August 7, 2008

Dear Member of Congress:

The undersigned unions and companies participate in the Alliance for the Responsible Use of Chlorine Chemistry (ARCC), a labor-management alliance established in 1994 to consider issues affecting investment and employment in the US chlorine sector and the chemistry industry at large.

Access to a reliable, affordable supply of energy – especially natural gas – is vital to chemical makers, the future of US manufacturing, and the health of our economy.  Responsible development of available domestic natural gas will provide needed support to the chemical industry and other US energy-intensive sectors that employ millions of US workers and compete in global markets.

We respectfully submit that the US must develop more of its natural gas resources from both onshore and offshore locations.  Increasing the availability of domestic energy resources should provide direct employment to US workers, and be achieved with state-of-the-art technology and environmental protections.   In addition to developing domestic natural gas resources, ARCC also supports continued enhancements in energy efficiency, and the expansion of alternative and renewable energy technologies . 

We understand that that the political process of dealing with this issue is complex.  We will continue to support responsible development of additional domestic energy resources based on bipartisan agreement until the goal is achieved.    

Respectfully yours,

►International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers
►International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers
►Laborers’ International Union of North America
►Sheet Metal Workers’ International Association
►United Transportation Union
►Arkema, Inc.
►Dow Corning Corporation
►Occidental Chemical Corporation
►Olin Corporation
►The Dow Chemical Company

POSITION PAPER ATTACHED:

ARCC Supports Greater Access to New US Energy Supplies

The Alliance for the Responsible Use of Chlorine Chemistry (ARCC) is a labor-management coalition founded in 1994 to consider policy issues affecting jobs and investments in US chlorine chemistry industries and the chemical sector    

• The US chemical industry is a $635 billion sector with 900,000 good-paying jobs that support millions more.  The industry is vital to national security, economic security, public health, scientific innovation and our energy efficient future.

• Access to a reliable, affordable supply of energy – especially natural gas – is vital to chemical makers, the future of the American manufacturing base, and the health of the U.S. economy as a whole.  The chemistry business is the largest US industrial user of natural gas, consuming one-tenth of total demand. Higher natural gas prices severely affect the industry, because it uses natural gas not only for fuel and power, but also as an actual raw material to make products.

• The chemical industry is essential to energy efficiency. Chemical products that go into energy-saving materials used throughout the U.S. economy including insulation, weatherization equipment, lightweight vehicle parts, lubricants, coatings and appliances – even windmill blades and solar panels.

• Since 2003, ARCC has communicated about the harmful impact of rising US natural gas costs on the US industry.  Sharply increased US natural gas costs have already contributed to US chemical plant shut-downs and the loss of 120,000 industry jobs since the turn of the century.

• The US can and must sustain its modern, efficient chemical industry.  To do so, the chemical industry must continue to have access to affordable natural gas from US sources. The industry depends on natural gas as the key raw material to make the broad range of chemical products vital to our nation.  Clean-burning natural gas is also used by the industry as fuel. 

• While the US now depends on imports for two-thirds of its oil demand, domestic sources of natural gas must continue to supply most current and projected US demand.  This critical distinction must be understood.  US-based chemical manufacturers will soon be competing with plants in the Middle East that have access to natural gas costing less than one-tenth the current US cost.

• The US Government has long promoted greater domestic use of natural gas by key economic sectors to achieve laudable environmental goals.  Today, about 23 percent of total US energy demand is met by natural gas.  However, the US Government has not acted as decisively to allow the recovery of greater supply from known domestic sources to offset the higher demand.   

• This supply-demand imbalance forces US chemical and other manufacturers to pay far higher prices than their competitors in most world regions, harming US jobs and investments while increasing reliance on imported products. 

• The government predicts US natural gas demand will rise as much as 50 percent by 2025.  Imports alone cannot meet this increase.  US domestic supply must increase.

• ARCC respectfully urges the US Government to promote the development of new domestic natural gas and energy supplies to help US industry and the US economy.

• Development of new on-and-offshore US natural gas resources can be accomplished responsibly with new environmentally protective technologies.    

• New domestic natural gas development should provide employment to US workers, and assist US chemical, utility and manufacturing industries.

• New domestic natural gas development is fundamental to America’s transition to a clean energy economy, along with the broadest possible portfolio of alternative and renewable energy resources.

ARCC Advocates:

• Developing US domestic natural gas resources in an environmentally protective way that provides direct employment for American energy, production, utility and construction workers.

• Developing and deploying new energy technologies to increase energy efficiency and conservation, modernize infrastructure, and increase the available supply of natural gas to industrial users.

• Reducing US dependence on energy imports from unstable regions and making domestic investments to develop additional US energy sources.

ARCC Opposes:

• Restrictive policies on natural gas development that put US producers and workers at an unfair disadvantage in the global market for energy-intensive manufactured products.

• Unduly restrictive policies that prevent the responsible development of new domestic natural gas supplies from on and offshore sources.

• Policies that would encourage development of more US domestic energy supplies without also ensuring fair employment opportunities to US workers.

Additional Information

• The AFL-CIO Building and Construction Trades Department, echoing the National Energy Technology Laboratory of the Department of Energy, states, “Oil and natural gas represent the current lifeblood of the United States economy, accounting for roughly 60 percent of our energy consumption.  Our country has a vital interest in ensuring that competitively-priced domestic resources remain a part of the U.S. energy portfolio for the coming decades in order to meet projected energy demands.” 

• The AFL-CIO Energy Task Force states, “It is time for our nation to take bold steps to meet the 21st century challenges related to energy policy.  We believe our nation should embrace a balanced approach that assures abundant, affordable energy supplies, creates good paying jobs for American workers, improves the environment, and reduces our dangerous dependence on foreign oil.”

• The National Academies states, “Natural gas is considered by many as the transition fuel, or bridge, to a continually lower carbon-fueled and eventually hydrogen-fueled, economy. How well this clean, versatile energy source will meet this role will depend greatly on how long natural gas remains reliable and affordable. After years of stability, natural gas prices have recently become volatile and have been trending upward.”  [Board on Earth Sciences and Resources, 2003]

• ARCC joins a broad spectrum of organizations in supporting the responsible development of new US energy resources to supply increasing US energy demand, including alternative and renewable energy sources such as nuclear, biofuels, clean coal, wind, water and solar power.

National Energy Technology Laboratory, Department of Energy

Source:  http://www.netl.doe.gov/technologies/oil-gas/index.html#MoreText