November 2008
CEA Newsletter
Issue 20
From the President
Last night, the nation watched as Senator Barack Obama claimed a White House victory and the Democrats made further gains in Congress. Under a new Adminisration and Congress, energy policy is sure to rise to the top of the political agenda. With Americans facing serious economic and geopolitical challenges, our hope is that any new energy policy initiatives strive to create a sensible, balanced and inclusive energy plan that more effectively uses all of our domestic energy resources, improves our energy security and helps bring down skyrocketing energy costs.
In particular, we hope that the new Obama Administration and new Congress will expand and improve our national energy policy by:
- Allowing for the responsible access to all domestic energy resources;
- Accelerating the use of alternatives and renewable resources;
- Improving efforts to encourage energy efficiency and conservation; and
- Expanding energy education funding and research.
Moreover, as efforts are likely to be renewed by some in Congress to restore the offshore drilling moratorium in 2009, CEA and our members must remain vigilant in our efforts to ensure the national dialogue remains an open and honest discussion about the direction of our energy policy and the implications of legislation that does not include all available resources from both traditional and non-traditional energy sectors.
As always, we are committed to working cooperatively with Washington to let them know we need a national energy policy that guarantees long-term national energy security and reasonable prices for energy consumers.
David Holt
President
Support a New Five Year Plan to Develop Offshore Oil & Gas Resources!
A significant domestic supply of energy can be safely and efficiently found right here off of America’s shores. The U.S. Minerals Management Service (MMS) currently administers the considerable oil and natural gas resources contained in our offshore waters and wants to hear from you about offshore oil and gas development.
Opposition to offshore energy development is mounting. We need you to let Washington know you support reasonable accesss to America’s offshore energy resources.
Support the Thoughtful Development of Carbon Emissions Policy!
The U.S. Environmental Protection Agency (EPA) is currently accepting public comments on an Advanced Notice of Proposed Rulemaking (ANPR) to determine whether or not carbon emissions constitute an “endangerment” to the environment and public health. The outcome could potentially prompt the regulation of carbon emissions under portions of the Clean Air Act (CAA) and cost consumers both jobs and money.
Let the EPA know that the CAA is not the proper regulatory tool with which to implement federal climate policy. Rather, climate policy should be determined by federal legislation through Congressional debate.
CEA weighs in on opposition against new solar projects out West
A recent article by The New York Times highlighted the ongoing struggle between solar power companies and several environmental groups over plans to develop large-scale solar projects in the desert regions of California.
In particular, opposition groups are concerned about the future of several desert animals and worry that the proliferation of solar projects could jeopardize their habitats while also drawing heavily from the desert’s scarce water supply. Rather than develop such large solar projects in the Californian desert, these groups would like to see the solar energy companies implement “distributed generation” projects, including rooftop solar panels.
However, solar energy experts warn that distributed generation methods do not provide a technologically efficient solution. Moreover, implementing such projects would not enable California to meet its target of producing 20 percent of the state’s electricity from renewable energy resources by 2010. In fact, it would take 100 years to meet that target at the current rate of adding 200 megawatts of rooftop solar power per year.
With global energy demand projected to increase at alarming rates in the next few decades, it is only fair to assume that all states in the U.S. will need to increase domestic energy production in order to stay economically competitive and ensure our national energy security. Furthermore, if we are to expand our use of alternative energy resources, limiting technologically efficient and cost-effective solutions is not the answer.
What is the answer is a comprehensive national energy plan that includes all energy resources, including solar power – an energy source that has been shown to generate electricity reliably, efficiently and with no greenhouse-gas emissions.
However, opposition to large solar power projects remains a big obstacle to meeting our energy needs. Like many decisions regarding the location of energy production and distribution facilities, there are always several residents and activists who do not or are unable to fully consider all sides of the debate. Unfortunately, the outcomes of energy siting verdicts not only impact the surrounding residents but energy consumers across the country.
We must move beyond this type of not-in-my-backyard attitude if we are to ever move beyond a heavy reliance on foreign energy imports and bring down energy costs for consumers. Restricting our domestic energy production capabilities will only exacerbate the problems we face due to unprecedented energy costs and economic stagnancy. However, as energy consumers, we must remain vigilant about ensuring that the solar energy industry remains a solidly-regulated industry. No plans to build or expand new solar power projects should ever be put into place without considering the associated environmental and public risks.
Only by protecting access to our all of our domestic energy resources, investing in long-term alternative energy solutions and encouraging energy efficiency and conservation are we going to bring down skyrocketing energy prices and increase our national security. Read article…
Funding increases for research into developing algae as fuel source
Millions in venture capital have been raised to research the development of algae as a possible cheap fuel source for the transportation sector. Read article…
Solar power moves ahead
Researchers discover method to boost sunlight captured by solar panels – a major step toward achieving high-efficiency, cost-effective solar power. Read article…
Consumer Energy Alliance tours Devon Energy’s oil sands project
Consumer Energy Alliance (CEA) Vice President Andrew Browning recently took a tour of Devon Energy Corporation’s Jackfish oil sands project, along with a number of invited newswires and energy news publications from the United States and Canada. (Click here to see pictures of Browning’s trip.)
Based in Oklahoma City, Devon Energy is the only U.S.-based independent with oil sands operations in Canada. They were eager to tell their story on developing oil sands in northern Alberta to the assembled contingent of reporters and consumer association representatives. Led by Chris Seasons, president of Devon Canada Corp., the group was treated to a series of briefings on the firm’s technology advancements as well the importance of maintaining what was termed the company’s “social license to operate”. The group was also given a tour of the Jackfish project site.
The Canadian province of Alberta has proven oil sands reserves of 173 billion barrels ranking, only second to Saudi Arabia in terms of global proven oil reserves and standing in stark contrast to the U.S., which only has 21 billion barrels of total proven reserves. Currently, the Canadian oil sands are the only non-OPEC entity capable of significantly increasing oil production to address global and U.S. demand.
The devastating impact of current high transportation fuel prices on CEA members, such as the American Trucking Associations, the Airline Transport Association, the National Association of Manufacturers and others outlined in the recent CEA Report “The Impact of High Energy Prices on Various Consumer Sectors of the U.S. Economy,” underscore the need for the continued development of Albertan oil sands as an essential and secure hydrocarbon source for the United States.
Indeed, the development of the Albertan oil sands has its challenges in terms of environmental impact and resource consumption. Oil sands projects have been accused of excessive water consumption, a heavy environmental footprint and higher greenhouse gas (GHG) emissions. However, Devon Energy feels that they have made strong advancements in addressing these environmental concerns.
Devon’s Jackfish project (both sites I and II) uses an in-situ technology called Steam Assisted Gravity Drainage (SAGD) that is expected to be the technology of choice used to extract 80 percent of Alberta oil sands. The in-situ or “in place” recovery method is used to produce bitumen through wells similar to conventional oil wells. Steam injected into the reservoir heats the thick oil allowing it to flow to the surface.
SAGD technology actually produces more than 1,000 bbl/day per well vs. The 40 bbl/day per conventional production in Alberta further reduces the environmental footprint of the production process.
Devon takes its environmental commitment a step further using only saline water drawn from local aquifers to produce the steam needed to extract the bitumen and recycles 90 percent of that steam.
Reducing its carbon emissions footprint is a key issue for Devon and it is working to lower its steam-to-oil ratio, which means the firm will need less energy to produce the same amount of oil thus reducing their overall CO2 emissions. Devon Energy and the Albertan government see Carbon Capture and Sequestration (CCS) as a key component of future oil sands production and are devoting significant capital and resources toward advancing the technology.
Eventually, Jackfish I and II are expected to peak at 35,000 barrels a day each and will recover 300 million barrels of oil over their more than 20-year productive lives.
In 2007, Alberta exported 1.3 million barrels per day of crude oil (conventional and oil sands) to the U.S., supplying 13% of U.S. crude imports making Canada the number one exporter of oil to the U.S. By 2020, Canadian oil sands production is expected to grow to almost 4 million barrels per day and the potential exists for over 100 years of production.
In a time of time of ever-increasing global energy demand, serious security issues in the Middle East and Caspian regions and geopolitical challenges for access to hydrocarbon reserves in many of the producing regions of the world, the Canadian oil sands stand out as a current and future secure source of energy for the United States.
Related posts:
