Sound, Reliable Energy
A steady, reliable supply of oil from Canadian oil sands would stabilize input costs, fuel growth and foster economic and energy security for Nebraska businesses.
Canadian oil sands can meet the nation's oil needs with greater reliability and with less risk of supply disruptions to consumers and businesses. This is good news for Nebraska consumers and businesses who depend on energy delivery without disruption. With this steady, abundant source of energy from a friendly source, America can increase its energy security and look towards a bright economic future.
Nebraska's agriculture industry is a prime example of how a steady source of energy can affect an economy. According to the Federal Reserve of Kansas City, there is a strong alignment of energy costs, farm input costs and the sustenance of the agriculture industry. The chart below shows how closely farm costs track energy prices, in particular crude oil. As the Federal Reserve further cites, "Ultimately, soaring energy prices threaten to slow the booming farm economy."
Source: Federal Reserve of Kansas City
Direct and indirect energy accounts for 15 to 20 percent of farm input costs, according to the Nebraska Energy Office. A major portion of this cost is attributed to oil and natural gas. Thus, when the energy supply is disrupted, or energy costs rise significantly, as they have in recent years, the agriculture businesses are adversely affected.
This same scenario plays out over other industries which also rely on oil for their operations. Thus, it is critical businesses have a stable, reliable source of energy - in particular oil - to run their operations and remain economically viable, creating stronger revenue streams and more jobs for Nebraskans.
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