CEA May 2009 Newsletter
CEA Newsletter
Issue 26
Message from CEA President David Holt
On May 13, CEA will host Energy Day, an informative and exciting annual event held on Capitol Hill in Washington, D.C., to unite Members of Congress and their staffs with energy sector stakeholders and the public to discuss common solutions for stabilizing energy prices and securing resources.
As gasoline and utility prices continue to fluctuate, a reasonable, responsible use of our nation’s resources is essential to keep prices in line and ensure that energy security is a top priority.
Through open dialogue and teamwork, we can make a difference and achieve an American energy policy that works for Americans.
On this important day, CEA invites all consumers, business owners, manufacturers, energy providers and other stakeholders to come together with Members of Congress to discuss U.S. energy policy, energy security and the impact of volatile energy prices.
Energy Day will feature senior executives from a range of industries who are allied with Consumer Energy Alliance, including: 60 Plus Association, Agriculture Energy Alliance, Air Transport Association, American Association of Petroleum Geologists, American Chemistry Council, American Exploration & Production Council, American Gas Association, American Highway Users Alliance, American Iron & Steel Institute, American Petroleum Institute, American Public Gas Association, American Trucking Associations, Environmentally Friendly Drilling Project, Independent Petroleum Association of America, Independent Petroleum Association of Mountain States, International Foodservice Distributors Association, National Association of Manufacturers, National Association of Neighborhoods, National Ocean Industries Association, NGVAmerica, Nuclear Energy Institute, Southeast Energy Alliance, U.S. Chamber of Commerce and many more!
All of the participating organizations will have experts available to present materials and information to event attendees.
We encourage anyone and everyone to join us and participate in Energy Day – a free, open-to-the-public event which will take place Wednesday, May 13th from 11:30 a.m. to 1 p.m. in the Capitol Visitors Center.
David Holt
President
Support the Five-Year Plan Draft Proposed Program 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 energy resources contained in our offshore waters and wants to hear from you about offshore oil & gas and alternative energy development.
Opposition to offshore energy development is mounting. We need you to let Washington know you support reasonable access to America’s offshore energy resources. Send in your comments today!
Consumer Corner: Saving on Gas
Looking for more ways to save gas and cut costs? To reduce your gasoline needs and conserve energy resources, here are a few handy tidbits for living from Energy Tomorrow, a website of the American Petroleum Institute.
- Tire inflation – properly inflated tires will save up to a mile per gallon.
- Air conditioner – keeping the A/C off will save up to 2 miles per gallon.
- Speedy starts – gradually increasing speed takes half the amount of gas.
- Slow down – driving faster requires more gasoline.
- Steady pace – driving erratically can cost you up to 2 miles per gallon.
Find out more tips for living…
Energy Matters: Effects on the U.S. Airline Industry
On April 23, the Air Transport Association of America (ATA) hosted the monthly meeting of the Consumer Energy Alliance, presenting its case on why “Energy Matters” to the U.S. airline industry. ATA, founded in 1936, represents eleven U.S. passenger airlines and six U.S. cargo airlines. U.S. airlines spent a record $58 billion on jet fuel in 2008 in worldwide operations, $16 billion more than in 2007. ATA continues to see price volatility as a serious challenge to air service sustainability and, in turn, remains intently focused on participating in forums designed to improve national energy policy.
CEA Advisory Board member John Heimlich was joined by his colleagues Paul McGraw, Nancy Young and Ryan Stroschein in stressing that ATA supports a balanced, comprehensive U.S. energy policy that enhances U.S. energy security and results in predictable, stable and environmentally responsible supply and costs. ATA is especially focused on seeks to promote conservation and efficiency through modernization of the U.S. air traffic control system, migrating from radar-based to satellite-based navigation, as well as redesigning airspace in the New York-Philadelphia metropolitan areas. Leading estimates suggest that more efficient air traffic management systems and procedures could reduce fuel consumption and related emissions by up to 12 percent.
ATA also is a co-founder of the Commercial Aviation Alternative Fuels Initiative (CAAFI) and seeks to accelerate the development and deployment of alternative aviation fuels. On April 22, 2008, ATA publicly articulated four criteria for the use of alternative aviation fuels: safety, environmental benefit, operational reliability and economic feasibility. U.S. airlines have increased fuel efficiency by more than 110 percent from 1978 to present, but environmental improvements could plateau without the assistance of alternative fuels.
Third, ATA is keen on reforming energy commodities markets, incorporating greater transparency, tighter regulatory oversight and position limits. Priorities include the following: increased recordkeeping, reporting and disclosure requirements for traders and speculators; tighter position limits and more stringent requirements for the granting of hedge exemptions; requiring that all trades, whether on a regulated exchange or over-the-counter, be cleared through a centralized clearing house; requiring that all traders be subject to position limits on their aggregate positions, regardless if trading on a regulated exchange or over-the-counter; and increased funding for staffing , analysis and enforcement at the Commodity Futures Trading Commission.
Regarding climate change, the airlines’ preferred path to tackling this important issue is through technology (e.g., aircraft winglets, newer aircraft, alternative fuels), operations (aircraft weight reduction, engine wash, operational procedures) and infrastructure (FAA NextGen, Single European Sky) – as opposed to economic measures (e.g., emission cap-and-trade, carbon tax). If economic measures are nonetheless instituted for aviation, they should be accompanied by government engagement on NextGen and alternative fuels within the context of comprehensive energy policy, including reinvesting governmental revenues in the aviation system.
Finally, ATA enthusiastically supports, and has long supported, expansion of access to existing domestic resources, including oil, gas, solar, wind, nuclear and others. In fact, on May 4, ATA President and CEO James C. May participated in a panel at the Offshore Technology Conference in Houston, Texas. Energy price volatility and supply insecurity has been a major contributor to the loss of 151,000 airline jobs from May 2001 to February 2009.
Wind Energy Projects to be funded with Multi-Millions from Recovery Act
Pushing forward plans to increase domestic renewable energy, the U.S. Department of Energy dedicated $93 million from the American Recovery and Reinvestment Act to development, testing and research on wind technology. Read article…
States to Share in the Profits of $500 Million in OCS Oil & Gas
States along the Gulf of Mexico as well as Alaska and California will share revenues of $500 million in offshore oil and gas over the next two years, announced the U.S. Department of Interior. The money will be used for restoring and protecting coastal habitats. Read article …
Affiliate Spotlight: American Iron and Steel Institute
For over a century, the American Iron and Steel Institute (AISI) has pushed forward North American steel manufacturers and the benefits of using steel.
Since its official founding in 1908, AISI has served as the “voice of the American steel industry” – specifically in public policy and marketplace choice – and as a key proponent of development and application of new steels and steelmaking technology.
The mission of the organization, according to Jennifer Diggins, Vice President of Government Relations, is “To influence public policy, educate and shape public opinion in support of a strong, sustainable U.S. and North American steel industry committed to manufacturing products that meet society’s needs.”
“The vision of the Institute and its members is for a sustainable North American steel industry strategically positioned for growth and innovation and as a leader in the global marketplace,” she adds.
The membership of AISI includes 25 member companies, which represent approximately 75 percent of both U.S. and North American steel capacity, and 138 associate and affiliate members, which are suppliers and customers of the steel industry.
Energy issues affect all of AISI’s members, regardless of their membership category.
“Energy cost, affordability and accessibility greatly affects members of the American Iron and Steel Institute,” comments Diggins. ”Part of AISI’s mission is to work to maintain a strong, sustainable and competitive North American steel industry. Energy costs account for 20 percent in the production of steel. Since steel is a globally traded commodity, energy, and its price and accessibility, is an issue of competitiveness.”
When it comes to energy issues, AISI has several goals the organization would like to see accomplished.
“Provide all consumers with green, affordable, abundant and reliable energy. Greening the electrical grid is the fastest way to CO2 reduction and has the additional benefit of reducing the CO2 footprint of major electricity users such as steel,” asserts Diggins.
“Reduce our dependence on foreign suppliers by exploring our own domestic supply and provide financial incentives for states allowing exploration and production off their shores,” she continues.
“Grant targeted tax credits for investment in wind and other renewable energy projects. Encourage safe and clean nuclear power through regulatory streamlining and offering sufficient resources to solve the issue of nuclear waste and update and expand the electrical grid and distribution network.”
As a member of Consumer Energy Alliance, AISA expresses its support of bringing a voice to the energy consumers of the United States.
“AISI is an affiliate of CEA because we believe in their goal of providing a much needed voice for energy consumers,” explains Diggins. ”CEA is able to bring together extremely diverse business interests and provide a forum to have a meaningful dialogue on one of the most critical issues facing business today -energy.”
For more information on American Iron and Steel Institute, visit www.steel.org.
Comments are closed.