CAES News
Oregon Business and Natural Resource Groups Launch " Oregon Consumer Alliance for Energy Security " Coalition
FOR IMMEDIATE RELEASE CONTACT:
DOUG BADGER
(503) 260-3235
APRIL 13, 2006
Group seeks to highlight rising natural gas prices and advocate for increasing domestic supply
Portland, OR - A broad and diverse group of Oregon business and natural resource trade associations launched an ad hoc coalition today to bring awareness to the rapid increase in natural gas prices that has occurred over the last several years.Although natural gas supply in the West is sufficient to serve the Pacific Northwest region.s growth projections for the duration of the next decade and beyond, new infrastructure has been built in recent years that is allowing this supply to be delivered to markets in the Midwest and Northeast. Consequently, competition for the region's natural gas is becoming increasingly intense due to the integrated continental market. The result is a three-fold increase in prices as static available supply to Oregon consumers has not kept pace with demand.
delivered to markets in the Midwest and Northeast. Consequently, competition for the region's natural gas is becoming increasingly intense due to the integrated continental market. The result is a three-fold increase in prices as static available supply to Oregon consumers has not kept pace with demand."Natural gas prices are a growing part of the cost of production for Oregon manufacturers. If no additional supply is added to the system to meet demand, we're going to see a continued escalation of prices. In a global economy in which many of our foreign competitors enjoy 50% lower natural gas prices, our companies are placed at a distinct disadvantage," said Richard Butrick, President of Associated Oregon Industries."We must find new U.S. sources of natural gas.""The Nation.s natural gas crisis is directly hitting Oregon's farmers," said Barry Bushue, President of the Oregon Farm Bureau. "Not only are energy inputs for our operations costing more, but production costs such as fertilizer are soaring due to the higher cost of production for those goods."
"There is a fundamental need to increase sources for natural gas supplies in this country. Given the warmer winter weather we experienced in early 2006 and the resulting extremely high levels of gas in storage at the end of the winter heating season, we are finally seeing prices comparable to before the 2005 hurricanes," said Paula Pyron, Executive Director of the Northwest Industrial Gas Users. "The reality is that these prices today are still a marked increase over historic prices. The country's supply sources are so constrained, however, that by next winter prices are predicted to again be up to even higher levels, and that's assuming that we don.t have extreme weather conditions or disruptions causing earlier constraints. Not only is this lack of supply harmful to the health of Pacific Northwest industry that relies on natural gas for manufacturing processes, it is damaging to all natural gas consumers."
Many proposals exist to expand domestic supply. One such proposal the coalition supports is a bipartisan bill introduced by U.S. Senators Pete Domenici and Jeff Bingaman (S.2253) to authorize additional exploration in the Gulf of Mexico. Passage of this measure would alleviate the competition for Pacific Northwest natural gas supply and bring more price stability to the region. Senate Majority Leader Bill Frist recently announced that S.2253 would be the next energy bill to be debated and voted on in the U.S. Senate.
Members of the Oregon Consumers Alliance for Energy Security include: Associated Oregon Industries, Oregon Farm Bureau, Oregon Small Business Coalition, Northwest Food Processors Association, Oregon Association of Nurseries, Oregon Forest Industries Council, Northwest Industrial Gas Users, Northwest Gas Association, Oregon Cattlemen.s Association, Oregon Wheat Growers League, Associated Oregon Loggers, Oregonians for Food and Shelter, Oregon Seed Council, and Oregon Dairy Farmers Association.
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