FACT SHEET | October 1, 2007

National Energy Index

In recent days, attention has again focused on rising energy costs, including record breaking crude oil prices that have risen above $80 dollars a barrel. The increase in energy prices has refocused attention once again on the vital need to lower energy costs, cut oil consumption, and begin moving our country towards energy independence. Senate Democrats remain committed to enacting energy legislation that will provide the country with a more sustainable energy policy that will strengthen our national security, protect the environment, and take steps to reduce energy prices. 

Oil Prices and Economic Impacts

"Though the effect of high oil prices on the U.S. consumer is a concern — especially given that the dollar is near record lows versus the Euro — the Fed tends to measure inflation with food and energy prices stripped out."(Associated Press, September 2007).

Price of a barrel of oil, September 25, 2007: $81.20

Price of a barrel of oil, September 25, 2006: $60.74

Price of a barrel of oil, September 25, 2001: $27.81

Percentage increase in price between September 25, 2006 and

September 25, 2007: 33.6%

Percentage increase in price between September 25, 2001 and

September 25, 2007: 192%

Highest closing price for a barrel of oil in nominal dollars, set on

September 20, 2007: $83.85

Inflation-adjusted high in real dollars, set in January 1981: $92.91

Percentage of the top five oil companies that are state-owned: 100%

Percentage of world’s known oil reserves located within the United States: 3% 

Estimated number of Americans who lose their jobs when the

price of oil increases by 10 percent: 150,000

GDP lost when the price of oil maintains a 10 percent increase

for three months: $102-153 billion

Estimated upward direct inflationary impact that a 10 percent rise

in oil prices has on the U.S. economy: 0.8%

Estimated amount per barrel that speculation adds to oil prices: $25-30

Estimated amount per gallon that speculation adds to gasoline prices: 60 cents 

The Cost of America’s Addiction to Oil

"It is often said that 9/11 changed everything! Sadly, in the area of energy policy it has not changed very much. American oil vulnerability continues unabated." (Goldman Sachs International, January 2007).

Total amount spent on oil and petroleum product imports thus far in 2007: $168 billion

Total amount spent in 2006: $291 billion

Total petroleum trade deficit in 2006: $271 billion

Total petroleum trade deficit in 2005: $229 billion

Percentage increase of petroleum trade deficit from 2005 to 2006: 18.2%

Percentage of the total trade deficit made up by the petroleum trade deficit: 33.1%

Amount sent to OPEC countries for crude oil imports thus far in 2007: $70.1 billion

Amount sent to OPEC in 2006: $107 billion

Estimated loss of domestic tax revenues from foreign oil purchases

per year: $43 billion

Estimated cost of oil to the U.S. economy since 1970: $3.6 trillion

Costs of imports from OPEC countries in March of 2007: $26.5 billion

Costs of imports from OPEC countries in March of 2006: $23.8 billion

Percent change from March 2007 to March 2006: 11.18%

Number of Republican Senators who voted against targets to reduce

oil consumption by 10 million barrels a day by the year 2031: 30

Estimated number of barrels of oil saved each day under Senate-passed

biofuel expansions: 1 million

Estimated number of barrels of oil saved each day in 2020 as a result of

Senate-passed CAFE reforms: 1.2 million

Estimated number of barrels of oil saved each day as a result of

Senate-passed energy bill: 3.5 million

 

Oil Profits

“I'm not remotely embarrassed about it (the company’s oil profits). I am proud of what we do as a company.”Peter J. Robertson, Vice Chairman, Board of Directors, Chevron (Aspen Ideas Institute, July 2007).

Amount of profits the five largest oil companies made in 2006: $117.6 billion

Amount of profits the five largest oil companies made in 2001: $44.656 billion

Percent increase since 2001: 163%

Amount ExxonMobil has invested in non-petroleum energy

supply and production: Negligible

Amount invested by oil companies in non-hydrocarbon energy

between 2000 and 2005: $1.2 billion

Number of Republican Senators who voted against revoking unneeded

and unwanted tax subsidies for the major oil companies: 34

Amount Senate Democrats want to invest from unneeded and unwanted

major oil company profits into advanced vehicle technologies (like plug-in

hybrid electric vehicles): $1.54 billion

Amount Senate Democrats want to invest from unneeded and unwanted

major oil company profits into biofuels (like celluloisic ethanol and

biodiesel): $4.16 billion 

 

Gasoline Prices

"I think we are going to see higher prices this summer than we saw last summer, and I would not have said that a month ago, but I am saying it now."(Secretary Bodman, May 2007).

Retail price of a gallon of regular gasoline, September 24, 2007: $2.81

Retail price of a gallon of regular gasoline, September 25, 2006: $2.38

Retail price of a gallon of regular gasoline, January 2001: $1.47

Percentage increase in price between January 2001 and September 24, 2007: 91%

Percentage increase in price between September 25, 2006 and September

24, 2007: 18.1%

Highest price for gasoline in 2007: $3.22

Inflation-adjusted highest price for a gallon of gasoline, set in 1981: $3.31

Average gasoline price this summer: $3.05

Average gasoline price last summer: $2.94

Average gasoline price in the summer of 2001: $1.49

Percentage increase in gasoline costs for from the summer of 2001 to

the summer of 2007: 105%

Weeks in 2001 when the price of gas was at least $2 per gallon: 0

Weeks in 2005 when the price of gas was below$2 per gallon: 10

Weeks in 2007 when the price of gas was at least $2 per gallon: 30

 

Transportation Fuel Costs

"Higher gas prices are likely to impact low-income workers more because they are less capable of making adjustments."(USA Today, June 2007).

Estimated transportation fuel costs for 2007: $3,109

Estimated transportation fuel costs in 2006: $2,937

Estimated transportation fuel costs in 2001: $1,623

Percent of households with children in 2001 that spent more than

$2,000 dollars on motor fuel expenditures: 13.5%

Average annual expenditures on gasoline and motor oil in 2001: $1,279

Average annual expenditures on gasoline and motor oil in 2005 $2,033

Percent increase in annual expenditures on gasoline and motor oil between

2001 and 2005: 59%

Estimated annual consumer savings from Senate-passed CAFE Reforms
(25 MPG to 35 MPG): $908

 

Biofuel Usage and Infrastructure

"The US produced more ethanol than Brazil for the first time during 2006."(Ernst and Young, 2007).

Number of biorefineries currently in production: 115

Number of biorefineries currently under construction: 79

Number of gallons of ethanol produced in 2006: 4.885 billion

Number of gallons of ethanol currently under construction: 6.379 billion

Number of states with ethanol plants: 26

Number of gas stations in the U.S.: 170,000

Number of gas stations that offer E-85: 1,300

Approximate number of E-85 stations in the U.S. twenty months ago: 500

Percent increase in E-85 fueling stations over the last twenty months: 160%

Number of states with E-85 fueling stations: 41

Number of gallons of ethanol that the Senate energy bill mandates for use

by 2022: 36 billion

Percentage of the 36 billion ethanol mandate that must come from

advanced materials like cellulosic material by 2022: 21 billion

Amount Senate Democrats want to invest from unneeded and

unwanted major oil company profits into biofuels like celluloisic

ethanol and biodiesel: $4.16 billion

Percent of vehicles that the Senate energy bill requires automakers

to produce by 2015 with alternative-fuel capable:50%

Electricity Prices

"Price increases for electricity have also outstripped inflation over the last five years.”(House Oversight and Government Reform, 2006)

Residential price of electricity in 2001 (cents per kilowatt hour): 8.58

Residential price of electricity in 2005 (cents per kilowatt hour): 9.2

Residential price of electricity in 2006 (cents per kilowatt hour): 10.4

Percent increase in residential electricity prices between 2001 and 2006: 21.2%

Number of states with a Renewable Portfolio Standard: 30

Number of times the Senate has passed Democratic-sponsored

legislation providing for a national RPS since President Bush took office: 3

Number of times the Bush Administration and Congressional

Republicans have blocked a national RPS since President Bush

took office: 3

Increase in cumulative residential expenditures on electricity prices if a

15 percent renewable portfolio standard were enacted (cents per kilowatt hour): 0.4

Percentage reduction of power sector carbon dioxide emissions if a

national RPS were enacted: 6.7%

Million metric tons of carbon dioxide that would be reduced if a

15 percent renewable portfolio standard were enacted 222

Estimated electricity and natural gas consumer savings from the 20 percent

renewable portfolio standard signed into law for Texas by then

Governor Bush: $1.75 billion

Amount Senate Democrats want to invest in clean, renewable

electricity through a long term extension of the renewable energy

production tax credit: $10.14 billion

 

 

Energy Efficiency

"Energy efficiency is the one resource that addresses both the energy security and climate challenges, while enhancing economic prosperity."(American Council for an Energy Efficient Economy, 2007).

Rank of U.S. among all countries in energy consumed: 1

U.S.percentage of total energy consumed in the world: 26

Rank of federal government in consumption of energy in the U.S.: 1

Amount provided to the Energy Efficient Public Building program in the

Bush 2007 budget: $0

Percentage of greenhouse gas emissions that buildings account for: 40

Estimated electricity savings from improved Senate-passed appliance

standards (billion kilowatt hours per year): 50

Estimated water savings from improved Senate-passed appliance

standards (million gallons per day): 560

Estimated consumer savings from improved Senate-passed

appliance standards: $12 billion

Estimated natural gas savings from Senate passed energy bill (BTU’s): 17 trillion

Estimated consumer savings from requiring a 30 percent reduction in

energy use at federal buildings by 2015: $ 4 billion

Estimated reductions in carbon dioxide emissions from Senate

passed energy efficiency measures (million metric tons): 121.4

Amount Senate Democrats want to invest tax incentives for

homeowners and businesses for energy efficiency: $2.97 billion

 

SOURCES

Oil Price and Economic Effects

1. EIA, Cushing, OK WTI spot price. (http://tonto.eia.doe.gov/dnav/pet/hist/rwtcm.htm)

2. EIA, Cushing, OK WTI spot price.

3. EIA historical data, Cushing, OK WTI spot price. (http://tonto.eia.doe.gov/dnav/pet/hist/rwtcm.htm)

4. Calculated from references 1 and 2.

5. Calculated from references 3 and 1.

6. Reuters, “Shares and Dollar Drop; Oil Surges,” http://www.nytimes.com/2007/09/21/business/21stox.html?ex=1348027200& en=af55e6f5ea4e7388&ei=5088&partner=rssnyt&emc=rss

7. Energy Information Administration, Real Petroleum Prices, http://www.eia.doe.gov/emeu/steo/pub/fsheets/real_prices.html

8. CRS Report RL34137, “The Role of National Oil Companies in the International Oil Market,” August 21, 2007.

9. Public Broadcasting Network, “Alternatives to oil dependency,” http://www.pbs.org/wnet/journaleditorialreport/010705/energy.html

10. According to economists at the Federal Reserve Board and the Universities of Kent and Warwick in the United Kingdom, a 10 percent increase in the price of oil will likely increase the unemployment rate by 0.1 percent over the course of the following year. According to the Bureau of Labor Statistics, there are currently 151,000,000 non-farm payroll employees in the United States. Therefore, a 0.1 percent increase in unemployment means a loss of 151,000 jobs. Source: Alan Carruth, Mark Hooker, and Andrew Oswald, “Unemployment Equilibria and Input Prices: Theory and Evidence from the United States,” The Review of Economics and Statistics, v. 80, n. 4, 1998, p. 621.

11. CRS Report RL31608, The Effects of Oil Shocks on the Economy: A Review of the Empirical Evidence. (January 18, 2006) A survey of relevant literature conducted by CRS, a 10% oil price increase reduces GDP growth by 0.4-0.6 p.p. over the next two years. According to the Bureau of Economic Analysis, U.S. GDP in 2005 and 2006 was a combined $25.627 trillion. Therefore, a 0.4% to 0.6% reduction over that time period would result in an economic drop between $102 and $153 billion.

12. United States Department of Agriculture: Economic Research Service and University of California Santa Cruz, LeBlanc, Michael and Chinn, Menzie, “Do High Oil Prices Presage Inflation,” February 19, 2004.

13. Washington Post, “Oil Prices Inflamed by Fear” (July 14, 2006).

14. Ibid.

 

The Cost of America’s Addiction to Oil

1. U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, Exhibit 17. http://www.census.gov/foreign-trade/Press-Release/2007pr/07/

2. 5. U.S. Census Bureau Federal Trade Division, Historical Data--July 2006, Exhibit 17.

http://www.census.gov/foreign-trade/Press-Release/2006pr/07/

3. U.S. Census Bureau Federal Trade Division, Annual Trade Statistics 2006 Highlights, http://www.census.gov/foreign-trade/statistics/highlights/annual.html

4. Ibid.

5. Ibid.

6.Ibid.

7.U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, FT900 Supplement Exhibits, Exhibit 3. http://www.census.gov/foreign-trade/Press-Release/current_press_release/press.html

8. U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, FT900 Supplement Exhibits, Exhibit 3. http://www.census.gov/foreign-trade/Press-Release/2006pr/12/

9. Testimony of Milton Copulos before the Senate Foreign Relations Committee, 6/30/06.

10. Oak Ridge National Labrotory, “COSTS OF U.S. OIL DEPENDENCE: 2005 UPDATE,”

11. U.S. Census Bureau Federal Trade Division, Monthly Trade Highlights, Exhibit 17.(http://www.census.gov/foreign-trade/statistics/highlights/monthly.html)

12. U.S. Census Bureau Federal Trade Division, U.S. International Trade in Goods and Services, Prior Issues and Historical Data, (http://www.census.gov/foreign-trade/Press-Release/current_press_release/press.html#prior

13. Calculated from 8 and 9.

14. 110^th Congress, 1^st Session, Roll call vote # 209.

15. Data compiled from Senate Energy and Natural Resource staff.

16. Union of Concerned Scientists. Senate CAFE Proposals: Comparing Security, Climate, Savings, and Jobs,

 

Oil Profits

1. Calculated from 2006 financial reports for ExxonMobil, BP, Royal Dutch Shell, ConocoPhillips, and ChevronTexaco.

2. Calculated from 2001 financial reports for ExxonMobil, BP, Royal Dutch Shell, ConocoPhillips, and ChevronTexaco.

3. Calculated from 2006 financial reports for ExxonMobil, BP, Royal Dutch Shell, ConocoPhillips, and ChevronTexaco as well as 2001 financial reports for ExxonMobil, BP, Royal Dutch Shell, ConocoPhillips, and ChevronTexaco.

4. ExxonMobil response to Questions from the Record of Joint Committee Hearing regarding Energy Pricing and Profits on November 9, 2005 with Senate Energy and Natural Resources and Commerce, Science, and Transportation Committees.

5. American Petroleum Institute, Facts on Fuel, http://www.factsonfuel.org/emerging_energy/index.html

6. 110^th Congress, 1^st Session, Roll call vote # 223.

7. Senate Finance Committee, Summary of the Finance Committee Reported Energy Advancement and Investment Act of 2007, June 19, 2007.

8. Ibid.

 

Gasoline Prices

1. EIA, U.S. Regular All Formulations Retail Gasoline Prices, http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usW.htm

2. Ibid.

3. Ibid.

4. Calculated from 1 and 3.

5. Calculated from 1 and 2.

6. EIA, U.S. Regular All Formulations Retail Gasoline Prices, http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usW.htm

7. EIA, Short Term Energy Outlook, Real Petroleum Prices, http://www.eia.doe.gov/emeu/steo/pub/fsheets/real_prices.html

8. EIA, U.S. Regular All Formulations Retail Gasoline Prices, http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usW.htm

9. Ibid.

10. Ibid.

11. EIA, U.S. Regular All Formulations Retail Gasoline Prices, http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usw.htm

12. Ibid.

13. Ibid.

14. Ibid.

 

Transportation Fuel Costs

1. Consumption estimates from Household Vehicles Energy Use: Latest Data and Trends; price for the year from Petroleum Navigator, http://tonto.eia.doe.gov/dnav/pet/hist/mg_rt_usa.htm. The EIA’s price for regular gasoline in 2001 was $1.42.

2. Consumption estimates from Household Vehicles Energy Use: Latest Data and Trends; price for the year from Petroleum Navigator. The EIA’s price for regular gasoline in 2006 was $2.57.

3. Consumption estimates from Household Vehicles Energy Use: Latest Data and Trends; price estimate for 2007 from Short Term Energy Outlook, Real Petroleum Prices, Figure 2. (September 11, 2007). The EIA predicts the average price in 2007 to be $2.72 per gallon.

4. Consumption estimates from Household Vehicles Energy Use: Latest Data and Trends; price estimate for the year from Short Term Energy Outlook. (September 11, 2007).

5. Bureau of Labor Statistics, Consumer Expenditure Survey for 2001, Released April 2003.

6. Bureau of Labor Statistics, Consumer Expenditure Survey for 2005, Released February 2007.

7. Calculated from 9 and 10.

8. Calculated fueleconomy.gov. Assuming two cars both currently achieve 25 MPG that each drive 15,000 miles per year versus two cars that achieve 35 MPG and drive 15,000 miles per year.

 

Biofuel Usage and Infrastructure

1. Renewable Fuels Association, U.S. Ethanol Biorefinery Locations, April 3, 2007.

2. Ibid.

3. Renewable Fuels Association, Industry Statistics, http://www.ethanolrfa.org/industry/statistics/#D

4. Ibid.

5. Ibid.

6. Testimony of Alexander Karsner before the Senate Energy and Natural Resources Subcommittee on Energy, July 31, 2007.

7. National Ethanol Vehicle Association, E85 FYI Newsletter, September 20, 2007.

8. Testimony of Phillip Lampert before the Senate Energy and Natural Resources Subcommittee on Energy, July 31, 2007.

9. Calculated from 6 and 7.

10. Testimony of Phillip Lampert before the Senate Energy and Natural Resources Subcommittee on Energy, July 31, 2007.

11. H.R. 6, The Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007, Public Print, P. 14, June 25, 2007.

12. Ibid.

13. Senate Finance Committee, Summary of the Finance Committee Reported Energy Advancement and Investment Act of 2007, June 19, 2007.

14. Testimony of Senator Amy Klobuchar before the Senate Energy and Natural Resources Subcommittee on Energy, July 31, 2007.

 

Electricity

1. EIA, Average Retail Price of Electricity to Ultimate Customers by End-Use Sector, October 4, 2006.

2. EIA, Short Term Energy Outlook, U.S. Regional Electricity Prices: Base Case, Table 8C, September 2007.

3. Ibid.

4. Calculated from 1 and 3.

5. Database of for Renewables and Efficiency, Summary Maps, http://www.dsireusa.org/library/includes/topic.cfm?TopicCategoryID=6&CurrentPageID=10&EE=0&RE=1

6.109^th Congress, Vote #141, June 16, 2005; 108^thCongress, Vote #317, July 31, 2003; 107^th Congress, Vote #94, April 25, 2002.

7. Ibid.

8. EIA, Impacts of a 15-Percent Renewable Portfolio Standard, June 2007.

9. Ibid.

10. Ibid.

11. Ibid.

12. Ibid.

13. Union of Concerned Scientists, Fact Sheet: A National Renewable Electricity Standard Will Benefit Texas’s Economy and the Environment, http://www.ucsusa.org/clean_energy/

14. Senate Finance Committee, Summary of the Finance Committee Reported Energy Advancement and Investment Act of 2007, June 19, 2007.

 

Energy Efficiency

1. Energy Information Administration, Total Primary Energy Consumption, All Countries, 1980-2004. (http://www.eia.doe.gov/emeu/international/energyconsumption.html)

2. Energy Information Administration, Total Primary Energy Consumption, All Countries, 1980-2004.

3. Federal Energy Management Program. (http://eere.pnl.gov/femp)

4. Data from staff of Senate Energy and Natural Resources Committee.

5. Ibid.

6. Senate Energy and Natural Resources Press Release, “Bipartisan Effort Propels Energy Toward Senate Floor,” May 2, 2007.

7. Ibid.

8. Ibid.

9. Ibid.

10. Information provided from Senate Energy and Natural Resources Committee.

11. American Council for an Energy Efficient Economy, H.R. 6 as Passed by the Senate, July 16, 2007.

12. H.R. 6, The Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007, Public Print, P.195, June 25, 2007.

13. H.R. 6, The Renewable Fuels, Consumer Protection, and Energy Efficiency Act of 2007, Public Print, P.316, June 25, 2007.

14. Senate Finance Committee, Summary of the Finance Committee Reported Energy Advancement and Investment Act of 2007, June 19, 2007.

DPC