US Chamber of Commerce Blog
To the 45th President of the United States
From: Steve Case
Welcome [back] to Washington! As you move into 1600 Pennsylvania Avenue and go to work on your agenda, I want to remind you that 250 years ago America itself was a startup. It was just an idea. And now we’re the leader of the free world ― in large part because we have the leading economy.dear45-logo.jpg That didn’t happen by accident. It was entrepreneurs who led the way in the agricultural revolution. It was entrepreneurs who led the industrial revolution. More recently, entrepreneurs led the technology revolution. That’s why we are home to the largest, most innovative economy in the world.
Today, we’re at the dawn of a new economic order ― what I call the Internet's Third Wave. I’m convinced that people don’t realize how fast the tectonic plates of our economy are about to shift. Because of significant advances in technology and the ubiquity of the “Internet Of Everything," entrepreneurs now have the tools to transform major sectors of the economy and in the process change the way we live our lives. That means innovating in health, education, financial services, energy, transportation and food. It means that some of America’s oldest corporations may get toppled. And it means changing how we think about work itself, as more people opt (or need) to embrace flexible schedules possible in the freelance economy.
In order to create the conditions for companies, workers and the country to continue to lead in this Third Wave, we need to adopt a new playbook. For the next president, that means fixing our broken immigration system so we win the battle to attract and retain talented innovators from across the globe; reforming securities laws to increase access to capital so everyone has the opportunity to put their idea into practice; and modernizing the social safety net to reflect the “uberization” of more jobs. And it means we need to have an open, constructive dialogue between government and innovators so we balance the need to enable companies to grow while putting in common-sense regulations that reflect this new economic order.
The First Wave was about building the Internet itself ― and government played a key role. Companies like AOL, Cisco and AT&T helped to lay the foundation for the online world. The Second Wave was about building apps and mobile capabilities on top of the Internet ― companies like Google, Facebook, Twitter and Waze led the way. I’m optimistic about the future of our country and the future of entrepreneurship as we enter the Third Wave ― especially if we make important decisions today that ensure a strong startup culture in the years ahead.
I’m looking forward to working with you on these important issues.
Chairman of Revolution and The Case Foundation
Without energy, almost nothing in your home works. Not your air conditioner, your lights, your computer, your phone, your refrigerator. Not even your car. Nothing.
No business can run without energy either. It is as vital as other economic inputs, such as labor and raw materials. When energy is more affordable, a business can invest in other parts of the business. But when energy becomes less affordable – because of market forces or regulations that restrict production – businesses can’t hire more workers, pay employees more, invest in better equipment, or grow the business.
Over the past few years, we’ve been blessed with an American energy renaissance. Both oil and natural gas production have skyrocketed. Energy imports have declined and the United States is now exporting energy to hungry global markets. This abundance has attracted manufacturing and investment to the United States.eia_electricity_generation_2016.png Energy Information Administration chart on electricity generation sources for 2016.
One of America’s greatest strengths is its diverse portfolio of energy resources. In 2016, natural gas is forecasted to provide 33% of electricity, coal 32%, nuclear 19%, renewables 8%, and hydropower 6%. That kind of diversity helps our economy withstand the ups and downs of markets, and ensures that we aren’t overly reliant on one particular resource.
There are loud voices who claim that America is on the wrong track and who seek to limit the varieties of energy we have available. They’re misguided and wrong.But wait: Why is there a war on American energy?
Instead of embracing all kinds of energy production wherever it makes economic sense and with appropriate environmental protections, energy opponents want government to pick energy winners and losers. They wish we abandoned fossil fuels, “keep it in the ground,” and blindly hope that renewable energy can somehow supply our needs. But that’s simply impossible with an economy and lifestyle that is dependent upon always-available, 24/7 energy.
Listen to the The Business Impact podcast on the value of energy diversity.
President Barack Obama’s administration is doing plenty to help this ill-devised attack on our modern way of life. With oil and natural gas, the Administration has blocked development off the Atlantic Coast, made it nearly impossible to access our resources in the Arctic Ocean, and issued unnecessary regulations to burden onshore federal lands.
The Administration has in particular waged a ruthless “War on Coal.” EPA has launched a series of regulatory attacks on coal-fired power plants – the biggest being EPA’s Clean Power Plan. Through an expansive suite of regulations, the president is doing all he can to make coal (and coal-related jobs) a thing of the past.Then what’s the argument for more energy development?
First, we get more oil, natural gas, and coal to power our economy.
We’ve seen the benefits from domestic oil and natural gas development—both on and offshore. Because of advanced extraction methods (like fracking), the United States has increased total energy production for six-straight years, despite a 10% decrease in coal production.
With increased domestic oil and natural gas production, U.S. energy security has improved for three years straight, according to the Institute of 21st Century Energy’s Index of U.S. Energy Security Risk, and oil prices have fallen from $110 a barrel in 2014 to under $50 a barrel in 2016. As a result, households have saved $747.30 per year on energy costs between 2008 and 2014.u-s-oil-production-2008-2015.png U.S. oil production: 2008-2015
Second, there are the jobs created through energy production. According to the American Petroleum Institute, oil and natural gas supports 9.8 million jobs, and coal supports over 700,000 jobs, according to the National Mining Association.
Third, we become less dependent on energy from other countries, especially ones that don’t like us. In 2005, the United States imported 30% of its energy demand. That’s now down to below 10%. Because of the shale energy boom, we are now exporting oil and natural gas around the world.
This trend can continue by opening up more areas to energy development and removing unnecessary regulatory barriers to ensure continued access and increased energy security and affordability.Can we produce energy safely?
We can and we do – every day.
Take oil and natural gas. Despite anti-fracking fear mongers’ protests, propaganda “documentaries,” and millions of dollars spent trying to convince people that hydraulic fracturing is dangerous, neither government nor university researchers have found that it hurts the environment. In the words of an EPA draft report, fracking has not had “widespread, systemic impacts on drinking water.”
Energy companies have every incentive to be mindful of the environment, and regulators at every level enforce regulations and issue permits to ensure energy development is done properly.What about protecting the environment?
It is being done. Hey, we live here, too. We all want clean air and clear water.
History has shown that economic growth leads to environmental progress. Economic development drives technological progress that allows economies to produce more goods and services with less waste.
With higher incomes from a growing economy, we have more means available to protect the environment. Based on many indicators, our atmosphere is today cleaner when it comes to methane, ozone, and sulfur dioxide (a component of acid rain). Only a vibrant economy can generate the technologies needed to accomplish this.epa_ozone_chart.jpg EPA ozone air quality chart.
Affordable energy is required to power that economic growth.
As for climate change, it’s about finding the right policies. Just as the problem is global, a solution must also be global in scope, be realistic and achievable – and not put the United States at a competitive disadvantage. The approach that President Obama’s administration is pushing — EPA’s Clean Power Plan — doesn’t meet any of these criteria.Is there more to the American energy debate than fossil fuels vs. renewables?
Energy isn’t an either-or proposition. We can continue to use more renewable energy while continuing to enjoy the unique benefits of traditional sources. As our economy continues to grow, we will need more energy from all sources—and so will the rest of the world.
The energy debate must also focus on energy infrastructure. Whether it’s pipelines to move oil and natural gas, electrical power lines to link the parts of the country where power is produced to where its used, or export facilities to sell coal and other fossil fuels to world markets, these projects are more often the target of opponents and regulatory red tape. In 2015, Washington passed legislation to speed up permitting reviews and approvals. That was welcome. It’s up to organizations like the U.S. Chamber to fight groups who will do or say anything to block these needed projects.
We also must not forget the significant contribution of nuclear power, which supplies the United States with 20% of its electricity. One of the big hurdles facing its continuing viability is the federal government’s failure to follow the law and build a permanent nuclear waste storage facility at Nevada’s Yucca Mountain. The government should fulfill its responsibility to ensure nuclear power’s continued reliable and emissions-free contribution.What’s the bottom line?
American economic growth, job creation, and improved quality of life depend on affordable, abundant energy. We can either import it — often from countries that aren’t friendly with us — or rely on domestic sources.
The energy debate shouldn’t be pro- or anti- any fuel source. It has to promote an “All of the above” approach—and it can’t just be rhetoric. That’s the smart path that ensures households and businesses have the energy they need to keep moving and compete in an increasingly competitive world.
Lower energy prices over the last two years have boosted consumers’ disposable income and have improved our manufacturing competitiveness—good news in an economy that continues to weaken. Falling prices, however, mean falling profits in the U.S. energy industry, a fact that’s already cost our economy tens of thousands of energy jobs and puts other jobs at risk.
What can lawmakers do to make sure we don’t lose more good-paying energy jobs? The answer is simple: drive U.S. energy exports.
Last December, Congress ended the 40-year U.S. ban on crude oil exports. Just a few weeks later, U.S.-produced crude was on its way to Italy. It’s now flowing to all corners of the globe. The highly respected consulting firm IHS predicts that the end of the oil export ban will support an average of 400,000 new jobs each year.
With the ban lifted, Congress must focus on expediting liquefied natural gas (LNG) exports. This past February, a tanker left a Louisiana port on its way to Brazil, becoming the first-ever LNG shipment from the continental United States. The U.S. Energy Information Administration predicts our country will be a net natural gas exporter by 2017 and remain one through 2040. This means more jobs and more investment here at home.
The House and Senate have each passed comprehensive energy legislation that will expedite LNG permitting. Now the two chambers must work quickly to reconcile their differences and get a bill over the finish line.
There’s also a national security argument for increasing our energy exports. Too many of our allies are dependent on unsavory regimes to meet their energy needs. Adding U.S. supply to the global market will make these countries less dependent on dictators and demagogues.
The number of oil and natural gas drilling rigs operating today in the United States is at a multi-decade low. The current low prices will not last forever, and we must put the proper policies in place to capitalize on our country’s extraordinary untapped resources. The U.S. Chamber of Commerce will continue to push back against burdensome regulations that will stifle the U.S. shale revolution, while Congress must make it easier and less costly to produce energy domestically.
Until recently, the U.S. energy sector was one of the few bright spots in a weak recovery, producing well-paying jobs for American workers. To keep energy-related jobs here at home, lawmakers must pass policies that will expand markets for our energy products and enable the continued prudent development of all traditional and alternative energy resources.