Thomko Petro Chemical Blog

Consumer Energy Alliance Efforts

The Air Transport Association of America (ATA), the industry trade organization for the major U.S. airlines, is echoing the call of the Consumer Energy Alliance to secure a balanced and comprehensive U.S. energy policy that increases U.S. energy independence and results in a more stable energy supply and predictable costs.

The ATA points out that nearly 30 cities across the country have completely lost scheduled air service in the past year, with more service cuts and job losses inevitable as airlines attempt to cope with soaring fuel prices.

Eight U.S. airlines have shut down operations since the end of 2007 and another has filed for bankruptcy protection. More than 9,000 U.S. airline employees have lost their jobs so far this year, with additional cuts being announced as the year continues.

The ATA is proposing that the government make barrels available from the Strategic Petroleum Reserve and the Northeast Home Heating Oil Reserve in the event of supply disruptions or price spikes; invest proceeds in energy infrastructure.

It calls for curtailing commodity index speculation and close regulatory loopholes in trading of commodity futures (e.g., crude oil, heating oil); create equal playing field across exchanges and increase transparency of activity It also calls for pressuring U.S. refiners to increase utilization, which has fallen to abnormally low levels.

ATA supports streamlining National Environmental Policy Act (NEPA), permitting requirements to allow expedited siting of new and improved refining capacity to meet surging demand for middle distillates (e.g., diesel, heating oil, jet fuel).

ATA also supports facilitating environmentally responsible crude oil exploration, refinery production, nuclear energy investment, wind power or other sources of energy through changes in tax policy, regulation or fiscal incentives and increasing R&D for alternative aviation fuels and for carbon capture and sequestration technologies.

For more information, visit www.airlines.org