Mar/Apr 2006      │   The Aluminum Association    │   Washington

Americans Weigh in on Energy Supply, Sources, and Responsibility

According to Gallup's recent Environment survey, public concern about the U.S. energy supply is up sharply this year. There has been a 10-point increase (from 31 percent to 41 percent) in the percentage of Americans rating the nation’s energy situation as "very serious" and a 9-point bump (from 39 percent to 48 percent) in the percentage worrying "a great deal" about it.

The survey records a slight shift in Americans' preferences for how the energy problem should be addressed. When asked which of two approaches they prefer the U.S. to follow―more production of oil, gas, and coal, or more conservation of existing supplies by consumers―Americans chose conservation over production by a 20-point margin.

On conservation vs. new production, Republicans are evenly split as to their preference. Majorities of independents and Democrats prefer conservation. Among all three groups, support for more energy production has increased.

When asked about alternative fuels, only 21 percent of Americans believe most cars will still be powered by gasoline in 30 years, while 76 percent say most cars will largely run on other types of fuels.

According to Gallup, the public is divided on who has the primary responsibility for developing alternatives to gasoline―38 percent say the government, 33 percent energy and oil companies, and 24 percent automakers. The plurality of both independents and Democrats say government should have the main responsibility, followed by energy and oil companies and automakers. Republicans are more divided, but more say oil companies should mainly be responsible.

Aluminum Industry Concerns Are Voiced

The Aluminum Association views that dramatic increases in the cost of energy pose a serious risk to the U.S. aluminum industry and other manufacturing sectors. Although large improvements in energy efficiency and recycling of aluminum have been achieved by the aluminum industry, energy costs make U.S. production operations increasingly less competitive in the global economy.

For U.S competitiveness, our nation needs new energy supply, efficiency of use, conservation, improved energy infrastructure, and diversified fuel sources. The aluminum industry is a large user of electricity and thus vitally concerned about electric power cost and availability. The U.S. uses among the world’s most expensive natural gas and imports nearly 60 percent of its oil―and electricity costs are now among the highest of all developed nations. The gap between energy use and production will continue to adversely affect domestic manufacturing industries if the country does not make progress.

The aluminum industry uses natural gas as a fuel principally in the recycling of aluminum and is therefore concerned about the high cost of natural gas in the United States. U.S. natural gas production has been stagnant since 1995, even though there is an abundant resource base, and prices are now the highest in the world.

Federal Energy Activities Noted

The North American Electric Reliability Council (NERC) has made changes in its structural plan while applying to the Federal Energy Regulatory Commission to become the nation's electricity reliability organization. NERC announced plans to modify its internal structure and reorganize operations around standards, certification, reliability readiness, training, education, personnel, performance, and situation awareness and infrastructure.

Separately, the U.S. Senate Energy and Natural Resources Committee will approve legislation by mid-May to open Alaska's Arctic National Wildlife Refuge to oil drilling, according to the panel's chairman, Sen. Pete Domenici.