ACEEE NEWS RELEASE
BLUNTING
KATRINA'S AFTERSHOCKS THROUGH ENERGY CONSERVATION AND EFFICIENCY
For further information,
contact Bill Prindle, 202-429-8873
x710 or Steven Nadel, 202-429-8873
x709
FOR IMMEDIATE
RELEASE
September 2, 2005
WASHINGTON, D.C. -- Hurricane Katrina, in addition to causing
massive destruction and human tragedy on the Gulf Coast, is creating
aftershocks in energy markets that will affect most Americans for
the coming months or longer. Early energy market trends include:
- Gasoline
prices spiking above $3, causing panic buying in several states.
Heating oil prices have already reached $2.50 per gallon in some
areas. Surging wholesale prices indicate further increases are
coming.
- One-quarter
of the nation's oil production and 10% of its refinery capacity
will be offline for at least several weeks.
- Major oil
pipelines shut down at least temporarily.
- Natural
gas wholesale prices for the winter season are hitting new record
highs at greater than $12 per thousand cubic feet, more than five
times 1990s levels.
- Coal prices
are up due to increased demand from power generators and railroad
problems on western shipping lines.
- Electricity
prices, driven by high gas and rising coal prices, are likely
to increase as utilities pass on fuel prices.
In short, all of our energy markets are under greater pressure
than they have seen in 25 years. Combined with Katrina's other effects
on the economy—like shut-down shipping, industrial production,
and rail operations, these energy trends could create major economic
setbacks, both for individual families struggling to pay high energy
bills and for the economy's overall health.
"Katrina has turned tight energy markets into a potential national
energy crisis," said Steven Nadel, American Council for an Energy-Efficient
Economy's (ACEEE) Executive Director. "We need energy conservation
and efficiency now to keep the crisis from exploding, and new efficiency
policies and investments in the longer term to get the economy back
on track and keep such crises from recurring."
Energy conservation in the short run, and energy efficiency investments
in the longer term, should be an essential part of the Katrina recovery
effort. ACEEE research has shown that small energy savings in such
tight markets can lead to major drops in energy prices. To blunt
the effects of energy market disruptions and keep prices from spiraling
out of control over the next several weeks, ACEEE recommends the
following emergency efforts:
- The President,
leaders of Congress, governors, and other elected officials, plus
the leaders of the energy industry, should mount a concerted campaign
(as authorized in the energy bill the President signed in August)
to urge and assist the American people to use energy more wisely
in the near term and invest in energy efficiency for the longer
term.
- Congress
should pass an emergency spending measure for Katrina and energy
price relief, which should include increased low-income energy
assistance and weatherization funding, the expansion of our best
efficiency deployment programs such as ENERGY STAR, and special
funding to help the Gulf states rebuild efficiently.
- All Americans
should take simple steps to reduce energy use, such as:
- Driving
more slowly—cutting highway speeds from 65 to 55 squeezes
over 10% more miles from a gallon of gasoline.
- Inflating
tires to recommended pressures can improve fuel economy by
2% or more.
- Using
premium synthetic engine oils can boost mileage.
- Combining
trips and driving the most fuel-efficient vehicle in the household
will cut fuel costs.
- Walking,
biking, carpooling, and taking public transit when possible
will further ease the pain at the pump.
- Winterizing
your home with caulking and weatherstripping, having your
heating system tuned up, cleaning or replacing your furnace
filters, sealing leaks in air ducts and attics, adding insulation,
and installing programmable thermostats.
A more detailed list of consumer energy savings options is available
at http://www.aceee.org/Consumer/consumer.htm.
For the longer term, the federal government should set policies
to accelerate the overall rate of energy efficiency improvement.
Key priorities for the federal government include:
- Extending
and broadening the recently enacted tax incentives for efficient
technologies
- Setting
national energy savings targets for oil, electricity, and natural
gas
- Improving
automotive fuel economy initially to 30 mpg and ultimately to
40 mpg
- Ramping
up research and deployment funding for energy-efficient technologies
Consumers and businesses should:
- Take advantage
of the federal tax incentives for new homes, commercial buildings,
home retrofits, and equipment replacement that will become available
in 2006.
- Contact
your local utility and state energy offices for efficiency information
and programs they may offer.
- Buy the
most energy-efficient vehicle, appliance, or heating or cooling
system that meets your needs and fits your budget. Choose ENERGY
STAR products where available, and also look for the most efficient
products at http://www.aceee.org/consumerguide/index.htm
and the most efficient vehicles at http://www.greenercars.com/indexplus.html.
"This is not just about gasoline prices," said Bill Prindle, ACEEE's
Deputy Director. "Our energy markets are linked, so we need to use
all our energy sources more wisely. There is no silver bullet to
solve our current energy problems: we need to use conservation and
efficiency as first-responders while we rebuild our supply systems.
If each of us does our bit to save energy, it will avoid a lot of
pain for everyone. We are all in this together."
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About ACEEE:The American Council for an Energy-Efficient Economy is an independent, nonprofit organization dedicated to advancing energy efficiency as a means of promoting both economic prosperity and environmental protection. For information about ACEEE and its programs, publications, and conferences, contact ACEEE, 1001 Connecticut Avenue, N.W., Suite 801, Washington, D.C. 20036-5525 or visit http://aceee.org
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