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MSCI's Position on Energy, Environment & Transportation

The North American metals industry requires a reliable energy supply to succeed and thrive. As proud stewards of our natural resources, we support policies that protect our environment and provide a stable energy supply. Today’s innovative technologies allow the United States to explore and produce energy from all sources – coal, nuclear, oil and gas and wind and solar – in an increasingly environmentally friendly way. MSCI supports an “all of the above” energy strategy that protects our energy security by expanding domestic energy production to efficiently and affordably deliver power to our nation’s industrial metals industry.

Prosperity breeds the creation of new, cleaner and less wasteful technologies and it strengthens the demand for them. Policies that fuel growth, rather than reactionary and impractical regulations and taxes, are the path to a cleaner, safer environment.

Lower, more stable energy prices will make U.S. manufacturers more competitive with their foreign counterparts. In addition, the United States would be less dependent on foreign energy sources, leading to more employment opportunities, higher incomes and better benefits for U.S. workers. For example, a 2014 University of Michigan study called natural gas a “game changer” and said expanded production “could catalyze a renaissance in U.S. manufacturing … enhancing the global competitiveness of energy-intensive manufacturing sectors such as aluminum, steel, paper, glass and food.”

Policymakers must –

  • Establish a national energy policy that produces a steady, reliable and affordable supply of energy, including renewable and non-renewable, from all domestic sources.
  • Require a cost-benefit analysis of all new regulations proposed by the Energy Department, Environmental Protection Agency, Army Corps of Engineers and Interior Department.
  • Improve transparency in the regulatory process and require involvement from representatives of the industries that will be impacted.
  • Reject international climate change agreements that put the United States at a competitive disadvantage.
  • Rationalize the permitting requirements and approval process for new energy production and transmission facilities.
  • Open more federal lands to oil and gas exploration and enhance offshore drilling.
  • End the U.S. export ban on oil.
Energy, Environment & Transportation Issues MSCI is Acting On

The EPA’s regulatory overreach will result in significant domestic job losses, higher energy prices for consumers and lower economic growth in the United States. The EPA’s ozone regulation is potentially the costliest rule in U.S. history, and its new Waters of the United States rule erodes private property rights while the stricter power plant emissions regulations threaten the reliability of the U.S. electricity grid. Officials from the EPA have acknowledged that, in some cases, these rules will do little to improve our environment. And because so few nations have specific proposals to address their often significant environmental challenges, the United States risks putting its job creators at a significant disadvantage while pollution continues abroad.

Relevant Links
EPA Regulation Articles from Edge and Connecting the Dots

The approval of pipeline construction permits should be routine and expeditious. Insufficient pipeline capacity—caused, in part, by delays in permitting for new pipeline construction—contributes to increased energy prices and market volatility. Timely approval of pipeline permits will increase employment opportunities for U.S. workers. A majority of Americans, and members of Congress from both parties support approval of the Keystone XL Pipeline and other similar projects for one overwhelming reason: they will create jobs in the energy sector and sustain jobs in other industries. Approval of the Keystone XL Pipeline has been pending since 2008 despite the fact that the U.S. State Department has found the project will have a negligible effect on the environment and will create tens of thousands of jobs.

Relevant Links
Keystone Pipeline And Permitting Reform Articles from Edge and Connecting the Dots

In the face of global energy price spikes in the 1970s, Congress passed legislation that banned crude oil exports. This policy is outdated and restricts domestic suppliers, resulting in fewer jobs and weaker economic growth here at home. Congress must end this ban. Doing so will create nearly 440,000 supply chain jobs by 2018 and add $64 billion to gross domestic product by the same year. Ending the ban will benefit every state and congressional district, and will even produce significant benefits for states and localities where there is little crude oil production.

Relavent Links
Ban on Crude Oil Exports Articles from Edge and Connecting the Dots

Our nation’s infrastructure is crumbling; the United States ranks 13th in the world, behind countries such as the Netherlands, Iceland and Denmark, when it comes to the overall quality of our infrastructure. Our broken transportation system hinders the metals industry’s ability to buy, sell and trade. It also reduces employee productivity and increases business costs so U.S. companies are less competitive globally. While competing nations continued to invest in infrastructure, U.S. spending on highways, roads and bridges fell 3.5 percent each year from 2003 to 2012

Relevant Links
Energy, Environment & Transportation Articles from Edge and Connecting the Dots