Nova University Hosts Industry Leaders in an Energy Policy Town Hall Meeting

      Wayne Huizenga of Huizenga Holdings, Mike Jackson of AutoNation and T. Boone Pickens of Mesa Energy Partners met at Nova University’s School of Business and Entrepreneurship to lead a policy forum to discuss the necessity of establishing a comprehensive national U.S. energy plan and to explore the viable options available to industry and the country at large.

                         To Access Nova University Energy Forum Web Cast ...Click Here 

     Dean' Randy Pullman of the Huizenga School of Business Management and Entrepreneurship hosted the leaders, and all appeared on CNBC to provide insights as to the course the country is taking economically, and the current state and future obstacles facing U.S. industry during these difficult times. He also highlighted the school's student body and the focus of the academic studies. 

      Mr. Huizenga was asked by CNBC’s Joe Kernen about the current economic climate and the possible the effect the new administration and congress will have on the future of the United States economy. The expectations, simply put, are not good as these are difficult times, and the current “stimulus package” passed by congress and recently signed by the President will provide little help in rectifying the current economic situation and the increasing intervention by the government into the private economy is of significant concern. Unfortunately, Wayne Huizenga believes the current economic climate will get worse before it gets better and there will be more bad news in the second half of 2009 as credit card defaults skyrocket and the commercial real-estate market falls. Nevertheless he believes the turn in the economy may begin within the first part of 2010.

     Responding to CNBC, Mr. Pickens believed that the incentives for wind energy production, and support for the new energy grid infrastructure had been properly placed within the new stimulus plan, but what was still needed and has yet to be addressed was the comprehensive use of natural gas in vehicles and trucks within the United States.  He also felt strongly that this could, and should, be included in a comprehensive U.S. energy plan yet to be developed.

     Mr. Pickens went on to say that the United States has not had an energy plan for forty years; and that both he and Mike Jackson agreed that now is the time to return to an initiative in creating an energy policy on a national level. We have an abundance of natural gas right here in the United States and in order to stop importing oil from the Middle East, Mr. Pickens went on to say emphaticaly stated that the use of natural gas in vehicles and trucks should be a principal part of any energy plan to be considered by the United States. Mr. Jackson also has felt and continues to believe that gasoline taxes need to be increased and rebated back to the customer in order to make the increased costs of purchasing a newly engineered fuel-efficient vehicle more cost effective.  However, the economy trumps a gas tax at the moment, but a gasoline/fuel tax increase could be passed to be phased in over time.

     As to the current stimulus package, Mike Jackson felt that its passage was an important step but will not be enough by itself to completely turn the economy in the U.S. around. 'We need a comprehensive energy plan in order to move the country on to energy self-sufficiency.' Wayne Huizenga agreed and also supported Mr. Jackson's view that a gas tax maybe a good idea at this time.

     As to the auto industry, much has been happening recently and the auto industry is at a critical juncture at this point in time. Mr. Jackson strongly felt that this is an opportunity that should not be missed.

   The domestic automakers may have to go into a structured bankruptcy in order to cut the legacy costs that are strangling the industry. If the Federal Government retained “debtor in possession” status, this may be a viable option for these companies. Though General Motors, Ford and Chrysler have made great strides in the recent past, their price points for cost competitiveness still have not been met and more work needs to be done to reduce legacy costs, as well as fixed labor costs within the industry which is in a deep cyclical business.

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