API President and CEO Jack N. Gerard recently presented API’s annual State of American Energy, but this year’s report is different; for the first time it includes contributions from all major sources of energy: solar, nuclear, hydro, wind, coal, geothermal, biomass, energy efficiency, oil and natural gas.
“Since the first State of American Energy report in 2011, our nation has not only left behind decades of energy scarcity but has become a worldwide leader in energy production,” said Gerard.
The U.S. is No. 1 in natural gas production, No. 1 in petroleum refining and expected to become the No. 1 producer of crude oil as early as this year.
“During this new era, our nation has not only set production and refining records, which has created 600,000 jobs between 2009 and 2011, but it has also added significantly to global energy supply leading to reduced prices benefitting consumers,” said Gerard.
According to a Goldman Sachs economic analysis, the 60-cent drop in the price of a gallon of gas by the end of 2014 had the equivalent economic impact on the U.S. economy of a one-time tax cut of between $100 billion and $125 billion.
Another study estimates for every 1-cent drop in the retail price of gasoline for a year, American consumers save $1.2 billion.
“America’s emergence as a global energy leader has fundamentally reordered the world’s energy markets by elevating the importance of North American energy production and reducing what had been the dominant roles of OPEC and Russia,” explained Gerard. “And if we get our energy policy right, this unique American moment could support millions of well-paying jobs and expand the participation of traditionally underrepresented groups, which will be critical to fulfilling our nation’s bright energy future.
“We know for the next seven to 10 years approximately half of the industry’s current technical personnel will retire. Replacing these jobs and creating new ones presents a historic opportunity to create an oil and natural gas workforce that reflects the increasing diversity of our nation.”
Gerard said 2015 marks a time when we stand at the threshold of a sustained era of American global energy leadership.
“This unique American moment is the result primarily of American ingenuity and technological advancements in hydraulic fracturing and horizontal drilling,” he said. “We have the opportunity to permanently diminish what have been our nation’s largest economic and geo-political vulnerabilities: domestic energy scarcity and dependence on foreign countries to meet our nation’s energy needs.
“We should transcend political parties. It should not be about Republicans, Democrats or independents; it’s about all Americans benefiting from our nation’s emergence as an energy leader.”
A clear preference
According to Gerard, in recent elections voters sent a loud and clear message to elected leaders: Stop the politics of polarization and endless partisanship and work together on behalf of the American people and American economy.
“American voters have a clear preference for increased domestic energy production, specifically more U.S. oil and natural gas,” he said.
To gauge the depth of support, API commissioned an election night poll, which found 66 percent of voters said they would support candidates who back increased oil and natural gas production.
“And support for increased energy development is strong regardless of party affiliation: 55 percent of Democrats, 61 percent of independents and 82 percent of Republicans said they are more likely to vote for candidates who support expanded oil and natural gas production,” said Gerard. “As the new Congress convenes and as the president plans for his final two years in office in a changed political landscape, now is their opportunity to heed the will of the American people to, among other things, set our nation on a positive trajectory when it comes to energy.
“Fundamentally, we have a choice as a generation, as a nation and as an international community to rise to the challenge of meeting the energy needs of a growing worldwide population or to shrink from it. We call on the president, this new Congress and elected leaders in every state legislature to work with us to ensure 21st century America and future generations only know their nation as a global energy leader.”
To read Gerard’s keynote address in full, visit www.api.org, or for more information, call (202) 682-8000.
