That they agreed upon in a bipartisan way. And it can be done without everything that we do that has a risk. It can be done with nothing more than manageable risks. Thank you. Thank you very much. Senator, thank you for your extraordinary patience. Youve been here early the whole morning and just in order of seniority we find you and we thank you. Thank you. Let me congratulate you on your new role. This is great you in the chair and i look forward to our Work Together in the years to come. I want to associate myself with some of the comments of the senator before she had to depart. Because they say all politics is local and when you think about it this is obviously a large country and i think its fair to a as with other Energy Issues at the policies that we are discussing today dont necessarily affect all of our states and even manner. Like the senator, wisconsin is one of the leading manufacturers in the United States and i think right now it can boast the role of number one manufacturing states as a percentage of our overall economy. And i note this because of the focus of todays hearing that we dont have a witness that is representing Consumer Voices today. Obviously they are a very of one part of this discussion and i look forward to future opportunities to hear from those witnesses also. So i would like to ask you a few questions this morning. The Paper Industry is a major part of wisconsins manufacturing in a Paper Companies are working hard in a very trade sensitive impacted industry while also complying with Environmental Quality standards and most of their foreign competitors do not do this. He promotes a light switch over to natural gas have been able to secure a supply of fuel because of an adequate infrastructure. Many companies dont have adequate access to natural gas and yet today were talking about increasing this. So my first question is will howell the increased exports import the construction of Gas Infrastructure for companies that companies in wisconsin might be able to rely upon. Senator baldwin, let me just start off by saying that in this forecast we have natural gas consumption in the Paper Industry overall between 2010 and 2040. And in general we have very strong growth in natural gas consumption. So i dont think that there is a shortage of gas that would lead to problems in the Manufacturing Industries and on the infrastructure issue that you asked about, there is the secretary of energy and a president who has an Energy Review under way that intensity directly addressed the infrastructure issues. Let me back up just a second and start with on the issues of natural Gas Production in the u. S. , there is no dispute that i can find in the economic literature on either side of this that the positive impacts on jobs and gdp are very strong on the jobs impact of exports. The literature is somewhat mixed but it seems to be relatively minor. The impact on gdp and jobs from export are small because the exports are a small proportion of the overall production in the United States and the overall Global Markets. And so one of the things that i think mr. Chow said that i would like to come back to is that the u. S. Manufacturers are always anyone who is an industrial consumer can always have an advantage over a Global Market which will be two or three times higher in price than the average price for gas in the u. S. So then we come back to the question of what is the difficulty that we are having in your state of wisconsin with the Paper Industry being able to get gas, its really not so much a question of the overall availability of gas but how do you get those pipelines built to take a guess what word is to get into those companies and that is something that utilities and the companies themselves are going to have to work out and the intent of this Energy Review is to try and see if there are any bottlenecks. My time has run out and i did want to ask other questions. We have deep skepticism and it just switches for a second. Having been told that they are adequate supplies at a time that they had incredible increases in exports, we had a dire emergency rate quarter Million People were having trouble heating their homes in wisconsin and a lot of it had to do with that infrastructure and being diverted from more profitable fuels so they could change directions and so it being able to respond to this need in manufacturing is going to be very critical for our domestic economy. Thank you. My time has run out. Senator, as i have committed to you as we have continually raised this issue, its very important to the people of wisconsin and minnesota we normally dont have to hear this. But we will be doing some kind of issue one not to have that figured out. Senator . Thank you, madam chairman. I also want to congratulate you on your position as chairman and i look forward to working with you and to the good senator from wisconsin for firing off huge amounts and others. And right now the European Union gets about a third of its natural gas from russia. And i would like each of you to tell me how you think we can have the eu will reduce its dependence on russian gas. Again, senator, it is a Statistical Agency and not a policy agencies are not going to offer policy prescriptions other than to say that all of the above Energy Strategy seems to really make sense for the United States and possibly for other countries. One other thing i can say is that in terms of the growth and supply the leaders named leaves an opportunity for both growth and domestic consumption of natural gas as well as exports. Thank you for your question. The problem is that we have closed markets in the eu countries and lithuania is one such country as i have said and so what we have to do to address this is diversified and create alternative routes of supply and that is our energy floating that will help rein in Common Alternative direction. But where do we get this gas . Well, of course, many things would serve the purpose of having a more objective price for a monopoly not being able to charge this closed market. But on the other hand increased and newly created global gas markets will definitely help to bring down the prices globally. This would definitely be the direction that will be a part of the u. S. Government and congress and specifically the exports. Thank you, minister. I think that you asked spurts wherever they go to help to reduce europes dependence on russia, even if our exports go to asia and are competing with exports that russia might descend into be sending to a pipeline to china. That frees up other gas to move so we look in the long run it is going to be benefiting europe eventually. Europe will then be facing russia but has to accept lower prices or be less physically dependent upon russian gas. Im not sure which way it will play out. Thank you, doctor. Mr. Baldwin . First, we shouldnt encourage the European Union to create integration of gas markets you can move it from spain all the way to kiev. Second, they have a fair amount of that in place already, dont they . Its very hard to move this from pointtopoint although they have eliminated the destination pauses. There is enough to move into the rest of europe so they need more pipelines there and you have to negotiate the entry and exit price at each point along the pipeline. So it can be up to 10 steps to figure out where it is and they are not transparent about capacity either. So theres more work that will really make it easier for them to get into this some in the gas market is number one and interconnections are number two in getting price is right internally as i talked about is important both to control and demand and attract investments promoting shale gas and countries in europe and enhancing Energy Efficiency in places where that is appropriate in europe and accelerating the consideration of applications to export. Before you answer, will you put that up . Because this will explain something to you are talking about. Isnt interesting point with the Energy Ministers meeting. Is it april on this very issue. Thats fine, just hold it up there. The blue are the already constructed gas pipelines. And the rudder proposed for oil and gas. Mr. Golin and mr. Chow, look at this map and comment on the question, which i think is important. Is Europe Integrated with the gas pipeline . No, it is not. For two basic reasons, the of the structure is not necessarily connected as well as it needs to be. And the second is market practices. You have comments and some countries are also trying to protect their monopoly power to not let gas and electricity flow freely across the continent is a big problem in europe and youre right, senator. It will be meeting next month i believe in europe. Okay, this is certainly an area where they can do some sensitive work. I would add one more. Which is what they really did look at the developing Energy Resources and the renewables but they do a good job with. Why not look at the resources and also coal that is in western europe already they are not taking advantage of a rather than importing those from faraway places. Thats something they can do to help themselves very much. And i have a sense of irony that it is the central and European Countries that are most dependent on russia today as they take the strongest position because of the aggression that it has caused in the ukraine. As opposed to the western European Countries. Is there something we can do to make it hatch . With respect to the nor norweigans, they have been the larger supplier of gas over gas. They have the ability and nothing we have to do to capture the market. The other two points, echo what was said, we could be a lot more forthright and less tilt on encouraging unconventional and conventional Gas Development in europe. Ive been to eight of the countries to teach safe practices to regulators there, and they dont have private ownership or access to infrastructure, and you have them undermining the development there. Technical assistance, getting comfortable, those are things we are doing, but we could do more of, and the second one, i think is the point thats important. The european story is we eliminated debt clauses, were done. Its not the case. Theres much more work that needs to be done, and i talked to my colleagues at the state department, encouraged them to put that at the top of the agenda. Get that market unblocked, more connections between there, you dont strand gas. You get connections. You can move more gas around that continent faster than it takes to build a new terminal. You can use the ones that theyve got. This 1 the next one here, and we have to bring it to a close. I have one or two comments and questions, and ill turn it over for final remarks, but i want to thank you, all, for your patience, excellent testimony, and everything will be submitted to the record. I want to bring it back locally to the u. S. , particularly louisiana and the energy coast. Designing an energy policy, which this committee is focused on, promoting america as an Energy Superpower will create thousands and thousands of jobs here at home and abroad and help promote democracy, one of the central principle principles ofe existence of our nation. We spent time talking about europe and the ukraine, but we have also started this hearing by talking about the 37,000 jobs in louisiana and texas and the gulf coast that can be created right now with the production and opening up of exports for liquidfide natural gas. Very respectful, appropriate in the comments, i want to be the same. Louisiana is the second larger producer of gas in the country, off gore an on, but were also the Third Largest consumer of gas. Its not in this senators interest to promote a policy where the prices would skyrocket and put consumers at a disadvantage. We have industrial consumers, residential consumers, but the facts are, and i think the case has been made overwhelmingly by a variety of different reports that opening up markets increases domestic supply, not close it down, increase it, of gas and natural gas, and it also will help to create jobs at home and abroad, and the price, as you all said, louisiana the u. S. , north dakota production, texas, oklahoma, colorado, will always have an advantage because were the source of the product. Now, yes, does thought have to go into it . Is it the Silver Bullet . No, but its part of, i think, the equation of how to create jobs at home, promote americas strengths abroad. The three questions i have, and were not going it take the time, but ill ask you all to submit them in writing for the committee. One other thing that we export, and alaskas proud of this, louisiana and texas proud of it, is our technology. Its not just our gas and oil that we export, refined and crude, but our technology, and what could we do better as a country . Were going to do these answers in writing, to encourage technology, not just for the Big Oil Companies that, of course, have their own ability to do that, but the thousands of small independent producers that sometime find it difficult to work overseas. How could we assist them to, you know, to promote and export technology, which is value added to american inventors, ect. Thats one question for the writing. The other is, weve talked a lot about america. Id like to talk about north america. Id like to talk about the power of canada, america, and mexico as a major Energy Producer and supplier, and whats recently happened is a game changer with the government of mexico moving for the first time to privatize their energy sector. They reduce corruption, open up the private market, and mexico is a really big place with a lot of big promise. It sits very close to us. Id like our country to start thinking about mexico, and, of course, building the keystone pipeline, in my view, and using canada and mexico, the north American Alliance of energy is a powerful, powerful tool, and, finally, i dont want to underestimate my colleague, senator barrasso says if we streamline processes, yes. Im for streamlines and im for expediting, but i hope critics of the administration focus on what can we do to help the ukraine minimize corruption . What can we do to, you know, enhance the 1billion that you said, mr. Chow, was a drop in the bucket. Submit what you think is significant investment to ukraine that sends the most positive small. While theres a lot of criticism from one side to the administration, i would also like to go on record saying, for my colleagues, and this is not senator mccows ky, but others on the republican side, put your money where your mouth is. You want to help . Put the money towards ukraine and dont blame anybody else because permits are going slowly. Ill let you have the last word. Thank you, madam chairman. This has been a great hearing. Certainly, a great way to kick off your First Full Committee Hearing as chair on an issue that is clearly timely, and i think holds promise for americas position in the world as an energy leader, and, again, an opportunity for us as a nation to weemed influence in a positive way, and in a way you started off the questioning, talking about russia and energy blackmail. I dont think that the u. S. Would ever assert theyd come at it from that kind of a dictatorial type of position, but one where we can help our friends and allies, enimraij in an environment where as we seek to increase production domestically, how that influences and positively impacts those around the globe, all things being equal, you know, all are benefited by the u. S. And our increasing role and presence in the market. I wanted to ask one very, very quick question. This relates to the issue that senator barrasso brought up with the amendment he intended to advance in foreign relations. As you know, we have the ukraine legislation on the floor in front of us, and the push from senator barrasso and others to extend the fda fast tracking to nato and wto members, there has been the issue raised, a potential trade violations based on this expedited treatment to nato members and other specific countries like japan, and can anybody speak to that issue . In terms of whether or not it presents a trade violation . Im the lawyer. You need to step up, yeah. I confess to not being familiar with all the texts of the bill, but to the extent we have a trade agreement with a country, and we adopt a practice which excludes anybody that we have that kind of trade agreement with, we could be accused of discrime their practice and violation of it. I dont know when you look at which version of the bill, whether it covered everybody that we have a trade agreement with, but if it doesnt, then i think thats thats an issue. I would also worry a little bit that even if it covers every we have a trade agreement with, ukraine, i dont think, is a wto member, and they are not a nato member. They are . Okay. I would worry, make sure we capture all the country that we want to help, and make sure they are not excluded as well. Its the challenge with predicting winners. Uhhuh. Madam chairman, thank you, again, i think this has been very, very beneficial, very timely, and thanks to each and every one of the witnesses. Your leadership as well. Looking forward to working with you. Ask that the quorum call be vitiated. The presiding officer without objection. Mr. Menendez mr. President , i rise to express my robust concern about russias actions and the continuing escalations of tensions in central and eastern europe. Even with ukranian troops leaving crimea, russia continues to extort the ukraine, disavowing an agreement on gas prices that was part of a Bilateral Ag