Lower Input Costs
A safe, reliable energy supply will provide Iowa farmers, ranchers and manufacturers with a stable supply of energy -- that means less price volatility and lower input costs.
Canadian oil sands will also provide a steady supply of oil that will help stabilize the input costs of U.S. fuel production — which helps every consumer, employer and family in America.
The Importance of Energy Supply to Input Cost Stability
The State of Iowa is responsible for consuming more than 83 million barrels of oil per year. Much of that oil is utilized to power Iowa’s manufacturing sector, which employs more than 227,000 Iowans. When you consider all the Iowa operations — manufacturers, farmers, construction companies, and other small businesses — well more than 1.2 million Iowa jobs depend on a stable, affordable supply of energy.
Canadian oil sands are a source of this stable energy supply because. First, Canada is a “friendly” neighbor and ally, so our supply isn’t subject to the volatility inherent from importing oil from hot spot regions of the world where crises are rampant and our security is threatened. Second, importing our oil from right here in North America is more cost-efficient to transport.
These reasons add up to lower input costs for Iowa farmers and businesses. Why? Because the disruptions to petroleum supplies caused by politics, weather or other unseen circumstances often lead to spikes in input costs. This in turn, negatively affects businesses and farmers — the same businesses and farmers responsible for creating most Iowa jobs.
A steady supply of North American-produced energy, such as Canadian oil sands, would help to taper energy input cost volatility.
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