Lets just leave it at that. More than saudi arabia, oil, coal, we have it all. But we dont have the ability to move it. We have been trying for 40 years to advance our natural gas coming off of the north slope and we are still working at it. Our oil resources, we were successful in the mid70s, getting the transalaska pipeline. But it really has been our only infrastructure corridor or, the 800 mile pipe from north to south. Think about our coal reserves. That is because we lack that infrastructure. You may have the infrastructure, it is aging infrastructure. It is insufficient to meet the demands that are out there. I too have been to north dakota and the folks up there say, we can wait all day for more pipelines, but in the meantime, lets just put it on rail. We will not be able to access these incredible reserves unless weve got the infrastructure to move it. And this is not just limited to our fossil fuels. Its how we move wind, solar, renewable. This will be our big challenge moving forward. And it is going to be expensive. But if we dont make these investments in infrastructure, all the oil that we have, although wind and sun that we have, everything just sits. Is there a coalition of republicans that are willing to pay for it . I think we have to. This cant be democrats supporting the integration of renewables into the grid at the expense of Everything Else or republicans saying no, these will just be pipelines for oil and natural gas. As americans, weve got to be looking at this and saying, how do we move these resources to benefit our country . Whether youre coming from alaska or from florida, how are we going to benefit . To help with jobs and allow our Energy Resources to be affordable to all. This has got to be our challenge. I am pushing colleagues to not think about it from a partisan framework. You have other countries looking at us as a nation. They are saying, i cant believe youre just sitting on the resources that you have. That is a good question. As i mentioned in my comments, we have u. S. Agencies and institutions that are helping finance Energy Infrastructure projects in other countries. Why arent we making that investment in ourselves . I think we have time for two quick questions. Then we will go to this lady. Thank you for a thought provoking report. You mentioned the international dimension. It wasnt one of the three forums for reform that you mentioned. The agencies, the executive branch and congress. Do you anticipate International Negotiation that could provoke a discussion of exports . Do i anticipate it . Certainly. Everybody is talking about it. Whether it is moscow or budapest, they are talking about what is happening in that country. Is that going to prompt conversations that will be part of negotiations . And whether or not export restrictions or limitations, inviting the debbie t o rule wto rule . These conversations are happening with or without us. Thank you, senator. I follow the question about infrastructure for the International Level that is conductivity. Will you talk about the federal agencies including the dod, especially the commerce department. You they have the executive authority to move forward . My question to you is, the transportation of our own resources into the global arena and also how you connect that with the many fta and ccp, that have strong focus. Given youre a strong advocate for the United Nation conventions, at this point in time, freedom of navigation and conductivity globally is significantly crucial to our market. Where do you see where the Republican Party can share your vision to get the ratification . You laid out a lot of Different Things there, but let me speak very briefly. I am a proponent, a supporter of ratification. I think it is well past time for a host of different reasons. Not the least of which, the arctic where i am from and where you feel like you are from today, it is a changing world out there. Some of the arguments that were being discussed decades ago when it first came to the u. S. Senate really do not hold true today because we have navigation in areas that we have not been able to navigate. For a host of different reasons, i am a supporter of ratification. I would like to suggest to you that of course we will be able to see passage this year. That is also extremely difficult given the political environment. I had a conversation with the secretary as recently as last month about this. When he was in the senate and chairman of the Foreign Relations committee, he worked very hard to try to advance that. With his current position, he is obviously going to continue that. I am not overly optimistic that we will see that in the second half of the 113th congress is much as i would like. I would like to thank the senator for choosing brookings to make such an important speech. Thank you, bill. And i thank all the people on the senators staff that made this event possible. The senator is on a tight schedule so if you would not mind remain being seated as she is escorted out so she can get to an important vote. I appreciate it. [applause] were cspan, created by the cable tv industry 35 years ago, and bundled by your local cable and satellite provider. Next, remarks from the American Petroleum institute president. The nextutcome of election might shape Energy Policy in the future. This is 45 minutes. Good afternoon. I am shelby coffey, vice chairman of the newseum. I want to welcome you all to the ninth conference at the newseum. I want to start out with one bit of audience participation. If i could have a show of hands of how many people think that jack gerard ordered out this weather to get more attention paid to his speech [laughter] there we go. The people that know him best are all in. I used to be the editor of the los angeles times, so i am used to seeing hollywood stars do almost anything to get your attention from sharon stone to brad pitt. I would say that mr. Gerrard may have topped them all with getting the lowest temperature in 20 years here in washington just to get attention. For this. We are delighted to have the annual presentation of the state of American Energy here at the newseum. I would like to welcome the guests that are watching online and encourage them to submit questions via soae2014. Soae2014. Just one of the interesting elements of our tech lives that we have to start out with that. The rest of us in the room will have q a cards that are located at your tables. You can ask jack any kind of question related to energy or not. He is able to handle them all and we are ready. It is fitting that this important and timely discussion be held at the newseum here in the nations capital. It is a temple to the First Amendment and free expression. Issues related to energy appear in news print and on the airwaves. Api alone has tens of thousands of mentions per year. It would be a tall order to try to quantify how often the coverage surrounding energy is goes over our airwaves because it is such a relevant topic. It affects every individual. The other conferences like the Washington Ideas Forum that we put on with Atlantic Media where we deal with anything from International Affairs to monetary policy. General jones has been a participant in these in the past. Energy is a major element of that. A motif that runs throughout. It wasnt that long ago that america had to look strategically overseas for foreign sources of oil to meet our energy needs for the nation. Many of us assumed it would probably always be like that. Today the United States is quite a bit closer than ever to deciding its own energy destiny. A new Energy Reality and how we will decide to achieve it. What policies do need pursue with our elected leaders . What decisions will need to be made by local communities . While of the oil and Natural Gas Industry itself need to do . Here to answer these important questions and to talk more about the status of American Energy for the coming year is the president and chief executive officer of the American Petroleum institute. The one, the only, the nearly omniscient and possible master of the polar vector that brought you your four degrees temperature today, jack gerard. [applause] thank you, shelby. Good afternoon and happy new years to all of you. Thank you for joining us today. A lot of time with the glowing introduction you stand as you have heard many times before and others will say thank you for reading that just the way i wrote it. I will say today that i did not write anything that shelby said today. [laughter] for those of you who believe that we brought this weather, it is not true. Impose a policy in washington but not the weather. I think is a good reminder for the need for energy and energy selfsufficiency in the United States. We appreciate all of you coming. We have a packed house in full room. We can stay warm knowing the elements outside are quite cold. Before i begin with my prepared remarks today, i would like to introduce a few key vips and individuals. As we known washington, everyone is a vip. There are a few people today at tables in the front that i would like to give special recognition to. For their leadership not only in energy but in business, labor, and elsewhere generally for their contribution to our society, to job creation, for all of the things that we have come to would joy and too often take for granted as american citizens. Let me go to my list and i will be quick. Another, cal dooley. Would you stand quickly . Former house member from california. James bolan who is also the president of also International Union and bricklayers and allied craft workers. I have to read that to make sure i get it right. Doug mccarron. He is the president of the United Brother is of carpenters. Dot harris. We have known as a great friend and ally at the department of energy. Don lauren who heads up veterans for energy. Sean mcgarvey who had the old in Construction Trade department who leads our labormanagement group in the gas industry that oversees 15 labor unions. At our other table, many of you know general jim jones. Thank you for being here. The general was a National Security adviser to the president and has numerous other longlisted credentials to service of the country. Tom donohue you heads up the u. S. Chamber. As bob costello, the chief economist and Vice President of the American Trucking association. Don santa, the current ceo of the International NaturalGas Association of america. Marty durbin we all know well. We hated to see him leave the api. Paul connors, the trade commissioner of the canadian embassy. Last and certainly not least, area russell who has up the independent Petroleum Association of america. Let us give all of these vips a round of applause. [applause] thank you all for being here. As we reflect on this time of year, with the holidays behind us, we reflect on the past but we also look clearly to the future. This time when the year is just beginning reminds us that our future is ultimately of our own design. The same holds true for our nation. Our generation will decide if america continues its march towards Global Energy leadership and perhaps once in a Generation Opportunity or if it were main content to play only a supporting role on the Global Energy market place. We can arrange what for decades has been one of americas greatest economic vulnerabilities our dependence on Energy Sources from other continents, particularly from less stable and less friendly nations. And fundamentally alter the geopolitical landscape for decades to come. All while providing a much needed boost to our domestic economy. This is only achievable and possible if we get Energy Policy right in this country. Today, thanks to the innovation and the entrepreneurial spirit of the natural gas and oil industries, this nation has the potential to shed the yoke of Foreign Energy dependence. Implementing smart policies will help ensure that future americans only know their country as the energy leader. In other words, elections matter. Elections have consequences. In exactly 10 months we will choose who will lead this nation. Here in washington, d. C. , and the state and local governments all across the land. Those choices will have a lasting and profound impact on the direction of our nations Energy Policy. The decisions of the 2014 voters will help shape whether and the extent to which our nation for fills its potential as the Worlds Energy superpower. To lead the energy all see discussion and educate the public on the gamechanging significance of the choices our nation faces, apis 2014 messaging and advocacy theme will be americas energy, americas choice. It distills the discussion down to a basic choice. An American Energy future of energy abundance, self sufficiency, and Global Leadership or reverting to the past of energy scarcity, dependence, and economic uncertainty. It is fundamentally that simple. Our underlying message is equally simple. Energy is fundamental to our society, to our way of life. Thanks to American Innovation and the entrepreneurial spirit shown by our industry and many others, our nation stands among the worlds leaders in Energy Production and is poised to be the leader well into the future if we get the policy right. The question before us today is whether we have the vision and the wisdom to take full advantage of our vast Energy Resources. The policy choices we make today are among the most important and farreaching decisions we will make in the 21st century. We have a once in a lifetime opportunity to reshape, to realign, and reorder the worlds Energy Market and improve domestic prosperity to an unprecedented degree. If we are to continue our nations current positive Energy Production trends we must implement Energy Policies based on the current realities and our potential as an energy leader. Not on the outdated political ideology of professional environmental Fringe Groups or political dilettantes. American Energy Policy should reflect the reality that someone, somewhere will benefit from helping meet the Worlds Energy growing needs. Make no mistake energy and more specifically oil and natural gas will remain foundational to our way of life. The demand for Energy Worldwide will continue its upward trajectory. For the foreseeable future we will need more energy from all sources, wind, solar, nuclear, coal, biofuels, the list goes on. All these are needed to meet what we see taking place around the everexpanding economies around the globe. According to the president , Energy Information administration, 25 years from now, oil and natural gas will still be responsible for providing over 60 of our Nations Energy. It will provide more than 90 of our transportation fuels. Worldwide eia projects demand for liquid fuels will increase by 20 in the next 20 years. Driven primarily by the development of emerging markets and nations as they seek to lift themselves out of poverty, improve their standard of living, and increase the Economic Opportunity for all their citizens. It should be a simple choice do we, as a nation, decide to use our vast Energy Resources to help meet the worlds growing energy needs and boost our competitiveness . Do we realize our National Security considerations . Do we provide more americans with wellpaid job . Do we continue to provide billions of dollars in revenue to federal, state, and local governments in the coming decades . Or will we choose once again to revert to the past of energy insecurity, energy scarcity, and dependence upon past practices . Those on the side of americas 21st Century Energy renaissance have a few considerable advantages. First the facts. Fact today, hydraulic fracturing in a horizontal drilling or what some like to call fracking it has created the United States is the number one producer of oil and natural gas. Just this year, north dakota produced more than one Million Barrels of oil per day. If you were a country, it would rank it in the top 20 in the world. Fact u. S. Production of crude and natural gas liquids have increased by over two Million Barrels a day in the last two years and almost 20 in percent increase, reducing our reliance from over 60 to less than 34 today on outside sources. Fact according to the Energy Information administration, in 2001 1 of our natural gas supply came from shale. In 2010, that percentage grew to 20 and by 2035 it is expected to grow to 45 thanks in large part to our technological leadership which the rest of the world is now seeking to emulate. Hydraulic fracturing or fracking is essential to the american renaissance in the production of american oil and natural gas. Also, in what is really a politically motivated disconnect between todays muchchanged Energy Landscape and the political orthodoxy of some, in my view, views of the past who continue to push for arbitrary and unfair limits were outright bans on energy exports. It is a position that flouts the facts. Fact according to the latest census data which was just released this morning, the oil and natural gas sector is now the nations leading exporter and has contributed more than 129 billion during the 11 months of 2013 towards our trade amounts. It leads all other export sectors and today accounts for 8. 9 of our total exports. In this data released this morning we learned that this has reduced our trade imbalance by over 16 , ringing us to waste bringing us to a fouryear low. With the single largest contributor to achieving the president s vision of doubling exports to the United States. Heres one last remaining fact, a most important one in my mind. The American People get it. They stand with us on todays most important Energy Policy questions. They understand a progrowth Energy Policy will translate into millions of stable, good paying jobs which will go a long way to lowering unemployment and shrinking the income inequality gap which is shaping up to be a central theme of this years election. The truth is, the average upstream job in the industry pays seven times the minimum wage in the United States. It is Little Wonder that, according to recent polls, 77 of all americans want to see this nation increase our Domestic Production of our oil and natural gas. 92 of American Voters have concluded that the development of our Energy Resources provide and will continue to provide hundreds of thousands, indeed, millions of good paying jobs now and well into the future. On perhaps the highest profile issue within the policy discussion today, 69 of the voters support building the keystone xl pipeline, something shelby and i were talking about a moment ago here at the table. This has gone on for far too long. Speaking of keystone, with all due respect to the administration, i would like to point out that this now five plus year evaluation process of this pipeline has lasted longer than americas involvement in the second world war. Longer than it took our nation to put a man in space and almost as much time as it took us to build the Transcontinental Railroad over 155 years ago. In other words, far too long for a project that will create jobs, grow the economy, and ultimately expand our nations ability to take full advantage of our nations bright Energy Future. It is a good example of why policy matters and how dogmatic adherence to political ideology can trump economic reality to the detriment of millions of hard working individuals who aspire to nothing more than to feed their families, to educate them, and to have some sense of a qualityoflife. The fact is, with a single word, the word yes, the president could allow this vital infrastructure project, paid for by the private sector and without a dime of taxpayer money, to move forward and provide thousands of good paying jobs for many years to come. If we are truly concerned about income inequality, here is an easy way to begin to close the gap. Broadly, the keystone xl pipeline to date highlights the need to invest in our Energy Infrastructure, to support job growth, it economic growth, and increased governor revenue. I would refer you to the booklet we handed out today. A summary of the report is included. A report recently concluded by ihs global which showed an average annual Energy Infrastructure investment of up to 95 billion, which is realistic in the current context, would contribute as much as 120 billion to the u. S. Gdp, support as many as 1. 1 million new jobs in america, and provide an additional 27 billion dollars in government revenue on average every year between now and 2025. This is a big deal. Infrastructure is essential, critical to well being. The consistent polling data shows strong public support and the result of multiple studies reported a significant, positive economic benefit of expanded Energy Production have spurred more and more Congress Members from all regions and from both parties to support increased domestic Energy Production. Case in point going back to our topic of keystone pipeline, just last year both chambers, by wide margins and bipartisan margins, passed measures urging the president to approve the keystone xl pipeline, proving that even a time of hyper partisanship and polarization that energy is one of those areas that we should be able to rally as a nation, putting aside our different philosophies or different ideologies and our different political banners and begin to support that which is best for the good of the nation for the good of the country. The publics strong support in our ability to that too partisan noise and stale ideologies of our critics is due to our ongoing Public Outreach possibly. To develop our own resources to develop the world superpower. As we look ahead to november Midterm Elections and beyond, we will use americas energy, americas Choice Campaign to spur more proEnergy Policies to engage the American People and ensure that our nations discussion on Energy Policy is based on fact and reality. The new facts, the new realities, the political orthodoxy or hyperbole. What is more, there is another fact on our side the benefits that American Energy revolution has already delivered. The best example being a significant reduction of americas co2 omissions which are at their lowest levels in nearly 20 years thanks largely to the abundant supply of cleanerburning natural gas. It is a direct result of innovation and technology that allows us, through hydraulic fracking, to drill hundreds of thousands of wells to produce a lowcost, affordable, cleaner burning form of energy. These are private sector dollars being invested in technologies. We can debate the role of government in the expense of taxpayers dollars to pursue these technologies, but i want to emphasize the oil and Natural Gas Industry is a leader in zero carbon emission, low carbon emission technologies. One out of every six dollars invested in nonhydrocarbon Technology Comes from the oil and gas industry. Since 1990 our industry has invested 252 billion towards improving the Environmental Performance of our products, our operations, and our facilities. What we want and what the American Public deserves his Energy Policy that continues to trend of our nation the coming energy selfsufficient and, indeed, the Global Energy leader. The americas energy, americas Choice Campaign sends a message to lawmakers at all levels of government that the time to end the intrusion in the policy debate is now and that the only limits on our Nations Energy potential will be those that are selfimposed by shortsighted, politically motivated Energy Policy decision. Again, the American Public and future generations deserve better. Americas energy, americas choice will harness the collective will and wisdom of the American Voter to lead the discussion of our nations bright Energy Future and to better align our nations Political Science with our geologic science. Right now the former, all too often, drives our Energy Policy. It will use the up coming Midterm Election as a means to frame and to positively influence policy discussion, educating the American People, and encouraging them to take time from their busy lives to engage in the political process to educate those elected to represent them, to do the right thing, to take advantage of this once in a lifetime opportunity. After all, voting is about vision. It is an act of optimism. Our goal is to ensure that as selected representatives make policy, the will of the American People will be uppermost in their mind and a dominant voice in the public debate. To make clear the link between developing americas vast Energy Resources, job creation and economic growth. Fundamentally, americas energy, americas choice will make plain the Energy Policy choice we face. Do we fully develop our enormous Energy Resources at home so that future generations inherent an energy selfsufficient nation . Or do we step back in time when america was only one of many play result players in the Global Energy market . In my view it would be unforgivable if the country was to abandon oregon nor its responsibility to future generations by missing this opportunity abandon or ignore its responsibility to future generations by missing this opportunity by listening to political orthodoxy. Encouraging american lawmakers to take advantage of americas Energy Renaissance is at the core of the American Petroleum institutes Mission Today and well into the future. It is americas energy. It is americas choice. Thank you very much and i look forward to entertaining your questions. [applause] thank you, jack. There are people collecting cards if you have any. Exports are in the news today and the possible exports of crude oil. On exports, u. S. Production is only recently at record levels. Why not wait and pause and go at a more deliberate speed before considering exporting crude oil or increasing exports of lng . Great question. Let me say it not only is it in the news today, a senator made a speech this morning that talked about this issue specifically. To paraphrase her words, she said that we need to modernize americas Energy Policy. This is a perfect example of what we need to do in this country as we look at those prohibitions or those limitations on our ability to achieve our full potential. Our import reliance has gone from 60 to 34 . It is a significant move. What we should also look at is how we bring more of this vast, domestic supply to the global marketplace. The free market is the best factor to determine price and supply and demand equations. The worst thing for the government to do right now is to distort the marketplace. We see today, as i mentioned earlier, we have now reduce the imbalance of our trades today by 16 because of the export primarily of refined product. We should look at all options. We should consider a the export limitations on crude oil today just as we are seeking to expand lng exports in this country. It should be part of the mix. It should not be bound by past practices or the visions of the Arab Oil Embargo in the 1970s. It is a new day and new time. It is a new america. As it relates to oil and gas. We should consider and review quickly the role of crude export along with lng export and finished product export because the advantage it creates in this country is in job creation and balance of payments. On the keystone pipeline, in your remarks you mentioned three thanks. Bipartisan support, polls that show people support the pipeline, and for previous oks from the state department. Two part question. Number one, why is it still delayed . What will you be doing in 2014 to gain approval . I wish i could answer the first part of the question. I think we are as frustrated as anyone elses. We will not give up. We will continue to push consistent where the American People are. 69 support approval of the keystone xl pipeline. The canadian Prime Minister said it is a nobrainer. Today we are having a debate in the congress and we will over the next year over income inequality. Our jobs in the oil and Natural Gas Industry, particularly on the upstream of reduction side, pay seven times what minimum wages today. With one simple word, the word yes, would approve thousands of jobs, wellpaying jobs, would help us to begin to close this gap. We worked closely with doug and many seats around the table today in organized labor to create these jobs. We are unified. The sinnott not a republican or democratic issue. It is an American Issue but it is key to our success and it is fundamental to sending a signal not only to this nation but the world as to how we will handle our Energy PolicyGoing Forward and will we rise to the occasion to truly achieve the potential of becoming a superpower around the globe. Theres a lot of talk about the keystone pipeline. There is another pipeline that is important to the industry and that is the alaska pipeline. Given the declining throughput of the pipeline, what is your vision of its future as it is related to the american Energy Policy . Alaska is key in a vast Energy Resource for us that has gone in many ways underutilized for many years. We need to continue to focus on alaska. The role of federal and State Government is key in alaska. The vast majority of the state is controlled by, primarily, the federal government as well of the state. When we look at the transatlantic pipeline, it is a resource that is now underutilized because we are not