During a recent House Financial Services Committee hearing on the oversight of the nation’s largest retail depository institutions, numerous members of Congress questioned top banking officials on the current state of the U.S. energy industry. When Rep. Rashida Tlaib (D-MI) questioned whether JPMorgan Chase bank would divest from fossil fuel companies, CEO Jamie Dimon responded, saying, “Absolutely not, and that would be the road to hell for America.”
In recent months, business leaders and other executives have been critical of efforts by federal policymakers in Congress and the Biden administration who want a rushed transition away from fossil fuels. In an April letter to investors, the CEO of JPMorgan Chase noted “energy costs are high not because of price gouging but because of the dramatic decline in investments in energy, which results in reduced supply when demand goes up… we also need immediate approval for additional oil leases and gas pipelines.”
The U.S. economy is still heavily reliant on fossil fuels – and will be for decades into the future. Efforts to hamstring the U.S. oil and gas sector in favor of renewables will only increase energy costs and American dependence on foreign sources of energy. Proper rules, regulations, and government policies are necessary for an effective transition and to curtail CO2 emissions without undermining energy security.
When asked, “What do you think our country’s near-term energy strategy should be?” by Rep. Bill Posey (R-FL), Dimon bluntly states, “we aren’t getting this one right.” Contrary to what many environmental advocacy groups and lawmakers in D.C. would like to believe, investment in the oil and gas complex is actually good for reducing CO2, as high global prices have led foreign nations to turn back to coal.
Business leaders are calling out the administration’s ineffective energy policies. Instead of narrowly focusing on one aspect of the sector, advocating for a mix of traditional fuel sources is a necessity now more than ever. America needs to adopt an all-of-the above energy strategy and unleash oil and gas production.