W. HENSON MOORE
is president and CEO of the American Forest & Paper Assn. located in Washington, D.C.

America's future depends on new energy

by W. Henson Moore

America's economic prosperity, the quality of life of its citizens, and its national security all depend on the availability of reliable, affordable energy. Increasing domestic energy supplies and enhancing our energy infrastructure are the critical components of a comprehensive, forward-looking, market-based, and balanced national energy strategy. In addition, it is vital to produce, generate, and distribute energy in the most efficient manner possible.

We must encourage investment in new energy technologies that promote conservation—at home, in business, and in factories. Conservation measures, more energy-efficient products, and alternative fuel sources are of great importance to the success of a long-term energy policy. However, conservation and efficiency must be teamed with greater energy supplies to sustain the growing demands of America's new economy.

ENERGY IN THE FOREST PRODUCTS INDUSTRY. From its unique perspective as both a major energy user and the largest producer of self-generated electricity in the manufacturing sector, America's forest and paper industry welcomed the Bush Administration's Energy Task Force report as a much-needed blueprint for sustainable economic growth and environmental improvement.

The forest products industry outpaces all other manufacturing industries by generating nearly 85% of the onsite electricity that comes from renewable resources, but that's just a glimpse of what we can achieve. The industry is a leader in reducing fossil fuel usage, satisfying 57 % of its energy requirements with biomass fuels. These fuels—wood chips, bark, sawdust—are byproducts of our manufacturing processes and are renewable, sustainably produced energy sources that substitute for fossil fuels. The burning of biomass fuels displaces the use of more than 205 million barrels of oil each year. That's the equivalent of taking almost 16 million cars off the road annually.

On the other hand, several mills have had to cease operations or cut back output due to high energy costs. In April, Smurfit-Stone Container Corp. and Georgia-Pacific Corp. shut down three machines, citing high energy costs. In its first quarter 2001 financial report, International Paper Co. said energy costs increased $50 million compared with the fourth quarter 2000. Plainwell Inc. closed its specialty paper mill in Plainwell, Mich., last year, also citing high energy costs as a factor. About 8% of the paper industry's sales dollar goes to meet energy costs, making it one of the industry's biggest expense items.

A NEED FOR NEW ENERGY TECHNOLOGIES. Seeking to alleviate this burden, AF&PA and its members are working with the U.S. Department of Energy on testing new biomass gasification technologies. These technologies could supply all our energy needs and transform our industry into a major supplier of electricity to the national grid.

The unprecedented growth of America's economy has rapidly outstripped our ability, under current policies, to develop and deliver the diverse energy supplies needed to sustain that growth. In the past 25 years, we have increased our use of energy in America by 34%, but domestic energy production has increased by only 18%. Today, America is far more vulnerable to energy shortages and more dependent on foreign energy than during the 1970s.

Projections for the future show a greater disconnect between America's energy needs and the availability of reliable, affordable energy. Our nation will need more power plants, transmission and distribution pipelines, electric transmission lines, and refineries to meet the growing demand. If present trends continue, a widening gap between growing demand and stagnant supply will threaten America's economic well-being and result in more dangerous dependency on foreign energy.

Satisfying our national energy appetite will require new policies to stimulate development of a more modern energy infrastructure. We need 21st century regulations to guide the 21st century use of energy, but many regulations that govern energy are stuck in a time warp. For example, much of the land held in common for the public good and managed by the federal government is off-limits to energy exploration and production. But new technology can create a three-dimensional map of resources far below the surface, which makes identifying energy resources more accurate and producing such resources less intrusive.

America can no longer afford to ignore this looming national energy crisis. It's time for Congress to develop a rational roadmap for using all available forms of energy—both traditional fuels and renewable forms of energy, like solar and wind power. It is vital for our nation to develop a comprehensive energy strategy that encourages conservation, energy efficiency, and reasonable access to all domestic supplies. This policy should also foster the development of promising new energy technologies and the modernization of our energy distribution infrastructure.