WASHINGTON, D.C. – Today, the House Committee on Small Business Subcommittee on Rural Development, Energy, and Supply Chains is holding a hearing titled “Highlighting the Role of Small Businesses in Domestic Energy Production.”

Subcommittee Chairman Wesley Hunt’s opening statement as prepared for delivery:

The committee meets today to hear testimony about the vital role small businesses play in U.S. energy production, and why now, more than ever, we need to empower small businesses to unleash America’s energy potential.

Small businesses have a crucial, yet often overlooked, impact on the health of the U.S. economy and on U.S. national security.

According to the Small Business Administration, small businesses account for nearly two thirds of net new jobs and, in the energy sector specifically, small businesses employ approximately 800,000 workers. From oil and gas exploration to drilling, extraction, and operations, small businesses account for the majority of America’s energy firms.

Furthermore, small businesses are at the frontier of innovation, spurring the shale revolution, unlocking vast stores of domestic energy supply, and helping cut U.S. carbon emissions by 14% in just 10 years. In the oil and gas industry, small businesses are incredibly competitive and adaptable. Their adaptability enables them to innovate, focus on more marginal oil and gas reserves, and pursue revolutionary technologies that larger companies may overlook.

Small businesses in our energy sector not only drive our economy, but they also meet a critical need for American families.

Hydrocarbons account for 80% of the world’s energy supplies and oil powers 95% of all transportation of goods and people.

Elected officials can’t legislate away the need for oil and gas.

Recent behavior by the Biden administration highlights the fact that America’s need for abundant and affordable fossil fuel energy is not shrinking but growing. In the past 12 months alone, President Biden has called on oil and gas companies to “increase production and refining;” has plundered 180 million barrels from the Strategic Petroleum Reserve; and, has begged Saudi Arabia to produce more oil.

In November, the Biden Administration warned Saudi Arabia that a refusal to increase oil production would be perceived as a choice to side with Russia against American interest. When Saudi Arabia cut production, National Security Council spokesman John Kirby said the U.S. should review the relationship with Saudi Arabia in light of the OPEC+ decision, and [quote] “take a look to see if that relationship is…serving our national security interests.”

This is a far cry from the President who, immediately upon taking office, cancelled the Keystone XL Pipeline, halted oil and natural gas lease sales, and raised taxes on the fossil fuel industry.

The facts are clear, our dependence on oil and gas isn’t going anywhere.

We must do more to invest in oil and gas production even if the world sees oil demand peak within the decade.

But, given the existing U.S. regulatory environment, it is no surprise that oil and gas production is being outpaced by demand.

The United States can make the decision to either take the lead, or let China and Russia displace us in yet another sphere of influence. The United States should be the swing producer of oil and gas in the globe, not Saudi Arabia or OPEC.

If we continue to depend on countries with high geopolitical risk, we will only cede more leverage over our economic and security interests to nations who want to weaken the United States.

Conflict across the globe and the battle for strategic resources between the United States and countries like Iran, Saudi Arabia, Russia, and China makes it more critical for the United States to have control over energy production.

In fact, the recent strategic partnership struck between China and Russia is a perfect example of why we must focus on policy that unleashes American energy dominance.

In conclusion, producing energy within the United States is crucial for our economic stability and security, and small businesses play a critical role in this.

The United States must continue to be the standard bearer in the production of abundant, ethically produced, and low-emission energy.

If we empower American small businesses, we will do just that.

I want to thank you all again for being here with us today and I am looking forward to today’s conversation.

With that, I will yield to our distinguished Ranking Member from Washington, Ms. Gluesenkamp Perez.

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