Will Gen Z Realize Its Future Runs On Fossil Fuels?

Authored by Alex Rosado via the American Institute for Economic Research (AIER),

American innovation requires our energy sector to use all available resources, but Generation Z apparently wants to limit its potential.

Pew Research Center discovered that 43 percent of Gen Z respondents support phasing out oil, natural gas, and coal. Climate change is their top concern, and any energy source that doesn’t (purport to) resolve it is scorned.

Yet, by distancing the country from fossil fuels, Gen Z is weakening America’s ability to compete. Fossil fuels are vital for domestic economic stability, as they boost state revenue and public offerings. Internationally, energy dominance is crucial for safeguarding national security and shaping foreign policy objectives. Only a holistic approach to energy can unleash American brilliance and save Gen Z from the setbacks of canning fossil fuels.

Resources for the Future found that, between 2015 and 2019, fossil fuels generated an average of $138 billion per year for U.S. local, state, tribal, and federal governments. Thriving mining industries in Texas, Alaska, and North Dakota account for at least 10 percent of their respective state gross domestic product; in Wyoming, fossil fuels represented up to 65 percent of the state budget. With their profits, fossil fuel companies donated $700 million to twenty-seven colleges and universities over the past decade. Along with investing in infrastructure and high energy density, these resources are the crux of enterprise and keep our institutions running.

From engineering to refinery management, the fossil fuel sector creates jobs for the next wave of industrial workers: 32 million positions and $909 billion in labor income. As older workers retire and new technologies emerge, there is a demand for younger, tech-savvy talent that will minimize these jobs’ unfavorable reliance on physical labor. In a national environment where many in Gen Z struggle to find work yet expect higher salaries, the nonrenewable energy sector offers competitive wages, transferable skills, and occupational choice.

Filling and enhancing those roles is essential for lower energy prices. The Department of Energy (DOE) revealed last year that natural gas is the most cost-effective residential energy source available. Electricity was almost four times more expensive, meaning homes that used electricity for heat during wintertime paid roughly 75 percent more than those that used gas. As 38 percent of Gen Z witnessed their household cut back on a utility due to energy costs, and one-fourth of Gen Z apartment renters desire energy-efficient appliances, the DOE news is sobering for climate activists. Fossil fuels are affordable, appealing, and not a significant threat to the environment.

The United States has achieved remarkable energy independence through domestic fossil fuel production, positioning us to compete effectively overseas. Under the first Trump administration, America produced more energy than it consumed for the first time since 1957, reducing reliance on geopolitical rivals. The feat slices the approximately $700 million sent daily to potentially unstable or hostile nations and redirects it towards investing in our military. This matters to Gen Z, as 65 percent cited terrorism as a critical threat to the United States over the next decade.

Nearly half of Gen Z also believe America should take an “active” part in world affairs, and the United States needs a full arsenal for conflict mitigation. The Strategic Petroleum Reserve is a crucial security buffer as the world’s largest publicly known emergency oil supply. With strategic releases and sales during the 1991 Gulf War, Hurricane Katrina, and the 2022 Russia-Ukraine War, the U.S. has historically lessened the severity of these events by offsetting supply shortages and maintaining open transportation and defense sectors. Indeed, the capacity to project power globally, which aligns with Gen Z’s policy preferences, depends heavily on secure access to fossil fuels.

Embracing oil and gas is essential in the wake of armed escalation and a newly enacted ceasefire between Israel, Iran, and the United States. Commerce and energy cooperation shifts America’s role as a broker of shared infrastructure and trade interests. Major American energy companies, including Chevron and Exxon, are already involved in East Mediterranean projects. The Atlantic Council has proposed constructing a “Gas Peace Corridor” that could link Iran’s vast South Pars gas field with neighboring countries, including Israel, via new pipelines for mutual benefit. The Gaza War is a hot-button issue for Gen Z and cooperation to meet energy needs with production could reduce further conflict while lessening humanitarian tragedies and economic shocks.

Imperfect as they are, the benefits of nonrenewable fuels are undeniable, and Gen Z is coming around. Two-thirds of Gen Z want to have fossil fuels in our national energy portfolio, and around 80 percent support the development of new-generation nuclear energy to complement other sources. A balanced, pragmatic approach to energy will preserve America’s domestic and global standing today, and directly fuel Gen Z’s future success.