Tuesday, September 19, 2006

Energy policy tied to national security


At a time when consensus on national issues is often elusive, one thing is clear: Americans are concerned about national security, they’re worried about energy, and they understand the link. Depending on unstable or unfriendly foreign nations for America’s energy, “investing” in such nations with our energy dollars, depriving the U.S. economy of the jobs and other benefits that accompany these “lost dollars” – these are unacceptable risks the nation needs to deal with, and fast.
The good news is that it is within the power of Congress to diminish America’s energy-related security risks. Because the United States has abundant energy supplies of its own, because federal policies determine access to these supplies, and because most of these energy supplies have been placed off-limits, policy change in this area can make a tremendous difference for the country. Congress faces an extraordinary opportunity to strengthen the nation’s security via its energy policy.
These same policy changes can also strengthen the nation’s economy. The energy crisis is affecting every American – from consumers, farmers, and small businesses to manufacturing companies, schools and hospitals. U.S. natural gas prices have more than tripled just in the past five years, to become the highest in the world. The consequences are damaging, and predictable: millions of manufacturing jobs lost or sent overseas, where natural gas is far more affordable; households and local institutions that cannot make ends meet; reduced business investment; and inflationary pressure as higher energy costs work their way through the supply chain.
This summer, the U.S. House and Senate took action. Members heard from their constituents across the country about the damaging impact of high energy prices on their families and businesses. The two chambers demonstrated significant leadership, passing legislation to reverse 25-year-old policies denying access to new sources of American energy supply. Passage of H.R. 4761 and S. 3711 proves that Congress can and will act to address the energy crisis head-on.
But while there is a real prospect of positive change, the work is not over. America needs a law, not a bill. It is imperative that the House and Senate come to agreement and send a bill to the president before they go home for the congressional elections. Congress could be only days or weeks away from enacting legislation that is among the most important in many years. But only if the nation’s representatives and senators continue to show the leadership needed to get the job done.
An irony is that the United States is the only developed nation in the world that restricts access to our offshore energy resources. Canada, Ireland, the UK, Norway, the Netherlands, Australia and many others look to their offshore energy as part of a strategy to meet their people’s needs, enhance their security, create jobs and sustain healthy economies. Meanwhile, Cuba has signed deals with numerous other nations, including China, Venezuela, and this week, India, to explore for energy within 100 miles of U.S. shores.
Another irony is that with widespread national discussion of alternative and clean energy sources, what many fail to recognize is that we can’t get there without natural gas. We need natural gas for fertilizer to grow the corn for ethanol, for methane to create hydrogen, and to strip sulphur from diesel fuel. We are using huge amounts of natural gas for cleaner electricity generation; it’s one of the key reasons that demand and prices for natural gas have soared.
Our coalition of organizations represents millions of Americans whose livelihoods depend on affordable and reliable energy, especially natural gas. We came together to encourage Congress to increase access to new sources of American energy supply. We have come a long way, and now stand on the brink of a remarkable achievement. With the goal in sight, we urge the House and Senate to capitalize on the historic progress made to date, unite around a common cause, and enact legislation that leads to a stronger, more secure future for America.
John Engler, the former governor of Michigan, is president & CEO of the National Association of Manufacturers. Jack Gerard is president & CEO, of the American Chemistry Council. Op-ed submitted on behalf of the Consumer Alliance for Energy Security.

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