Houston Mayor John Whitmire called out President Joe Biden and California Gov. Gavin Newsom over their energy policies at a Texas Oil & Gas Association Energy Summit.
Whitmire, a Democrat who served in the Texas Senate for 40 years, discussed the importance of Houston as the oil and natural gas capital of the state and country. He also encouraged other companies to follow Chevron and relocate their headquarters to Houston.
Last month, Chevron, the oil giant founded in California, announced its relocation. It’s been operating in Texas and globally for decades but joined other companies relocating their headquarters to Texas from California under Democratic Gov. Gavin Newsom.
“We learned from other people’s mistakes,” Whitmire said. “I am very proud that Chevron … wants to relocate and expand here in Houston, whether they’re refinery capacity or their corporate headquarters, it means jobs, means quality of life.
“I want people to know Houston welcomes their corporate headquarters, their refineries, it means jobs now. We got to be smart about this and we got to take care of our workers.”
TXOGA President Todd Staples highlighted how public-private partnerships have proven to facilitate opportunities for the industry, mentioning that “Houston has been welcoming. A refinery may not pick up and leave, but a refinery can choose to invest in a facility here or a facility in another state or a facility in another country.”
Whitmire responded by saying, “If you don’t believe a thing I say other than this, elections matter. Elections matter at every level. It is so unfortunate, talking about infrastructure and the refinery, I can’t believe that the Biden administration suspended any more development of liquid natural gas. Right before our eyes, Europe and other areas are begging for it. They need it for national security. We don’t want Europe on Russian gas any longer. So, the fact that the administration suspended liquid natural gas facilities is a huge mistake.”
Texas leads the U.S. in oil and natural gas production and in LNG exports, providing a lifeline to European countries previously dependent on Russian oil, The Center Square first reported.
The Biden administration implemented the ban claiming LNG exports increased domestic energy costs and methane emissions, contradicting federal data, The Center Square reported. Last month a federal judge halted the ban in a lawsuit filed by a coalition of states led by Louisiana and Texas, the Gulf states that lead the U.S. in LNG exports.
In contrast to federal policies, Texas created a $5 billion Texas Energy Fund to primarily advance natural gas development and infrastructure. On the same day as the court ruling, Texas Gov. Greg Abbott and Lt. Gov. Dan Patrick said they were prioritizing fast-tracking building more dispatchable energy, seeking to expand the program by another $10 billion.
Whitmire also discussed how important it was to work with people across the aisle. He and Staples, a Republican, worked together when they served in the Texas Senate. “People don’t understand sometimes how a good Republican and a good Democrat can really come together and solve problems. That’s the model that Todd and I developed in Austin. It still exists, if we can recognize the fact that we’re all in this together.”
He also said he was “really excited about working with the leadership in Austin. Governor Abbott is from Houston and Lt. Gov. Dan Patrick represented the senate district from Houston. They want Houston to do well. They want me to do well.”
“What’s gotten in the way,” he said, referring to the previous mayor and current county judge, is “Houston didn’t have a relationship with Austin. You can’t call people names and make the campaigns personal like our county and the previous administration did and then expect him to work with you. I’m going to also to work with my friends,” he said, referring to his former colleagues in the Senate.
TXOGA member companies’ activities in 2023 “constituted $26.3 billion in state and local tax revenue and royalties and drives the industry to continue to serve as the backbone of our state economy,” Staples said.
Houston, the 4th largest city in the U.S., is a catalyst for growth, “from energy, healthcare, and hi-tech, to finance, manufacturing, and logistics. The oil and natural gas industry is proud to be a partner to many of these other industries here in Houston in delivering cleaner, stronger and better energy solutions.”
They are doing so “in an increasingly competitive environment,” Staples said, but “Texas has thrived because, historically, we have treated business as a partner. We have been welcoming and have always been willing to work with those who are creating jobs and investing in our state.
“Some states and communities treat business as an adversary. This is to their detriment and will cripple their futures. We must celebrate jobs, investment and opportunity that allows our citizens upward advancement, a solid education, and a pathway to more successful living. Policy can promote prosperity – or it can hinder it.”
The Texas oil and natural gas industry broke multiple records in 2023 and again this year, The Center Square reported, including record production, exports, refining outcomes, crude oil supply, methane reduction, tax revenue paid and industry job growth.
If Texas were its own country, it would be the world’s third-largest producer of natural gas and the fourth-largest producer of oil. In the first half of 2022, the U.S. became the world’s largest liquid natural gas exporter, led by Texas, according to EIA data.
