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AGA and the Gas Utility Index Fund
May 2009 marks the 20th Anniversary of the American Gas Association’s Gas Utility Index Fund. And while that may be common knowledge, I’ll let you in on a little known piece of trivia that makes this celebration kind of special to us AGAers.
Back in 1989, a lone AGA staffer used a newfangled desktop computer to determine what kind of return AGA member companies would have offered investors had they been in an index fund for the previous 20 years. It turns out that theoretical fund would have returned an average of nine percent. Armed with that encouraging scenario, the American Gas Utility Fund was born and has been going strong ever since.
Now called the FBR Gas Utility Index Fund (GASFX), the fund is still comprised of AGA’s publicly traded member companies. With assets in excess of $150 million and more than 13,000 shareholders, GASFX continues to be an excellent investment in the energy utility industry.
For more information about GASFX, please visit Morningstar. You can also read a great story on the fund in American Gas Magazine.
National Journal: Anything Matter More Than Jobs?
Yesterday Dave Parker participated in the National Journal’s Energy and Environment Experts blog to respond to their question, “Anything Matter More Than Jobs?” Please take a moment to read his response posted below or visit the National Journal Energy Experts blog to view the comments from others in this respected group.
The American Gas Association (AGA) supports President Obama’s and Congress’ energy and environmental policy priorities that aim to further develop renewable energies. However, we need to recognize that it will be years before these alternative fuels will be available in quantities to replace existing fuels that are so important in sustaining our economy. Therefore, more attention should be placed on our energy security by encouraging more American fuel source development. As the cleanest burning fossil fuel, natural gas is being looked to with more frequency to generate electricity, putting upward pressure on its price and making it less affordable for residential customers who rely on it to meet essential human needs (98% of natural gas is produced in North America). In the future, when renewables are able to take on more of that electricity generation, it will dampen demand for natural gas in that market and in turn make it more affordable for our customers to heat their homes, cook their meals and ensure hot water comes out of the tap.
While renewable energy initiatives are one part of a complex combination of future energy solutions, the timetables being discussed for substantially increasing the use of renewables for electricity generation are optimistic at best, meaning natural gas will remain the fuel of choice in the electricity generation market.
The good news is that natural gas is already here and it is efficient, clean burning and found in abundance throughout North America.
Natural gas currently comprises almost one-fourth of all energy used in the United States and is directly linked to the economic well-being of the nation. In fact, there are currently at least 5.8 million Americans who are employed either directly or indirectly by the natural gas and oil industries. Of those 5.8 million Americans, there are 1.8 million people who are employed directly by the companies that produce, ship and supply natural gas and oil to American consumers, with another 4 million Americans employed in supporting positions indirectly created by the development of America’s domestic energy.
Since America’s natural gas and oil workers earned an individual average of more than $66,000 in 2004, which is $20,000 more than the combined household income for the average American family, these higher paying jobs also help employ other Americans in a variety of businesses – including automobile manufacturing, housing construction, retail sales and more.
In the current financial and economic crisis, natural gas has a great opportunity to help revitalize our economy, to help fight climate change and to help enhance America’s energy security – all at the same time.
Networking through associations
I’m a big believer in associations. Not only do I work for an association but I’m also a member in different associations. One of these memberships is the American Association of Blacks in Energy (AABE). AABE is dedicated to ensure the input of African-Americans and other minorities into the discussions and developments of energy policies regulations, research and development technologies, and environmental issues.
An Association like AABE allows me to grow both as an individual and as a professional. They offer many benefits that keep me engaged in relevant news to our industry, provide leadership opportunities, and allow me to network with the best and brightest in the energy industry. The networking opportunities are one of the reasons why I choose to be a member.
Officers Roundtable Discussion moderated by Marsha Sampson Johnson, Sr. Vice President Human Resources & Chief Diversity Officer, Southern Company. The panel consisted of Jeff Lyash, Chief Executive Officer and President, Progress Energy; Carl English, Chief Operating Officer, American Electric Power; Doug Foshee, Chief Executive Officer and President, El Paso Corporation; Joe Laymon, Vice President, Human Resources, Chevron CorporationNisource; and Robert Skaggs, Jr., President and Chief Executive Officer
Last month, I went to AABE’s 32nd annual conference “Sustainable Energy for a New Economy” that was held at the Rosen Shingle Creek Hotel in Orlando, Florida. The conference was attended by approximately 350 professionals from energy companies. The event featured energy and environmental discussions, a clean vehicle showcase, an entrepreneurs’ forum, and a job fair. There were also scholarship and young adult programs. Session topics included: The Obama Economic Stimulus Plan, job creation, climate change and energy conservation.
I was very pleased by the involvement of the utility company executives that attended the conference. One guest panelist included the AGA’s First Vice Chair Bob Skaggs of NiSource, Doug Foshee CEO and President of El Paso Corporation, and David Ratcliffe Chairman, EEI President and CEO of the Southern Company. Their open dialogue regarding the issues their companies face in today’s challenging economy was very impressive. They expressed their perspectives on issues like diversity within their companies and steps they have taken or plan to take to improve in that area.
Conferences like this allow companies to address and look into more strategic ways to improve their organization when recruiting talent. The conference was a great opportunity to connect with other energy professionals from different aspects of the industry. Organizations allow their employees to attend because of the value it brings to their employees and shows the organization’s supportive role in their career development.
Right after a panel session discussion has finished Robert Skaggs, Jr., President and Chief Executive Officer, Nisource & Jimmy Staton, Executive Vice President & Group CEO, Nisource stop to take a photo with AABE members that participated in the session.
Are you using your association to help find these types of networking opportunities? How do you network?
True Blue Natural Gas Blog from the American Gas Association (AGA)- Beating the Heat with Summer LIHEAP Action Day
- “The Future of Natural Gas,” Meet Dr. Ernest J. Moniz, MIT
- Renewable Gas – Vision for a Sustainable Gas Network
- The Natural Gas Revolution
- The natural gas grid…the really smart grid
- Meeting the Route 66 guys
- Drilling 101
- ‘Drive To Inspire’ Rides Through Tulsa
- Congratulations to the AGA Awards of Merit Recipients
- Summer LIHEAP Action Day
