street Journal reporter said she spent more time charging her rented EV than sleeping.

In a tweet that sums the situation up, Rep. Jim Jordan (R-Ohio) said, “The United States is blowing through its strategic oil reserves faster than expected. Gas is $5 a gallon nationally. And Joe Biden STILL refuses to drill domestically.”

The National Republican Senatorial Committee is making political hay for the 2022 midterms out of the high gas prices. They’re airing a new commercial targeting Democratic Nevada Sen. Catherine Cortez Masto and Democrat John Fetterman, who is running for the Senate, linking them to Biden and the high gas prices.

The ad says Fetterman backs Biden and the Green New Deal.

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While Texas and the other Gulf States often dominate the narrative around energy production, one of the most vital locations for domestic energy production lies in the mid-Atlantic region. Pennsylvania is home to an enormous amount of natural resources that are integral to the energy supply of our country. Despite being one of the top 10 states in natural gas, petroleum and electricity consumption, Pennsylvania is the third-largest net exporter of energy in the country. The Keystone State has also seen its gas reserves quadruple in the last 10 years, thanks to the increased development of the largest natural gas field in the U.S., the incredible wonder, Marcellus Shale.

The war in Ukraine has highlighted in neon the danger of reliance on foreign—and often hostile—nations for energy production and delivery. The Biden administration’s embargo on Russian oil, coal, and natural gas was a necessary decision in response to its invasion of Ukraine. The administration’s recent announcement that it wants to send more U.S. natural gas to Europe is the next logical step, but because of longstanding and misguided opposition to energy exports, that entire effort could be hampered by the lack of terminals for shipping the gas.

European Union leaders backed plans to buy gas jointly if the United States supplies it, but the lack of immediate infrastructure capacity (frankly, the ability) to fulfill our promise makes it all largely symbolic, unless we act now.

There is good news, however.  Learning of this strategic deficiency provides an opportunity to reinvest in America’s energy sector we should not waste. The legacy of pushing aside the oil and gas sector while simultaneously talking about the need for energy independence is inconsistent and doesn’t work.  We must seize the opportunity to strengthen our country’s economy and energy security.  Placing faith in Saudi Arabia or the UAE will not solve our energy dependence, but domestic production and infrastructure can do so.

Pennsylvania is poised for this chance. The Mariner East pipeline system currently transports natural gas liquids across the state, delivering energy across Pennsylvania and throughout the southeast. As of February 2022, Mariner East 2 and its parallel counterpart Mariner East 2x have completed the final step in the construction process and is now awaiting commissioning. These pipelines generated 9,500 construction related jobs per year over six years, as well as $122 millionin generated taxes for the commonwealth. Continued reliance on foreign energy resources going forward could never come close to producing the same amount of economic benefits as these domestically produced resources and pipelines have already proven attainable.

Pipelines are shown to be the safest, most technologically advanced method of transportation for petroleum and natural gas liquids. In order to continually verify the Mariner East pipeline system, there are certified controllers who monitor the pipeline 24 hours a day, seven days a week. In addition to these precautions, an automated system is also detects potential leaks and can shut down the pipeline automatically.

In January, two protesters temporarily halted the construction of the new pipelines when they trespassed on the property and locked themselves onto the equipment. Not only have the systems been proven to operate safely but trespassing on an active construction site increases the very risks these protestors want to limit. As foolish as these acts were then, they seem even more foolish now given the state of domestic and global affairs making increased production a strategic national security issue for all Americans and our allies.

Now is the time to invest in Pennsylvania’s natural resources and encourage new infrastructure projects as the Keystone State continued to be a driving force in our nation’s domestic energy production. The solution to our country’s energy crisis is not turning to adversarial nations abroad, nor in letting our allies rely on countries that oppose us. The answer is at home, and Pennsylvania should lead the way.

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Access to affordable, clean and reliable energy is at the center of the crises unfolding across Europe and the events leading up to Russia’s unprovoked invasion of Ukraine.

For far too long, Russia’s leadership has weaponized their energy resources, inflicting pain on regional nations to gain political and economic influence. These vulnerabilities have been exacerbated by unrealistic policies focused on a rapid transition to renewable energy.

Given the urgency to support our European allies and the brave people of Ukraine, we must act swiftly to put in place mechanisms to combat Russia’s aggression – including leveraging America’s abundant natural gas resources.

Our European allies, who have become reliant on Russia for more than 40 percent of their natural gas due to short-sighted policy decisions, are facing supply shortages and reliability challenges which, together, are causing deep economic pain to the region. In fact, natural gas prices in Europe broke record highs this week. This dependency not only de-stabilizes Europe, but it directly funds Russia’s the war machine.

As the world’s largest producer and exporter of natural gas, America – and Pennsylvania in particular – is uniquely positioned to do even more to support our allies and their efforts to counter Russia’s hostility. We are fortunate to have such abundant resources that can meet domestic consumer demand and aid European allies.

Some progress is starting to take place in earnest. Germany, for example, is advancing infrastructure investments to enhance natural gas trade and imports from allied nations in order to weaken Russia’s grip on their energy and economic security – yet much more can and must be done, and the U.S. is well-positioned to lead.

Here at home, export facilities along the East and Gulf Coasts are shipping record levels of LNG to Europe, helping our allies access the world’s most responsibly produced natural gas. Currently, more than half of American LNG exports are Europe-bound – but we can do more.

The strength of America’s shale revolution has created the ability for us to act swiftly to help our European allies while improving the global environment and our overall energy security. This is a proven fact. Consider, other strategic U.S. allies with few natural resources of their own – such as Japan and South Korea – have been top recipients of clean U.S. LNG for the past several years. Our support has helped these countries shore up their own energy security while advancing our own national security here at home.

From a policy perspective, elected officials must prioritize solutions that boost the security of our allies as well as the climate benefits inherent to domestic natural gas. This means de-bottlenecking approvals for necessary infrastructure and working collaboratively to reduce obstacles to maximizing the development and deployment of our natural gas resources. With the right level of commitment from policymakers, we’ll make certain Russia’s ability to inflict pain is short-lived.

In fact, recent polling shows nearly three-quarters of Americans – on both sides of the political spectrum –believe natural gas should be part of our country’s energy policies.

And there’s no debate that American natural gas is the world’s cleanest and most strongly regulated. As an example, the Clean Air Task Force notes that Russian natural gas has a 65 percent higher methane intensity rate compared to ours. Furthermore, Appalachia-produced natural gas has lowest methane intensity across the entire U.S.

Some question whether America has the political will to make the right policy decisions to prioritize modern energy infrastructure. We don’t need to look to Europe as an example of how short-sighted policy has negative consequences, we need only look to New England, where state politicians have banned critical pipeline infrastructure, resulting in significant economic hardship for consumers. Their policies have directly led to a growing dependence on importing foreign natural gas – including, just a few years ago, from Russia.

Pennsylvania’s clean, abundant natural gas resources cannot alone solve Europe’s energy crisis or Russia’s malicious aggression toward allies. However, our energy resources can assist the long-term needs of Americans and our allies, providing stability to global energy markets all while improving our global environment.

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Republican U.S. Senate candidate David McCormick had never thought about running for elected office. Then he saw the Biden administration’s chaotic — and deadly — withdrawal from Afghanistan last year and decided he had to do something.

“Seeing Afghanistan play out just grabbed our attention and just shook us,” said McCormick, who is married to Trump administration national security advisor Dina Powell. “My wife has done a lot of public service, too. She’s an immigrant to this country. We both lived the American Dream. And when we saw that playing out — the humiliation, the embarrassment, and the lack of accountability — it just shook me.

Dave McCormick with supporter Austin Hepburn.

“As a patriot, you ask yourself what can we do? We think this seat is so important to Pennsylvania. It’s so important to the country. As this seat goes, the country likely goes. Pennsylvania needs a strong leader in the Senate, a strong fighter in the Senate,” McCormick added.

McCormick told a group of about 50 at the VFW post in Bensalem on Saturday there are many reasons Washington, D.C. needs to change.

“There are so many aspects of the country that feel like it’s headed in the wrong direction. We have 40-year high inflation, which is the result of these socialist economic policies. And that hurts all of us, but it really hurts working families all across Pennsylvania.”

McCormick, who served as undersecretary of the Treasury for international affairs under President George W. Bush, grew up on a family farm in Bloomsburg. His dad was chancellor at Bloomsburg University and chancellor for the Pennsylvania State System of Higher Education.

McCormick graduated from West Point and spent five years in the Army, where he served in the first Gulf War. He recently stepped down from his position as CEO of the hedge fund behemoth Bridgewater Associates.

McCormick has come under fire for his hedge fund’s investments in China, including an attack ad from a Dr. Mehmet Oz SuperPAC. But he noted that only 2 percent of Bridgewater’s investments were in China.

“China is the existential challenge of our time,” said McCormick. “It poses an economic risk. It poses a national security risk. We need a whole nation strategy to deal with it. And we need to reduce our dependence on China.”

Pharmaceuticals come from China and most semiconductors are made in nearby Taiwan. The United States’ investment and trade must not support the Chinese military or the oppression of its minority Uighurs, he said.

“The risk has grown in the last 10 years under (Chinese President) Xi,” he said. “Do you really want your drugs dependent on whether China is having a good day?

Meanwhile, America needs more skilled workers and must find a way for businesses to get capital to compete with Chinese businesses that are subsidized by the state.  More emphasis on technical training would help, he said.

“As military veteran…somebody who’s run businesses, created jobs, someone who’s served at the highest levels of government negotiating with China…That’s the kind of person you need to be able to go and fight in Washington.”

McCormick also discussed inflation, education, Pennsylvania’s natural gas industry, illegal immigration, China, Russia, and Ukraine.

And “the border situation is completely unsustainable,” said McCormick, who recently visited Yuma, Ariz., to see the situation first-hand. A year ago, there were 30 illegal border crossers caught every day at Yuma, he said. Now there are 1,000. The Border Patrol agents’ union has endorsed him.

“The border guards are completely overwhelmed,” he said. “Literally, people are just walking through.”

Deaths from fentanyl brought across the border are increasing, and so are related crimes.

“You all feel it here in Philadelphia and moving into the suburbs,” said McCormick.

On education, McCormick said, “I don’t recognize the history that’s being taught to our kids today, with parents not having adequate involvement. And I don’t recognize the cancel culture where you can’t have the right conversations and disagree. It’s a disaster…The American Dream we lived is not going to be available to our kids five years from now or 10 years from now.”

An audience member asked McCormick about the crisis with Ukraine and Russia.

“The world is more dangerous now than it’s ever been,” said McCormick. “I think Biden invited that with Afghanistan. If you show weakness the bullies will take advantage of it. And that’s what happening with Russia. That’s what I think is happening in China. So we need to project strength. And our military today, I’m worried about it.”

While the U.S. spends $80 billion on defense, “there’s a whole social agenda, ‘wokeness’ that’s taken over our military (instead of its) warfighting focus.”

And China is spending its military budget on next-generation technology while the U.S. is spending “90 percent on old platforms” instead of innovation for the future.

“Ukraine is a terrible mess,” he said, and he would “look hard” at sanctions against Russia if it crosses into Ukraine.

“I don’t think we want to be part of a land war in Ukraine. And if we get too focused on that, we have to look over our shoulder, because I think China will move on Taiwan. If we go into something militarily, it has to be so decisive and conclusive it has to be beyond doubt.”

Asked about natural gas, he said, “We have all this natural gas but we don’t have ways to get it there geographically.” A lot of natural gas is being transported by trucks when pipelines are safer. And Pennsylvania natural gas is being sent by pipelines to Louisiana and Texas rather than having a distribution center or port in Philadelphia.

Dave McCormick with state Sen. Robert “Tommy” Tomlinson.

“Our natural gas is the cleanest of the natural gases,” said McCormick. “And natural gas is cleaner than many other forms of energy…Mathematically, Biden shut down Keystone (pipeline), put the clamps on American gas, which is so much cleaner than Russian gas.

“Russian gas, which is much worse environmentally, is being shipped to Europe and the rest of the world so the greenhouse gases go up, our economic benefit goes down and our security in the world goes down because now we’re dependent on outside energy. It’s a madness that is taking place,” he said.

State Sen. Robert “Tommy” Tomlinson (R-Bucks) said McCormick is “truly a proud American, truly somebody capable of moving this country forward, truly somebody who believes in this country. I’m happy that we’ve got a candidate that I could feel that good about.”

And many in the crowd seemed to agree, leaving with McCormick yard signs and hats.

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I’ve sounded the alarm over the Regional Greenhouse Gas Initiative (RGGI) in many public settings over the past several months. This undertaking, an executive fiat ordered by Gov. Tom Wolf, will impact the life and wallet of virtually every Pennsylvanian and deliver almost nothing in terms of improved air quality.

At the outset, the stated purpose of RGGI is to reduce greenhouse gases. In theory, this works through an auction that is open to power producers and industrial plants in 12 states that buy “credits” to offset the excess emissions their facilities generate. The proceeds from the auction sales are then distributed to various government programs, the majority of which have nothing to do with the environment.

The current RGGI states include Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont and Virginia. They will control the amount of credits Pennsylvania can sell at auction and, as an inevitable consequence, will dictate many decisions affecting our environment and economy.

In reality, RGGI forces Pennsylvania to undermine its own position as a top energy producer and hand over economic control to a collection of states that bear little resemblance to us. This is troubling when we consider that New England would prefer to buy natural gas from Russia rather than permit the construction of a pipeline that would connect their region to Pennsylvania’s plentiful supply.

Eight RGGI states report some of the highest electricity rates in the nation. In some RGGI states, residents pay double the rates paid by Pennsylvanians. According to a study done by PJM, the operator of the 13-state power grid which controls the flow of our electricity, RGGI will cause an 18 percent increase in rates – nine times larger than the spike the Department of Environment Protection (DEP) claims will occur through 2030.

DEP hails the projected 2 percent reduction in rates seen in other states as proof that RGGI works. This is misleading, at best, when we consider that those residents pay 50 percent to 75 percent more for electricity compared to Pennsylvanians. A 2 percent decrease when rates are nearly twice as high translates into a negligible savings – if at all – in Pennsylvania.

In 2019, the state predicted that clearing prices for the credits bought at auction would not rise above $3 per ton. RGGI’s most recent auction, completed on Dec. 1, set a clearing price of $13 per ton – more than four times the rate DEP forecasted and a 40 percent increase over the Sept. 8 auction clearing price alone. At current prices, the Wolf RGGI scheme translates to an approximately $750 million annual tax on Pennsylvania consumers.

It gets worse. According to DEP’s own modeling, 90.1 percent of the emissions reduced in Pennsylvania will be offset by increased pollution from non-RGGI states in our electric grid. A similar report by Penn State University shows that 86 percent of the electric capacity lost in Pennsylvania under RGGI will be replaced by increased coal-fired generation in neighboring non-participating states.

Make no mistake, RGGI depends on continued pollution. Without it, there would be no need for credits. With no need for credits, there is no market and thus no one would need to participate in RGGI’s auctions. So, rather than curbing environmental air pollution, RGGI depends on continuing it.

Some estimates forecast that in the first decade of RGGI, the reduction in carbon dioxide emissions will be less than 1 percent. This is despite the fact that, due to state-of-the art technology, CO2 emissions in Pennsylvania from fossil fuel generation have already been reduced by 38 percent since 2002 – more than all RGGI states combined.

A DEP presentation on July 22, 2020 indicated that great improvements had been achieved in ambient air quality in Pennsylvania. How did this great news in July become such a problem that only RGGI could fix just a few months later? The answer is politics.

RGGI targets coal-fired electric generation plants and the thousands of skilled trade jobs these facilities support. States, and even countries, with far fewer environmental controls in place than those in Pennsylvania, will absorb those jobs. Why would we close highly regulated Pennsylvania electric plants and send that generation capacity and those opportunities elsewhere?

No matter how its viewed, RGGI is not good for the environment or the economy of Pennsylvania.

RGGI supporters conveniently ignore that RGGI will leave thousands unemployed, skyrocket electricity bills for everyone – including our most vulnerable populations – and serve as an unauthorized carbon tax implemented without legislative approval. It’s just another way that the current Administration wants to bypass our government’s fundamental checks and balances to further policy goals that harm the very residents they mean to help.

In its simplest terms, RGGI fails miserably in accomplishing its only stated purpose.

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Environmental activists call it a “methane fee.” The energy industry calls it a “natural gas tax.” Either way, Pennsylvania consumers are likely to feel the effects in their pocketbooks.

The U.S. House of Representatives is expected to vote this week on its version of the budget reconciliation bill — also known as the “Build Back Better” bill — which includes increased fees on methane emissions. Methane is a byproduct of oil and natural gas production, and as a result, the fee would be an increase in the cost of production.

Environmentalists say reducing methane is essential to the fight against climate change. At the COP26 meeting in Scotland last week, the United States announced it will participate in the Global Methane Pledge to cut methane emissions 30 percent by 2030.

“Methane has more than 80 times the warming power of carbon dioxide over the first 20 years after it reaches the atmosphere,” says Environmental Defense Fund (EDF) on its website. “Even though CO₂ has a longer-lasting effect, methane sets the pace for warming in the near term.”

As National Geographic reports, “Whereas carbon dioxide persists for centuries, most methane converts to carbon dioxide or gets cycled out of the atmosphere within about a decade.”

Meanwhile, two of the world’s biggest methane emitters — China nor Russia — refused to sign the Global Methane Pledge.

And energy producers point to America’s surging costs to heat their homes this winter and the wider inflation problem as evidence this is the wrong time to add costs to consumers’ utility bills.

“This is nothing more than a tax on natural gas at a time when policymakers should be focused on solutions that support affordable, reliable energy while reducing emissions,” says API Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola.

“We must continue to drive down methane emissions without adding new burdens on American families and businesses,” added said Karen Harbert, President and CEO of the American Gas Association. “Our analysis indicates that the proposed tax could increase natural gas bills from 12 percent to 34 percent, depending on the variation of the proposal assessed.”

Sen. Joe Manchin, a Democrat representing natural-gas producing West Virginia, has been reluctant to support legislation with a tax or fee on methane. As a result, House Democrats have been trying to find ways to change the terminology and get Manchin’s blessing once the bill is approved in the House and sent to the Senate. Democrats’ have a razor-thin majority in both chambers and need the support of every Democrat in the Senate.

Winning over Manchin has not been, and will not be, easy.

“Major oil and gas companies are actively investing in, developing, and using new technologies to detect and repair leaks, which are known to be a public health risk and contribute to climate change,” Manchin said in August 2020.

Delaware Valley U.S. Reps. Madeleine Dean (D), Mary Gay Scanlon (D), and Brian Fitzpatrick (R) declined to respond to requests for comment about the upcoming Build Back Better bill vote.

Meanwhile, API’s Frank Macchiarola says methane is already being regulated.

“The direct regulation of methane by the EPA is the most impactful way to build on the downward trend of methane emission rates in key producing regions rather than a duplicative and punitive natural gas tax that would only hurt American consumers and undermine the economic recovery,” says Macchiarola.

Gordon Tomb, senior adviser to CO2 Coalition, does not see a need for the regulations.

“Methane makes up a minuscule portion of the atmosphere — less than two parts per million — and together with carbon dioxide contributes an estimated 0.012 degrees C a year — an amount too small to even measure,” says Tomb. “Regulating emissions of either gas has no basis in science and imposes an unnecessary burden on businesses and the people who buy their products.”

And, Tomb added, “When politicians are talking about regulating methane, they are usually talking about taxing methane that gets leaked to the environment during production operations, treating that methane as a pollutant,” says Tomb. “Of course, methane is put into the atmosphere from all kinds of sources, and in the scheme of things the amount in the atmosphere is quite small irrespective of where it is coming from.”

The Marcellus Shale Coalition has also warned that taxes or fees would be bad for everyone.

“Layering more taxes on strongly regulated domestic energy production increases costs for those who produce and rely on these essential resources, with low-and fixed-income families shouldering the disproportionate share of the tax hike,” the group wrote in a September letter that included the Gas & Oil Association of West Virginia and the Ohio Oil & Gas Association.

And while organizations including the Sierra Club say fossil fuel organizations do not care about the environment, Marcellus Shale Coalition begs to differ.

“Our members are fully committed to improving air quality and further reducing all emission sources, particularly methane since it is the very product we sell, through leveraging best available technologies and practices.”

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In a newly-uncovered video, President Joe Biden’s nominee to help oversee the nation’s banking system says that if small U.S. oil and gas companies went bankrupt, that would be a good thing.

It’s a suggestion that in the current climate — gasoline prices soaring and some consumers looking at 50 percent hikes in energy costs this winter – may not be such a “good thing” for getting her nomination through a 50-50 Senate.

Saule Omarova, tapped by Biden to run the Office of the Comptroller of the Currency, has been embroiled in controversy since her nomination was first announced. While she did hold a minor role in the George W. Bush Treasury Department, her economic resume is nontraditional at best.

While a student at Moscow State University (Moscow, Russia, not Moscow, Idaho) where she was a “V.I. Lenin Personal Academic Scholarship” recipient, Omarova wrote her thesis on “Karl Marx’s Economic Analysis and the Theory of Revolution in The Capital.” Now that she’s been nominated to one of the top financial positions in the administration, Republican senators like Pat Toomey, a Pennsylvania moderate, want her to release a copy as part of the vetting process.

Thus far, she has refused.

“Republicans will overwhelmingly oppose this self-described radical,” Toomey said last month. Professor Omarova “has been celebrated on the far left for promoting ideas she herself has described as radical,” including advocating for “effectively end[ing] banking as we know it.”

Now a video of Omarova addressing the Jain Family Institute’s 2021 Social Wealth Seminar in March has raised new concerns.

“Here what I’m thinking about is primarily coal industry and oil and gas industry,” said Omarova in a video clip unearthed by American Accountability Foundation (AAF). “A lot of the smaller players in that industry are going to probably go bankrupt in short order — at least, we want them to go bankrupt if we want to tackle climate change.”

Omarova went on to say that “we cannot afford” the economic fallout and job losses that would ensue if the U.S. were to bankrupt oil companies. But given her progressive politics — she’s proposed having all private bank deposits go to the federal government in order to “democratize money” — her sentiments are hard for the energy sector to ignore.

“This is ludicrous,” says Dan Weaver, president and executive director of Pennsylvania Independent Oil & Gas Association, a membership organization with businesses large and small, some of them family-owned operations. “That idea is preposterous and sickening, to say the least.”

“This is a reminder that there are opponents of oil and gas who are in high positions or seeking high positions in the Biden administration,” says Dan Kish of the Institute for Energy Research (IEA) and American Energy Alliance (AEA). “I think people see that at the pump. They’ve seen reports that they’re going to pay more this winter.”

The timing of the new revelation is problematic for Biden and his Democratic allies. The White House has taken several high-profile actions to discourage domestic fossil fuel production, even as consumers have been hit with higher gasoline prices and warnings that home heating costs this winter will soar.

The Biden administration even asked OPEC to increase production to help people dealing with high gas and heating oil prices. OPEC declined, leading critics to say the administration should rethink its steps against domestic oil and gas production.

Locally, U.S. Senate candidate Dr. Valerie Arkoosh is calling for a statewide ban on fracking, despite the billions in economic impact from the industry.

“We’ve already seen Keystone XL pipeline workers lose their jobs, we’ve seen people’s businesses and their family budgets hurt by higher gas prices and ultimately that’s the game,” says Kish. “The game is to drive energy costs to skyrocketing levels and make it very difficult for people to use a kind of energy they use in the hopes that they’ll go and use the stuff that they want to use.

“Natural gas generation is leading to a cleaner atmosphere,” added Weaver, pointing to data from EIA. “The science is there, and if we were to ‘bankrupt’ all the oil and gas companies here, where is the energy coming from? What about the thousands of products that we use every day that don’t come from anything other than those feedstocks?”

The White House continues to back the troubled nomination. “Saule Omarova is eminently qualified and was nominated for this role because of her lifetime of work on financial regulation, including in the private sector, in government, and as a leading academic in the field. The White House continues to strongly support her historic nomination,” they said in a statement to Fox News.

And while Toomey has been an outspoken opponent, Pennsylvania’s other senator, Democrat Bob Casey, has been silent.

All things considered, Kish says it does not surprise him that somebody connected to the Biden administration feels this way about oil and gas.

“What surprises me is that she mistakingly said it publicly, or at least in a way that became public,” says Kish. “I don’t think she expected it to become public.”