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Erik MilitoManaging CounselOffice ofthe General Counsel1220 LStreet, NWWashington, DCUSA2 o o o 5 ~ 4 0 7 0Telephone,FaxEmail.mil.toe@apl.ol.gwww.apl.org2 0 2 ~ 6 8 2 ~ 8 2 7 32 0 2 ~ 6 8 2 ~ 8 0 3 3May 15, 2008Mr. Bruce BaizelStaff AttorneyOil & Gas Accountability Project!EARTHWORKSDear Mr. Baizel:Thank you for your letter to API president Red Cavaney concerning API's educational advocacy program.We share your concerns about high energy prices and the need to address climate change. Our industry ismaking a maximum effort to address these concerns and to help ensure a secure energy future forAmerican consumers.Contrary to the recent article in The Washington Post, ourprogram is an educational effort, not a campaignto "burnish" our industry's image. We began this effort nearly t h r e ~ years ago, following Hurricanes Katrinaand Rita, the aftermath of which highlighted much m i s u n d ~ r s t a n d i n g and lack of information about ourindustry and the importance of oil, natural gas and other energy to the economy and American way of life.For example, studies indicate thatdemand - yet most of the proposals coming from policymakers and the public seemed to be moving in theopposite direction. The National Petroleum Council, in its recent report, Facing Hard Truths About Energy,cites projections of a 50-to-60 percent increase in world energy demand from 2005 to 2030. The U.S.Department of Energy's Energy Information Administration estimates that total U.S. energy demand willgrow by nearly 19 percent between 2006 and 2030. More than half of that demand will be met in 2030 by oiland natural gas, as is the case today.all Ulewe can to meet U.S. and globalOur empirical research has repeatedly found that these are realities that neither the American public normany policymakers recognize. We cannot meet the energy challenges facing our nation, if we do notunderstand them. That is why API has embarked on its educational effort to inform the public about thesechallenges and what is required in meeting them.We want to comment on several of the points in your letter:•You state that "with consumers paying close to $4 a gal/on for gasoline, the public's tolerance will below for what amounts to resources wasted on self-promotion."As noted, we are trying to informpeople about energy, not promote ourselves. Prices are higher today primarily because demand isoutrunning supply in a global marketplace that contains very little surplus production capacity. APIsupports increasing supply and moderating demand. This means expanding the supply of all formsof energy - including newly developing alternatives - while also improving the efficiency with whicheach is used.An equal opportunity employer