Author: Barry Kennedy, Chamber View
High energy costs put businesses — large and small — at a competitive disadvantage and steal resources needed for new hiring, wage increases, business expansion and new investments.
Unfortunately, 40 years after the 1970s energy crisis, the United States has failed to implement a long-term, comprehensive plan to create more reliable and affordable energy supplies. Continued inaction will yield disastrous results.
The need for a comprehensive energy plan was the impetus behind the formation of the U.S. Chamber of Commerce’s Partnership to Fuel America, of which the Nebraska Chamber is a member. The Partnership advocates for an energy plan that promotes increased development of our North American energy resources, rather than continuing to rely on energy from unstable regions such as the Middle East.
Besides providing a more secure source of energy for the country, developing resources here in North America has the added benefit of providing hundreds of thousands of jobs to Americans.
Roughly 23 million Americans are either receiving unemployment benefits or have given up looking for work. Instead of focusing on more government spending, Washington needs to encourage more domestic energy production, while providing more certainty for the energy markets. This would help jolt our economy and job market back to life.
According to economists, each time oil prices go up 10 percent, the U.S. economy loses as much as $142 billion and employers cut 150,000 jobs.
The Partnership to Fuel America recognizes the job creating potential of developing energy resources here. Look at North Dakota. Thanks to an oil boom, it is thriving.
Last fall, the U.S. Chamber released its jobs plan. It calls for more energy production. According to the U.S. Chamber, opening more offshore oil resources would create roughly 245,000 American jobs. Expanding access to federal lands for oil and gas exploration would add another 530,000 jobs. Approval of the Keystone XL pipeline would create or support another 250,000 jobs.
The recent deal struck between Nebraska’s Legislature and TransCanada means the long awaited Keystone XL pipeline can finally start moving forward.
A new route for the pipeline needs to be approved swiftly. America has been waiting three years. We cannot wait another three years for so many jobs.
The Keystone project would pump millions into state and local economies, and increase tax revenues and gross state products. More importantly, the Keystone would strengthen our ties with Canada and decrease our reliance on oil from such volatile and unfriendly regions.
Nebraskans and all Americans need a market-based energy strategy that will produce a wider, deeper domestic energy portfolio, while also creating new jobs and spurring economic growth.
The State Chamber is working with our national partners, like the U.S. Chamber’s Institute for 21st Century Energy and the National Association of Manufacturers, to ensure that neither federal agencies nor Congress places more restrictions on domestic energy production or supplies.
At this critical juncture, when America needs new jobs and more affordable energy, it is time for Washington leaders to provide real leadership and address our energy challenge.
Approving the Keystone XL pipeline in a timely fashion is one way our national leaders can illustrate their commitment to job security and affordable energy.
Barry Kennedy is president of the Nebraska Chamber of Commerce and Industry.