Wed, Jun 6 2007, 21:55 GMT
http://www.djnewswires.com/eu
By Rex Nutting
WASHINGTON (Dow Jones) -- Chief executive officers of major U.S. corporations called Wednesday for a new energy policy based on increasing supply from domestic sources and reducing demand through greater efficiencies.
The heart of the plan is to set a goal of reducing energy intensity of the economy by 40%, using existing technologies. At the same time, the CEOs want increased diversity of energy sources and an expansion of domestic energy production.
Energy security is the major goal of the plan presented by the Business Roundtable, a group that represents the CEOs of 160 companies with 10 million employees and $4.5 trillion in annual sales. The plan would also reduce harmful environmental impacts, including global warming, the CEOs said.
"We cannot afford to ignore any pathway that will contribute to stable, clean and affordable energy supplies," said Michael Morris, CEO of American Electric Power Inc. (AEP) , who served as chairman of the energy task force for the Business Roundtable.
"Let's do what's achievable," Morris said. The goal of increasing the energy efficiency of the economy by 40% doesn't rely on the development of new technologies, or a shift away from the gasoline combustion engine, or a massive commitment to renewable energy sources, they said.
Instead, the CEOs envision an energy future that isn't too different from present. They see a role for coal, including coal-to-liquid technologies. Nuclear energy has a place, as do biofuels such as ethanol. They think the idea of complete energy independence is ludicrous.
The main role for government in the new energy future is to get out of the way. The approval process for new power plants and refineries must be streamlined, they said.
The Environmental Protection Agency needs to speed up its new source review of upgraded power plants, said George Nolen, CEO of Siemens AG's American operations. Siemens (SI) is one of the largest producers of electric generating equipment.
"The report is geared to market-based solutions," said David O'Reilly, CEO of Chevron Corp. (CVX) , who complained of constraints on development of the nation's oil and gas reserves offshore, in Alaska and in the Rockies. Chevron is one of the largest energy companies in the world.
Government mandates, such as requiring a certain level of production for ethanol, "would be counter-productive," O'Reilly said.
Buildings consume 40% of the energy used in the United States, said Michael Thaman, chairman of Owens Corning Inc. (OC) , a major producer of building products. While retrofitting existing structures to make them more energy efficient might not make economic sense, there's no reason to put up new buildings that aren't efficient, he said.
(END) Dow Jones Newswires
June 06, 2007 17:55 ET (21:55 GMT)
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