Statement

ACC: Inaugural Hearing of Congressional Natural Gas Caucus Raises Important U.S. Competitiveness Issues

Reliability, Affordability of Domestic Natural Gas Supply Must Remain a Priority

ARLINGTON, VA (October 21, 2009) — This morning the newly–formed Congressional Natural Gas Caucus is holding its inaugural hearing on the “State of U.S. Natural Gas Today.”  The Caucus is led by U.S. Representatives Dan Boren (D–OK) and Tim Murphy (R–PA).

American Chemistry Council (ACC) President and CEO Cal Dooley issued the following statement:

“We support the bipartisan efforts of Representatives Boren and Murphy to educate their colleagues on the benefits of natural gas and the need for its continued domestic exploration and production.  The chemistry industry has an important point of view as the largest industrial consumer of natural gas – using it both for fuel and as a vital raw material for manufacturing.  Chemistry touches 96 percent of U.S. manufactured goods, including a wide variety of energy–saving and renewable energy products and processes.  Without chemistry – and natural gas – we would not have solar panels, wind turbines, building insulation, lightweight vehicle parts, compact fluorescent light bulbs, or energy–efficient appliances, among others.

“We believe recent news of natural gas supply discoveries, largely from unconventional sources such as shale gas, is positive for the U.S. manufacturing sector.  ACC has long supported efforts to increase U.S. natural gas supplies so that prices can be globally competitive.  However, we urge Congress to balance calls to legislate greater natural gas demand with steps that will create a long–term, sustainable, affordable, adequate, and accessible supply of natural gas. 

“For the nearly 850,000 Americans employed in the chemistry industry, it is critical that there be an available, reliable, and affordable supply of natural gas to maintain the global competitiveness of U.S. manufacturing.  Chemistry companies make decisions on where to invest in future production largely based on confidence in long–term U.S. energy and feedstock supplies.  The outlook for our domestic natural gas market is crucial.  The five natural gas price spikes in the natural gas market since 1997 were caused by large gaps between price and production increases.  More than 120,000 U.S. chemistry jobs were lost – many to nations with lower natural gas prices.  While natural gas prices have since dropped, the assessment of many economists is that the change is largely recession-related industrial ‘demand destruction.’  

“We hope that as the Natural Gas Caucus explores the state of domestic natural gas, both supply and demand issues will be discussed and the specific concerns of the U.S. manufacturing base will be addressed.  American chemistry holds many of today’s ‘green jobs,’ making products used for energy efficiency and renewable energy.  We can help create the lower carbon economy of the future – the products of chemistry save fuel, reduce greenhouse gas emissions, and drive innovation in renewable energy like solar and wind.  But to do so, Congress must enact policies that will enable us to compete in the global marketplace, invest in higher efficiency plants and equipment, and retain and grow our highly trained and productive workforce.  The availability of a stable, affordable, and diverse supply of natural gas will help achieve these goals.” 

Learn more about energy.