December 12, 2005
Below
is the press release and video from the AIF press conference held today on the Limited Offshore
Exploration and Drilling.
You will see
that AIF, has endorsed Governor Jeb Bush’s compromise proposal with Congressman
Richard Pombo on the pending energy bill before Congress.
AIF has carefully
reviewed this issue and we clearly understand that off-shore oil well
drilling in the Eastern Gulf of Mexico is a controversial issue. Nevertheless,
we believe that it is critical for Florida and the entire country that
we support enhanced exploration and drilling for oil and natural gas beyond
the 125 mile buffer that Governor Bush has proposed.
As you can see
from the quotes in the press release and the statements made during the
press conference, the impact of rising energy costs is having a deleterious
impact on businesses in Florida. We believe we can increase exploration
and drilling without any adverse impact on our fragile environment, and
thus help those segments of the business community that are speaking out
about the negative impact the current energy problems are causing them.
If you have any
questions or need additional information, please do not hesitate to contact me.
Barney Bishop
ASSOCIATED
INDUSTRIES OF FLORIDA SUPPORTS LIMITED OFFSHORE EXPLORATION AND DRILLING
TO PROTECT FLORIDA’S FUTURE
~AIF Becomes First Florida
Business Association to
Take a Position in Drilling Debate~
| For Immediate Release: |
Contact: |
| December 12, 2005 |
Elizabeth E. Hirst |
| |
for Associated Industries of
Florida |
| |
850-222-3767, liz@coremessage.com |
TALLAHASSEE,
Fla. -- Associated
Industries of Florida (AIF), recognizing the serious impact rising energy
prices impose on the state’s business community and economic viability,
today announced its support of limited, environmentally sensitive exploration
and drilling opportunities in federal waters adjacent to Florida.
AIF advocates
approval of the bill introduced by U.S. Representative Richard Pombo and
negotiated by Governor Jeb Bush, which calls for the five-year energy
plan that would allow for the limited increased exploration and recovery
of undiscovered oil and natural gas resources in the Eastern Gulf of Mexico.
The bill balances the need to expand drilling and exploration while protecting
Florida’s environment, national military interests and tourism.
| “Florida
will suffer high economic consequences if we do not open some
additional areas of the Gulf waters to exploration,” said AIF
president, Barney Bishop. “The skyrocketing prices of natural
gas will force businesses to cut jobs, freeze growth and raise
consumer prices. While we must work hard to protect Florida’s
pristine environment, we must also compete fiercely in a global
economy. To do that, Florida’s businesses must have a reliable
and affordable energy supply.” |
Barney Bishop
President - Associated Industries of Florida |
AIF represents
more than 10,000 businesses across the state including manufacturers,
agricultural organizations, fertilizer producers, farmers, chemical producers
and countless small companies that are trying to manage escalating energy
costs and the uncertainty of future availability. These businesses rely
upon natural gas both as a fuel source and for production purposes.
Florida Energy
Facts
-
U.S. manufacturers
use 33 percent of the nation’s natural gas, which has doubled in price
during the last six months, and is more than six times higher than
prices during the late 1990’s according to the National Association
of Manufacturers.
-
In Florida,
more than 80 percent of the electric generation capacity brought on
line during a five year period (1998-2002) used natural gas as the
primary fuel.*
-
During the
next 10 years, Florida plans to build 19,000 MW of additional capacity,
and 92 percent of that capacity will be fired using natural gas as
the primary fuel.*
-
During the
next 10 years, Florida plans to build 19,000 MW of additional capacity,
and 92 percent of that capacity will be fired using natural gas as
the primary fuel.*
-
Florida is
most dependent upon petroleum and natural gas for its energy, fuels
which are in shortest supply.*
| “The
current natural gas situation creates additional problems for
Florida’s agricultural industry, which continues to suffer from
the devastating hurricanes of 2004 and 2005,” said Mary Hartney
of the Florida Fertilizer and Agrichemical Association. “We depend
heavily on natural gas to help produce fertilizer and other agricultural
materials. If production costs rise, Florida’s ability to grow
food and fiber will suffer, and consumers will pay the price.” |
Mary Hartney
Florida Fertilizer
and Agrichemical Association
|
Bob Burleson
President -
Florida Transportation Builders Association
|
Bob Burleson,
president of Florida Transportation Builders Association, expressed
concern about the rising cost of gas and diesel fuel, which directly
affect road-building contractors and suppliers. “Unfortunately,
we have no choice but to pass increased costs onto project owners,”
he said. “For private development, this translates into higher
prices for new homebuyers. On the public side, precious dollars
needed for infrastructure construction will not stretch as far.” |
| “The
increasing cost of natural gas has caused plastic resin prices
to rise to record levels, putting American-based plastic facilities
at a severe competitive disadvantage,” said Josh Young of the
American Plastics Council. “As a result, factories are closing
or moving off shore, leaving many Americans jobless. Over the
past five years, the plastics industry has lost nearly 4,000 jobs
in Florida and more than 300,000 jobs nationwide, which is why
we must find alternative fuel sources.” |
Josh Young
American Plastics Council
|
Florida’s economy
thrives on the energy that businesses need to produce goods and provide
services to consumers. Florida’s business leaders worry about their ability
to sustain and grow operations and continue to provide millions of Floridians
with jobs if the state cannot address the growing problem of unsustainable
energy costs. In fact, a recent survey by PNC Financial Services indicated
that energy cost was the single biggest concern of small-business owners,
surpassing employee health care spending, which had been the top concern
for several years in a row.
Experts agree
that enormous amounts of undiscovered resources exist in the Eastern Gulf
of Mexico, which is in part why AIF supports the Pombo plan as an immediate
“partial solution” to rising natural gas prices and supply concerns. Over
the long-term, AIF advocates an aggressive approach to developing alternative
energy sources including nuclear, hydrogen, ethanol, coal, solar and wind
to meet the state’s future needs. AIF believes that through aggressive
diversification of energy sources, Florida businesses can address this
critical cost factor.
“Florida’s leaders
and residents need to be aware that we use substantially more electricity
than the national average, and the state’s growth rate in overall energy
use is almost twice the national rate,” Bishop said. “If Florida is to
grow and prosper over the next twenty and thirty years, we must take some
responsibility. Florida is a huge consumer of energy, and it is time to
be a part of the solution.”
Those supporting
today’s announcement included the Consumers Alliance for Affordable Natural
Gas, the Florida Fertilizer & Agrichemical Association, the American
Plastics Council, Metal Essence Corporation, the Florida Transportation
Builders Association, the National Association of Manufactures, and the
James Madison Institute.
Supporting Documents:
Undiscovered
Technically Recoverable Resources of Federal OCS
Natural
Gas Supply Gap
Press Conference Video 
*Data Source: “Florida’s Energy Future
Report” to DEP |
