jTabber Example

In less than 15 years, world oil prices have increased from less than $20 /Barrel in 1994 to $130/barrel in 2008. The U.S. Government’s Energy Information Administration projects that oil prices will further increase to close to $180/barrel by 2030. For manufacturers in energy-intensive industries, energy costs equal 25% of total plant operations costs, according to a 2004 report by Manufacturer’s Monthly. Not surprisingly, the majority of U.S. companies believe that escalating energy prices post a potential roadblock to their company’s growth.

On top of the increasing fuel prices, world energy consumption is projected to increase from 462 Quadrillion Btu in 2005 to 695 quadrillion Btu in 2030, according to the Energy Information Administration’s 2008 World Energy Projections Plus.

Not surprising, with energy consumption projected to increase, carbon emissions are also projected to increase from 28.1 billion metric tons in 2005 to 42.3 billion metric tons in 2030, according to the same EIA report. European manufacturers are currently paying $55.62 and 40Euro per ton of carbon emissions under the mandatory European Carbon Exchange. While U.S. manufacturers are not yet under a mandatory emissions regulatory exchange, the voluntary Chicago Climate Exchange is underway and there is state and federal legislation in the works. It is very probable that U.S. manufacturers will be paying in the not too distant future.

All this means that manufacturers will continue to pay more for the same amount of energy consumed. The problem of increasing expenses associated with energy consumption and environmental emissions will only get worse.

According to a 2005 survey by the Alliance to Save Energy, 30% of manufacturers surveyed said they had made energy management a critical part of their business plan. A third said they were undertaking major capital projects to cut energy costs. Another survey by the EIA showed significant increases in participation in energy management programs between 1998 and 2002. This includes an increase in manufacturers installing or retrofitting equipment with the primary purpose to improve energy efficiency.