Advancing Energy Security at AJC
Jonathan Axelrad
AJC Northern California Energy Task Force Co-Chair
Energy & Clean Technology Group, Wilson Sonsini
Goodrich & Rosati
Eli Lipmen
AJC Los Angeles Assistant Director
LA Energy Security Task Force Director
Haim Zaltzman
AJC Northern California Energy Task Force Co-Chair
Project Finance & Development, Latham & Watkins
Be courteous
to others.
Please remember
to silence your
cell phones.
Road Map
Section I
- AJC Energy Security Successes
Section II
-The Energy Reality
Section III
- Action Plan for Advancing Energy Security
Section I
AJC Energy Security Success Stories
National Successes
- LEED Certification
- Renewable Energy Credits
- Project New Car
- Multimedia campaign
- Energy Pledge
- Employee Car Program
- Lobby/Support for CAFE Standards,
-Open Fuel Standard & other green
energy legislation
AJC Regional Office Successes
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Nationally Funded Lobbying Trips
Office Practices & Employee Incentives
Los Angeles
Colorado
New York
Chicago
Washington DC
Westchester
Atlanta
Miami/Broward
San Francisco
AJC ACCESS Successes
- J-REC: Jewish Response to the Energy Challenge
- Clean Energy Mission to Germany
- ACCESS New York
Section II
The Energy Reality:
Where are we?
What's the cost?
What’s the opportunity?
Really… How much are we talking?
• How much did the US spend on imported
oil in 1972?
$4 billion = 1.2% of US defense budget
• How much did the US spend on imported
oil in 2006?
$260 billion = Half US defense budget
65.5% of all oil used in US
• How much is that per day? Per hour?
$700 million/day; $30 million/hour
Where does the oil come from?
Much of the world’s largest proven oil reserves are found in
unstable areas and within countries hostile to our nation’s values.
Where does the oil go?
How much of U.S. oil demand is
driven by the transportation sector?
More than 2/3rds all oil
consumed in the United States
goes toward transportation.
Transportation
Where are we going?
How many trips?
Transportation
How are people traveling to work?
Alone? Carpool? Public Transit?
Who is getting the windfall?
How are they spending it?
“We are funding both sides of the war on
terrorism”
- New York Times Columnist Thomas Friedman
• Guess how much a
sustained $5 increase in the
price of a barrel of oil
correspondingly increases
Iran's revenues from oil?
$500 million
National Security: Iran
In its showdown with the West, Iran has
pledged to use all means, including oil, to
secure nuclear weapons.
#4 Oil Exporter
9% of World Oil
Reserves
“If [the U.S.] makes a wrong move regarding Iran, definitely the
energy flow in this region will be seriously endangered.”
- Ayatollah Ali Khamenei, Iranian supreme leader
“If [the U.S.] politicizes our nuclear case, we will use any means.
We are rich in energy resources. We have control over the
biggest and the most sensitive energy route of the world.”
- Mostafa Pour-Mohammadi, Iranian minister of interior
How do these petrodollars correlate to
terrorist funding?
How much does Iran
give to Hezbollah
directly every year?
• Iran funds Hezbollah
directly with $30 - 45
million every year.
• Iranian ships were confiscated by the
Israeli Navy attempting to drop off
weapons to Hamas in the Gaza Strip
Saudi Arabia: Oil & Wealth
What is the net worth of Saudi Arabia and other OPEC oil
producers at $100 per barrel?
On what are some Saudis spending our money?
While our petrodollars flow to Saudi Arabia,
home to the world’s largest oil reserves, Saudi
children are taught contempt for Christians,
Jews, and the West.
Excerpts from Saudi Textbooks:
#1 Oil Exporter
#3 US Supplier
25% of World Oil
Reserves
“There is no doubt that the Muslims’ power irritates the
infidels and spreads envy in the hearts of the enemies
of Islam – Christians, Jews, and others – so they plot
against them, harass them, and seize every opportunity
in order to eliminate the Muslims.”
National Security: Venezuela
Petrodollars fuel Hugo Chavez’s
“populist” revolution at home and in
neighboring countries, helping him
achieve his goal of gaining influence
in this Hemisphere.
#5 oil exporter
#4 supplier to U.S.
7% of world reserves
CITGO – Venezuela’s stateowned oil company has 14,000
gas stations in U.S.
“[T]he English middle classes would have to stop
using their cars, [if the U.S. attacked Iran, as oil
would go to $100 a barrel or more.] We would do
the same if we were attacked. We would cut off
our oil.”
And of course - Economic Security
Who's the most vulnerable to price fluctuations?
United States Vulnerability
Americans use more oil per person than any other country in the world.
This oil dependence is estimated to create a loss of jobs, output, and
tax revenues totaling between $297 - $305 billion annually.
30
25
20
Annual Per Capita
15
Barrel Oil Consumption
10
2006
5
0
India
China
Brazil
U.K.
Germany
Canada*
U.S.
So where can we get some comfort?
ELECTRIFICATION OF TRANSPORT
Plug-In Electric Vehicles (PHEVs)
• How much gasoline could
we display if we converted
all US Cars to PHEVs?
• 6.5 million barrels per day
or 52% of the nation's oil
imports
• Electricity is domestically
produced – jobs/money
stays in US
The Future is Here…Faster, Longer,
Cooler & Cheaper than you think!
•Fast Acceleration, Speed
•Longer Range
•Cooler, Sexier Cars!
Domestically Produced Power
Makeup of U.S. Power Generation - (2008 approximations)
Coal
50%
Natural
Gas 21%
Nuclear
20%
Hydro, Oil &
Renewable 2%
COMPARISON: France: 79% nuclear; Germany; 42% coal
•
OUR COAL DEPENDENCY
50% of U.S. states receive more than half of their electricity from coal
U.S. has world’s largest coal reserves
COMPARISON: China is building a coal-fired power plant every 1 - 2 weeks
•
WIND:
U.S. surpassed Europe as world’s largest wind power producer in 2008.
COMPARISON: China is third but moving quickly up.
What about the cost of electricity
compared to gasoline?
Electricity Options versus Gasoline per Gallon
• Typical power source in expensive state (NE)
• 2006 Electricity price:
≅ $1.47 per gallon
• Saving in other states/regions more significant
• ‘Peak’ time versus ‘Non-peak’
Are we making the right
investments in Electrification?
Compared to China?
Stimulus Spending
United States
• About $11 billion (out of $800 billion)
China
• Estimated at $220 billion (out of $580 billion
Smart Grid Investment
U.S. 2010 expected: $7.1 billion
China 2010 expected: $7.3 billion
Big Money in Clean Tech Sector
• $5.6 Billion in deals in 2009 worldwide (567 companies)
• Top investment areas were:
• Solar (21%)
• Transportation (20%)
• Energy Efficiency (18%)
• Biofuels (10%)
• Smart Grid (7%)
• By region, North America represented 72% of all deals with Europe (mainly
Germany, Norway, Switzerland, Netherlands, Belgium, Denmark, UK) and Israel
representing 22%, China 6% and India 3%
• In North America, California had 60% of the deals ($2.1 Billion) followed in a
distant second by Massachusetts with 10% ($356 million)
How can AJC continue to play a role
in advancing energy security?
Build on Current Programs
• Awards
• Advocacy
• Global
• Domestic
• Project New Car
• Employee Vehicle Program
• LEED
Energy Security Innovator Awards
• Bring attention in the
Jewish community to the
importance of this issue
• Recognize leaders that
are making an energy
secure future a possibility
Global Advocacy
• Broader global message on energy security
• Importance of fiscal, tax, or trade policy to
promote clean technology
• Connecting Israeli and American Cleantech
companies and financiers
• Incorporate green tech opportunities and
alliances into AJC’s diplomatic messaging
Domestic Advocacy
• Short Term
• Open Fuel Standard
• Ensure implementation of CAFE
Standards
• Medium Term
• Plug-In Hybrid Vehicles (PHEVs)
• Project New Car/Employee Incentive
Program
• Long-term
• Electrification of grid
Take Aways/Next Steps
• Group by Region (Northeast,
Southeast, Central, West)
• Limited Time to prepare
• Appoint 1 Person to Present
Conclusion
New AJC Energy Security Platform