In 2006, former President George W. Bush, coming from a Texas oil background, caught many off guard by announcing that “America is America.” He labeled the issue an “oil poisoning.” Up until that point, Bush had been promoting oil production—a sentiment often highlighted in iconic images of him with Saudi leaders.
Then, unexpectedly, Bush stated, “By applying American talent and technology, this country can dramatically improve our environment, move beyond the oil-based economy, and make our Middle Eastern dependence on oil a thing of the past.” This bold declaration startled many in Washington, with some interpreting it as a moment of apparent confusion on his part.
Despite those encouraging words, the U.S. continued its reliance on oil. Today, America stands as the world’s largest oil and gas producer, while energy policies from both Democratic and Republican presidents have leaned heavily on an “all of the above” approach, asserting the need for a variety of energy resources.
Yet, no president has aggressively pushed fossil fuels like Donald Trump. His energy policy overlooks the serious implications of this addiction, from health problems like lung cancer to severe weather events. The future likely hinges on shifting from “all above” to “the best above.”
Many promising energy alternatives are already more affordable than fossil fuels and align with current market demands. Indigenously sourced energy could lead us toward a sustainable future, primarily based on electricity from renewable sources, something that can often be deployed much faster than traditional energy systems. Even when fossil fuel biases exist in the market, renewable energy frequently emerges as the cheaper option.
However, the U.S. fossil fuel dependency is marked by inertia and heavy investments from the oil industry to maintain its position. This has led to a market that largely overlooks the real costs tied to carbon-based fuels, costs that consumers rarely see on the surface.
Take gasoline prices, for instance; they don’t encapsulate the health effects of air pollution or the financial toll from climate-related disasters. A few years ago, assessments suggested that once carbon emissions are considered, the true price of gasoline could be around $15 per gallon.
Moreover, a typical driver contributes significantly to emissions annually; addressing this pollution would require reforesting areas equivalent to the size of several states combined.
The World Economic Forum highlights that fossil fuel-related air pollution can impose a staggering $820 billion price tag each year in the U.S., which results in medical costs that could average $2,500 per person. Despite progress on air quality since the 1970 Clean Air Act, almost half of Americans still reside in regions where pollution endangers health.
In March, the Fractracker Alliance examined ways the U.S. government supports fossil fuels, revealing that subsidies amount to about $760 billion each year when you factor in externalities and tax breaks.
The International Monetary Fund reported total fossil fuel subsidies hitting $7 trillion in 2022, with over half attributed to problems like global warming and local air pollution. In the U.S. alone, these subsidies amount to around $757 billion annually—roughly $2,243 for every individual.
Fractracker criticized these policies for distorting energy markets and impeding renewable energy growth, leading to severe financial burdens on taxpayers.
The ongoing issues associated with climate change are causing the expenses attached to fossil energy to climb rapidly. Over the last 45 years, the annual average of severe weather events has increased significantly. Currently, around 40 states are grappling with more than ten major weather incidents, putting three out of four Americans at risk from flooding, hurricanes, rising sea levels, or wildfires.
The previous Obama administration tried to clarify energy costs by introducing the concept of the social cost of carbon, with the aim of making these figures mandatory for assessing government policies. However, Trump’s administration has largely ignored these considerations, minimizing the urgency for transitioning to renewable energy and even claiming a “fake energy emergency.”
While the consequences of Trump’s policies have been harmful, they aren’t beyond repair. The staggering emissions from the fossil fuel industry are a significant issue, with around 5 billion tons of carbon dioxide released each year. However, the long-term impact of these actions will linger for generations.
