Consumer Energy Alliance

CEA June 2009 Newsletter

CEA Newsletter
Issue 27

Message from CEA President David Holt
On May 13, CEA’s annual Energy Day was held on Capitol Hill in Washington, D.C., and successfully brought together consumers with Members of Congress and energy sector stakeholders. Through an open dialogue – stimulated by events such as Energy Day – every person in the country can play an essential role in shaping the country’s energy policy and aid in formulating common solutions to stabilize energy prices and secure resources for America.

In addition to working to shape American energy policy, by participation in initiatives like CEA’s Energy Day, consumers are working toward their own savings and security when it comes to the prices they pay at the pump. Last summer saw record-high prices, and though gasoline prices have reduced significantly in the midst of the worldwide recession, prices continue to fluctuate unexpectedly.

When gasoline and utility prices are volatile, consumers are the hardest hit – right in their pocket books. Americans need to be able to count on reasonable and responsible access to our nation’s resources to keep prices in line and ensure that energy security is a top priority.

As we reflect on the success of Energy Day, we here at CEA would like to say “Thank you” to all who came out and joined us in working to encourage open dialogue and teamwork to achieve an American energy policy that works for Americans. We could not accomplish the goals set before us without your strong and faithful support. You – American consumers – are truly CEA’s reason for being and the force that drives us onward.

If you were unable to join us at this year’s event, we hope that you can join us in the future. As plans for Energy Day 2010 come together, we will keep you informed so that you can mark your calendars! We look forward to working with you on initiatives to empower America by reducing the impact of volatile energy prices and developing a strong national energy policy.

Photographs of Energy Day 2009 may be viewed on CEA’s website here.

Thank you, also, to all of the Members of Congress, business owners, manufacturers, energy providers and other stakeholders who shared their expertise and ideas during CEA Energy Day 2009. We appreciate your hard work and involvement in continuing to bring this important event to the nation’s attention and we look forward to continuing to work with you to develop positive energy solutions for the benefit of all Americans.

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 Summer Energy Costs
Did you know that simply keeping your curtains or blinds closed will reduce your energy costs? Keeping window coverings closed this summer as outdoor temperatures rise will reduce the amount of solar heat gain in your home! Did you know that if you air conditioning unit is old and out-of-date, upgrading to a newer energy-efficient model will reduce your cooling bills by up to 50%?

Details on these tips and more can be found on the U.S. Department of Energy’s website.

Other energy and money-saving tips include:

• Install insulation and seal any air leaks.
• Plant a tree to shade your A/C unit – this will use as much as 10% less electricity in home cooling.
• Move appliances, such as T.V.s or lamps, away from your thermostat to prevent heat from these items causing your air conditioner to run for longer periods unnecessarily.
• An interior fan used along with your A/C will use cooler air more effectively throughout your home.

Find out more tips to save on summer energy costs…

Alaska Offshore: A Look Ahead
Shell hosted the May monthly meeting of Consumer Energy Alliance, presenting a look ahead at Alaskan offshore development.

In summary, key points of the presentation were that offshore resources in Alaska are significant, federal lease sales have been held, and that Shell has been “shovel ready” since 2007, but de facto moratoria has blocked drilling.

Shell has contributed significantly to offshore development in Alaska. Shell operated in Alaska for 50 years until 1998, was the first payer of royalties to the state, and has extensive experience and operations in Alaska’s Cook Inlet, as well as activities in the Gulf of Alaska, Bering and Beaufort Seas, and the Chukchi Sea.

Though the United States currently imports 60% of its oil needs and 20% of its natural gas needs, Alaskan offshore development has world class potential, according to Shell. The Minerals Management Service estimates that there are 25 billion barrels of oil and 120 trillion cubic feet of natural gas in Alaska’s offshore areas.

Currently, Shell holds 275 leases in the Chukchi Sea and 160 leases in the Beaufort Sea and has participated in government-held lease sales since 2005. The value of Shell’s Beaufort Sea lease holdings is $84 million and $2.1 billion in the Chukchi Sea.

Responsible development of offshore resources in Alaska is extremely valuable to the United States. Over the project life of the development, there would be 35,000 jobs created. In addition, the projects would extend the life of the Trans-Alaska Pipeline, gain gas reserves for the lower 48 states, and ensure domestic energy security.

Shell is ready and able to develop the resources in offshore Alaska. The company’s seismic program has proved highly successful and infrastructure to support the program is in place. Though Shell has been prepared to do exploratory drilling since 2007, drilling has been blocked by regulatory and litigation challenges.

To move forward with exploration and develop common solutions, Shell is working with key stakeholders in the region. The company is finding common ground with the people of Alaska and has held hundreds of meetings with stakeholders to gain feedback and revise development programs accordingly.

Though initially development plans were intended to encompass a broader area, Shell scaled back plans after taking input from stakeholders in the region. For instance, in the area of exploratory drilling, in 2007, Shell had planned to have two rigs operating simultaneously in the Beaufort Sea, but Shell’s 2010/2011 plan now utilizes one rig in the Beaufort and Chukchi Seas. The same rig will be used for both areas and operations will be timed to minimize conflict.

Plans had called for appraisal drilling to take place simultaneously with exploration, but now appraisal drilling has been delayed until after 2011. Additional seismic testing was also to be concurrent with drilling, but now no additional seismic testing will take place until after 2011 or 2012.

Challenges to offshore development in Alaska include the numerous regulations that must be followed and the gaining of 36 permits, including 15 major permits. Agencies that companies work with include: the National Marine Fisheries Service, Mineral Management Service, Environmental Protection Agency, Fish and Wildlife Service, Alaska Department of Environmental Conservation, North Slope Borough, Northwest Arctic Borough and Alaska Eskimo Whaling Commission.

Shell’s offshore exploration and development programs have been beset by several other challenges, including appeal of a decision for an EPA Air Permit for activity, which has been a 36-month effort and has cost $13 million and counting in legal and other fees. The impact of one rig is equivalent to 50 to 70 sports utility vehicles. The 9^th Circuit Court has also proved challenging as court opinion forced the Minerals Management Service to vacate Shell’s Plan of Exploration forcing the 2007-2009 drilling seasons to be cancelled. Due to these challenges, hundreds of jobs and millions in contracts have gone unrealized.

In moving forward, Shell will pursue permits for a 2010 drilling program in both the Beaufort and Chukchi Seas and will advocate permitting and litigation reform for Alaska and new outer continental shelf development areas.

Multi-Millions to be Invested in Biomass Production and Hazardous Fuel Reduction

Fifteen million dollars from the American Recovery and Reinvestment Act has been designated by the U.S. Department of Interior to fund numerous projects to develop biomass production on public lands and reduce hazardous fuels. Read article…

Geothermal and Solar Energy Projects to be Funded with over $467 Million

As part of the effort to “increase American economic competitiveness, while supporting jobs and moving toward a clean energy economy,” the U.S. Department of Energy has received over $467 million toward development of geothermal and solar energy projects, including innovative exploration techniques, a national geothermal data system, and photovoltaic technology development. Read article…

Affiliate Spotlight: Choice Energy Services
Founded in 1994 as an electric and national gas brokerage in Houston, Texas, Choice Energy Group is now proud to call itself one of the nation’s top energy brokerage and consulting firms.

Following deregulation of electricity in Texas in 2002, Choice Energy Services was formed to bring knowledge and expertise directly to electricity end users – consumers. Other components of Choice Energy Group include Choice Power, a wholesale electricity marketing group, and Choice Natural Gas, a marketing group for wholesale natural gas.

“Choice Energy Services is the oldest brokerage, consulting firm in the State of Texas. We are a total utility management company and help our clients with procurement of electricity, efficiency levels of buildings, purchase of Green Energy, Demand Response programs – another green component, Retrofit Lighting – green component – and energy bill audits,” says Managing Partner Kiki Dikmen.

The company is compensated directly by its suppliers, not its customers.

“Our goal is to continue to be the premier consulting company in the State and provide our customers the knowledge and education to make better purchasing decisions,” Dikmen notes.

As for environmentally-friendly initiatives, Choice Energy Services recently launched another branch of operation, Choice Environmental, to move forward in achieving its green goals.

“We continue to work very diligently in providing our customers with RECs, Green E logos, as well as technologically advanced energy generation and procurement options including methane from land fills,” says Dikmen.

When it comes to being green, Choice Energy Services would like to see a demand from states that at least a percentage of all energy used must be from renewable green sources.

“As the population rises and the demand increases, our current energy supply will at some point become inefficient and demand will be greater than the available supply,” says Dikmen, explaining the company’s green initiatives.

Energy issues are essential to the company’s mission, according to Dikmen.

“As an energy company, all energy-related issues have a direct impact on our business.”

To face energy issues and move toward responsible development of clean and affordable American energy resources, the company has taken several key steps.

“We have introduced new programs including Demand Response – this is a load-shedding program to help the states cope with increasing demands of electricity – and we have introduced our Choice Environmental division.”

The company also has other energy-related goals, according to Dikmen.

“Purchase of energy after the days of deregulation has become a very complex business. At some point, we would like for PUC to increase REP requirements, meaning it should be harder to become a supplier in this market – and this can only be accomplished by raising credit requirements. We also would like to see all suppliers in the marketplace using PUC-approved unified contracts so that the consumers can have a comfort zone.”

As a member of Consumer Energy Alliance, Choice Energy Services is working on bringing an open energy dialogue to the American consumer and policy-makers.

“CEA is the only organization we have seen that actively engages in a topic that everyone talks about but takes no action,” explains Dikmen. “We commend CEA’s actions. The growing interest in CEA is a positive sign that more and more people are getting to digest the message and seeing the issues that our environment faces.”

For more information on Choice Energy Services, visit www.choiceenergyservices.com.

Chad Deaton of Baker Hughes to speak at TiE-Houston at The Petroleum Club of Houston June 4th
The Indus Entrepreneurs (TiE) chapter of Houston has organized a talk with Chad C. Deaton of Baker Hughes on Thursday, June 4th, as part of its Keynote Speaker Series. Deaton will be discussing “The Future of Oil”. The event will be held at The Petroleum Club of Houston at 6pm. Please click here to register for the event.

Tags: CEA, choice energy services, development, energy, Energy Day, gas, newsletter, ocs, offshore, oil, Shell, solar, wind

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