Results tagged “economy”

As President Obama prepares to meet with leaders of the G-20 nations tomorrow, he should be commended for noting that climate change is a challenge for both developed and developing nations.

But his call to "phase out fossil fuel subsidies" is the wrong approach that should be seen for what it really is: a giant tax hike on American consumers.

This week's episode focuses on the recent PricewaterhouseCoopers study regarding the impact of the oil and natural gas industry on the U.S. economy. As the study shows, the industry supports 9.2 million workers and contributes more than $1 trillion to the economy. Art Wiese, API's policy analysis manager, discusses the findings with me.

The Environmental Law Institute and the Woodrow Wilson International Center for Scholars released a study today examining federal subsidies (direct subsidies, tax preferences and loan guarantees) to traditional fossil fuels and renewables.

In response, however, I would like to point out that assertions that oil and natural gas companies receive subsidies through programs like the Highway Trust Fund, the Low Income Home Energy Assistance Program and the Strategic Petroleum Reserve are ludicrous. This study is an irresponsible rendition based on a contorted recycling of government data that should never be used to craft national policy - especially a tax increase on the oil and natural gas industry that would raise energy costs and kill jobs.

Federal Reserve Chairman Ben Bernanke yesterday proclaimed that the recession appears to be ending. He based his comments in part on new data showing that consumer spending in August hit its highest level in three years.

According to the Commerce Department, consumers increased their spending by 2.7 percent last month. Although a portion of this rise was attributed to the Cash for Clunkers program, spending still rose a respectable 0.7 percent after stripping out expenditures for cars and gasoline.

A new PricewaterhouseCoopers (PwC) study released today found that the U.S. oil and natural gas industry supports more than 9 million American jobs and makes significant economic contributions as an employer and purchaser of American goods and services.

The study--"The Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy: Employment, Labor Income and Value Added"--notes that the industry's total value-added economic contribution in 2007 was more than $1 trillion, or 7.5 percent of the U.S. gross domestic product.

We all know what Astroturf is on the gridiron, but what does it mean when it's applied to a series of very successful Energy Citizens rallies?

Based on what I've seen at six of the rallies, it is a misapplied term that demeans the spirit and the passion of the people who participated. Simply put, it disses them. And those who disrespect them apparently don't understand the depth of their feelings about the misguided Waxman-Markey bill.

Three more Energy Citizens rallies were held on Thursday, Sept. 3. About 200 people attended the rally in Richmond, Virginia; 300 participated in the rally in Chester, Pennsylvania, near Philadelphia; and 750 showed up in Detroit, Michigan, which was far more than anticipated.

At each rally, the concerns voiced by the audience were the same. They said they want affordable energy and jobs, and they are encouraging the U.S. Senate to carefully consider the economic impact of the Waxman-Markey bill, which was passed by the House of Representatives in late June. As one speaker in Richmond said, the Senate should get it right.

Two more CRA International studies have been released, citing the likely economic impact of the Waxman-Markey bill. They show that the bill, if enacted, would reduce the number of jobs and lower purchasing power in both Ohio and New Mexico.

As Energy Citizens are preparing to rally in North Carolina, a new study shows that as many as 87,000 jobs could be wiped out in the state if the House-passed climate bill becomes law. The study also projects that the average North Carolina household would see its purchasing power fall by as much as $840 a year, and the state domestic product would fall by 1.6 percent. The impact on the state's economy could be devastating as tax revenues shrink, taking away much-needed funds for schools, police and fire departments, and hospitals.

As the Senate will soon debate its version of a climate change bill, last Friday, a CRA International analysis of the "American Clean Energy and Security Act"--which passed by a narrow 219-212 House vote in June--reveals the devastating impact the legislation would have on Texans.

A lot of reporters and bloggers have been jumping to conclusions about the rallies being organized in the next couple of weeks. Some have written that we're "taking a cue" from the health care opponents who've been attending town hall meetings across the country. Others are accusing us of Astroturfing. Nothing could be farther from the truth.

Here are facts. API and other groups have come together in a loose alliance called Energy Citizens to give Americans the opportunity to remind Congress that energy is the backbone of the nation's economy and way of life. As part of the effort, local individuals and organizations will be participating in "Rallies for Jobs and Affordable Energy" in 19 states during the congressional recess.

Why would the United States Congress snub its nose at our neighbors to the north? It's a very good question, and one that leaves us scratching our heads. Please allow me to explain.

Recently the U.S. Senate took up the defense appropriations bill, which gave it the opportunity to correct the flaws in Section 526 of the Energy Independence and Security Act of 2007. This act contains language that could prohibit federal agencies from procuring fuel from U.S. refiners that use Canadian oil sands-derived crude oil as their feedstock.

If you're looking for an indicator that describes the current economy, look no further than API's oil demand and supply statistics. API reported today that U.S. petroleum deliveries--a key measure of demand--in the first six months of 2009 fell to its lowest level for the time period in more than a decade.

Jimmie James has experienced life without the modern conveniences supplied by electricity. Growing up in small town in Texas, he says he and his family used wood for heat and kerosene in their lamps. "It's not something I saw on the History Channel," he says. "It was something I lived." Today he's grateful that his life, as well as the U.S. standard of living, is vastly improved due to oil and natural gas and their contributions to society. And he doesn't want to return to the past through a well-intended but ill-conceived energy policy.

"This issue affects every person on the planet," Jimmie says, adding that it is "important that all of us participate."

There's a lot of energy-related news today. I thought I would share some of the headlines with you.

Recently, oil prices have traded in the $60 a barrel range. The global price of oil has fallen sharply over the past seven trading days after reaching $73 a barrel last week. Gasoline prices have tracked oil prices for decades. Read more about gasoline and crude oil prices.

API's weekly statistical report about oil demand and supply showed that while gasoline demand rose slightly just before the July 4^th holiday as Americans prepared for holiday travel, inventories of gasoline and diesel have remained at very high levels. According to external analysts, the unusually large inventories signal that the recession still has a firm grip on the economy.

During the recent debate over the House's version of the cap-and-trade bill, both the proponents and the opponents pointed to the bill's potential impact on jobs. On the floor of the House, Speaker Nancy Pelosi implied that the bill would create millions of new "green" jobs, while the bill's opponents, including API, cited studies showing the Waxman-Markey bill would be a job killer.

Now we're seeing the first real evidence of the bill's likely impact on employment. As the Associated Press reported yesterday, the owner of a small refinery in El Dorado, Ark., believes the bill will put him out of business and force him to layoff his 600 full-time employees and another 600 contract workers who are doing construction at the plant.

When oil companies do well, who benefits? Is it solely the companies' management? Or do average investors benefit as well? Consider this question:

What percent of U.S. oil companies' stocks are owned by corporate management?

The oil and natural gas industry makes many important contributions to the U.S. economy, but specifically:

How much do oil companies pay in income taxes as a share of their income?

Looking ahead to the future, there's no doubt that we'll need more energy in the United States and around the world. Given expected global economic and population growth, time and again economists have said that energy efficiency improvements alone will not be enough to meet this future demand.

With this in mind, can you answer this question?

According to 2008 government projections, about what percent of global energy demand in 2030 will be met by fossil fuels, such as oil, natural gas and coal?