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Industrial Energy Consumers of America The Voice of the Industrial Energy Consumers
1155 15th Street NW Suite 500middot Washington DC 20005 Telephone 202-223-1420 bull Fax 202-530-0659middot wwwieca-usorg
February 232012
The Honorable Ken Salazar Secretary US Department of the Interior 1849 C Street NW Washington DC 20240
Dear Secretary Salazar
On behalf of the Industrial Energy Consumers of America (IECA) we urge you to not introduce new hydraulic fracturing related regulation on federal lands Western states with federal lands already have regulations in place that protect the environment New federal regulation is not needed and will slow natural gas and oil production just when it is needed most - impacting manufacturing jobs and competitiveness Furthermore gasoline prices are projected to reach $500 per gallon this summer Ample supplies of domestic oil will help to reduce the increases and prevent US economic growth from stalling
The Industrial Energy Consumers of America is a nonpartisan association of leading manufacturing companies with $700 billion in annual sales and with more than 650000 employees nationwide IECA membership represents a diverse set of industries including chemicals plastiCS cement paper food processing brick fertilizer steel glass industrial gases pharmaceutical aluminum and brewing
IECA member companies have good reason to be concerned In the period from 2000 to 2005 natural gas prices doubled and tripled because demand exceeded supply We remember that the Bureau of Land Managements (BLM) permitting system heavy with increased bureaucracy and inadequate staffing resulted in thousands of drilling permit backlogs Wells did not get drilled natural gas and oil did not get produced and the manufacturing sector and the economy as a whole suffered There were plenty of natural gas reserves and the federal government was directly responsible for the failure to allow producers access to the natural gas in order to produce it for us the consumer
The manufacturing sector lost 30 million jobs from 2000 to 2005 and a great number of these jobs were directly related to the high price of natural gas Thousands of chemical plastiCS fertilizer steel paper glass and aluminum manufacturing plants shut down We cannot and should not let this happen again
In a recent interview you have commented that rules to be proposed by the Department of the Interior will focus on 1I0ne disclosure two well bore integrity and three what happens with respect to flowback water Mr Secretary states especially states with federal lands have done an exceptional job in all three of these areas It is also important to mention that federal
Page 2 Industrial Energy Consumers of America
law already covers water quality and wastewater disposal issues At minimum we urge you to consult with the States and their regulatory agencies with federal lands before advancing new hydraulic fracturing-related regulations
For example Department of the Interior regulations similar to those that exist under the EPAs Underground Injection Control (UIC) Program would be inappropriate given that the UIC rules are designed to keep injected waste in the ground rather than to allow safe oil and gas extraction The result would be unnecessary delays of gas and oil production The draft rules would require filing a hydraulic fracturing fluid disclosure for each well no less than 30 days in advance of operations Once the disclosure form is submitted no changes can be made to the stimulation fluid makeup without resubmittal and the start of a new clock
Clearly these rules would slow down the production of the gas and oil that we need for economic growth Federal revenues from such production would slow as would revenue to the States themselves There are no winners - only losers
As significant consumers of natural gas we support disclosure of fluids used in the hydraulic fracturing process We have reviewed the Groundwater Protection Council and Interstate Oil and Gas Compact Commission national online registry FracFocus (httpfracfocusorg) and believe it to be a superb example of what is needed and demanded by consumers We recommend that the Department of Interior implement FracFocus as the vehicle for monitoring and protecting health and the environment
Since 2000 the manufacturing sector has lost 55 million jobs For the first time in two decades we have the potential for a manufacturing renaissance because of low natural gas prices Low natural gas prices provide a strategic advantage over our non-US competitors and companies are beginning to invest in the US We urge you to not impose regulations that are unnecessary - the consequences are too great
Sincerely
Paul N Cicio President
cc The Honorable Jeff Bingaman The Honorable Lisa Murkowski The Honorable Doc Hastings The Honorable Edward Markey The Honorable Fred Upton The Honorable Henry Waxman
PRESS RELEASE FOR IMMEDIATE RELEASE CONTACT Marnie Satterfield February 23 2012 (202) 223middot1420
msatterfieldieca-usorg
IECA Urges Secretary Salazar to Not Regulate Hydraulic Fracturing on Federal lands
In a letter today to the Secretary of the Interior Ken Salazar Industrial Energy Consumers of America (lECA) raised deep concern over their efforts to introduce new hydraulic fracturing related regulation on federal lands Western states with federal lands already have regulations in place that protect the environment New federal regulation is not needed and will slow natural gas and oil production just when it is needed most - impacting manufacturing jobs and competitiveness
IECA member companies have good reason to be concerned In the period from 2000 to 2005 natural gas prices doubled and tripled because demand exceeded supply We remember that the Bureau of land Managements (BlM) permitting system heavy with increased bureaucracy and inadequate staffing resulted in thousands of drilling permit backlogs Wells did not get drilled natural gas and oil did not get produced and the manufacturing sector and the economy as a whole suffered There were plenty of natural gas reserves to be produced and the federal government was directly responsible for the failure to allow producers access to the natural gas in order to produce it for us the consumer
Since 2000 the manufacturing sector has lost 55 million jobs For the first time in two decades we have the potential for a manufacturing renaissance because of low natural gas prices low natural gas prices provide a strategic advantage over our non-US competitors and companies are beginning to invest in the US We urge Secretary Salazar to not impose regulations that are unnecessary - the consequences are too great
The Industrial Energy Consumers ofAmerica is a nonpartisan association of leading manufacturing companies with $700 billion in annual sales and with more than 650000 employees nationwide It is an organization created to promote the interests of manufacturing companies through research advocacy and collaboration for which the availability use and cost of energy power or feedstock playa significant role in their ability to compete in domestic and world markets IECA membership represents a diverse set
of industries including plastics cement paper food processing brick chemicals fertilizer insulation steel glass industrial gases pharmaceutical aluminum and brewing
Un-necessary Hydraulic Fracturing Regulations
Jeopardizes Manufacturing Jobs and Competitiveness
April 2012
Paul N Cicio President
Industrial Energy Consumers of America
1
Industrial Energy Consumers of America
The Industrial Energy Consumers ofAmerica is an association of leading non-partisan manufacturing companies with $700
billion in annual sales and with more than 750000 employees nationwide
It is an organization created to promote the interests of manufacturing companies for which the availability use and cost of energy power or feedstock~ playa significant role in their ability to compete in domestic and world marlltets
IECA membership represents a diverse set of industries including steel aluminum commodity and specialty chemicals fertilizer paper food processing glass plastics pharmaceutical
2
Hydraulic Fracturing Disclosure BLM Rule Making
bull Un-necessary regulating because you can not because it is needed
bull Costly bull Will slow permitting drilling and
production
bull Creates regulatory uncertainty
bull Redundant reporting
4
8lM APD Approvals
8000 -----------------shy
7000
6000
en ~ 5000 +---------~F__----~-- -Colorado 0( ~ Utah o 4000 +--------~------------~ ~ -Wyoming ~ E 3000 +-------I---=----~--____T- - - TOTAL = z
-t-------------a~IIoE_--_T_-
+---------~---~~--
2000 +--------l~-------~----
Year
350
330
-+-I 310ltIJ QJ ~ ~ ~
Q 29 0= U r 0 ~ 270
~--~
250
230
Potential Natural Gas Consumption
Potential Increases in Demand In 2020 (TcO 1 Nine Waterborne Export Facilities 450
2 EPA Utility Regulations - Coal to Gas 200
3 Natural Gas Vehicle Demand 127
4 Expanded Pipeline Exports to Mexico 002
Growth Rate 2000-2010 19 2010-2020 4deg1
EIA Forecast
Total US Natural Gas Consumption
~~~~~~~~~~~~~~~~~~~~~
Sources 1 Waterborne Exports DOE 2 EPA Utility Regulation - Coal to Gas NERA 1012 3 Natural Gas Vehicle Coalition 31312 4 Expanded Pipeline Exports to Mexico Reuters 22712
210
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Page 2 Industrial Energy Consumers of America
law already covers water quality and wastewater disposal issues At minimum we urge you to consult with the States and their regulatory agencies with federal lands before advancing new hydraulic fracturing-related regulations
For example Department of the Interior regulations similar to those that exist under the EPAs Underground Injection Control (UIC) Program would be inappropriate given that the UIC rules are designed to keep injected waste in the ground rather than to allow safe oil and gas extraction The result would be unnecessary delays of gas and oil production The draft rules would require filing a hydraulic fracturing fluid disclosure for each well no less than 30 days in advance of operations Once the disclosure form is submitted no changes can be made to the stimulation fluid makeup without resubmittal and the start of a new clock
Clearly these rules would slow down the production of the gas and oil that we need for economic growth Federal revenues from such production would slow as would revenue to the States themselves There are no winners - only losers
As significant consumers of natural gas we support disclosure of fluids used in the hydraulic fracturing process We have reviewed the Groundwater Protection Council and Interstate Oil and Gas Compact Commission national online registry FracFocus (httpfracfocusorg) and believe it to be a superb example of what is needed and demanded by consumers We recommend that the Department of Interior implement FracFocus as the vehicle for monitoring and protecting health and the environment
Since 2000 the manufacturing sector has lost 55 million jobs For the first time in two decades we have the potential for a manufacturing renaissance because of low natural gas prices Low natural gas prices provide a strategic advantage over our non-US competitors and companies are beginning to invest in the US We urge you to not impose regulations that are unnecessary - the consequences are too great
Sincerely
Paul N Cicio President
cc The Honorable Jeff Bingaman The Honorable Lisa Murkowski The Honorable Doc Hastings The Honorable Edward Markey The Honorable Fred Upton The Honorable Henry Waxman
PRESS RELEASE FOR IMMEDIATE RELEASE CONTACT Marnie Satterfield February 23 2012 (202) 223middot1420
msatterfieldieca-usorg
IECA Urges Secretary Salazar to Not Regulate Hydraulic Fracturing on Federal lands
In a letter today to the Secretary of the Interior Ken Salazar Industrial Energy Consumers of America (lECA) raised deep concern over their efforts to introduce new hydraulic fracturing related regulation on federal lands Western states with federal lands already have regulations in place that protect the environment New federal regulation is not needed and will slow natural gas and oil production just when it is needed most - impacting manufacturing jobs and competitiveness
IECA member companies have good reason to be concerned In the period from 2000 to 2005 natural gas prices doubled and tripled because demand exceeded supply We remember that the Bureau of land Managements (BlM) permitting system heavy with increased bureaucracy and inadequate staffing resulted in thousands of drilling permit backlogs Wells did not get drilled natural gas and oil did not get produced and the manufacturing sector and the economy as a whole suffered There were plenty of natural gas reserves to be produced and the federal government was directly responsible for the failure to allow producers access to the natural gas in order to produce it for us the consumer
Since 2000 the manufacturing sector has lost 55 million jobs For the first time in two decades we have the potential for a manufacturing renaissance because of low natural gas prices low natural gas prices provide a strategic advantage over our non-US competitors and companies are beginning to invest in the US We urge Secretary Salazar to not impose regulations that are unnecessary - the consequences are too great
The Industrial Energy Consumers ofAmerica is a nonpartisan association of leading manufacturing companies with $700 billion in annual sales and with more than 650000 employees nationwide It is an organization created to promote the interests of manufacturing companies through research advocacy and collaboration for which the availability use and cost of energy power or feedstock playa significant role in their ability to compete in domestic and world markets IECA membership represents a diverse set
of industries including plastics cement paper food processing brick chemicals fertilizer insulation steel glass industrial gases pharmaceutical aluminum and brewing
Un-necessary Hydraulic Fracturing Regulations
Jeopardizes Manufacturing Jobs and Competitiveness
April 2012
Paul N Cicio President
Industrial Energy Consumers of America
1
Industrial Energy Consumers of America
The Industrial Energy Consumers ofAmerica is an association of leading non-partisan manufacturing companies with $700
billion in annual sales and with more than 750000 employees nationwide
It is an organization created to promote the interests of manufacturing companies for which the availability use and cost of energy power or feedstock~ playa significant role in their ability to compete in domestic and world marlltets
IECA membership represents a diverse set of industries including steel aluminum commodity and specialty chemicals fertilizer paper food processing glass plastics pharmaceutical
2
Hydraulic Fracturing Disclosure BLM Rule Making
bull Un-necessary regulating because you can not because it is needed
bull Costly bull Will slow permitting drilling and
production
bull Creates regulatory uncertainty
bull Redundant reporting
4
8lM APD Approvals
8000 -----------------shy
7000
6000
en ~ 5000 +---------~F__----~-- -Colorado 0( ~ Utah o 4000 +--------~------------~ ~ -Wyoming ~ E 3000 +-------I---=----~--____T- - - TOTAL = z
-t-------------a~IIoE_--_T_-
+---------~---~~--
2000 +--------l~-------~----
Year
350
330
-+-I 310ltIJ QJ ~ ~ ~
Q 29 0= U r 0 ~ 270
~--~
250
230
Potential Natural Gas Consumption
Potential Increases in Demand In 2020 (TcO 1 Nine Waterborne Export Facilities 450
2 EPA Utility Regulations - Coal to Gas 200
3 Natural Gas Vehicle Demand 127
4 Expanded Pipeline Exports to Mexico 002
Growth Rate 2000-2010 19 2010-2020 4deg1
EIA Forecast
Total US Natural Gas Consumption
~~~~~~~~~~~~~~~~~~~~~
Sources 1 Waterborne Exports DOE 2 EPA Utility Regulation - Coal to Gas NERA 1012 3 Natural Gas Vehicle Coalition 31312 4 Expanded Pipeline Exports to Mexico Reuters 22712
210
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
PRESS RELEASE FOR IMMEDIATE RELEASE CONTACT Marnie Satterfield February 23 2012 (202) 223middot1420
msatterfieldieca-usorg
IECA Urges Secretary Salazar to Not Regulate Hydraulic Fracturing on Federal lands
In a letter today to the Secretary of the Interior Ken Salazar Industrial Energy Consumers of America (lECA) raised deep concern over their efforts to introduce new hydraulic fracturing related regulation on federal lands Western states with federal lands already have regulations in place that protect the environment New federal regulation is not needed and will slow natural gas and oil production just when it is needed most - impacting manufacturing jobs and competitiveness
IECA member companies have good reason to be concerned In the period from 2000 to 2005 natural gas prices doubled and tripled because demand exceeded supply We remember that the Bureau of land Managements (BlM) permitting system heavy with increased bureaucracy and inadequate staffing resulted in thousands of drilling permit backlogs Wells did not get drilled natural gas and oil did not get produced and the manufacturing sector and the economy as a whole suffered There were plenty of natural gas reserves to be produced and the federal government was directly responsible for the failure to allow producers access to the natural gas in order to produce it for us the consumer
Since 2000 the manufacturing sector has lost 55 million jobs For the first time in two decades we have the potential for a manufacturing renaissance because of low natural gas prices low natural gas prices provide a strategic advantage over our non-US competitors and companies are beginning to invest in the US We urge Secretary Salazar to not impose regulations that are unnecessary - the consequences are too great
The Industrial Energy Consumers ofAmerica is a nonpartisan association of leading manufacturing companies with $700 billion in annual sales and with more than 650000 employees nationwide It is an organization created to promote the interests of manufacturing companies through research advocacy and collaboration for which the availability use and cost of energy power or feedstock playa significant role in their ability to compete in domestic and world markets IECA membership represents a diverse set
of industries including plastics cement paper food processing brick chemicals fertilizer insulation steel glass industrial gases pharmaceutical aluminum and brewing
Un-necessary Hydraulic Fracturing Regulations
Jeopardizes Manufacturing Jobs and Competitiveness
April 2012
Paul N Cicio President
Industrial Energy Consumers of America
1
Industrial Energy Consumers of America
The Industrial Energy Consumers ofAmerica is an association of leading non-partisan manufacturing companies with $700
billion in annual sales and with more than 750000 employees nationwide
It is an organization created to promote the interests of manufacturing companies for which the availability use and cost of energy power or feedstock~ playa significant role in their ability to compete in domestic and world marlltets
IECA membership represents a diverse set of industries including steel aluminum commodity and specialty chemicals fertilizer paper food processing glass plastics pharmaceutical
2
Hydraulic Fracturing Disclosure BLM Rule Making
bull Un-necessary regulating because you can not because it is needed
bull Costly bull Will slow permitting drilling and
production
bull Creates regulatory uncertainty
bull Redundant reporting
4
8lM APD Approvals
8000 -----------------shy
7000
6000
en ~ 5000 +---------~F__----~-- -Colorado 0( ~ Utah o 4000 +--------~------------~ ~ -Wyoming ~ E 3000 +-------I---=----~--____T- - - TOTAL = z
-t-------------a~IIoE_--_T_-
+---------~---~~--
2000 +--------l~-------~----
Year
350
330
-+-I 310ltIJ QJ ~ ~ ~
Q 29 0= U r 0 ~ 270
~--~
250
230
Potential Natural Gas Consumption
Potential Increases in Demand In 2020 (TcO 1 Nine Waterborne Export Facilities 450
2 EPA Utility Regulations - Coal to Gas 200
3 Natural Gas Vehicle Demand 127
4 Expanded Pipeline Exports to Mexico 002
Growth Rate 2000-2010 19 2010-2020 4deg1
EIA Forecast
Total US Natural Gas Consumption
~~~~~~~~~~~~~~~~~~~~~
Sources 1 Waterborne Exports DOE 2 EPA Utility Regulation - Coal to Gas NERA 1012 3 Natural Gas Vehicle Coalition 31312 4 Expanded Pipeline Exports to Mexico Reuters 22712
210
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Un-necessary Hydraulic Fracturing Regulations
Jeopardizes Manufacturing Jobs and Competitiveness
April 2012
Paul N Cicio President
Industrial Energy Consumers of America
1
Industrial Energy Consumers of America
The Industrial Energy Consumers ofAmerica is an association of leading non-partisan manufacturing companies with $700
billion in annual sales and with more than 750000 employees nationwide
It is an organization created to promote the interests of manufacturing companies for which the availability use and cost of energy power or feedstock~ playa significant role in their ability to compete in domestic and world marlltets
IECA membership represents a diverse set of industries including steel aluminum commodity and specialty chemicals fertilizer paper food processing glass plastics pharmaceutical
2
Hydraulic Fracturing Disclosure BLM Rule Making
bull Un-necessary regulating because you can not because it is needed
bull Costly bull Will slow permitting drilling and
production
bull Creates regulatory uncertainty
bull Redundant reporting
4
8lM APD Approvals
8000 -----------------shy
7000
6000
en ~ 5000 +---------~F__----~-- -Colorado 0( ~ Utah o 4000 +--------~------------~ ~ -Wyoming ~ E 3000 +-------I---=----~--____T- - - TOTAL = z
-t-------------a~IIoE_--_T_-
+---------~---~~--
2000 +--------l~-------~----
Year
350
330
-+-I 310ltIJ QJ ~ ~ ~
Q 29 0= U r 0 ~ 270
~--~
250
230
Potential Natural Gas Consumption
Potential Increases in Demand In 2020 (TcO 1 Nine Waterborne Export Facilities 450
2 EPA Utility Regulations - Coal to Gas 200
3 Natural Gas Vehicle Demand 127
4 Expanded Pipeline Exports to Mexico 002
Growth Rate 2000-2010 19 2010-2020 4deg1
EIA Forecast
Total US Natural Gas Consumption
~~~~~~~~~~~~~~~~~~~~~
Sources 1 Waterborne Exports DOE 2 EPA Utility Regulation - Coal to Gas NERA 1012 3 Natural Gas Vehicle Coalition 31312 4 Expanded Pipeline Exports to Mexico Reuters 22712
210
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Industrial Energy Consumers of America
The Industrial Energy Consumers ofAmerica is an association of leading non-partisan manufacturing companies with $700
billion in annual sales and with more than 750000 employees nationwide
It is an organization created to promote the interests of manufacturing companies for which the availability use and cost of energy power or feedstock~ playa significant role in their ability to compete in domestic and world marlltets
IECA membership represents a diverse set of industries including steel aluminum commodity and specialty chemicals fertilizer paper food processing glass plastics pharmaceutical
2
Hydraulic Fracturing Disclosure BLM Rule Making
bull Un-necessary regulating because you can not because it is needed
bull Costly bull Will slow permitting drilling and
production
bull Creates regulatory uncertainty
bull Redundant reporting
4
8lM APD Approvals
8000 -----------------shy
7000
6000
en ~ 5000 +---------~F__----~-- -Colorado 0( ~ Utah o 4000 +--------~------------~ ~ -Wyoming ~ E 3000 +-------I---=----~--____T- - - TOTAL = z
-t-------------a~IIoE_--_T_-
+---------~---~~--
2000 +--------l~-------~----
Year
350
330
-+-I 310ltIJ QJ ~ ~ ~
Q 29 0= U r 0 ~ 270
~--~
250
230
Potential Natural Gas Consumption
Potential Increases in Demand In 2020 (TcO 1 Nine Waterborne Export Facilities 450
2 EPA Utility Regulations - Coal to Gas 200
3 Natural Gas Vehicle Demand 127
4 Expanded Pipeline Exports to Mexico 002
Growth Rate 2000-2010 19 2010-2020 4deg1
EIA Forecast
Total US Natural Gas Consumption
~~~~~~~~~~~~~~~~~~~~~
Sources 1 Waterborne Exports DOE 2 EPA Utility Regulation - Coal to Gas NERA 1012 3 Natural Gas Vehicle Coalition 31312 4 Expanded Pipeline Exports to Mexico Reuters 22712
210
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Hydraulic Fracturing Disclosure BLM Rule Making
bull Un-necessary regulating because you can not because it is needed
bull Costly bull Will slow permitting drilling and
production
bull Creates regulatory uncertainty
bull Redundant reporting
4
8lM APD Approvals
8000 -----------------shy
7000
6000
en ~ 5000 +---------~F__----~-- -Colorado 0( ~ Utah o 4000 +--------~------------~ ~ -Wyoming ~ E 3000 +-------I---=----~--____T- - - TOTAL = z
-t-------------a~IIoE_--_T_-
+---------~---~~--
2000 +--------l~-------~----
Year
350
330
-+-I 310ltIJ QJ ~ ~ ~
Q 29 0= U r 0 ~ 270
~--~
250
230
Potential Natural Gas Consumption
Potential Increases in Demand In 2020 (TcO 1 Nine Waterborne Export Facilities 450
2 EPA Utility Regulations - Coal to Gas 200
3 Natural Gas Vehicle Demand 127
4 Expanded Pipeline Exports to Mexico 002
Growth Rate 2000-2010 19 2010-2020 4deg1
EIA Forecast
Total US Natural Gas Consumption
~~~~~~~~~~~~~~~~~~~~~
Sources 1 Waterborne Exports DOE 2 EPA Utility Regulation - Coal to Gas NERA 1012 3 Natural Gas Vehicle Coalition 31312 4 Expanded Pipeline Exports to Mexico Reuters 22712
210
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
8lM APD Approvals
8000 -----------------shy
7000
6000
en ~ 5000 +---------~F__----~-- -Colorado 0( ~ Utah o 4000 +--------~------------~ ~ -Wyoming ~ E 3000 +-------I---=----~--____T- - - TOTAL = z
-t-------------a~IIoE_--_T_-
+---------~---~~--
2000 +--------l~-------~----
Year
350
330
-+-I 310ltIJ QJ ~ ~ ~
Q 29 0= U r 0 ~ 270
~--~
250
230
Potential Natural Gas Consumption
Potential Increases in Demand In 2020 (TcO 1 Nine Waterborne Export Facilities 450
2 EPA Utility Regulations - Coal to Gas 200
3 Natural Gas Vehicle Demand 127
4 Expanded Pipeline Exports to Mexico 002
Growth Rate 2000-2010 19 2010-2020 4deg1
EIA Forecast
Total US Natural Gas Consumption
~~~~~~~~~~~~~~~~~~~~~
Sources 1 Waterborne Exports DOE 2 EPA Utility Regulation - Coal to Gas NERA 1012 3 Natural Gas Vehicle Coalition 31312 4 Expanded Pipeline Exports to Mexico Reuters 22712
210
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
350
330
-+-I 310ltIJ QJ ~ ~ ~
Q 29 0= U r 0 ~ 270
~--~
250
230
Potential Natural Gas Consumption
Potential Increases in Demand In 2020 (TcO 1 Nine Waterborne Export Facilities 450
2 EPA Utility Regulations - Coal to Gas 200
3 Natural Gas Vehicle Demand 127
4 Expanded Pipeline Exports to Mexico 002
Growth Rate 2000-2010 19 2010-2020 4deg1
EIA Forecast
Total US Natural Gas Consumption
~~~~~~~~~~~~~~~~~~~~~
Sources 1 Waterborne Exports DOE 2 EPA Utility Regulation - Coal to Gas NERA 1012 3 Natural Gas Vehicle Coalition 31312 4 Expanded Pipeline Exports to Mexico Reuters 22712
210
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
There is a direct relationship between US energy prices and energy
intensive manufacturing competitiveness and jobs
2
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Lets Not Repeat History Natural Gas Prices Increased 210 from 1999 to 2008 (23yr)
Driven by production constraints
10 18000 Manufacturing Employment
~9 ~ ~ ~ 8
tI 0-4
rJJJ
7~ = ~ u ~t1 6 ~ = rJJ rtS rtS rJJ
_ 0~ = 5 rtS~ ~ E-I 4= ~ ~ ~ z ~ 3
-~ 2 rtS
--0
1
-0
0
1999 2000 2001 2002 2003200420052006200720082009 2010 2011
Source EIA Bureau of Labor Statistics
17000
~ 16000
~
8 --~
15000 sect 8 r t o =
14000 =~ rJJ tj
~ S 13000 ~~
--0
S12000 ~
11= 11000
10000
28
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
us Total 55 Million Manufacturing Jobs (32) Lost 54905 Facilities Lost (Since 2001)
18000
17000
16000rJj
0
~ = rJj 15000
0= = ~ 14000
-4= rJj
Q 130000 ~
12000
11000 I ----
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source Bureau of Labor Statistics
An Average Loss of 500000 per Year
JODscreafea in 20102011 shy 418000
28
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Loss of Manufacturing Competitiveness Resulted in About 86 Million Job Losses
+ --
Source NAM based on 2009 data
29
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Loss of Competitiveness Accelerated Imports by 51 (2000-2011)
Exports Imports
1700
1500
secttrI
1)00 ~ l=1 1100
1iIlshy
900
Loss of competitiveness accelerated imDorts
700
500
~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Source Department of Commerce
300
30
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Manufacturings Multiplier Effect Indirect Economic Activity Generated by $1 of Sector GDP
Manufacturing
Agriculture Forestry Fishing and Hunting
Construction
Transportation and Warehousing
Information
Arts Entertainment Recreation Accomodation and Food Services
Mining
Government
Other Services Except Government
Educational Services Health Care and Social Assistance
Finance Insurance Real Estate Rental and Leasing
Wholesale Trading
Retail Trade
Professional and Business Services
Utilities
I J 1 I I $tmiddot35
1 0middot97
$120
$Pmiddot95
$08~
~ $084
$082
$( middot74
$067
1 $066
$063
$058
$Pmiddot55
1 J
I I
$Pmiddot55
$0p2
Source Bureau of Economic Analysis 2010 Annual Input-Output Tables 15
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
_ U) -c c 0 E (I) c c gt-0 C)~-- (1)-2c C) w -shy_V)
_ 0 - shy U)
J -c c-
rIj
ra OIJ (
ra ~
= ra = bull
rJjbull ~ ~ 0
~ 0 rf
bull
~ ~
-J ~
~ -J ~
I ~ bull
rJjbull ~ ~ 0
~ 0 rf
bull
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
-c c 0 E (1)0Co
C-I U) -
0 2 Cgt~
()- )0shy~
J 0 Z
2 N N
2 0 rt
2 ~ rt
VJ rtI
Cj -4 rtI ~ J ~ jJ
rtI ~
iU
Z ~ 0
r1
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Operating in the US is 20 more expensive as compared to our major trading partners
bull Japan bull Mexico
bull Germany bull China
bull UI( bull Taiwan
bull Canada
bull I(orea
16
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Energy Price Sensitive Products are Essential for Economic Growth
Building Blocllt Industries
o o
Chemicals Plastics Fertilizer Glass ceramics Steel Aluminum Pulp and Paper Cement Food Processing
Convert to
Commercial amp Consumer Products
o Food Production o Defense industries o Automobiles o Consumer goods o Construction o Medical Supplies o Energy Production o Appliances o Household products o Telecommunication
23
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Examples of Energy Intensity (Small Energy Price Increases Have Large Competitive Impacts)
II Aluminum 30-35 II Recycled steel 25 II Integrated steel 85 energy and raw materials II Plastics 80 (feedstocllt) II Chemicals varies greatly 15-20 (fuel only) II Paper 10-20 II Glass 20-25 II Fertilizer 80 (feedstocllt) II Food processing 30 II Cement 25-35 II Refining 15-20 (fuel only)
20
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Energy Intensive Products are Essential to Economic Growth
III The aerospacedefense industry uses steel aluminum plastics and chemicals
III The air transport industry uses steel aluminum plastics and chemicals III The auto and truck industries use steel aluminum plastics chemicals III The beverage industry uses aluminum steel paper glass and plastic III The biotechnology industry uses chemicals III The commercial and home building construction industry uses brick
steel aluminum wood cement and glass III The oil and gas industry uses steel chemicals cement III The chemical industry uses chemicals steel cement and glass III The computer industry uses plastics chemicals and glass III The electrical equipment industry uses steel III The electric and gas utility sector uses steel and cement III The food industry uses fertilizer chemicals plastics and paper
24
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
Energy Intensive Products are Essential to Economic Growth
II The heavy construction industry uses steel and rubber II The home furnishing industry uses wood glass chemicals II The home appliance industry uses steel aluminum glass and wood II The household products industry uses chemicals plastic paper
glass II The machinery industry uses steel chemicals and plastics II The maritime industry uses steel II The packaging industry uses plastics paper aluminum and steel II The paper forest products industry uses steel and chemicals II The refining industry uses steel chemicals and cement II The pharmaceutical industry uses chemicals glass and steel II Railroads use steel II The toiletriescosmetics industry uses chemicals plastics paper
and glass 25
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