Advancing Energy Security at AJCJonathan Axelrad

AJC Northern California Energy Task Force Co-ChairEnergy & Clean Technology Group, Wilson Sonsini

Goodrich & Rosati

Eli LipmenAJC Los Angeles Assistant Director

LA Energy Security Task Force Director

Haim ZaltzmanAJC Northern California Energy Task Force Co-ChairProject Finance & Development, Latham & Watkins

Be courteousto others.

Please rememberto silence your

cell phones.

Road MapSection I - AJC Energy Security Successes

Section II-The Energy Reality

Section III- Action Plan for Advancing Energy Security

Section IAJC 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

• Nationally Funded Lobbying Trips• Office Practices & Employee Incentives• Los Angeles• Colorado• New York• Chicago• Washington DC• Westchester• Atlanta• Miami/Broward• San Francisco

AJC Regional Office Successes

AJC ACCESS Successes- J-REC: Jewish Response to the Energy Challenge

- Clean Energy Mission to Germany

- ACCESS New York

Where are we?  What's the cost?

What’s the opportunity?

Section IIThe Energy Reality:

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.

How much of U.S. oil demand is driven by the transportation sector?

Where does the oil go?

More than 2/3rds all oil consumed in the United States

goes toward transportation.

Where are we going? How many trips?

Transportation

How are people traveling to work? Alone? Carpool? Public Transit?

Transportation

Who is getting the windfall?How are they spending it?

• Guess how much a sustained $5 increase in the price of a barrel of oil correspondingly increases Iran's revenues from oil?

$500 million

“We are funding both sides of the war on terrorism” - New York Times Columnist Thomas Friedman

National Security: IranIn its showdown with the West, Iran has pledged to use all means, including oil, to secure nuclear weapons.

“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

#4 Oil Exporter

9% of World Oil Reserves

How do these petro-dollars 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 & WealthWhat 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:

“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.”

#1 Oil Exporter

#3 US Supplier

25% of World Oil Reserves

National Security: VenezuelaPetrodollars fuel Hugo Chavez’s “populist” revolution at home and in neighboring countries, helping him achieve his goal of gaining influence in this Hemisphere.

“[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.”

#5 oil exporter#4 supplier to U.S. 7% of world reserves CITGO – Venezuela’s state-owned oil company has 14,000 gas stations in U.S.

And of course - Economic Security 

Who's the most vulnerable to price fluctuations?

United States VulnerabilityAmericans 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.

Annual Per Capita

Barrel Oil Consumption

2006

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 PowerMakeup of U.S. Power Generation - (2008 approximations) 

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. 

Hydro, Oil & Renewable 2%

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 SpendingUnited 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