Leading on energy

Editorial by Greensboro News-Record, December 26, 2013.

Energy is big business in the United States, but very little of it comes from our state. Gov. Pat McCrory and legislative leaders want to change that.

McCrory’s comprehensive approach sounds better than what we’ve heard from Republican legislators, which focuses primarily on fracking for natural gas. He said an “all of the above” strategy for energy development makes the most sense for North Carolina. We hope he means it.

The governor emphasized drilling for oil and natural gas in recent remarks to the N.C. Chamber: “We have got to get into the exploration business in North Carolina. We’re reeling from sitting on the sidelines for the past decade, which we should have never done.”

An oil and gas boom in the past decade has accounted for one of the few bright spots in the U.S. economy and pushed the country closer to the long-time goal of energy independence. North Carolina has been on the sidelines while energy-rich states have reaped benefits, primarily because North Carolina isn’t blessed with abundant gas and oil resources — at least not confirmed resources.

There are likely modest deposits of natural gas trapped in shale below some central North Carolina counties, and there might be significant amounts of gas and oil offshore. Testing along the Atlantic coast isn’t currently allowed by the federal government, but that could change within a few years. Meanwhile, McCrory has taken a leadership role in the Outer Continental Shelf Governors Association, which aims to support “responsible energy development” and “stronger dialogue between federal and state policy makers on offshore energy matters.”

McCrory includes wind energy in that conversation, as he should. North Carolina’s coastal wind resources are among the best in the country. At the same time, he expressed concern about the government subsidies required to develop renewable energy at competitive prices. That overlooks the extensive public commitment in terms of infrastructure, regulatory enforcement and tax credits that accompany oil and gas exploitation. Government is a partner in every kind of significant energy development.

The state and federal governments have compelling interests when it comes to oil and natural gas extraction. When it comes to offshore development, protection of coastal waters must come first. As we’ve seen in the Gulf of Mexico, offshore oil spills have disastrous consequences, immediately and longer term. On land, the practice of fracking has unlocked immense energy resources but also has produced some disturbing environmental consequences in some places.

As governor, McCrory — not the legislature, which has been driving the issue so far — should be the key leader in the state’s efforts to explore potential new energy resources. He also should be the leader most responsible for making sure energy development is safe and clean. It will not do North Carolina, or his political future, any good if he rushes the state into careless development that allows some environmental accident to make a mess of surface or underground water supplies or our coastal waters and the industries they support.

There may be more energy jobs and economic growth in the state’s future, but it is possible to pay too high a price to secure them.