Keeping NC Open for Business & Competitive
Meeting Growing Energy Demands Critical to NC's Future

North Carolina needs to continue the dialogue started at the recent Emerging Issues Forum on energy in Raleigh because our state’s phenomenal growth presents significant challenges along with economic benefits for residents and businesses alike.  Our Chamber and employer members need to be fully engaged in shaping North Carolina’s future to ensure responsible, affordable, reliable energy for all North Carolinians over the next several decades.

To remain competitive nationally and internationally, and continue to provide the affordable, reliable energy supply businesses and residents have come to count on in our state, North Carolina needs balanced, comprehensive energy policies. We should consider everything on the table together in figuring the best ways to develop, deliver and consume energy in the future. Our Chamber stands behind developing strategies and policies that balance supply and demand without compromising environmental safeguards so that we can fuel North Carolina’s dynamic economy and support our quality of life (the two are not mutually exclusive).

There is too often a tendency to underestimate the size and scope of the energy challenges ahead, overestimate the ability of alternative energy sources to meet growing demand, and underestimate the role petroleum-based technologies can play in solving the energy security, economic and environmental challenges we will face. To advance this important debate and adequately prepare for the future, state and business leaders must look at all energy supply options that are available.

Diversification of our energy supply through development of new and enhanced sources of natural gas and research and development of new clean and alternative energy supplies must be critical parts of our long-term approach to energy challenges. We agree with those who advocate strongly for conservation, efficiency and more robust development of alternative energy. But these same advocates must also understand that conservation and efficiency alone will not protect our economy and future.  They must also recognize that we cannot fully develop alternative energy without increased supplies of natural gas. North Carolina needs a balanced energy portfolio, including a robust natural gas supply. The future depends on it and now is the time to start actively looking at what steps North Carolina should take to build this portfolio.

Let’s Broaden the Conversation
We need a Comprehensive Approach to Energy Security

Going forward we must consider policymaking that can best enable us to look at all of the energy supply options on the table. Development of offshore energy resources is being proposed in other states to increase domestic supplies of natural gas in response to demand growth and diminishing production in other areas. Supplies of natural gas have not grown at the same rate as demand, which has caused the price of natural gas to increase. The price is expected to remain high until demand lessens or supplies are increased. These supply-and-demand problems need to be addressed as a part of comprehensive energy policy for North Carolina. The time has come to look at expanding our options to increase access to new sources of natural gas supply in order to meet our state’s growing needs.

Neighboring States Ahead of NC in Energy Supply Options

While there is currently a federal ban on natural gas exploration of offshore waters, some states have already begun to study the issue in the event that the ban is lifted. Our neighbor states, Virginia (a tough competitor for jobs and commerce) and South Carolina have already formed study committees relating to offshore natural gas exploration and production. South Carolina specifically stated in its resolution to adopt the study commission: “There is finally consensus that the State of South Carolina needs to look at all possibilities in terms of supplying the citizens and businesses of the state with an affordable and stable supply of natural gas…”. As a result of Virginia’s study committee recommendations, its General Assembly adopted a new Code section stating that it is the policy of Virginia to support federal efforts to determine the extent of natural gas resources off its coast.

As energy is a key determining issue in whether North Carolina will remain competitive for jobs and investment in the years ahead, we must always be aware of what competitor states are doing to grow, lure and keep jobs in their states and bolster their economies.  When the time comes where states have the authority for energy exploration, North Carolina needs to be ready. It is imperative that we are well positioned to benefit from revenues derived from resources from offshore exploration if it is determined to be an appropriate energy supply source.  If we’re not, then other states all around us will reap the benefits and North Carolina businesses and residents will suffer.

Chamber Joins Energy Leaders in Dialogue about our Energy Future

Representatives of our Chamber were in attendance at the Institute for Emerging Issues’ recent forum to discuss ways in which North Carolina must plan for its energy future. North Carolina is poised to lead in responding to the global challenges surrounding energy, and this forum provided input from state, national and international leaders on how to best ensure that our state prospers in the new energy economy. The forum highlighted many key issues that North Carolina must consider as we go forward with developing our energy portfolio.

Jeff Immelt with General Electric offered an enlightening presentation outlining the fact that we are now in a world of energy interdependence, and that we need to prepare immediately for the changing energy landscape.  Mr. Immelt’s poignant statement that there are three goals in looking at energy policy has a lot of merit: (1) energy security through energy diversity, (2) a positive economic impact, and (3) sustainability. To achieve these goals so that we meet demand, secure a strong and thriving economy and maintain a clean, healthy environment, we are to use three key tools, according to Mr. Immelt: (1) innovative technologies, (2) global energy interdependence, and (3) sustainable public policy.

Also participating in the Emerging Issues Forum were a number of our Chamber’s members, including: Bill Johnson (Progress Energy); Jim Rogers (Duke Energy); Victoria Holt (PPG Industries); Scott Ralls (NC Community College System); Thomas Nagy (Novozymes, Inc.), and John Felmy (American Petroleum Institute).

North Carolina Needs to Be a Leader

North Carolina needs to be a leader in the development of new sources of energy, the development of renewable resources and the development of natural resources. Our Chamber recognizes the value of energy as the very ability of their businesses to provide North Carolinians with the goods and services that they depend on. As a united business community, we must be proactive and progressive in solving energy issues vs. reactive and shortsighted.  In the years to come, when our children ask us what we did to secure a prosperous and secure future for them, we should be able to tell them that we were leaders in the energy policy discussion and identifying and building the best plan for how to provide energy in a responsible way to provide the quality of life they deserve.