STATEMENT

Contact: Tracy Cullen
(202) 974-5282
Email: tcullen@socplas.org

SPI STATEMENT ON THE HOUSE REPUBLICAN “INITIAL” ENERGY PROPOSAL

Provisions to Address Ongoing Natural Gas Crisis Inexplicably Absent

WASHINGTON, D.C. (May 4, 2006) – On April 26 the U,S. House of Representatives’ Republican leadership revealed their “initial” proposal to ease the nation’s energy crisis and indicated that it would likely be put forward to the full House this week.

William R. Carteaux, president of The Society of the Plastics Industry, Inc., issued the following statement:

“On behalf of the 1,100 member companies of the Society of the Plastics Industry (SPI), I want to convey our industry’s disappointment with the proposed energy legislation put forward recently by Speaker of the House J. Dennis Hastert on behalf of House Republicans. While the proposal addressed the high cost of oil and gasoline, which we understand is a serious issue facing American consumers, we are concerned that language to address the high cost of natural gas – an ongoing seven-year crisis unto itself – was omitted.

“The U.S. plastics industry, which is the fourth largest manufacturing industry in the United States and accounts for more than $345 billion dollars in annual shipments, literally depends on affordable, accessible natural gas. Our industry uses natural gas as both an energy source and a feedstock. In fact, most plastics resin producers use natural gas as the basic feedstock to make products vital to the medical, automobile, aerospace, food packaging, furniture and electronics industries.

“Recent statistics released by SPI show the price of natural gas has increased in price by 700 percent in seven years. Without an economically affordable supply of natural gas, SPI members continue to find it more difficult to compete in the marketplace. Over the past five years, the U.S. plastics industry has lost more than 200,000 jobs, and countless small companies all over the United States have been driven out of business. A third of the job losses occurred in the last two years when natural gas prices started to spike and reach record highs. From 2002–2004 we’ve seen a 20 percent increase in the cost of materials for the industry which coincides with the spike in energy prices.

“SPI and its members look forward to seeing comprehensive energy legislation that would have an immediate downward effect on natural gas prices – such as provisions to increases access to the nation’s huge, untapped natural gas reserves. Natural gas supplies in the Arctic National Wildlife Refuge and the Outer Continental Shelf can be accessed via state-of-the-art technology and environmentally-sensitive methods.

“SPI and the U.S. plastics industry remains committed to working with the Congressional leadership to find a legislative solution to all of America’s energy concerns – including both the natural gas crisis and the price of gasoline.”

# # #

Founded in 1937, The Society of the Plastics Industry, Inc., is the trade association representing one of the largest manufacturing industries in the United States. SPI's members represent the entire plastics industry supply chain, including processors, machinery and equipment manufacturers and raw materials suppliers. The U.S. plastics industry employs 1.3 million workers and provides nearly $345 billion in annual shipments.

Back to Top

More About SPI:   Vision and Mission . Membership . Business Units . Regional Offices . News and Publications . Calendar of Events . Terms and Conditions of Use