Biden considers shutting down another pipeline as energy costs soar
Neal Crabtree and Lynn Allen, who used to work on the Keystone XL pipeline, react to the possibility of another pipeline shutdown and explain why this will only continue to be bad for jobs, prices, and accessibility.
President Biden's nominee to lead a branch of the Treasury Department, Saule Omarova, said in a recently resurfaced video that she supports the idea of energy industries going "bankrupt" to combat climate change.
The Cornell University law professor, who has been nominated to lead the Office of the Comptroller of the Currency, first made the remarks during a February "Social Wealth Seminar" event hosted by the Jain Family Institute, a nonprofit research organization. The nonprofit group American Accountability Foundation (AAF) recently dug up the clip from her discussion at the event and posted it to social media.
Naming the coal, oil and gas industries, specifically, Omarova said "a lot" of the "small players" in those industries "are going to probably go bankrupt in short order," adding: "At least we want them to go bankrupt if we want to tackle climate change, right?"
OMAROVA COULD BE NEXT BIDEN NOMINEE TO GO DOWN WITH BANKING COMMITTEE DEMS RELUCTANT TO SUPPORT HER
Omarova during her presentation was making the case for a U.S. National Investment Authority – a proposed federal agency that would work with the Treasury and the Fed to allocate public and private capital to green infrastructure companies, according to Data for Progress.
"The NIA will be able to negotiate equity stakes in private enterprises that receive that public aid, be it part of the systemic bailout or be it part of … individual restructuring help, for example, for certain troubled industries and firms that are transitioning," she said.
The Wall Street critic added later after naming the coal, oil and gas industries that the prospective bankruptcy of traditional energy companies would create a loss of jobs and "a lot of displacement" that the United States "can't afford."
The National Capital Management Corp. "could actually become the kind of equity investor at that point, taking over management of those companies and basically leading them through restructuring to a new technological … business model," she said.
AAF founder Tom Jones condemned Omarova's comments in a statement to Fox News.
"Calling to bankrupt the fossil fuel industry that drives nearly our entire economy is dangerously misinformed," Jones said. "Yet the Biden administration is nominating zealots like Saule Omarova to serve in our government as they attempt to destroy American energy jobs and stifle innovation."
Workers remove a large clamp from a section of pipe during construction of the Gulf Coast Project pipeline in Prague, Oklahoma, on March 11, 2013. Daniel Acker/Bloomberg via Getty Images
CONCERNS MOUNT ON ENERGY PROVISIONS WITHIN DEMOCRAT SPENDING BILL
The Biden administration has put a strong emphasis on combating climate change since the president took office and immediately halted construction on the Keystone XL Pipeline. Through his $1.7 trillion Build Back Better Act, the president aims to reduce U.S. oil reliance and greenhouse gas emissions, which has some concerned that prices will continue to inflate for consumers.
Gas prices have hit a seven-year high after shortages in the post-pandemic market have left demand up and inflation spiking.
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The spending package would set aside $775 million for Environmental Protection Agency (EPA) grants, rebates, contracts and loans to help reduce emissions that stem from petroleum and natural gas systems.
Fox News' Caitlin McFall contributed to this report.
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