The following is the opinion and analysis of the writer:
Susan Atkinson
President-elect Trump has promised to make the U.S. energy independent by increasing production of domestic fossil fuels. The strength and stability of our economy depends on abundant and cheap energy delivered to consumers and businesses. Increased domestic drilling comes with significant societal costs and unintended economic consequences.
Oil and gas development has a long history of destructive boom-and-bust cycles, which could be amplified by pressure from the new Trump administration. Dumping more domestic supplies into the global commodity market has the potential to destabilize prices for U.S. producers without helping consumers at the pump. Oil price volatility from geopolitical tensions or supply disruptions can lead to future inflation and economic instability for the U.S.
Cheap fossil fuel prices encourage over-consumption and dependence, such as using more fuel-intensive modes of transportation. They perpetuate a reliance on non-renewable resources, and delay investment in clean energy alternatives. Over time, there is less incentive for consumers to adopt energy-efficient technologies and can slow the transition to a renewable clean-energy economy. Delaying this shift to more sustainable energy could cost our economy in the long term by prolonging our reliance on fossil fuels.
On a societal level, subsidies and tax breaks for fossil fuel companies often divert funds away from public services, such as: health care, education, security, emergency services, and infrastructure. As government debt grows, more tax dollars are needed to cover the interest payments. This could reduce disposable income for individuals and families.
Increased carbon pollution comes with a high price tag. Mitigation of climate-related disasters affects our homes, our businesses and our communities. Damage from increased hurricanes, floods, wildfires, and droughts has amounted to billions of dollars every year. Federal Emergency Management Agency (FEMA) responds to all declared domestic disasters and emergencies, whether natural or man-made. As these economic impacts escalate, budget strain and public debt increase. Private insurance premiums go up in high-risk areas. Individuals may experience displacement from their homes, loss of valuable land, real estate assets, and employment decline.
When areas become uninhabitable, people migrate, raising the costs and chaos of border security and resettlement programs. The U.S. military considers climate change a “threat multiplier” as it exacerbates existing security challenges, making them more unpredictable and difficult to address. Political instability, resource scarcity, and conflicts all heighten threats to our national security. As the U.S. deficit spending rises from increased security, we all pay. There is no free lunch.
Warming temperatures lead to more volatile weather patterns, and our agricultural industry suffers. Heat waves, droughts, and shifting growing seasons threaten irrigation systems, crop yields and food production. This reduced agricultural productivity leads to higher food prices, potential shortages, and reduced exports. The financial strain disproportionally affects farmers and rural communities.
As other countries continue to transition to clean energy, The U.S. may lose out on opportunities to be a global leader in renewable energy technology exports. Nations investing heavily in renewable energy, like China, could out-compete us in the long term. While “drill, baby, drill” might deliver short-term gains in terms of energy production and some job creation, the broader long-term economic costs of increased fossil fuel extraction add up quickly. The negative effects of increased fossil-fuel reliance, infrastructure mitigation, security, lower agriculture yields, and global competitiveness suggest the U.S. economy could face a much heavier economic burden from warming temperatures than any potential short-term benefits of drilling more gas and oil.
We need legislation that reduces carbon emissions while growing the American economy. Transitioning to a cleaner future will ultimately enhance the resilience of the US economy. Anyone who says otherwise is not doing their research.
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