COLUMBUS, Ohio — As the pandemic keeps oil supply high and demand low, the U.S. continues its reign of energy independence for the first time since the 1950s. However, new actions by President Joe Biden have some in the industry concerned.

What You Need To Know

  • Experts do agree the industry's future is largely dependent upon how the pandemic pans out

  • Even without the Keystone pipeline, the US relies on Canada for more than half of its imported oil

  • Two bills by Republican Conference Chair Liz Cheney look to block President Joe Biden's actions

“We are facing some really strong headwinds from the new administration out of Washington. We fear that there's going to be additional things that are going to come down the pike that are not going to be pro-industry. And as much as we advocate and make the case that natural gas is clean, and abundant and reliable, that message may not resonate in Washington,” said Mike Chadsey of the Ohio Oil and Gas Association.

On his first day in office, Biden signed an executive order that included revoking a permit for the Keystone XL pipeline.

The pipeline delivers as much as 800,000 barrels of oil a day from Alberta, Canada to refineries along the Texas Gulf Coast. 

Even without the Keystone pipeline, the U.S. relies on Canada for more than half of its imported oil.

Here in Ohio, Chadsey said 200,000 people work in the state's oil and gas industry and in the last 10 years, $86 billion in private funds has been invested in our state to help in drilling, leasing, pipeline and fracking. 

The Buckeye State currently ranks 5th in the nation in oil production with 60,000 active oil and gas wells according to the U.S. Energy Information Administration.

Dr. Brent Sohngen is a Professor of Environmental and Resource Economics at Ohio State University. He said stopping the Keystone pipeline is not expected to reduce current oil output below what we need, and that the U.S. will maintain its independence. 

“They XL Keystone pipeline is really a long time proposition aimed at a world there's really high oil prices. It seems like there's a lot of oil that's a lot lower cost in other parts of the world. Off the coast of Guyana, in the Gulf of Mexico, which is a lot lower cost than that, and a lot closer to those same refineries in Houston,” said Sohngen. 

The oil and gas industry is also concerned about another of Biden's executive orders, one that sets a moratorium on leasing federal land. Chadsey said that will restrict energy development, increase prices, impact low income families and may lead to layoffs.

“And there's certainty talk about, oh well folks can just go and find another job. That sounds good but that may not be a reality. Particularly when you have generational folks who are in t his business for years and years and this is really what their passion is. This is what these communities rely on,” said Chadsey. 

Sohngen said he does expect energy costs to increase to a degree as we recover from the pandemic.

He doesn’t anticipate gas prices getting higher than $3 a gallon by summer. 

And as for potential job cuts in the industry, he says it could be possible, but that other infrastructure jobs could open up elsewhere. 

“Ohio, where we have big plans for a large new expansion of solar power, there's only so far that natural gas prices can go up in a sense, given that we're starting to see a lot more renewable energy come on to the grid. If the pandemic can be gotten under control, there's not a lot between us and a solid economic recovery, that would find those people with excellent employment,” said Sohngen.