From Odesa to Odessa
It is hard to believe that the United States was energy independent just over one year ago, exporting energy across the globe.
Events taking place half-way around the world in places like Kyiv and Odesa, Ukraine do have an impact in communities important to us — like Odessa, TX.
As we go to print, the Russia-Ukraine conflict is still playing out on our television and computer screens. Putin has gone mad in his narcissistic invasion of his European neighbor. But our leaders, caught up in spinning a favorable narrative, fail to recognize how their politically-driven policy choices enabled his actions and a refusal to acknowledge this folly could have devastating long-term effects.
President Biden’s Day One construction shutdown of the domestic Keystone pipeline and abandonment of sanctions against Russia on the German Nord Stream 2 project have had dangerous consequences.
It is hard to believe that the United States was energy independent just over one year ago, exporting energy across the globe. Today, we import oil into the U.S. and beg OPEC to ease prices while our allies, like Germany, have attempted to achieve peace through dependence rather than strength.
The Russia-Ukraine war should scuttle for some time any debate about empowering or relying on our enemies when it comes to energy. While a balanced approach to energy sources can and should advance, it is a fact that we remain decades away from a green utopia. The world still needs Texas oil and gas.
However, the Biden Administration — and many in Washington — continue to ignore the obvious. Party politics are attempting to force an ideologically pure version of the world on communities, small businesses and banks that its proponents in D.C. know little about.
Have they visited West Texas and seen the scores of small service and supply companies that sustain the energy industry producing fuel for our economy and defense? Do they know community banks in East Texas support customers producing both clean-burning natural gas and jobs for the local economy? Do they really understand the impact of the energy industry operating in southeast Texas and offshore?
Perhaps they do, but it is difficult to forget what withdrawn Biden Comptroller nominee Saule Omarova stated about coal, oil and gas companies. She said, “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, right?”
Professor Omarova may be gone because she expressed her positions out loud. But it appears the President continues to nominate Federal banking regulators who share her objectives. Without proper authority, these regulators intend to introduce climate change policies that cannot muster the votes for passage in Congress. Another layer of regulation by the non-elected class is supplanting legislation by the people’s representatives. The banking and financial services industry has become their vehicle of choice.
Both the Texas energy and banking industries recognize the importance of a clean planet and responsible environmental policy. Texas energy producers have been leaders and innovators in this regard. But to be effective, change must be based on a collaborative and non-partisan approach rather than a punitive and ideological tack. Timelines must be realistic, taking into account the limits of emerging technologies, as well as comprehensively assessing the impact on communities and America’s economic and national security needs. Finally, federal bank regulators should leave environmental policy-making to Congress and other agencies, lest they lose focus on their principal mission of safety and soundness.
It should not take a crisis to illuminate these factors. As partners with the Texas oil and gas industry, our energy-sector community banks and TBA will continue to keep a spotlight burning brightly on the importance of common-sense energy policies and banking regulation that puts safety and soundness first.