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28 energy leaders call for eliminating ALL energy subsidies—even ones they benefit from

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Energy Talking Points by Alex Epstein

Alex Epstein

This is the kind of integrity we need from industry—and from Congress.

Dear Chairman Smith and Chairman Crapo:

We, the undersigned American energy producers and investors, write to voice our principled support for full repeal of the Inflation Reduction Act’s (IRA) energy subsidies, including subsidies that would appear to be to our firms’ and industry’s benefit. This is the only moral and practical path forward if we are to truly unleash American energy.

In recent weeks, Congress has been embroiled in battles over which, if any, of the IRA energy subsidies to cut. Lobbyists representing every corner of the energy landscape, including trade groups that many of us are part of, are jockeying to preserve their own piece of the pie, claiming that it is uniquely valuable.

We have oil lobbyists fighting to keep carbon capture and hydrogen subsidies, solar and wind lobbyists fighting to keep solar and wind subsidies, biofuel lobbyists fighting to keep biofuel subsidies, and EV lobbyists fighting to keep EV subsidies.

If this continues, we will likely preserve most if not all of the subsidies, which, deep down, everyone knows are not good for America.

The fundamental truth about subsidies is very simple. For any product, including energy, a subsidy is just a way of taking money from more efficient producers—and from taxpayers—and giving it to less efficient producers. The result is always less efficient production and therefore higher costs or lower quality for Americans.

The most egregious example of subsidies’ destructiveness is the IRA’s solar and wind subsidies, which pay electric utilities to invest much more money in solar and wind than they otherwise would, and thus much less in coal and gas than they otherwise would. Ultimately this means higher electricity prices and certainly less electricity reliability for Americans.

The IRA subsidies’ devastating harm to American energy is more than enough to compel us, as energy producers, to oppose them.

But their harm goes far beyond energy, as they will dramatically increase our debt and ultimately undermine every aspect of our economy.

A central Congressional priority is to curb the national debt during the upcoming budget reconciliation exercise. But according to credible estimates, the IRA will cost over $1 trillion over the next decade and trillions more after that. Worse, the IRA subsidies are expected to misallocate, into uncompetitive business and jobs, $3 trillion of investment by 2032 and $11 trillion by 2050. That’s a disaster for our economy, and for real job opportunities.

Clearly, the right thing to do is to eliminate all these subsidies. When lobbyists say that these subsidies are essential for America, what they’re really saying is that their backers have made investments in projects that have no near term cost-effectiveness and that are totally dependent on indefinite subsidies to sustain themselves.

Most people know the truth, but are afraid to say it due to institutional pressures. Too many Congressmen are afraid of alienating trade groups. Too many trade groups are afraid of alienating their large and vocal members who have made investments hoping for indefinite subsidies. All the while, too few are talking about freedom.

That’s why we invite our colleagues to do the right thing: level with the American people, say that we made a mistake, and that those who built subsidy-dependent businesses took on the kind of risk that we do not want to reward.

Keeping the IRA subsidies—despite all the evidence that they benefit only special interests at the expense of America—risks making our nation ever more like Europe, where industries do not succeed by providing the best value to consumers, but by providing the best favors to politicians. That’s not the America we want to work in.

Sincerely,

Bud Brigham, Founder, Atlas Energy Services and Brigham Exploration

David Albin, Managing Partner, Spectra Holdings

Adam Anderson, CEO, Innovex International

Thurmon Andress, Chairman and CEO, Andress Oil

Don Bennett, Managing Partner, Bennett Ventures LP

Greg Bird, CEO and President, Jetta Operating Company

David de Roode, Partner, Lockton

Andy Eidson, CEO, Alpha Metallurgical Resources

Matt Gallagher, President and CEO, Greenlake Energy

Mike Howard, CEO, Howard Energy

Justin Thompson, CEO, Iron Senergy

Ed Kovalik, CEO, Prairie Operating Company

Thomas E. Knauff, Executive Chairman, EDP

Lance Langford, CEO, Langford Energy Partners

Mickey McKee, CEO, Kodiak Gas Services

Mike O’Shaughnessy, CEO, Lario Oil and Gas Company

D. Martin Phillips, Founder, EnCap Investments LP

Karl Pfluger, midstream executive

David Rees-Jones, President, Chief Energy

Rob Roosa, CEO, Brigham Royalties

Bobby Shackouls, Former CEO, Burlington Resources

Ross Stevens, Founder and CEO, Stone Ridge Holdings Group

Kyle Stallings, CEO, Desert Royalty Company

Justin Thompson, CEO, Iron Senergy

Mike Wallace, Partner, Wallace Family Partnership

Ladd Wilks, CEO, ProFrac

Denzil West, CEO, Admiral Permian Operating

Bill Zartler, Founder and CEO, Solaris Oilfield Infrastructure

Additional signatories (email [email protected] to add yours):

Jimmy Brock, Executive Chairman, Core Natural Resources

Ted Williams, President and CEO, Rockport Energy Solutions LLC


To make sure as many politicians as possible see this letter, help us by sharing on Twitter/X and tagging your Congressmen! Congress is currently undecided about what to do about the IRA subsidies, so now is the moment to make your voice heard.

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Automotive

Trump announces 25% tariff on foreign automobiles as reciprocal tariffs loom

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From The Center Square

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President Donald Trump announced a permanent 25% tariff on automobiles made in other countries that will go into effect on April 2.

Trump made the announcement Wednesday in the Oval Office. He also hinted that the reciprocal tariffs he plans to announce on April 2 could be more lenient, suggesting the tariffs would be less than fully reciprocal.

“What we’re going to be doing is a 25% tariff on all cars not made in the U.S.,” the president said.

Asked if any changes could avert the auto tariffs, Trump said they would be “permanent.”

“This will continue to spur growth like you haven’t seen before,” Trump said.

Trump said the tariffs will be good news for auto companies that already build products in the U.S. He also said carmakers that don’t build in the U.S. are looking to do so.

“We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry,” Trump said.

The White House said it expects the auto tariffs on cars and light-duty trucks will generate up to $100 billion in federal revenue. Trump said eventually he hopes to bring in $600 billion to $1 trillion in tariff revenue in the next year or two.

Trump also said the tariffs would lead to a manufacturing boom in the U.S., with auto companies building new plants, expanding existing plants and adding jobs.

Trump also urged House Speaker Mike Johnson to approve a measure that would allow car buyers to deduct the interest on loans for cars that are made in America. Trump said that such a plan would make cars nearly free for buyers.

“So when you get a loan to buy a car … I think it’s going to pay for itself, I don’t think there’s any cost,” he said.

Trump also said the reciprocal tariffs he plans to unveil on April 2 would be fair.

“We’re going to be very nice actually,” he said. “It’ll be, in many cases, less than the tariff they’ve been charging us for decades.”

European Commission President Ursula von der Leyen said tariffs would hurt businesses and consumers.

“I deeply regret the U.S. decision to impose tariffs on European automotive exports,” she said. “Tariffs are taxes – bad for businesses, worse for consumers, in the U.S. and the EU.”

Business groups, including the U.S. Chamber of Commerce and American Farm Bureau Federation, have urged Trump to back off tariff threats.

Trump has promised that his tariffs would shift the tax burden away from Americans and onto foreign countries, but tariffs are generally paid by the people who import the products. Those importers then have a choice: absorb the loss or pass it on to consumers through higher prices. He also promised tariffs would make America “rich as hell.” Trump has also used tariffs as a negotiating tactic to tighten border security.

Tariffs are taxes charged on imported products. The company importing the products pays the tariffs and can either try to absorb the loss or pass the additional costs on to consumers.

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While “Team Canada” attacks Trump for election points, Premier Danielle Smith advocates for future trade relations

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“Today, I addressed the Legislative Assembly and spoke to the actions that the Government of Alberta has taken and will continue to take to advocate for Alberta and Canada’s interests in the U.S. as we continue to face the threat and imposition of tariffs.”

Mr. Speaker,

When U.S. President Donald Trump first announced his threatened tariffs against Canada, and began musing about our country becoming the 51st state, many Canadians – and Albertans – feared for their futures.

Why? Because, regardless of our political stripe, we all knew the imposition of 25% tariffs on all Canadian goods to the U.S. would cost the jobs of hundreds of thousands of Canadians, would depress our economy, devastate our budget and damage the sovereignty of our country.

And in the roughly 4 months until just before last weekend’s federal election call, Premiers, party leaders and Canadians were united (other than perhaps the Alberta NDP) in working as hard as we could to convince the U.S. President and Congress to reconsider these unjustified actions against our country.

In fact, Premiers were all encouraged by each other as well as the former Prime Minister and his ministers, to visit the U.S., get on U.S. media, speak with every U.S. official and influencer we could find to convince the U.S. President to refrain from imposing these tariffs.

It was all about working as ‘Team Canada’ for the greater good.

Enter Liberal Prime Minister Mark Carney.

Now, all of a sudden, it is treason to talk to American media personalities that we disagree with. It is disloyal to try and persuade high-profile Republicans holding influence with the President to abandon his tariff policies on Canada. Indeed, it is a high crime to try and convince U.S. officials to refrain from imposing tariffs until after our country has an elected leader with a strong mandate.

Shame on all who dare to speak with the enemy, they say!

These are the Team Carney and Nenshi NDP talking points.

Their endgame is quite obvious. Frighten and divide Canadians. Try and make Canadians forget the utter incompetence of Liberal and NDP policies inflicted upon this country over the last 10 years. Associate conservatives with President Trump. And if they play their cards just right – and sprinkle in just enough anti-Alberta rhetoric – presto – Canada can elect another Liberal majority government.

Well – the Carney Liberals and Nenshi NDP are right about one thing…our country is indeed vulnerable right now.

And the reason why is as clear as a sunny Alberta day.

It is because for the last 10 years, Liberal and NDP leaders across this country – both federal and provincial – have repeatedly sold out Canada and Alberta with policies that have landlocked our immense natural resources, made nation building projects impossible to finance and build, and have made securing access to our ports an exercise in frustration and futility.

These Liberal and NDP leaders – from Trudeau to Singh and now to Prime Minister Mark Carney – have done everything in their power to sow investment uncertainty, add impossibly high costs on the development of our resources, and have disastrously weakened our security and military – and all in the name of their green extremist religion and its cult leaders named Guilbeault, Suzuki, Gore and Thunberg.

And the results are obvious – Canadians are poorer than Americans – overly-dependent on the Americans – and vulnerable to many nations including the Americans.

Canada has indeed been sold out – big time – and it’s been sold out by the utter incompetent, self-righteous and extreme policies of Liberal and NDP leadership across this country – including the Nenshi NDP here in Alberta. From C-69, to oil and gas production caps to tanker bans to a dozen other examples – the Liberals and their allies have attacked the Alberta and Saskatchewan economies mercilessly.

But despite all that – despite the 10 year attack on Alberta by our own federal government – when tariffs were threatened on our fellow Canadians and the federal Liberals realized they had no contacts or allies anywhere in the new U.S. administration…what did the Alberta Government do?

Did we cower in the corner madly texting our tweets about hating Donald Trump on X?

Did we turn into part time TikTok rage farmers to stir up as much fear and loathing of Americans as humanly possible?

Did we give up, throw our hands in the air, express righteous indignation – but do nothing to fight against the threat posed against our province and country?

No – that’s what the Nenshi NDP did of course – but we, Alberta’s UCP government, did not.

Instead, our government did exactly what Albertans expected us to do – we decided to fight tooth and nail for Albertan and Canadian jobs and sovereignty.

My ministers, officials and I have spent hundreds of hours over the last several months talking with, lobbying, educating, and persuading every U.S. lawmaker and media influencer that was willing to listen, about how damaging and wrongheaded imposing tariffs on Canada would be for Americans, and the millions of American jobs that would be lost because of them.

I’ve made this case repeatedly to the American people and their leaders – especially Republican leaders – from the President of the United States personally, to members of his Cabinet to Senators to governors to members of congress to podcasters to media personalities.

I’ve lost track of how many nights I have spent in uncomfortable hotel beds and in airports – doing everything humanly possible to stand up for Canadian and Alberta workers and families.

Convincing U.S. Officials to refrain from putting tariffs on any Canadian goods. Asking that they respect the current free trade agreement and not begin renegotiations until Canadians elect a new Prime Minister with a strong mandate.

Doing all we could in Alberta to secure the U.S. border and urging the Liberals to do the same across the country so we could further delay the implementation of tariffs.

And it hasn’t just been Alberta – several other Premiers – particularly conservative Premiers – from Premier Scott Moe to Premier Tim Houston to Premier Doug Ford – have been doing the same thing.

And the results – it has been almost 4 months since the President first threatened tariffs on Canada, and although steel and aluminum are being wrongfully tariffed at this time – the tariffs on remaining Canadian goods sit at zero today – rather than the threatened 25%.

And what has the Nenshi NDP done to contribute to this effort? Not a single thing other than raging against this government for every effort made to protect Albertans.

Needless to say, there is not a doubt in my mind that had the Nenshi NDP been in charge during this period, we would likely have long ago been hit with across the board 25% tariffs and lost thousands of Alberta jobs already.

Because the NDP have no idea what diplomacy is as they don’t know how to talk constructively and effectively with anyone they disagree with.

Glad we never need to find out.

Our government’s advocacy has made a massive difference for Albertans and Canadians.

That’s a fact.

But now, we have another tariff deadline looming on April 2nd – and I am off to the U.S. yet again to try and speak to Americans this time through the 2nd largest podcaster in the world whose audience is made up of exactly the people we need to persuade to convince their president to change course on tariffs against Canada.

And what does Team Carney want me to do?

They want me to abandon my post, remain in Alberta and do absolutely nothing to defend our province.

They want me to cower in the face of eastern media pundits and politicians who favour political grandstanding to effective diplomacy.

I’m fiercely criticized for going into the lion’s den to change the hearts and minds of the very Americans we need on Canada’s side to avoid a trade war with the most powerful economy on Earth.

They want this lady and Alberta to just sit down and shut up.

Well…here is my response to that.

I will not be silent. Alberta will not be silent.

We will not be pushed around and called traitors for merely having the courage to actually do something about our nation’s and province’s predicament other than merely indulging in self-righteous tantrums.

And I for one will never be silenced by the party in Ottawa that has sold out our beloved province for the last 10 years with the help of their NDP collaborators.

I have and will always put Albertans first.

And until this danger to Alberta and our economy is past, they’re going to have to roll me off in a stretcher before I stop fighting for this province and our people.

So call me and my caucus whatever name in the dictionary you want.

As long as Albertans know we’re fighting for them and their families – we could care less what the members opposite or Liberal politicians in Ottawa have to say about us.

Because Albertans expect their Premier and government to always put Albertans first and to lead them through this storm with fearless determination.

As Winston Churchill once said: “Fear is a reaction. Courage is a decision.”

We on this side of the house have made the decision to act with courage…So that Alberta may remain forever strong and free.

Thank-you, Mr. Speaker.

Danielle Smith

Danielle Smith was sworn in as Premier of Alberta and Minister of Intergovernmental Relations on October 11, 2022.

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