Press Release

#SubEnergy Examines the Benefits and Future of North American Energy Trade


WASHINGTON, DC – The Energy Subcommittee, chaired by Rep. Fred Upton (R-MI), today held a hearing entitled, “The Impacts and Future of North American Energy Trade.”

#SubEnergy examined North America’s increasingly interdependent energy trade. The United States, Canada, and Mexico represent each other’s largest import and export markets for many energy commodities. Energy trade has also created millions of American jobs and enhanced U.S. energy security.

Karen Harbert, President and CEO, Global Energy Institute, U.S. Chamber of Commerce, spoke to the benefits of North American energy integration, stating, “North America’s abundant energy resources are upending the global energy market. In the U.S., this newfound abundance creates millions of well-paying jobs and new industries, and strengthens our nation’s economy and long-term energy security. With the right policies in place, the U.S. and all of North America have the opportunity to have the greatest influence on the global energy marketplace to the greater benefit of our region.”

Chet Thompson, President and CEO, American Fuel and Petrochemical Manufacturers, echoed Ms. Harbert’s statements, commenting, “As a result of an increasingly integrated North American energy market, the U.S. enjoys reduced costs on imported energy products such as crude oil, as well as billions in annual domestic export revenues. The growth of energy infrastructure from the U.S. into Canada and Mexico has allowed for expanded market access for U.S. companies, greater investment, job growth and affordable energy costs for consumers.”

Today’s panel of witnesses respond to member questions

Allen Burchett, Global Head of Strategic Products, ABB Inc., testifying on behalf of the National Association of Manufacturers, provided examples of how our manufacturing supply chain reaches across North American borders, stating, “ABB is the largest producer of power transformers in the world, these transformers can be found at power plants, manufacturing facilities, and in neighborhoods across the United States. We build transformers at plants in Mississippi, Virginia, Missouri, and Tennessee. Yet the insulation material used as input into these transformers are sourced from a Canadian company. The transformers manufactured in Crystal Springs, Mississippi use high voltage instruments from Mexico. Transformer equipment produced in Alamo, Tennessee uses fuse assemblies, switches, and safety devices manufactured at an ABB facility in Mexico. Similarly, high voltage power circuit breakers produced in Mt. Pleasant, Pennsylvania incorporate panels produced at an ABB facility in Mexico.”

“Nationally, 14 million jobs are tied to trade with Mexico and Canada – in Michigan, it’s nearly 400,000. This trade makes us more competitive internationally and can prove to be the difference between creating or shedding jobs. Eighty-four percent of petroleum and coal products exported from Michigan go to either Mexico or Canada,” concluded #SubEnergy Chairman Upton. “We have transmission lines that go across the border; we have pipelines that go across or under the border; and we have goods and services that go across the border. Energy trade is more than just commodities – there is also a huge supply chain supporting everything. The multiplier effect of energy trade is great throughout our country.”

A background memo, witness testimony, and an archived webcast can be found online HERE.


Energy (115th Congress)
Press Release