Chuck Denowh - June 05, 2008
Montana Business Leadership Council
Affordable Energy
The debate over the future of energy production in this country, and the consequences it will have on American consumers is heating up. Right now Congress is considering several different approaches to addressing looming problems with energy supply, and in Montana politicians are taking advantage of the politically popular issue in their campaigns this year.
Montana is positioned to be a national leader in increasing our domestically produced supply of energy—but only if Congress takes a responsible approach in their current deliberations, and only if the political rhetoric in Montana turns into real action.
Rather than the political debate surrounding the hot buttons of global warming and climate change, Americans deserve the attention to be focused on an energy policy that will augment the supply of affordable energy. In other words, we need a healthy supply of energy that we can afford to pay for. At the same time we need to take action to reduce our impact on the environment.
We can do both at the same time—but to emphasize the environment without paying heed increasing the supply of affordable energy will hurt consumers; and emphasizing production without taking the environment into consideration will have drastic long-term consequences. There is middle ground, and that’s where our politicians need to focus on.
Increasing our energy supply requires fewer restrictions on domestic oil production, increased research and development into renewable and alternative fuels, and a major effort into energy conservation and efficiency. An energy policy that neglects any of those three aspects is incomplete and unbalanced, and produces unwanted side effects.
Fewer restrictions on the domestic production of oil means we cannot increase taxes on a product that American consumers are already struggling to afford. We cannot continue to make domestic energy sources off-limits or unaffordable, forcing us to rely on the importation of foreign oil. We need an energy policy that makes energy produced within the United States more accessible, and therefore more affordable.
Unfortunately, some of the top proposals in Congress today seek to increase taxes on American energy companies, which will have the effect of increasing the prices we pay for energy. Just as bad, increased energy taxes will make it harder for American energy companies to compete overseas, making our country even more beholden to oil and gas produced by foreign countries. This legislation would have drastic long-term consequences for American consumers, and will cost our country jobs.
In Montana, we’ve heard much talk about the potential of developing new energy, but we’ve seen little action. This week the North Dakota Pipeline Authority announced plans for two potential oil refineries in Western North Dakota. When asked why North Dakota was preferred over Montana for these sites, an executive from Great Northern Power Development said, quote “if all the factors were the same, we would have still chosen North Dakota…The reason for this is that the business and regulations are more hospitable in North Dakota and this has primarily to do with the permitting process.” End quote. If these refineries become a reality, oil pumped in eastern Montana will flow into North Dakota to be refined.
Attempts to improve Montana’s permitting climate were defeated by the majority in the Senate with support from the Governor during the last legislative session. This isn’t the first missed opportunity in energy development in Montana in recent years, and if things continue on the same track, it won’t be the last. Eventually though, we’re going to run out of time and the energy resources that should be going to alleviate the national supply now will no longer be useful.
Political leaders on both sides of the aisle need to come together to solve the looming energy crisis in this country. The misguided policy that would raise taxes currently being considered in Congress will do more harm than good and in Montana we’re running out of time to take action. You can do something about it though—let your elected officials know what you think, write your Senators, call the Governor, and contact your local legislators and tell them to support energy policies that increase the supply of affordable energy.
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