Energy Security

Energy is essential for American manufacturing. It provides American consumers with lower cost quality goods and enables the U.S. to compete in the global economy.  Products as far ranging as automobile assembly to plastics, paper, and glass all require energy as a significant component.

At the same time as energy prices have increased, America’s manufacturing is affected because manufacturing is heavily energy dependent. And as a result of the multiplier effect, repercussions are felt throughout the economy.

This situation is exacerbated by our nation’s reliance on foreign sources for energy. 

• Global spikes in energy prices affect our trade imbalance and our economy. 
• We are the largest oil importer in the world - importing some 13.5 million barrels per day – which at present totals two-thirds of all our energy usage. And over time that is projected to increase. 
• According to the Department of Energy, by 2025 nearly 70 percent of our energy supply will come from imports. 

It is crucial that we take steps today to minimize our dependence on foreign oil and ensure that alternative energy sources come online. A strategy for energy diversity should include increasing our domestic capacity to produce nuclear energy, solar, wind, natural gas, and oil. That strategy should not only seek to expand domestic resources but also diversify our energy options so that we can reduce our dependence on supplies from politically volatile regions of the world. 

A comprehensive approach is needed. America needs to encourage public-private research for new energy alternatives, expand sustainable domestic development, and support conservation and energy diversity.

China’s Role in Energy

China’s dramatic industrial capacity expansion and economic growth have put enormous pressure on world energy markets. By some estimates, China accounts for roughly 40 percent of the growth in world energy demand. This has been a factor in escalating world energy prices in recent years.

China has failed to adequately develop a comprehensive energy policy that recognizes world market conditions. Rather, China has engaged in a “go out” strategy to gain access to energy reserves – primarily oil and gas – in many countries which undermine U.S. policy objectives (in Sudan and Iran, for example). China has engaged in an effort to own resources at the well head rather than engage in the market-based purchases that most other developed and developing countries pursue. The result is that China is seeking to maintain control of resources so it can marshal them for its own uses.

China’s internal energy policies have been a mixed bag. While recognizing that it must adopt policies to promote energy efficiency, it has also engaged in two-tier pricing of energy to subsidize the development of certain industries. These subsidies result in a competitive price advantage for many of its companies.

From the point-of-view of U.S. manufacturing concerns, China’s energy acquisition, utilization, and pricing strategies have made an enormous impact. With that in mind, the Alliance for American Manufacturing is performing comprehensive analysis on Chinese energy practices to help address any competitive inequities and to develop cooperative approaches, where possible, for the future.

• Manufacturing in the U.S.
• Holding China Accountable
• Currency Manipulation
• Economic Security
• Energy Security
• Health Security
• Enforcing Trade Laws
• Retirement Security
• National Security
• CHINA CHEATS