Steel production is an energy-intensive process that requires reliable and economically competitive energy supplies. The U.S. steel industry spends over $18 billion annually for electricity, and energy can constitute up to 15 percent of the cost of steelmaking.
The success of horizontal drilling techniques has dramatically and permanently altered that landscape and the country’s outlook because of massive amounts of North American oil and gas that are now economically recoverable. This has created a vital opportunity to establish a more secure, affordable and cleaner energy infrastructure that meets the future needs of a growing and robust American economy. Improved development of domestic energy resources makes sense from virtually every perspective, and should be a national priority.
Industrial manufacturers promote production efficiency whenever possible. Intense competition has driven manufacturers to continuously improve processes, from productivity to waste reduction, while boosting the quality and performance of their products. The push to increase competition will ensure that manufacturers weigh all opportunities to increase productivity, and invest in technologies that will supply the greatest competitive advantage.
SMA supports the rapid adoption of public policy initiatives that increase the energy efficiency of commercial and residential buildings, power generation and distribution systems, appliances, and industrial processes. Energy efficiency can reduce U.S. electricity consumption by up to one percent per year over projected demand. At half the cost of adding new generation, increased efficiency can save consumers $100 billion a year on their energy bills by 2025.