Senator Jim Perry: More energy means lower prices

Inflation and economic uncertainty are hurting small businesses and consumers, who must pay more for essential everyday goods. Energy prices are a particular sticking point, with the national average still up 32.75% from last year. Businesses are feeling the pain of increased transportation costs that translate into the price of goods, municipal transportation fleets are blowing by set fuel budgets, and everyday Americans flinch as they put gas in their tank on their way to work.

But Congress can help moderate these record high prices through policies that increase our domestic supply of oil and natural gas. Responsibly tapping our domestic energy resources and getting them into the global energy market would drive down prices and provide necessary inflation relief.

I have worked hard to advocate for District 7 and the people of North Carolina. As the urban-rural divide continues to grow, climbing energy prices threaten this already serious issue of economic inequality. Therefore, policies that drive down gas and electricity prices would help our rural communities that have struggled through several years of uncertainty and give a much-needed boost to the private sector while easing consumers’ fiscal strain.

While the U.S. has seen a 17% decline from the previous high of $5.02 a gallon set back on June 14, hurricane season, continued tensions between Russia and Ukraine, and a number of other factors could easily drive prices back up, leaving Americans across the country and North Carolina still paying the price. June’s record-breaking high threatened businesses’ bottom lines, tightened families’ budgets, and has led to an overall economic contraction.

We need Congress to take action. Lawmakers can drive down fuel prices through concrete steps that would increase our domestic supply of natural gas and oil. Opening more federal lands to leasing, supporting pipeline approvals, and fast tracking the permitting process for natural gas projects are some actionable solutions. Prices would begin to drop as our supply of energy increases.

So why are some in Washington calling for new taxes on the very companies that are critical to driving down prices? Several members of Congress have proposed a “windfall profit tax” on oil and gas companies that would target the recent “excess profits.” These bills threaten to stymie the very investment from these companies that we need to actually lower prices. Such policies are founded in misinterpretations of the energy market and would prevent the industry from taking the necessary steps to lower costs for consumers.

Levying additional taxes does not make sense if Congress is trying to make energy more affordable. Plus, the U.S. actually tried this policy back in the 80s. But it only lead to decreased domestic production and increased imports. The very scenario we want to avoid.

Furthermore, while the energy sector is highly profitable, it is an important contributor to North Carolina’s economy. Increasing taxes on this industry would threaten existing jobs and revenue supported by this industry’s robust supply chain. One study reported that in North Carolina, oil and gas employ nearly 50,000 North Carolinians and pay $2.6 billion in wages—for a total economic impact of $7.42 billion. Supporting this important sector would therefore both help drive down costs and further grow our state economy. On the other hand, increasing taxes could lead to more economic stagnation and uncertainty.

Congress has the power to provide crucial economic support to Americans through policies that allow the energy sector to continue investing in and developing domestic resources. Opening more federal lands to leasing, supporting pipelines, and streamlining permitting processes would ensure oil and gas companies could effectively serve consumers and put downward pressure on prices in the global market. By tapping into our natural resources, we can reduce costs and ease Americans’ financial burden.

State Senator Jim Perry, Majority Whip