CAES News
Energy Alliance Urges Congressional Action to End U.S. Energy Crisis
Seeks Access to Abundant U.S. Energy Supply
WASHINGTON, DC -- A broad alliance of consumer, industrial and institutional energy users today called on Congress to act on pending proposals to provide greater access to the abundant U.S. supply of energy on the Outer Continental Shelf (OSC) as a way to address the current U.S. energy crisis.
Representatives of the Consumer Alliance for Energy Security said rapidly rising domestic energy prices are having an adverse impact on consumers and the U.S. industrial base, citing a loss of more than 3.1 million manufacturing jobs since 2000 when energy prices began increasing dramatically and the competitiveness gap for U.S companies began significantly widening.
"America is suffering an energy crisis which is hurting our economy and threatening our jobs," said John Engler, President and CEO of the National Association of Manufacturers and former Governor of Michigan. "In order to compete and succeed in the global marketplace, our country needs a plentiful, diverse and affordable energy supply. With our manufacturing base and our communities at risk, it's time to reduce costs and expand supplies."
A national opinion survey by the Consumer Alliance for Energy Security confirmed that the American public understands the severity of the U.S. energy crisis. The survey found that nearly 90% of the respondents believe that rising energy costs are having a significant impact on their family’s monthly budget. In addition, nearly 60% of those polled support accessing the abundant supply of domestic energy available on the Outer Continental Shelf. CAES conducted a survey of 1,000 likely voters nationwide on March 20-21, 2006; the margin of error for the survey is +/-3.1% at a 95% confidence interval.
"Every single American is feeling the pain of high energy prices. After the warmest winter on record, consumers' heating bills are still up an average 23 percent this year for natural gas and 24 percent for oil," said Jack Gerard, President & Chief Executive Officer of the American Chemistry Council. "Schools, hospitals, churches and small businesses across the country are struggling. It's clear that America's competitiveness, jobs and economic growth are at risk. The question is, will Congress at last take action on one of the most important issues facing our nation?"
"This is a supply and demand problem, plain and simple," said W. Henson Moore, President & CEO of the American Forest & Paper Association and a former U.S. Deputy Secretary of Energy.
"Since 1990, the increase in domestic demand for natural gas has outpaced the increase in supply by 400 percent. This is the direct result of government policies that encourage the use of natural gas and simultaneously restrict supply. We need to reduce the demand, at least temporarily, and increase the supply if we have any hope of getting out of this crisis."
"Growers rely on affordable natural gas as a feedstock for fertilizer, but also energy for irrigation, powering farm equipment, drying grain and producing ethanol," said Samantha Slater, Director of Public Policy, of the National Corn Growers Association. "Increased natural gas prices have already had an adverse effect on farmers due to higher production costs. This trend is expected to worsen in the future. Whether used directly as a feedstock or for heat and power generation, reasonably priced natural gas is essential to grower profitability. Our ability to be efficient and environmentally friendly corn producers will face huge obstacles if our nation cannot come to terms with its desire to have limitless resources, like natural gas, and not realize that these resources have to come from somewhere."
The alliance effort is supported by individuals and organizations from across the country who discussed how high energy costs are negatively impacting their business and the communities in which they live.
"I feel, on a daily basis, the high cost of energy," said Greg Allen, Administration Manager for Cavendish Farms and current President of the Jamestown (ND) School Board. "We are continually forced into a juggling act because our natural gas supply can be curtailed. Every $1.00 dollar increase in the price of natural gas costs us $545,000, revenue that could be better spent on other parts of our operations, like efficiency. The Jamestown School district faces similar challenges. Because our supply can be curtailed, we are forced to use more expensive sources such as fuel oil. If we had greater certainty over our energy supply we would be able to run the system less expensively and use those funds for our students."
"These high energy prices are really threatening our ability to compete overseas," said Randy Bowen, a paperworker from Bastrop, Louisiana representing the Pulp and Paperworkers' Resource council, a national organization of forest products industry employees. "Our industry has lost 189,000 jobs since natural gas prices started shooting up six years ago, and none of my colleagues want to be next. Congress should act now to put more American natural gas to work protecting American jobs."
"Farmers throughout Iowa have been really hurt by the high cost of fertilizer," said Iowa grower Bill Northey of Spirit Lake. "Some are even choosing to switch some of their acreage from corn to soybeans because of the high price of nitrogen fertilizer needed to grow corn. This puts hardworking growers at a real disadvantage when we seek to compete in the global marketplace. We need natural gas prices to fall so we can regain our competitiveness."
The Consumer Alliance for Energy Security is a broad-based coalition of consumers and industrial and institutional energy users committed to alleviating the current U.S. energy crisis by pushing for greater access to the abundant supply of domestic energy on the Outer Continental Shelf
For additional information, visit www.secureourenergy.com
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Editors Note: Additional Contacts Include --
Jennifer Scott
American Chemistry Council
(703) 741-5813
jennifer_scott@americanchemistry.org
Michael Klein
American Forest & Paper Association
(202) 463-2478
Michael_klein@afandpa.org
Kat Snodgrass
National Association of Manufacturers
(202) 637-3000
ksnodgrass@nam.org
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Satellite coordinates:
• Access the event via satellite link at the following coordinates:
o Date: April 5, 2006
Time: 1500-1530 ET
Satellite: C-band, IA-5, Transponder 13
Downlink Freq: 3960 (V)
Audio: 6.2/6.8
o Date: April 6, 2006
Time: 1030-1100 ET
Satellite: C-band, IA-5, Transponder 13
Downlink Freq: 3960 (V)
Audio: 6.2/6.8