Colorado Energy Alliance Urges Congressional Action to End U.S. Energy Crisis

CAES News

Colorado Energy Alliance Urges Congressional Action to End U.S. Energy Crisis

Seeks Access to Abundant U.S. Energy Supply

FOR IMMEDIATE RELEASE:
April 11, 2006
CONTACT: Joan Coplan
303-377-6992
jcoplan2001@yahoo.com

DENVER, CO -- 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 Colorado Consumer Alliance for Energy Security, a local affiliate of a newly formed national advocacy group, said high U.S. energy prices are having a negative impact on Colorado agriculture, consumers and small businesses. Today’s announcement by the U.S. Department of Energy on rising gasoline prices this summer is proof positive that the U.S. is in the midst of a real energy crisis.

"Since 2000, 20 plants or 36% of the natural gas dependent nitrogen fertilizer industry in the US has been shut down or mothballed," said Jared Koch, Director of National Affairs for the Colorado Farm Bureau, the state’s largest agricultural organization. "Of the 16.5 million tons of nitrogen capacity that existed in the US prior to 2000, nearly 40% has been closed permanently."

"Because of this, the agriculture industry paid a $6.2 billion surcharge on energy in the ’03-’04 growing season. That’s 16% of production costs. And while we don’t have numbers, anecdotal evidence has shown the 2005 growing season was worse than the ’03-’04."

"Stable natural gas prices allow businesses and residential consumers to budget for and manage energy expenses. US demand for natural gas is expected to increase over the next 25 years. Having a large and dependable domestic source will be essential in maintaining energy price stability which is necessary in order for US companies to remain healthy and competitive in a world market," said Jim Crossman, President of Financial Energy Management, Inc., a 21-year old Colorado company which performs energy audits and contracts for the installation of energy and water conservation retrofits.

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.

"I am hearing horror stories from churches about their energy costs, costs that are higher than our mortgages," said Reverend Patrick L. Demmer, Political Director, Greater Metro Denver Ministerial Alliance. "I often wonder how the poor can possibly make it today. What is the trade off? What are working people giving up in order to keep the lights on, their cars fueled and their homes heated? I am urging my congregants and hopefully the congregants of our alliance churches to call their representatives and urge them to support proposals in congress to expand gas and oil explorations. This is not a partisan issue, these are human issues."

"I have witnessed the drastic effect the energy crisis has had on fellow business owners," said William Costello, owner of a commercial real estate company in Denver. "With the tripling of natural gas prices since 2000, many employers have been forced to either close their business all together or let many of their employees go."

"There are numerous long-term energy solutions that will need to be debated for months and perhaps years to come, however it is imperative that we get more natural gas into the supplies as soon as possible," said David Cunningham of Summit Information Services in Frisco.

Josh Brodbeck of Denver said: "For years people and industries have been encouraged by the federal government to use natural gas because it burns cleanly and is better for the environment. At the same time, the federal government restricted access to new supply while demand increased. Now is the time to correct this imbalance and open up new areas for exploration in the gas-rich Outer Continental Shelf. "

The Colorado Consumer Alliance for Energy Security is the Colorado arm of 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 (OCS). For additional information, visit www.secureourenergy.com.

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EDITOR’S NOTE:
For additional information, contact: Craig G. Veith
(703) 717-9816
craig.veith@craigveith.com