U.S. Energy Crisis
Domestic Energy Exploration and Development
For a More Affordable, Secure Energy Future
American energy prices are skyrocketing. Millions of manufacturing jobs have been lost or have gone overseas largely due to these rising prices. Americans are feeling the pain at the pump as well as in increased costs for everything from heating, cooling, and electricity to food and consumer goods. A major factor in rising energy prices and eroding U.S. competitiveness is a supply-demand imbalance for energy. America must be able to access more of its own energy supplies, and Congress must enact legislation to make this happen.
As pressure to address this crisis continues to grow, lawmakers are finally beginning to take note, and Congress will be considering a variety of proposals. Along with other important steps in America’s energy plan, expanded access to domestic energy is vital. Congress must seize on this opportunity and act now to allow Americans to access more of their own energy resources in the Outer Continental Shelf (OCS).
The United States is alone in the industrialized world in our ban on offshore energy development. In the case of natural gas, which is priced regionally, high U.S. prices have already caused significant U.S. production and jobs to be lost or relocated overseas, where natural gas costs are far lower. America cannot afford this kind of harm to our global competitiveness. Consider this:
- American consumers are feeling the pain of the growing energy crisis. Oil is at more than $140 per barrel. Since 2000, U.S. natural gas prices are up 500%, while residential natural gas heating bills have doubled and electricity heating bills are up 24%. Electricity bills (including cooling) are up 29% in that time. In the last decade, the cumulative increase in the nation’s natural gas bill is more than $522 billion (or $4,568 per taxpayer).
- Energy-intensive industries have experienced negative impacts.
- More than three million American manufacturing jobs have been lost since 2000, largely due to the high cost of energy in the United States.
- The U.S. chemistry industry has lost nearly 120,000 jobs and has gone from a $19 billion trade surplus in 1997 to an $8 billion trade deficit.
- Nearly half of U.S. fertilizer capacity has been permanently lost.
- America’s farm sector is being weakened by constraints on domestic natural gas development, even as global demand for food is growing every year.
- For the forest products industry, energy is the third-largest manufacturing costs – up 50% in the last couple of years for pulp and paper mills. For some mills, the cost of energy has eclipsed employee compensation.
- Meanwhile, consumers are paying more for electricity, home heating and cooling, gasoline, diesel fuel, and food. Today 10% of the nation’s homeowners – over six million households – are having difficulty paying their natural gas heating bills.
- America’s energy security and future demands increased domestic energy production. There is intense global competition for energy supplies. The United States must secure our energy future by producing more of our own energy.
- Several recent public opinion surveys show a clear majority of Americans support offshore energy development. Lawmakers should listen to their constituents and support legislation allowing that to happen.
Congress’s inaction in allowing America to tap into our abundant domestic energy supplies has only allowed energy prices to climb higher. It is well past time for Congress to put politics aside, work together and enact the package of policies that can put the United States on a path to a more affordable, secure, energy future and a more competitive economy with more American jobs. Lawmakers must listen to their constituents and to the majority of Americans and cast a pro-jobs vote by supporting energy exploration and development at home.
We support aggressive energy efficiency programs, in part to stretch the existing domestic natural gas supply base; investments in alternative energy R&D to diversify energy sources; investments in energy delivery infrastructure; and – last but certainly not least – increased access to new sources of domestic energy supply.
America’s economy, jobs, security, and future depend on affordable domestic energy.
Contact your Member of Congress today and urge them to support legislation for domestic energy exploration and development!