One of the overriding themes at both the Democratic and Republican national conventions this year has been a call for unity. Held just prior to these conventions was the U.S. Energy Information Administration (EIA) Energy Conference in Washington, DC, which led with a similar call from the event’s keynote speaker, Gregory Goff, chair, CEO and president of Tesoro Corp., when it came to the energy industry.

“Increasingly, the views of our industry are being polarized along political or partisan lines and the facts are just flung aside. It’s counter-productive to society as a whole,” he said while stressing that government officials need to take a more measured approach to the complex issue of climate change.

Specifically, Goff said federal agencies need to cease picking trying to pick winners and losers in power generation and transportation through executive fiat. “The all-out war on fossil fuels by this administration over the last eight years has reached tsunami proportions in terms of new regulations being proposed,” he said.

Rather than be held by federal regulations and legislation, Goff said the industry should be recognized for its positive contributions to modern society. He noted that the United Nations has stated that access to energy has positive, tangible benefits to mankind by allowing people to build, as well as heat and cool, sturdy homes; purify water; manufacture life-saving drugs and tools; and provide transportation fuels to move goods around the world.

“The lack of access to electricity and modern energy sources profoundly limit economic development, constrain peoples’ lives and trap millions in extreme poverty. Access to electricity, which is overwhelmingly supplied from fossil fuels, is a good proxy to access to energy,” Goff said.

Many of the federal government’s energy regulations have seemingly supported the advancement of renewable energy sources at the expense of oil and gas, according to Goff. Further, this push to renewables is being done based overwhelmingly on ideological principles without consideration of other factors.

“No one has an objection to pursuing advancements in [renewables], but they must be done in a way that balances the science, economic and societal impact. People everywhere have an inherent right, regardless of where they live, to better the lives of themselves and their children,” he said.

According to Goff, the arguments for renewables over hydrocarbons, specifically oil and gas, ignore the technological advancements by the oil and gas industry that is helping to greatly mitigate the harmful impact the industry has on the environment. It also ignores the fact that oil and gas are expected to remain the dominant fuel source in the years and decades ahead.

“Fossil fuels will continue to serve as the bedrock to our future energy needs. EIA data shows that renewable energy will meet just over 10% of growing global energy demand,” he said.

Fossil fuels will remain dominant in large part because of their economic advantages over renewable fuels. Rather than make policies that support one energy source over another, Goff said that decisions over energy sources should be made based on the marketplace.

“Our free market system has proven to be the most successful in the history of mankind. Free markets have led to four primary and critical changes in energy: increased oil and gas production; innovations that have improved operational efficiencies, productivity and safety; the ability to manufacture even cleaner transportation fuels; and, the continued creation of meaningful well-paying jobs,” he said.

These important changes will continue as long as the regulatory framework remains reasoned, balanced and effective, Goff said while stressing that regulations unto themselves were not inherently bad.

“There is a role for appropriate regulation. Over-regulation or poorly conceived regulations that needlessly thwart free market dynamics are bad. Striking the balance is challenging and, unfortunately, one that our government seems to get increasingly wrong,” he said.

To ensure appropriate and measured regulations, Goff said that government officials should base their decisions on transparency, fairness and accountability. Some examples he cited that would abide by these principles were avoiding potential conflict of interests by not seeking scientific advice from scientists paid for their work by the agencies; making data used to calculate the expected benefits of regulations available to the public; and ensuring that regulations of enormous and significant economic impact be subject to review and approval by Congress.

“America is blessed with abundant, affordable, reliable energy that must not be squandered. Allowing the forces of the free market to operate will continue to benefit society. Government should be a facilitating partner for this positive economic force, not a roadblock to it. America is also home to an increasingly high-tech, innovative and efficient energy industry. Combined, the dynamics provide the catalyst for economic growth, national security and the betterment of life for all Americans. The American refining industry stands for the proposition that there are no limits to human imagination and creativity, problem solving, or the thoughtful management of resources in order to improve lives,” he said.

Frank Nieto can be reached at fnieto@hartenergy.com.