The ChamberPost

More Energy, More Jobs

by Karen Harbert

In this week's State of American Business address, U.S. Chamber president and CEO Tom Donohue outlined a five point plan to help create jobs and revive America's economy.  A central plank in his plan is upgrading America's infrastructure and expanding our energy options, which will speed our economic recovery, establish a 21st century energy economy, and importantly, create tens of thousands of good paying American jobs. 

The Chamber's Energy Institute is a strong advocate for a comprehensive approach to energy that maximizes efficiency improvements and takes advantage of all of America's resources, from traditional sources like oil, gas, coal and nuclear power to alternative technologies like wind and biomass.   If America is to meet our growing energy demand, we'll need to utilize all of these sources of energy.

Beyond improving our energy security, investments in energy projects will create jobs—good jobs.  As Tom Donohue noted yesterday, if all 19 companies that are pursuing licenses to build 26 new reactors proceed with their plans, they could support an estimated 240,000 direct and indirect jobs.  And those are jobs that would pay higher wages on average than those in the local area.  Building new nuclear power plants is a win-win—adding a clean, emissions free power source, securing our energy future, and putting people to work.

There is also a tremendous opportunity in oil and gas.  The American oil and gas industry already employs 9.2 million Americans—and that's with 85 percent of our domestic resources off limits.  If we were to unlock some of those resources offshore and onshore, we could make ourselves less dependent on foreign oil and create tens of thousands of new jobs.

Similar opportunities for growth exist in other energy technologies from clean coal to wind, solar, and other renewable sources.  In order to maximize that potential, we need to spur investments to expand and modernize energy infrastructure to move power; ensure tax credits, loan guarantees and other financial mechanisms are used to smartly accelerate the use of new or significantly improved technologies; and invest in research and development of cutting edge technologies to drive innovation.  

In the past year, we've seen policies from Washington that take energy resources off the table.  That's not the recipe our nation needs nor deserves.  It is time to change that and commit to developing more American energy,  creating more jobs and keeping our economy competitive.

Investing in Smart Grid Technology

by Karen Harbert

Today the Obama administration announced that they will award $3.4 billion to help fund energy grid modernization. This announcement is long overdue. The U.S. Chamber's Energy Institute has been advocating for a rapid deployment of smart grid for over a year, and it was included in our recommendations delivered to President-elect Obama and the 111th Congress last January. Although government alone is not the answer to solving our energy problems, we welcome this investment and look forward to it paying dividends in the future. Reliable electricity is essential to a sound economy, and smart grid technology will make our system more reliable. Smart grid technology will allow our systems to self-diagnose and repair problems, accommodate new demands, and promote greater efficiency.

It is important to remember that smart grid by itself won't solve our electricity challenges. Today's announcement does not address the siting and permitting issues that have delayed or even scuttled dozens of clean energy projects, as well as the necessary construction of transmission lines to support these sources. Without additional transmission capacity, our grid will not be able to meet increased demands, no matter how smart it is.

Oil, The Long Goodbye

by Karen Harbert

Foreign Policy Magazine's latest issue covers how oil's very future is now being seriously questioned, debated, and challenged. On Wednesday October 21st, the Institute for 21st Century Energy will be presenting with them a dialogue on the scale, scope, and prospects for reducing our nation's oil dependency. With the current focus on energy and climate change on Capitol Hill, this conversation goes right to the heart of the debate offering diverse viewpoints. 

I will be on the panel along with Susan Glasser, Executive Editor of Foreign Policy Magazine and three of the contributors, who will be discussing these articles:

• It's Still the One - Daniel Yergin
• Seven Myths About Alternative Energy - Michael Grunwald
• Is a Green World a Safer World? - David J. Rothkopf

You can find the entire issue here. The program begins at 4pm, contact Leila Getto (lgetto@uschamber.com) for more information.

International Energy Challenges and Business

by Karen Harbert

10 Mar 2009 - The IEA welcomed senior executives from over 25 energy companies and a number of industry associations to the first meeting of the IEA Energy Business Council (EBC). The purpose of the gathering was to create a forum for representatives from business to participate in and contribute to discussions of current energy-related challenges. (International Energy Agency)

As I participate in the IEA Energy Business Council meeting in Paris with 25 of the world's biggest energy producing and using companies, the impact of the financial crisis on energy supply and prices is at the top of everyone’s mind, as you might expect.

Ironically, it was not the capital crunch that was their concern. It was the potential for a government crunch. As a response to the escalating crisis, many of these industry leaders collectively warned about the growing government desire to manage the energy markets by stepping in to change the rules of the game (again). Even more ironically, these multinational companies agreed that the type of investments that the global economy needs are the very ones that governments are scaring off by, in some cases, changing terms for credit. Governments are adding rather than eliminating burdensome regulations and dragging their feet on important questions of access to new energy resources and building required new infrastructure. 

Of course, we all agreed that government has a role to play - it should pave the way for new investment, not throw up roadblocks-- either intentionally or not.  As governments around the world are launching huge stimulus packages, it is time for policymakers to listen to the private sector. 

It is critical that governments understand what types of long term stable policy frameworks are necessary to stimulate the huge investments that are needed for the US and global economy to recover. The success of any economic recovery plan rests on the back of the private sector and it bringing its capital into the game.  It would be a terrible tragedy if government stimulus plans and reforms are the actual instrument that scares off the private sector. 

The security of the U.S. economy depends on affordable, reliable energy and many here at the IEA meeting are getting very mixed messages about whether their companies' investments and products are welcome in America.

An Integrated Energy Strategy

by Karen Harbert

Today I spoke before the House Select Committee on Energy Independence and Global Warming, highlighting the importance of setting realistic goals that take into account the state of technology and the economy. There are many challenges facing international climate negotiations, but there is an opportunity for the U.S. government and the business community to play a crucial role in the series of talks this year. More than 180 nations are working through the United Nations Framework Convention on Climate Change to complete a new arrangement to address climate change in Copenhagen, Denmark at the end of 2009.

It is time to recognize that smart energy policies and wise investments will make the largest contribution to reducing greenhouse gas emissions. When faced with unprecedented economic challenges and growing global energy demand, it is clear that energy and climate change must be addressed in a way that promotes the economic growth necessary to drive technological innovation and environmental protection. We must have an integrated energy strategy that ensures energy security, increases economic growth, reduces pollution, and mitigates greenhouse gas emissions

We cannot mandate what global technology cannot yet deliver. A global solution must ensure international participation and effective commitments by all major emitting countries, including developing countries. In addition, it should consider growing energy needs, resources, and circumstances of all countries and ensure protections for intellectual property rights and the rule of law.

You can find my written testimony here.

OCS Oil and Gas Leases

by Karen Harbert

It was reported today that "The U.S. Minerals Management Service Friday proposed a five-year oil and gas lease sale that would auction offshore drilling acreage in areas previously banned."

With the nearsighted Congressional ban on oil and natural gas production off our nation’s coasts expiring last fall, we welcome MMS’s timely announcement of its updated plan for OCS oil and gas leasing. Tapping America’s energy resources will reduce the billions of dollars we send abroad for oil imports each year, stimulate economic recovery by creating tens of thousands of jobs, and increase royalty revenues to invest in national priorities like modernizing the nation’s infrastructure.

In this time of economic uncertainty and volatile energy markets, we can no longer rule out the value of our own significant proven oil and gas reserves, nor the possibility for new discoveries on and off the shores of the United States. We look forward to working with President-elect Obama, Secretary-designate Salazar, and the 111th Congress to ensure these American energy resources that are so vital to America’s economic and energy well-being are made available.

In our Blueprint and Transition Plan for Securing America’s Energy Future we made the recommendation to permanently end the moratorium and accelerate oil and gas leasing on and off America’s coasts.

According to a recently released study from ICF International, opening all areas previously restricted could create 160,000 new jobs by 2030 and increase domestic oil production by as much as 2 million barrels per day by 2030, displacing 18% of projected oil imports.  Additionally, natural gas production could increase by more than 5.3 billion cubic feet per day, displacing 61% of projected natural gas imports.  Moreover, developing all oil and natural gas resources on federal lands could produce more than $4 trillion in revenue for the federal government.

More from the release of the State of American Business.

Global Perspectives on Energy in 2009

by Karen Harbert

As we start a new year it is always useful to take stock of where we've been--and also where we might be going.  Last month the International Energy Agency (IEA) issued its World Energy Outlook 2008 (WEO 2008), which outlines IEA's projections for global energy demand through 2030.  While the Outlook takes the global economic slowdown and higher energy prices into account, its projections are sobering nonetheless.

• World demand for oil is expected to increase by 25% with 100% of this increase coming from non-OECD countries.
• World energy demand will expand by 45% in 2030, with coal accounting for more than a third of the overall rise.
• Non-hydro renewables (ie. wind, solar, geothermal, etc.) will be the fastest growing source of electricity increasing to 4% of total world power generation from 1% today.
• Global energy investment of $26 trillion, or more than $1 trillion/year, is needed, but the credit squeeze could delay spending, potentially setting up a supply-crunch once the economy recovers.
• Global energy-related CO2 emissions are projected to rise by 45% with 97% of the projected increase expected to come from non-OECD countries.

The largest driver of projected increases in demand for almost all energy sources is the significant growth expected from non-OECD (Organization for Economic Cooperation and Development) countries, specifically China and India.  Those two countries are projected to account for over half of the increase in world energy demand.  Moreover, all of the expected growth in demand for oil is projected to come from non-OECD countries, with 80% coming from China, India, and the Middle East alone.  World demand for coal is expected to increase causing its total share of world energy demand to rise from 26% to 29%.  The electricity sectors in China and India alone will account for 85% of that growth.  Additionally, 97% of the projected increase in energy-related CO2 emissions is expected to come from non-OECD countries - three-quarters from China, India, and the Middle East.

It's often difficult to understand how events occurring a world away in developing countries affect Americans.  But energy resources are global commodities, and increases in demand in one part of the world create upward pressure on global energy prices.  If we do not aggressively act to fully develop our domestic resources, we run the risk of losing access to our foreign competitors for many of the resources we depend on now.  This is another stark reminder that our nation must look at these future projections and adopt a comprehensive, long-term energy policy that ensures we have reliable access to clean, affordable, and diverse sources of energy.  The Institute outlined a path to accomplish this for President-elect Obama and the new Congress last month in our Transition Plan for Securing America's Energy Future.  Our work in the coming year will be to ensure this plan is implemented.  With your continued support and active involvement, we can do this. To view the Institute's nearly 90 energy policy recommendations, visit us at www.energyxxi.org.

A Detailed Energy Blueprint

by Karen Harbert

Yesterday we released a blueprint, with 75 specific policy recommendations, for securing America's energy future.  You can find the blueprint here, below is what some news outlets had to say:

Republicans in Congress liked to tout an all-of-the-above energy policy. They have nothing on the U.S. Chamber of Commerce.

The Chamber’s Institute for 21st Century Energy today unveiled its detailed energy prescriptions for the next administration, putting some red meat on the "13 pillars" the group published this summer in an open letter to the President and Congress.

The smorgasboard of energy proposals calls for greater government support for energy efficiency, renewable energy, an international climate-change accord, more domestic oil production, more nuclear power, more clean coal, alternative fuels for transport, and bigger and better energy infrastructure.

Retired Marine General James Jones, president and CEO if the Institute, called it "critical" that the next president make energy policy a priority, and called it a "national security issue of the highest order."
(Environmental Capital)

Colorado State University's work on renewable energy continues to garner national recognition.

Tuesday, the U.S. Chamber of Commerce’s Institute for 21st Century Energy used CSU as a backdrop as it revealed its suggestions on how to wean America off of foreign oil.

"With a challenge this great and urgent, we must encourage new partnerships, like those taking place in Colorado, that bring together the best of government, industry and academia to create cutting-edge technology solutions to our long-term challenges," said General James Jones, president of the Chamber’s energy institute.

Jones, Colorado Senator Wayne Allard (R) and several others toured CSU’s Engines and Energy Conversion Laboratory (EECL) Tuesday afternoon prior to the Chamber’s announcement.

EECL is home to several renewable projects including one that’s looking into the mass production of algae, which can be used as a biofuel. (9News.com)

"Today's high gas prices are not the problem. They are merely a symptom to a larger problem," Jones said of the need for better energy sources.

Jones recommended doubling funding for the Department of Energy's Buildings Program as a way to promote energy efficiency and creating new tax credits for plug-in hybrid vehicles.

The 75 recommendations fall under 13 broader categories, including reducing the environmental impact of energy consumption and production, increasing renewable sources of electricity and expanding nuclear energy use.

Those changes will come through better collaboration between government, private and educational sectors, he said. (The Coloradoan)

Energy - Then and Now

by Karen Harbert

Thirty one years ago today, President Jimmy Carter formally established the Department of Energy to confront our dangerous dependence on foreign oil. We imported about 30 percent of our oil then, we now import close to 70 percent. We are spending less on energy research and development efforts now than we did after the 1973 Arab oil embargo. 

Congress adjourned on Friday without acting on any of the pending energy legislation. Recent polls confirm that Americans place addressing our energy challenge as their foremost concern in this election cycle. The public is demanding action from their elected leaders but the lights on Capitol Hill have gone out for the summer. Americans are tired of paying for party politicking with their own pocketbooks. We need honest discussion and urgent action.

Last month the Institute for 21st Century Energy issued an open letter to the next President and Congress outlining the pillars of our energy future. Take a look and add your signature today.

Energy Consensus

by Karen Harbert

Recent polls on energy have demonstrated that public opinion is changing.  A recent survey showed that 81% of the American people support the United States using more of its own domestic energy resources, including the oil and coal already here in the U.S., to combat the rising cost of energy and reduce dependence on foreign energy sources.

Policymakers must listen.  To meet rapidly growing demand for energy, America requires an increase in all kinds of domestic energy - coal, gas, oil, nuclear, and the entire range of alternative and renewable fuels as well as greater use of technology to increase efficiency and help us use traditional sources more cleanly.  We must adopt policies that promote modernizing and protecting energy infrastructure so that our power companies and other energy providers can bring new, modern, and cleaner facilities online without undue delays and overly burdensome regulation.  We must also develop a climate change policy that is global in its approach, technology-based, and does not harm the economy or destroy jobs.

Any effort to enhance our energy security while improving the environment and strengthening our national security must begin with determined leadership by the White House and Congress – but it cannot end there.  Government can do its part by lifting restrictions on domestic energy exploration and production - as President Bush announced yesterday - while preserving the environment; promoting investments in energy infrastructure and new technology; and sweeping away impediments that deter the construction of new energy facilities or unnecessarily delay the expansion of existing ones.

But government leaders must recognize that America’s strength lies in its open and competitive markets and the skill, determination, and innovation of the American people.  In fact, to meet our energy and environmental challenges requires a concerted effort among government at all levels, the private sector, and society as a whole.

We are optimistic about America’s ability to meet these challenges. At the Institute for 21st Century Energy at the U.S. Chamber of Commerce, we believe there are solutions to our energy challenges and it will be the work of our Institute to lay out our energy options in greater detail.  Soaring energy prices and concerns about climate change have created a urgent call to action in this country.  We must seize this opportunity.  If done right, we will enhance our domestic energy resilience, preserve the environment, and create new American jobs, industries and technologies.

Tomorrow the Institute for 21st Century Energy will host an event in Washington D.C. to outline energy principles that must be adopted as we work to secure our nation's energy future.  You are all invited to tune in at 10:30AM EDT. We have a long road ahead, but we are confident the American people will answer this challenge with the same creativity, spirit, and "can do" determination we have demonstrated in the past.