Access to world markets will keep Montana energy producers growing

Last year, America produced 84 percent of the energy we consumed, the highest level since 1987. Our net energy imports (measured in terms of energy content) are at a 26-year low.

The speed with which our energy imports have been diminishing is astonishing. According to the Energy Information Administration, our net imports of energy decreased 19 percent from 2012 to 2013.

With that fast pace, America is truly on a trajectory to full energy self-sufficiency in the very near future.

Part of the decline in energy imports has been due to increased energy efficiency, but by and large the chief factor has been the fantastic growth in energy production we’ve seen in Montana, North Dakota and other parts of the country.

The magnitude of that economic impact is really quite large. Since 2009, total wages for jobs related to oil and gas extraction in Montana have increased nearly 70 percent. That’s almost four times faster than the growth in wages in the rest of Montana’s private sector.

The growth stemming from our energy boom is a primary reason that Montana escaped in relatively good shape during the recent recession. Our state didn’t face massive budget shortfalls — in fact tax revenues for government were stable, buoyed by an influx of cash from energy development.

And all indications are that Montana’s energy sector can continue to grow in coming years. We have among the largest reserves of oil and gas, and by far the largest coal reserves, of any states.

But with the United States quickly nearing full energy self-sufficiency, it’s become increasingly important that we have outlets to export a portion of our energy production.

Already, Montana and other states have been benefiting from exporting a small portion of our energy to other countries with growing demand. That trade has allowed our energy economy to continue to grow in the face of flattening domestic demand.

That’s why efforts to curtail exports could be so devastating to Montana’s economy. Right now, a campaign is underway in Washington, D.C. to undermine our nation’s ability to export liquefied natural gas (LNG).

Exporting our excess LNG makes sense. The technological advantage of fracking has resulted in huge increase in natural gas production throughout our country. At the same time, European countries are looking for new energy supplies in the aftermath of the Crimean crisis. It seems a marriage made in heaven, but in some corners of Congress, anything that benefits the energy industry is automatically bad.

Montanans need to understand the stakes for our state if LNG exports are blocked. The economic growth that has benefited us all would slow for certain, leading to the loss of jobs and higher energy prices.

But moreover, blocking LNG exports means a less secure world. The stronger our exports, the more influence America wields in the world. We’ve seen all to clearly the role that energy can play in world geopolitics, and we can help deter those events in the future if we strengthen our role as an energy supplier.

America and Montana need the economic growth that comes from energy production. And the demand for energy continues to grow in other parts of the world. We can be part of the equation to supply that demand, or we can sit on the sidelines and let some other country supply it. But we’d do so at our own risk.

Commissioner Kirk Bushman, R-Billings, represents several Eastern Montana counties on the state Public Service Commission.