CEA Newsletter March 2010

CEA Newsletter
Issue 36

Message from CEA President David Holt
America’s reliance on foreign countries for its energy will grow by 19 percent over the next 20 years, accelerating the transfer of U.S. wealth to members of OPEC by more than $600 billion. That’s just one of the startling conclusions found in a recent report published by the National Association of Regulatory Utility Commissioners (NARUC), assuming a scenario in which policy-makers keep intact decades-old restrictions on accessing America’s abundant, available energy resources. This is not a pretty picture for America’s energy future.

It’s easy to measure how the positive development of energy contributes to the creation of jobs, the generation of government revenue and the stabilization of energy prices. Thanks to the NARUC study, we now have a relative indicator of the opportunity cost we’re forced to pay by not producing American energy to meet the needs of the nation – how many jobs we stand to lose, how much additional money we’d have to send to OPEC, etc.

The NARUC study, assembled by experts from the Science Applications International Corporation (SAIC) and the Gas Technology Institute, broadly examines the social, economic and environmental impacts associated with the continuation of a policy that has for generations kept billions of barrels of American oil and trillions of cubic feet of American natural gas under statutory (and de facto) lock-and-key.

To do that, the study first provides the most up-to-date assessment of America’s onshore and offshore oil and natural gas resources. It then uses the well-respected National Energy Modeling System (NEMS) to render a quantitative summary of the jobs, revenue and even number of “housing starts” Americans should expect to surrender in the future under the status quo energy policies of today.

Based on the results of the study, Americans should expect higher energy prices, greater volatility, expanded foreign dependence, and $2.3 trillion less to spend – and that’s just the tip of the iceberg.

The good news is that this report describes a scenario for the future that we don’t have to accept – and mustn’t. The bad news is that, despite overwhelming support for new energy exploration among the American people, the inertia of inaction that has defined this debate will be difficult to reverse.

Read more of the recent report at the NARUC website.

With the help of this report, it’s my hope that American energy exploration and development, including both traditional and alternative resources for a balanced energy policy, will be an effort about which we will finally get serious.

David Holt

Help Defeat Efforts to Ban North American Energy and Increase Prices at the Pump!
The Low-Carbon Fuel Standard (LCFS) is being sold to the American public as a way to blend transportation fuels with low-carbon alternatives so that tailpipe CO2 emissions can be reduced. But the fact is that affordable and reliable lower-carbon fuel options are not yet available. As a result, an LCFS simply will increase the cost of diesel fuel and gasoline and will place certain domestic supplies of transportation fuels off limits. Increasing the cost of transportation fuel and U.S. dependence upon foreign sources of petroleum is simply unsound energy policy.

Join our effort to defeat these measures, which would put an economic stranglehold on America and leave U.S. consumers stuck with higher prices at the pump. Send in your comments today!

Visit the CEA Store – Show your support!
CEA recently launched an online store complete with CEA and domestic energy development-themed merchandise. We’ve included many unique items that will appeal to every taste and budget, such as T-shirts, sweatshirts, bags, yard signs, buttons, mugs and even a doggie-sized T-shirt for your four-footed friend. Help CEA spread the word regarding the necessity of a balanced energy policy for America! Visit the CEA Store today.

CEA Welcomes New Affiliate Members
CEA is proud to announce the addition of new affiliate members who have joined our alliance: the Research Partnership to Secure Energy for America, Gas Technology Institute, National Association of Truck Stop Operators and the National Energy Education Development Project. For a complete list of CEA’s valued affiliates, click here.

CEA Blog: A Better Way to Create Jobs
Check out CEA’s recent blog entry about the $15 billion jobs bill aimed at putting Americans back to work. Join the conversation at CEA’s website. Read blog…

Consumer Corner: Bank bucks with Energy Star Rebates & Special Offers!
Calling all consumers! Visit the EnergyStar.gov website to view current rebates and special offers from Energy Star partners. The handy online search tool enables consumers to find out about deals & discounts within their zip codes on everything from washing machines and refrigerators to computers and lighting fixtures. Information on available recycling incentive programs is also available. Visit the Rebates and Special Offers page today!

U.S. Strengthens Partnership of Peaceful Nuclear Energy with the United Arab Emirates
As part of the Obama Administration’s commitment to increase nuclear power as a source of energy, U.S. Department of Energy Secretary Steven Chu recently signed a cooperative agreement with the United Arab Emirates. Read article…

Despite Still Weak Economy, Gas Prices Set to Rise
With the price of crude oil twice as high as this time last year, energy experts predict gas prices to climb this spring to at least $3 per gallon on average nationwide even though the economy has not rebounded. Read article…

Affiliate Spotlight: Interstate Oil and Gas Compact Commission
The Interstate Oil and Gas Compact Commission (IOGCC), a multi-state government agency that works to ensure that the nation’s oil and natural gas resources are conserved and maximized while balancing other national concerns, celebrates its 75th anniversary as the oldest, largest and most effective interstate compact in the nation during 2010.

“The purpose of our organization is to provide governors of member states with a clear and unified voice,” says Executive Director Mike Smith. “We stand dedicated to securing domestic resources needed so that all Americans can maintain their quality of life. Our goals and mission are to promote the conservation and efficient recovery of domestic oil and natural gas resources, while protecting health, safety and the environment.”

Founded in 1935 when six states endorsed and Congress ratified the Interstate Compact to Conserve Oil and Gas (as the organization was then known), the IOGCC has assisted state governments with issues surrounding oil and natural gas while also acting as the conduit to share information among states.

“Since then, the states have established effective regulation of the oil and natural gas industry, assisted by IOGCC programs designed to gather and share information. Oil and natural gas are a huge part of the nation’s energy so emerging energy issues have and will continue to affect our organization’s goal to help the member states,” explains Smith.

The IOGCC’s energy goals include working to assist member states in efficiently maximizing oil and natural gas resources through sound regulatory practices.

“The IOGCC would like to see innovation, efficiency, and passion; find creative solutions, wisely maximizing our nation’s energy and help advance the quality of life when it comes to energy issues,” Smith emphasizes.

The IOGCC is an affiliate of Consumer Energy Alliance (CEA) because of the common goals shared between the two organizations.

“We both support improved domestic resources and our nation’s energy security, along with helping to find a proper balance for domestic oil and natural gas production while protecting the health, safety and environment of our nation,” Smith concludes.

For more information on the Interstate Oil and Gas Compact Commission, visit www.iogcc.state.ok.us.