The continuing need for oil and gas isn’t going anywhere anytime soon, as evidence by the world’s use during the global business shutdowns caused by the pandemic of 2020. Which means demand is about to surge as world economies recover.

That’s according to several panelists who participated Colorado Business Roundtable’s “Road to Recovery Series: Colorado’s Energy Industry” in Denver Tuesday.

“Even in the midst of the largest economic slowdown we’ve seen in decades, the world was still utilizing 90% of the oil and gas it was using at pre-pandemic levels,” said Hodge Walker, vice president of Chevron Rockies Business Unit. “It’s further evidence of how ingrained the oil and gas industry is in the world economy. That said, we need to be thinking about the future, and the future being clean energy. …. We need to think about how we produce cleaner energy, with returns the investors are looking for and in an efficient way.”

American Petroleum Institute’s CEO Mike Sommers said pre-pandemic production levels stood at about 100 million barrels a day. At its lowest production point last year, that dropped to 82 million barrels a day in April. The industry expects to return to pre-pandemic levels, and beyond, by 2022 with 102 million barrels a day being produced.

“Unfortunately what we’ve seen lately is ‘import more oil’ policies,” Sommers said, referring to the state and federal laws impacting the industry. “It’s a national security issue. We don’t want to be held hostage by foreign performers.”

Many panelists cited Colorado’s leadership position for the United States when it comes to regulating the oil and gas industry, and utilizing alternatives like solar and wind-generated electricity.

“How Colorado is going to continue to drive the American recovery in energy is going to be a turn towards the future while leveraging the strength of what we currently have,” said Danny Splettstosser, vice president of Origination and Investor Relations for Renewable Energy. “We have a strong foothold as the energy hub of the nation. Where Colorado goes, the nation goes.”

“Colorado influences regulatory and legislative outcomes,” said Sommers. “What happens in Colorado tends to happen elsewhere legislatively and with regulations. Colorado’s resources are unrivaled, and we produce energy in a safe way.”

Panelists were asked about issues like President Joe Biden’s decision to revoke the permit for the Keystone XL pipeline, causing the project’s halt.

“The pipeline situation is a frustrating one because the demand for oil and gas will stay strong for decades to come,” said Ron Gusek, President, Liberty Oilfield Services. “There’s no evidence that we’ll change consumption patterns for many years to come.

“Transportation of that around U.S. and globe is an important issue. We think that was a bad decision and poor things are happening because if it. It doesn’t change the demand for oil. Not building a pipeline just moves how it’s transported. That’s most likely trains, which are less safe and less environmentally responsible.”

Xcel Energy President Alice Jackson said the need for natural gas pipelines isn’t going anywhere soon, either.

“We not only provide electricity, we’re the natural gas suppliers too for Colorado homes, businesses, resorts,” Jackson said. “So what’s going on now is we have a couple of regulators who are questioning weather that infrastructure is even going to be here 10 years from now. You heard that right. They’re questioning our investment in pipelines to the mountains.”

Colorado’s efforts to reduce greenhouse gasses, including emissions from natural gas, is “not going to be easy,” she said.

“In November last year we did a state survey of our general customers about utilization of natural gas,” Jackson said. “We asked if they would trade natural-gas appliances like stoves or the fire pit for alternatives. Regardless of political position, 2/3 of them came back with not just no, but hell no. That’s public sentiment. And when you ask them verbatim why, the answer they give is that it’s cleaner than coal and takes less energy to keep a home or business warm. They understand the science.”

Splettstosser said infrastructure to transport electricity is going to be key as well in coming years.

“By 2050 alone the electric sector alone looking at something like 2.4 terawatts of additional electricity generation production,” he said. “It’s not just the way we generate the electricity, it’s how we move it.”

A video reply of the panel discussion is available on the Colorado Business Roundtable website.