Organizing Around Abundance: Making America an Energy Superpower DRAFT 1 Table of Contents Executive Summary ............................................................................................ 3 The Problem with America’s Energy Policy: We Don’t Have One ...................... 7 Principle #1: Promote Responsible Development of Domestic Energy Resources and Construction of Infrastructure to Transport It ...................... 14 Oil and Natural Gas ..........................................................................................14 Keystone XL Pipeline—Build It Now ............................................................14 Property Rights, Federal Lands, and Resource Development ....................15 The Benefits of Increased Natural Gas Production .....................................17 Home Heating Oil ...........................................................................................18 Coal .....................................................................................................................20 Nuclear ...............................................................................................................22 Principle #2: Encourage Technological Innovation of Renewables and Emerging Energy Resources ...................................................................... 25 Principle #3: Unlock the Economic Potential of the Manufacturing Renaissance by Putting America’s Energy Resources to Work ....................... 30 Principle #4: Eliminate Burdensome Regulations ........................................... 34 Principle #5: Bolster National Security ............................................................ 37 Principle #6: Take Simple, Tangible Steps to Address the Possible Risks of Climate Change, in Concert with Other Major Economies ........................ 40 Conclusion: American Energy—The Ultimate Resource ................................ 43 Endnotes ........................................................................................................... 44 2 Executive Summary America’s Energy and could represent a mere prelude to a full-scale energy and manufacturing jobs boom. PwC reports new Growth Opportunity natural gas production opportunities could add 1 million manufacturing jobs to the U.S. economy by merican energy resources and energy 2025.4 Other studies confirm this finding, noting technologies are the envy of the world.1 the hundreds of thousands of new potential jobs We have more oil, natural gas, and coal in chemical and other industries. Overall, the resources combined than any other nation number of jobs—direct and indirect—created by Ain the world. Our technological innovations on unconventional oil and gas could nearly double over newer and alternative sources of energy from wind, the next decade.5 to solar, to biofuels are the most advanced in the world. These are not wild eyed theories, these are the Now for the tragic part, none of this is inevitable. facts. Without a smart and aggressive energy plan, we will fail to seize this opportunity. In fact, we are on the America is poised for a golden age of energy—an era road to failure right now. of energy abundance, low prices, and environmental stewardship that can be the envy of the world. America’s Current Energy has already created millions of jobs Energy Reality for the American economy. Consultants at PriceWaterhouseCoopers (PwC) report that the Despite our incredible potential, today America oil and gas industry supports over 10 million jobs suffers under a government-created energy crisis. across the economy.2 Another study found that Electricity and gasoline prices have risen, and show unconventional oil and gas—i.e., the hydraulic no signs of easing due to current federal policies. fracturing revolution—supported 2.1 million jobs in Thousands of unemployed Americans who could 2012.3 But smart energy policy can also turbocharge be working in good paying jobs remain jobless our existing economic resources to give America an because of wrongheaded polices from Washington. era of significant job and manufacturing growth. We must discard the failed policies of the Obama Administration and embrace our energy blessings. Affordable energy gives American businesses and entrepreneurs a built-in advantage compared to The Obama Administration policies are based on their peers overseas. Companies have made major radical leftist ideology which is causing America to investments in plants and equipment in the United snatch defeat from the jaws of victory. The Obama States—because the hydraulic fracturing revolution Administration would like Americans to believe in and other innovations have made energy more the inevitability of energy scarcity and ever-rising affordable for businesses located on our shores. energy prices—the same failed mindset of the With the right policies that promote abundant and Jimmy Carter Administration. Energy scarcity and affordable energy, millions of Americans can and will skyrocketing energy prices result from failed public benefit from new, quality, high-paying jobs. policy, not our unparalleled energy abundance. If we jettison the Obama Administration’s left-wing Hostile nations around the world, sitting on fewer approach, and follow the smart energy path, the energy resources than the United States, celebrate new projects created over the past several years high energy prices and take advantage of these high 3 prices to make their nations rich. Under the Obama Principle #1: Promote Administration, America neither does everything we can to increase energy production to take advantage Responsible Development of high energy prices nor actively works to bring such prices down. To the contrary, excessive restrictions of Domestic Energy on American power plants, refineries, and other Resources and American energy businesses make our mounting energy problems even worse. Construction of Infrastructure to At the same time, the Obama Administration refuses to build the Keystone XL pipeline, brags about Transport It bankrupting entire industries, and touts their desire Affordable energy is one of the most important to see consumers pay higher prices. Meanwhile, they prerequisites of a strong economy. America has pick winners and losers, and they seem to specialize more oil, natural gas, and coal than any other nation in losers, wasting our tax dollars on left-wing in the world.6 Punishing conventional energy fantasies such as Solyndra. production and conventional energy utilization will unnecessarily punish the American economy until When it comes to energy policies, the Obama the day comes when alternative energy sources Administration is full of "energy deniers" who such as wind and solar power become similarly pursue radical environmental ideology that flies in dependable and affordable. the face of the science and the facts, and they do so with religious fervor. The Obama Administration continues to limit oil and natural gas production on federal lands even America’s Energy as new technologies are enabling game-changing production increases on state and private lands. Fork in the Road Our federal government should take a leadership role in our energy renaissance, not serve as a ball We have a choice to make. and chain weighing it down. We must make more of our energy-rich federal lands available for energy • Embrace our resources and technological production. abilities and usher in an unprecedented era of energy independence and job growth. America must also take better advantage of on- demand, zero-emissions nuclear power. Nuclear OR power supplies one fifth of America’s electricity, yet the federal government is suffocating nuclear • Stay the course of the Obama power under unnecessary red tape.7 Nuclear Administration’s radical Left policies and power provides zero-emissions power much more watch these opportunities for job growth, affordably and reliably than renewable energy lower prices, and energy independence slip alternatives. Our federal government should work through our grasp. to facilitate nuclear power production rather than suppress it. A truly effective American energy policy will recognize that abundant energy resources are a In addition to encouraging domestic production, blessing, not a curse. We must strive for—and America must welcome energy resources from achieve—strong environmental stewardship while friendly nations, particularly those in North reaping the benefits of our energy blessings. We must America. After more than five years of stalling and finally have the courage to pursue our bright energy delays, the time has come to approve and build the future without resigning ourselves to self-fulfilling Keystone XL pipeline, which would create American prophecies of energy scarcity and environmental ruin. jobs while bolstering American energy supplies. 4 Principle #2: Encourage manufacturing sector is poised for a surge in prosperity and high-paying job creation once our Technological federal government begins embracing rather than suppressing new energy production techniques Innovation of Renewables and recent energy discoveries. Abundant, and Emerging Energy affordable energy is needed for America to regain its proper place at the forefront of global Resources manufacturing. Renewable energy offers substantial promise as an environmentally friendly energy source. Wind and Principle #4: Eliminate solar power are rapidly gaining market share and supporting home-grown jobs. We can encourage Burdensome Regulations continued growth for renewable energy