CAES News
HR 4761: Deep Ocean Energy Resources Act
Vote to Expand Access to US Natural Gas SuppliesCongress will soon vote on HR 4761, the Deep Ocean Energy Resources Act. The bill will bring more American-made energy to market and offers relief from record-high energy prices, especially natural gas. A vote to produce more natural gas is a vote for America’s manufacturing workers, farmers, and homeowners.
America faces a terrible problem. There is not enough natural gas currently available to meet the diverse and increasing needs for the nation’s favorite – and cleanest -- fossil fuel. The nation needs more natural gas to reduce power plant emissions, to increase ethanol production, to lower the cost of fertilizer and industrial raw materials, to produce clean diesel fuel, and to supply the hydrogen economy. The problem is, existing sources of natural gas supply cannot keep pace with existing and new sources of demand (See Table 1).
Natural gas consumers are competing for a commodity that is in scarce supply. As a result, US natural gas prices are among the highest in the world and have been since the beginning of the decade. (See Tables 2 and 3). Americans have paid an extra $425 billion for its natural gas purchases since 2000, a hidden tax equal to more than $3,000 per taxpayer.
Natural gas is a major ingredient in many manufacturing industries that compete in the global economy. US natural gas prices put American manufacturers at a competitive disadvantage. For example, in 1997, the US chemical industry posted a trade surplus of $20.3 billion, the largest in the nation’s history. But last year, the industry registered a trade deficit of more than $9 billion. Since the price of natural gas began to spike, the industry has lost more than $60 billion in business to foreign competitors. In that same period of time, more than 100,000 good-paying jobs in the chemical industry have disappeared. (see table 4). National Association of Manufacturers says that more than 3 million manufacturing jobs were eliminated in that same period of time. High natural gas prices are contributing to capital flight, meaning that businesses no longer see the US as a preferred location to build new factories. Of more than 120 world-scale chemical plants under construction around the world, only one is being built here in America.
Consumers need relief from record-high natural gas prices. While prices have come down in recent months, they are set to shoot back up this winter.
The time has come to increase access to new sources of natural gas supply to meet the nation’s growing needs. HR 4761, the Deep Ocean Energy Resources Act, will bring new sources of energy – especially natural gas – to market. For natural gas consumers, HR 4761 is an important, and much needed, step in the right direction.
American Chemistry Council www.americanchemistry.com/s_acc/sec_policyissues.asp?CID=311&DID=1137