Maybe our friend amorris19 got something about Dow Chemical’s CEO Andrew Liveris being a candidate for Energy Secretary after all.
Dow just announced today its own energy plan for America, something like what T. Boone Pickens has been doing before the election but much more expanded to other than just renewable energy.
According to Dow, volatile natural gas price in the past 20 years have resulted in a net loss of 120,000 chemical industry-related jobs in the US and more than 3 million jobs in the manufacturing sector.
“The U.S. is on a course to spend more than $500 billion per year to import oil — nearly the amount authorized one time for the financial rescue package recently passed by Congress,” said Liveris “At Dow, we believe a new comprehensive energy policy is critical to the overall economic health of the nation.”
Here are some of the key points from Dow’s energy plan that seems interesting to me:
- Voluntary green building programs and long term extension of tax incentives for energy efficiency and renewable energy
- Congress to allow the nation’s Outer Continental Shelf for oil and natural gas exploration and production.
- Cost sharing program in the development of alternative and renewable energy. Extension of renewable energy production tax credits. Elimination of ethanol subsidy (in order to use ethanol as alternative feedstock to chemicals and plastics). Making R&D tax credit permanent.
- Any cap and trade programs should not penalize fossil energy used as feedstock. Prevent movement of US production overseas that do not have adequate climate policies.
- Accelerate deployment of nuclear power.
Of course most of these benefit the chemical industry, what do you expect? But Dow did admit that something has to be done with the climate change issue, and that carbon cap and trade is not so bad as long as its design will not undermine US companies’ competitiveness to those whose countries do not have strict greenhouse gas emissions regulation. With the economy at the topmost agenda for the new administration, it’s a sure bet that the government will be careful in preventing more US companies going offshore.