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Dougher: Keystone, natural gas keys to energy sufficiency
By RICK A. RICHARDS
Indiana Correspondent

INDIANAPOLIS, Ind. — When Rayola Dougher speaks about the state of the nation’s energy situation, people listen. Dougher is a spokeswoman and senior economic advisor for the American Petroleum Institute (API) in Washington, D.C.

She was one of the keynote speakers at the recent 10th annual Indiana Conference on Energy Management in Indianapolis. One of the key issues Dougher addressed was the impact of fluctuating petroleum prices on Hoosier agriculture.

She said it is important for the United States to develop not only a competitive energy policy so all segments of the economy can prosper, it’s also important those policies be consistent on both the state and national levels.

“We really need to develop a self-sufficient energy policy,” said Dougher. “Between the United States and Canada, we could do that by 2024. It would be a reliable supply from reliable suppliers.”
Much of that reliable energy would flow through the 1,700-mile Keystone XL pipeline that would carry oil sands from Canada to refineries in the United States,” she said. That proposal, however, has been met with resistance from President Barack Obama and environmentalists.

The proposed pipeline is being supported by labor unions, which want the jobs it would create, and the Republican party, which says it is a step toward energy self-sufficiency.

“If such a policy was created between the United States and Canada, it could create one million jobs,” said Dougher. “And it would add $27 billion to government revenue annually.”
Regardless of whether the Keystone Pipeline becomes a reality, she said another reality is the United States is still going to need to find new sources of energy. “The question is, where are we going to get it?” she asked.

The obvious answer is from overseas suppliers – but she said that won’t make the U.S. energy self-sufficient anytime soon. “Now is the time to do this. Natural gas prices are down to the point that it could save every American household $900 a year,” said Dougher.
She pointed to North Dakota, where oil shale is now being mined, and it has created a $3 billion state revenue surplus. “It’s happening now, right here in our own country,” she said.
With the abundance of natural gas in this country and in Canada, Dougher said a renewed emphasis on its use would lead to lower prices, compared to petroleum.

“Now is the time to grab the opportunity to switch to different fuels,” she said.

As a spokeswoman for API since 1985, Dougher said it’s not uncommon for her statements to be challenged as self-serving. She freely admits that, but points out the figures she uses come from the U.S. Department of Energy.

“The figures are there for anyone to review, but people today are busy and don’t have the time to look at the numbers for themselves. The oil and gas industry in this country are huge. Their scale and size makes it hard to get across the reality that they’re only making a few cents on the dollar. People don’t believe that, but it’s true,” said Dougher.

She said it’s important to develop a unified energy policy across the country because it affects so many other industries. In agriculture, she said the cost of energy affects a farmer’s bottom line through the cost of fuel for their tractor and combine. And, because pesticides and fertilizers are made with petroleum products, high energy prices affect the cost of those inputs as well.

A national discussion on energy policy is controversial, but Dougher said the time is right to begin it, particularly if such will move the United States toward energy independence.
9/19/2012