Transcript Karen_Harbert

Institute for 21st Century Energy
U.S. Chamber of Commerce
Karen A. Harbert
President and CEO
Institute for 21st Century Energy
U.S. Chamber of Commerce
U. S.
C h a m b e r
o f
C o m m e r c e
$4.00
$3.50
$3.00
$2.50
$2.00
$3.64 $3.90 $3.95
$2.66 $3.10 $3.26
$1.50
$1.00
$1.71
$0.50
$0.00
Dec.
2008
Dec.
2009
Dec.
2010
Dec.
2011
Feb.
2012
March
2012
Gas price changes since December 2008
April
2012
U. S.
C h a m b e r
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C o m m e r c e
The New Energy Reality
Energy Security is central to our national and economic security
Demand to increase 53% by 2035
 90% in non-OECD countries
Electricity demand to increase 76%
1.6 billion people without electricity
$38 trillion of new investment by 2035 to meet
rising demand
90% world’s oil reserves owned by national oil
companies
An Inconvenient Energy Truth
U. S.
C h a m b e r
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C o m m e r c e
Global Energy Demand by Region: 2008 & 2035
200
175
Quarillion Btu
150
125
100
2035
2008
75
50
25
0
U. S.
C h a m b e r
mb/d
World oil production by source
120
o f
C o m m e r c e
Natural gas liquids
Non-conventional oil
100
Crude oil - yet to be
developed (inc. EOR)
or found
80
Crude oil - currently
producing fields
60
40
20
0
1990
2000
2010
2020
2030
64 mb/d of gross capacity needs to be installed between 2007 & 2030 – six times the current
capacity of Saudi Arabia – to meet demand growth & offset decline
Source: IEA 2008
U. S.
C h a m b e r
Future U.S. Energy Demand
US Energy Demand INCREASES 20%
EIA AEO 2012
o f
C o m m e r c e
U. S.
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C o m m e r c e
What’s happening in the U.S.?
Future of expanded oil exploration?
Impact of new natural gas finds
Nuclear Renaissance?
New coal fired power plants stalled
Prospects for renewables
People power
BANANA Syndrome
UNPREDICTABLE INVESTMENT ENVIRONMENT
U. S.
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C o m m e r c e
U. S.
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C o m m e r c e
U. S.
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C o m m e r c e
Fueling Our Economy
By 2030, U.S. oil and natural gas policy changes
could generate more than:
•1.4 million new jobs;
•$800 billion in additional government
revenue;
•and 10 million barrels worth of added daily oil
and natural gas production
(Woods MacKenzie September 7, 2011 U.S. Supply Forecast and Potential Jobs and Economic Impacts 2012-2030)
U. S.
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C o m m e r c e
Fueling Our Economy
Shale plays are on pace to create
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+200,000 jobs in OH by 2020
+115,000 jobs in PA by 2020 (140,000 existing)
+100,000 jobs in TX, LA, and MS
U. S.
$20
$16
C h a m b e r
o f
C o m m e r c e
Natural Gas Futures Prices
Source: WSJ
$ 15 .90
$/million BT Us
$ 13 .3 0
$ 14.40 $ 14.5 0
$ 11.40
$12
$8
$4
$ 2 .3 0
$0
U.S.
Eu rope M iddle I n dia A u stralia Japan
East
U. S.
C h a m b e r
o f
Keystone XL Pipeline proposal
C o m m e r c e
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C o m m e r c e
Canadian Oil Sands Benefits
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Currently supports 80,000 U.S. jobs
Could increase to 94,000 - 600,000 U.S. jobs by
2035
Keystone XL pipeline could create 20,000 US
manufacturing jobs immediately and 250,000 by
2035
The projected impact to U.S. GDP would be
between $200 billion - $800 billion;
U. S.
C h a m b e r
New Capacity Investments
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C o m m e r c e
U. S.
C h a m b e r
US Nuclear Opportunities
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C o m m e r c e
U. S.
Coal on the Rise
C h a m b e r
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C o m m e r c e
Rulemakings On The Runway!
U. S.
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C o m m e r c e
JOBS, JOBS, JOBS
Percentage Change in Employment Since January 2007
Oil and Gas Extraction vs. Total Nonfarm Payroll
40%
+35 %
30%
20%
10%
Oil and Gas Extraction
Total Nonfarm Payroll
0%
-3.2%
Source: BLS
-10%
2007
2008
2009
2010
2011
2012
U. S.
C h a m b e r
Where’s public opinion?
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C o m m e r c e
U. S.
C h a m b e r
U.S. Strategy-More Realism
o f
“NO SILVER BULLET APPROACH”
Maximize Efficiency
Increase domestic oil and gas
Recognize role for nuclear and clean coal
New alternative transportation fuels
Sustainable policy on renewables
Modernize our infrastructure
Exert authority to get beyond NOPE syndrome
Invest in our technology solutions and our intellectual
foundation for innovation
Achievable Climate Approach
C o m m e r c e
U. S.
C h a m b e r
o f
C o m m e r c e
Time to TAKE ACTION
AT RISK: America’s national security,
investment climate and competitiveness
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