This is a Republican primary race. Do you promise, if elected, to abide by the RPT platform? And if not, please enumerate what problems you have.
Yes. In fact, when I was the Chairman of the Platform Committee at the Republican State Convention in 2010, I was the first Chairman to suggest and implement putting in place accountability to ensure our Republican elected officials support the platform.
What differentiates you from your opponents?
Experience is the biggest difference. I have served on the Railroad Commission for almost five years and have stabilized staffing levels for the first time in a decade - leading to reduced permitting times and streamlined inspections.
When COVID-19 sunk oil prices, there were many advocating for the Railroad Commission to impose state-mandated caps on production. Instead, I created a private sector task force to identify regulatory relief as an alternative to one-size- fits-all mandates from the state. As a result of implementing these suggestions and sticking to conservative, free market principles, WTI Crude went from an all-time low of (negative) -$37 a barrel (4/20/20) to stabilizing at $32 a barrel within a month.
Perhaps the biggest difference is my dedication to fighting back against the subsidization of unreliable energy. Since being elected I have written countless editorials and letters to legislators, congressmen, and other statewide elected officials in an effort to eliminate the preferential treatment of wind and solar. As the Official Representative to the Interstate Oil and Gas Compact Commission, I have led this effort nationally with other state regulators as well.
In your opinion, what happened w/the energy grid failure in February of 2021 and what steps has the TRRC taken to alleviate/mitigate this from happening again?
An obsessive focus on reaching the unattainable goal of carbon-zero caused decades of poor policy decisions that prioritized and subsidized unreliable energy sources (wind and solar) at the expense of reliable sources (natural gas, coal, and nuclear) — something Texans now know is essential to our everyday lives.
On the one hand, climate alarmists say that wind and solar can replace natural gas and coal to meet our energy needs while reducing carbon emissions. But, on the other hand, when unreliable forms of energy fail they claim they are not to blame because, “wind power was expected to make up a faction of what the state planned for during the winter.” So, which is it?
Resources that could have otherwise been spent adding reliable generation from natural gas, nuclear, or clean coal to keep up with increasing demand for electricity were instead spent on building out transmission lines for unreliable, intermittent forms of energy that were "never expected" to perform during times like these.
We must ensure our oil and gas assets are prepared for emergencies, but we must also ensure we are prioritizing energy generation from reliable sources. The left has tried to blame natural gas as the primary culprit of the storm, but the data shows this just isn't true. In 2020, natural gas represented 46 percent of the electricity on the ERCOT-managed electric grid while wind represented 23 percent. During Winter Storm Uri, natural gas generated 67 percent, while wind generated less than 6 percent.
The issue isn't the existence of wind and solar energy, but that it has displaced reliable generation not through natural market forces but through punitive regulatory policies and massive subsidies.
Natural gas power plants are penalized if they fail to generate the power they promised to. Wind and solar, however, are not similarly penalized. Wind and solar can sell their power at negative prices and still make a profit because of generous tax credits from the government. When looking at federal taxpayer subsidies per unit of electricity generated between 2010 and 2019, oil and natural gas received 39 cents for every $82.46 solar received and every $18.86 wind received. All this gives wind and solar energy producers a massive economic advantage, allowing them to make money whether they are successful or not.
Unfortunately, we have not gotten our money's worth. While many celebrate the seemingly impressive 30 gigawatt “capacity” of Texas’ wind turbines and solar panels, that capacity has always been an illusion. In the lead-up to the storm, before any wind turbines froze, solar and wind generation fell from meeting over 50% to under 5% of demand—solely due to their inherent unreliability.
We have propped up unreliables at the expense of ensuring reliable capacity that is providing electricity on demand. In 2009, “coal-fired plants generated nearly 37 percent of the state’s electricity while wind provided about 6 percent. Since then, three Texas coal-fired plants have closed… In the same period, our energy consumption rose by 20 percent.” (Texas Comptroller)
Unfortunately, it does not seem as though future planned generating unit additions prioritize reliability either. According to the U.S. Energy Information Administration, Texas’ planned additions as of December 2020 include 11.6 GW of solar, 8.4 GW of wind, 5 GW of gas, and no new nuclear or coal.
I have been one of few vocal voices speaking the truth on this. The Houston Chronicle has even demanded my resignation over it. It’s not politically popular—but it’s the truth. That is why I have sent letter to every lawmaker multiple times and created a website: ReliableGridNow.com to encourage our state and federal lawmakers to eliminate subsidies and penalties for specific kinds of energy.
How did the closing of the Keystone XL pipeline affect the Texas Oil and Gas economy? What can the RRC do to minimize those effects?
The Keystone XL pipeline would have sent heavy crude oil from Canada to refineries in the United States along the Texas-Louisiana Gulf Coast. This would have provided another source of heavy crude oil for U.S. Gulf Coast refineries that is comparatively more stable than sources of heavy crude oil in South America and the Middle East. The heavy crude from Canada vis-a-vis the Keystone XL pipeline would have been made into products like gas and sold as a commodity in the U.S. and abroad, potentially worth thousands of jobs and billions to our economy.
On day one, President Biden canceled the Keystone XL Pipeline making thousands of American workers unemployed during the pandemic and ensured that our country would be more dependent on foreign oil. Instead of supporting domestic producers of oil and gas, Biden has repeatedly asked OPEC to increase production from dirtier producers in Russia and the Middle East and even tapped our emergency reserves.
There is not a ton our agency can do to ensure we complete the unfinished portion of the Keystone Pipeline, since it is outside of Texas. However, I have personally authored multiple editorials, written letters to the administration and congress, and authored a resolution at the Interstate Oil and Gas Compact Commission stating oil producing states oppose this type of federal overreach.
One of the issues noted w/the Feb. 2021 freeze was that much of the oil & gas equipment was not winterized properly. Was that the case, who's to blame and what's the solution?
During the winter storm, the electric grid was short around 50,000 megawatts. A megawatt powers 200 homes during peak demand. An Electric Reliability Council of Texas (ERCOT) report found that “limited fuel supply issues” of natural gas were responsible for roughly 6,000 megawatts of load shed (electricity shortage). A recent Federal Energy Regulatory Commission states that roughly 3,500 megawatts were due to failure to weatherize oil and gas production facilities, such as natural gas wells. This means about 7 percent of the electricity shortage was caused by the failure of the oil and gas industry to properly “weatherize” in advance of extreme winter storms.
Last week, the Railroad Commission implemented the first part of Senate Bill 3 by adopting a “critical designation” rule that designates certain natural gas facilities as critical to supplying natural gas during energy emergencies. Any facility that is designated critical must weatherize so they are prepared to operate during an energy emergency.
The media has been claiming that natural gas producers can obtain a weatherization exemption for a mere $150. This is a lie. The $150 is an application fee that was set by state law in 2001 for all companies applying for an exception to any Railroad Commission rule. The RRC cannot legally raise or lower the amount by rule.
It’s an application fee, not a “get out of jail free” card. No company will automatically receive an exemption. Furthermore, any pipeline, storage facility, processing plant, or high production gas well will not be eligible for an exemption. The Commission estimates at least 19,000 facilities producing 23 billion cubic feet per day of natural gas – more than 80 percent of the state’s daily production – will not be eligible for an exemption and therefore must be prepared to operate during an energy emergency.
Please discuss your views on the concept of "sustainability" and the energy resources needed by this nation.
When it comes to "sustainability," I hold a different view from the left when it comes to oil and gas. I believe we should be good stewards of the natural resources we are blessed with, but that they are here for our benefit to use.
Despite mainstream reporting, you don’t have to choose between using cheap, plentiful and reliable fuel and maintaining a healthy environment. They are not mutually exclusive, especially when you factor in human ingenuity and technological advancements. Take the issue of flaring natural gas for example. Under current leadership, Texas has gradually reduced waste and flaring of natural gas from 2.38% in January 2019 to 0.21% this Fall.
Please describe how the Railroad Commission has influenced legislation in the past 2 legislative sessions and how you would envision the RRC influencing the 88th session.
I communicate with the legislature regularly, sending out bi-monthly updates to legislators and their staff with new statistics, information, articles, and regulatory changes they should be aware of. My first session, I helped successfully navigate the agency through the sunset process after it failed to do so in 2011 and 2015. The left repeatedly attempted to amend anti-oil and -gas initiatives that we were able to successfully defeat and get a clean sunset bill through the process.
How would you balance the use of existing energy sources with the development of alternate energy sources in Texas?
Eliminate all subsidies and penalties designed to prop up specific forms of energy and let the free market decide.
How would you describe the safety record for Texas pipelines? Is the public safe?
Pipelines are the safest, most reliable and efficient way of transporting large quantities of natural gas, crude oil, and refined petroleum products. For every 50 miles of 20-inch pipeline there are 1,650 fewer trucks on our roads.
Who is endorsing you and what is their relationship to you?
I am endorsed by conservative leaders including Tim Lambert (Texas Home School Coalition), Cathie Adams (First Vice Chair - Eagle Forum), Jonathan Saenz (Texas Values), David Barton (Wallbuilders) and organizations like Texas Right to Life. I have also been endorsed by key industry groups like the Texas Alliance of Energy Producers and the Texas Oil and Gas Association, representing both large and small producers.
To what extent are you in favor of subsidies for alternative energy?
Completely against.