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CEA January 2010 Newsletter

Monday, January 4th, 2010

CEA Newsletter
Issue 34

Message from CEA President David Holt
The start of each new year is a time of renewal, excitement and rededication to principles important in our lives. As you develop your new year’s resolutions, be assured that CEA is working hard and moving forward in promoting policies and education that will benefit all American consumers.

At CEA, we look forward to a year of progress in educating the public regarding the importance of American energy and working with lawmakers and stakeholders to develop policies favorable to the domestic production of all types of energy, including renewables and traditional sources.

During 2009, CEA grew substantially – increasing our affiliate membership to 127 varied organizations and our grassroots consumer membership to 265,000-plus. As we look ahead to 2010, CEA anticipates extensive growth by expanding efforts to reach an even greater number of American consumers, businesses, organizations and stakeholders.

CEA’s top priorities include the education and mobilization of consumers to help secure reliable and stable energy solutions – and development of economic opportunities through a thoughtful and balanced energy policy for America. We will continue our efforts to assist national lawmakers in developing a comprehensive energy strategy that properly balances the near-term use of oil and gas resources, the long-term development of alternative energy and enhanced energy efficiency.

As you reflect on the principles important to you for 2010, CEA asks that you remain an active part of our membership and possibly consider a modest donation to CEA through our website by clicking here. Working together to meet our nation’s energy challenges is an important endeavor that will help secure our nation’s future. We look forward to working with you to meet those challenges. Your support is critical.

Happy New Year 2010!

David Holt
President

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 several new affiliate members who have joined our alliance in recent months: National Association of Truck Stop Operators, Chesapeake Energy Arkansas, StatoilHydro, Caterpillar Global Petroleum Group and DHL (Deutsche Post World Net – USA). For a complete list of CEA’s valued affiliates, click here.

CEA Blog: The Consumer Energy Year in Review
Check out CEA’s recent blog entry about the changes and developments that affected American energy during 2009. Join the conversation at CEA’s website. Read blog…

Consumer Corner: Make Energy Efficiency a New Year’s Resolution
The start of a new year is the perfect time to rededicate yourself to saving energy (and therefore saving money!) Make energy efficiency one of your resolutions for 2010. There are numerous strategies that you can implement in your home to reduce energy use and costs.

To get started, estimate how much energy you currently use and what it costs you by conducting an energy audit. Then, try some of these tips to reduce: turn down your thermostat, install a programmable thermostat, switch to energy-saving light bulbs and seal your windows and doors. More tips can be found here. Keep track of your energy bills and energy-related costs throughout the year and see the effects of your efforts.

These helpful tips are courtesy of the U.S. Department of Energy’s Energy Blog.

Predictions of Continued Cold Weather Causes Heating Oil Futures to Surge
Increased demand for home-heating fuel has caused heating oil futures to surge as cold weather is expected to continue in the northeast United States. Read article…

Smart Wind Turbines Predict Wind Direction and May Increase Energy Production
Danish scientists recently completed tests on new smart wind turbines equipped with lasers that predict wind direction and turbulence and optimize energy production. Read article…

Affiliate Spotlight: Nuclear Energy Institute
The Nuclear Energy Institute (NEI) is responsible for establishing unified nuclear industry policy on regulatory, financial, technical and legislative issues affecting the industry.  NEI members include all companies licensed to operate commercial nuclear power plants in the United States; nuclear plant designers, major architect/engineering firms, fuel fabrication facilities, materials licensees, and other organizations and individuals involved in the nuclear energy industry.

“The purposes of the Institute are to foster and encourage the continued safe utilization and development of nuclear energy to meet the nation’s energy, environmental and economic goals and to support the nuclear energy industry,” says Director of Government Affairs Jim Colgary.

To achieve these goals, NEI provides policy direction on critical issues, including regulation, legislation, congressional awareness/acceptance, waste, transportation and other activities; advocacy and representation before the Congress, agencies and lawmakers; and educational outreach to policy makers, the public and other constituencies to promote acceptance and recognition of nuclear energy’s role in the nation’s supply of safe, secure, dependable and economic electric energy.

Electricity demand in the United States – caused by future economic growth and population increase – is expected to increase by at least 20 percent by 2030, Colgary points out citing statistics from the Energy Information Administration.

“To address this expected increasing demand for electricity, while simultaneously reducing the emissions impact on the environment, the United States must maintain an energy portfolio with diverse energy sources, including the only proven base load generation technology deployable on a large scale, 24/ 7, with no air pollutants or greenhouse gas emissions during production.  That source is a domestic energy technology: nuclear energy,” explains Colgary.

NEI expects four to eight new U.S. nuclear plants in operation by about 2016, according to Colgary.

“As they undergo construction, and assuming those first plants are meeting their construction schedules and cost estimates, the rate of construction will accelerate.  With the necessary investment stimulus and financing support, we could see as many as 15-18 new plants on line by about 2020,” he emphasizes.

As a member of Consumer Energy Alliance, NEI’s goal is to enable America’s access to affordable energy.

“The uneven distribution of fossil fuel supplies among countries, and the critical need to widely access energy resources, has left us vulnerable,” Colgary notes. “Threats to our energy security include political instability of energy-producing countries, manipulation of energy supplies, competition over energy sources and attacks on supply infrastructure, as well as accidents and natural disasters.  Our national security is inextricably linked to our country’s and the world’s energy security.

“CEA is an organization whose objectives regarding energy security match NEI’s energy and national security objectives. CEA and NEI are working hard to ensure a more protected energy security policy in America.”

For more information on the Nuclear Energy Institute, visit www.nei.org. To participate in NEI’s grassroots effort, the Nuclear Advocacy Network, visit www.nuclearadvocacynetwork.org, codeword “uranium.”

Tags: CEA, January 2010, newsletter
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A season of paradox

Tuesday, December 22nd, 2009

Folks living within a vast swath of the eastern United States had their festive plans for caroling and last-minute holiday shopping disrupted over the weekend by the biggest snow storm in years. In many regions like the greater Washington D.C. area, the storm shattered old records for December snowfall … and winter hadn’t even officially begun yet.

The blizzard, combined with the sub-freezing temperatures, all but promises a white Christmas in regions hit by the storm.

Of course, snow days and sledding and cozy times together by an indoor fireplace come along with treacherous roads and driveways that need to be shoveled and the high heating bills required to keep everyone warm inside.

And this year, as people brace for those wintertime heating bills, they’ll be chagrined to discover that the soft economy has done little to lower the cost of keeping their homes warm. It’s an ongoing paradox we’ve discussed here before: how the normal rules of supply and demand don’t really apply when the product in question comes from overseas sources that have their own way of artificially controlling pricing.

Last summer, we discussed how oil prices were rising despite soft demand and swelling inventories. This winter, prepare for more of the same. We’re approaching our third straight year of economic downturn, and supplies of heating oil are overflowing, so much so that the early snowy cold spell isn’t expected to make much of a dent. Still, many forecasts show consumers paying more for their heating oil this year than they did in 2008 – when, by the way, it was hardly cheap.

Low demand and high prices: It’s a paradox indeed, but it’s not a mystery. Heating oil prices rise when crude oil prices rise. And here in the U.S., crude prices rise for all sorts of reasons, usually reasons that have little to do with supply or demand, or even the weather. Like so much of the oil we consume, the explanation for those persistently high winter heating prices is located far from home.

Wishing you a warm holiday.

Tags: CEA, Consumer Energy Alliance, domestic energy, energy prices, energy security, energy supply, natural gas, oil
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Alaska in balance

Wednesday, December 9th, 2009

To fully appreciate the significance of the Interior Department’s long-awaited decision earlier this week to allow Shell Oil to drill three exploratory wells in the contested Chukchi Sea, you need to keep in mind the recent struggles and uncertainties that the oil industry in the state of Alaska has faced.

Last month, ConocoPhillips announced that for the first time in 40 years, it had no plans to drill new exploratory wells in Alaska. BP, meanwhile, reportedly cut its 2010 development budget for Alaska by 15%. Volume on the trans-Alaska pipeline is way down from its 1988 peak, reflecting a failure of newer fields to offset the decline from Prudhoe Bay. And as capacity approaches the point at which operating the pipeline would no longer be feasible, thousands of jobs, as well as the future of the state’s main industry hang in the balance.

All of these developments are part of a general uncertainty over the future of the Alaskan oil production. The uncertainty comes not from any doubts about large volumes of untapped reserves in the state: By conservative estimates, Alaska’s coastal waters hold 27 billion barrels of oil and 132 trillion cubic feet of natural gas. Rather, questions persist over our ability to access those reserves.

The December 7 Interior Department ruling allowing Shell to drill in Chukchi resolves a longstanding dispute in one of the state’s most oil rich regions. An appeals court ruling earlier this year had allowed some other oil and gas projects in Alaska that had been initiated during the Bush Administration, but then held up under Obama, to go forward.

The Chukchi Sea is considered one of the most underdeveloped sources of oil in the U.S. Shell is eager to begin drilling. Alaska Governor Sean Parnell is also looking forward to the project getting underway. “Alaskans need these jobs and Shell is well prepared to explore for and develop oil and gas basins critical to our nation’s security,” he said in a statement.

However, it is worth stressing, as we’ve said before on this blog, that oil majors in no way regard this, or any other favorable ruling, as a license to drill with abandon. In fact, Shell won approval to drill in Chukchi only after it presented a proposal that addressed environmental concerns, in part by tightening the pollution controls on its drill ship. It was a costly and time consuming investment that should underscore the industry’s interest in Alaskan oil and gas, but its desire to do right by the state over the long haul.

Tags: Alaska, CEA, Consumer Energy Alliance, domestic energy, drilling, Interior Department, oil and gas, Shell Oil
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Green energy jobs: Gone abroad with the wind

Thursday, December 3rd, 2009

Oil isn’t the only domestic industry at risk of losing out to overseas competitors: It seems that a lot of federal government money allocated for renewable energy sources, like wind, has blown over to China, Spain and other foreign shores.

Of course, wind cannot be imported and exported like oil. It just blows where it will. But that has not stopped the U.S. from giving substantial funds for wind power plant projects to foreign businesses. A group of enterprising journalism students recently followed the money and found that the majority of clean energy grants the U.S. has issued in recent months have gone to companies in Spain, China and elsewhere that manufacture wind turbines or are building power plants in the U.S.  What’s worse, many of these funds were U.S. stimulus dollars, allocated under the American Recovery and Reinvestment Act, and intended specifically to revive the American economy and create more jobs.

How does U.S. money allocated for American industry drift offshore so quickly? The short answer is that some other countries are further along in the development of wind power and the like. When the U.S. got serious about building up this new power industry, it partnered with foreign businesses that had the expertise it needed.

It sounds logical, to a point. The problem is, it’s the same sort of logic that is often offered to explain the country’s growing dependence on foreign oil. We’d prefer to tap existing fields far from home, rather than drill our own and invest in our future here at home. It comes down to a failure to adequately use our own natural resources, including not just what comes out of the ground, but all of the people who work to produce it. Whether you’re talking about oil or wind, the labor needed to develop all this power is a vital natural resource. At a time when so many American jobs are needed, this astonishing spending of U.S. stimulus funds to foreign wind power companies has struck a nerve.

Some lawmakers are now trying to block a major wind power project in Texas that is a joint venture between a U.S. company and a Chinese company, out of fears the investment will create more jobs in China than the U.S. “The project should not receive a dime of stimulus funds unless it relies on U.S.-manufactured products,” Senator Charles Schumer said recently, in calling on the government to block funds for the Texas project. That should go without saying. Hopefully this wind scandal will serve to remind us all of the folly of overlooking our own resources.

Tags: CEA, China, Consumer Energy Alliance, domestic energy, green jobs, scandal, U.S. resources, wind
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CEA December 2009 Newsletter

Tuesday, December 1st, 2009

CEA Newsletter
Issue 33

Message from CEA President David Holt
As 2009 draws to a close, Consumer Energy Alliance would like to thank all of our members and affiliate organizations for your support and tireless efforts in support of balanced energy policy. Now is also the time to look back at 2009 and evaluate our progress and share that with you.

This year saw CEA add 15 more affiliates to our alliance, which now includes 125 varied organizations – consumers, business, agriculture, industry, end-users, energy providers and suppliers.

Our consumer advocate membership has also skyrocketed, more than doubling in the past year from close to 100,000 people in 2009 to 265,000-plus currently.

We worked tirelessly with our affiliates, supporters and other stakeholders to promote a comprehensive and balanced national energy policy. We hosted our annual CEA Energy Day and Energy Forum in Washington, DC, released numerous publications related to energy issues affecting American consumers and participated in several key calls to action on energy policy and regulatory initiatives, including the development of a new Five Year Program for America’s offshore oil and gas resources.

While 2009 has certainly included major achievements, such as overwhelming support for development of American resources, the fight for a strong and secure national energy policy is far from over.

Therefore, CEA asks you, our members, to continue to act by sending letters, responding to calls to action and mobilizing others to act in favor of a national energy policy that will:

• Allow for the responsible access to all domestic energy resources;
• Accelerate the use of alternatives and renewable resources;
• Improve efforts to encourage energy efficiency and conservation; and
• Expand energy education funding and research.

As a consumer, the choices you make can have an impact. CEA is here to provide the resources and information you need to make informed decisions about energy use and conservation and to furnish you with the knowledge that you can help to make a difference. We want you to have a voice in the debate to help guarantee a safe and sound energy future for all of us.

Thank you for helping CEA empower America. We look forward to continuing our critical efforts with your support in 2010.

Happy holidays!

David Holt
President

Announcing the CEA Store – Perfect for Holiday Gifts!
In time for the holiday season, CEA has 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.

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!

CEA Blog: Cow Power
Check out CEA’s recent blog entry about farmers and their methods of turning waste from dairy cows into real power for home electricity.  Join the conversation at CEA’s website. Read blog…

Lowering Emissions Without Cap-And-Trade: A Programmatic Approach
By Tom Moskitis, Managing Director of External Affairs, American Gas Association

Climate Change is one of the top two issues of the current Administration and Majority Party in Congress. While most emissions of carbon dioxide (CO2) come from electric power generation, transportation and industry, emissions from low volume residential and commercial natural gas consumers have been small in comparison.

In fact, from 1990 through 2005, emissions from these two sectors have been flat and emissions from the industrial sector have actually declined markedly. Residential natural gas consumers, all 60+ million of them, use 32 percent less natural gas today than they did in 1990. They are already doing their part for the environment and can be expected to do more.

Natural gas utilities in sixteen states have decoupled their rates and have undertaken substantial energy efficiency programs. Such a programmatic approach to reducing emissions, also involving building code advocacy, has been demonstrated to produce results without the imposition of a cap and trade system.

American Gas Association’s position on the climate change legislation now in Congress is as follows:

• Natural gas is America’s clean, secure, efficient, and abundant fossil fuel.
• Allocating allowances for the benefit of energy consumers – as favored in the bill from 2012 through 2030 – is the best way to protect these consumers from significantly higher energy bills as America transitions to a lower carbon energy future.
• Natural gas utilities should be allocated 12% of allowances, and they should be phased out by 2040 rather than 2030.
• All allowances allocated to natural gas local distribution companies should be used to benefit consumers, as required in the bill, but a mandatory one-third of this allocation directed towards energy efficiency programs is not necessary, is costly to consumers, and is inconsistent with the treatment of other similar industries.
• Natural gas local distribution utilities generally support the planning and reporting requirements in the bill, although some greater state level latitude is recommended.
• The formula for distributing allowances should be based on deliveries to non-covered entities.
• Require full-fuel-cycle energy analysis in making energy efficiency determinations.
• Grant parity in treatment of renewable natural gas burned for essential human needs with that granted to renewable natural gas used to make electricity.

Residential natural gas consumers, who use the fuel for essential human needs, have a 40-year record of reducing consumption and greenhouse gas emissions.

History demonstrates that programmatic measures, such as appliance efficiency standards and building codes and standards, are most effective in terms of reducing greenhouse gas emissions and AGA has a preference for such measures rather than a cap-and-trade approach.

Beyond the bills now in Congress, AGA advocates for the direct use of natural gas by the customer. Using gas directly for thermal applications such as space heating, water heating and cooking is a pathway to greater energy efficiency and lower carbon emissions. AGA was successful in getting a provision into pending legislation calling for a “carbon footprint” on appliance Energy Guide labels. Abundant information is available on the AGA website, including a link to a carbon calculator and information on Natural Gas Vehicles as well as on all the energy and environmental issues of the day.

The American Gas Association (AGA) is the national, nonprofit trade association serving over 200 investor-owned and municipal natural gas distribution utilities. AGA actively advocates for natural gas utilities, and the over 65 million homes and businesses that they serve, in Congress and before the Executive Branch of the Federal Government and the Federal Energy Regulatory Commission.

Consumer Corner: Save Energy This Holiday Season!
As you prepare for the holiday season, use a few of these easy, energy-efficient tips from the Environmental Protection Agency to save energy and reduce waste.

1. Using a real tree? Contact your local community solid waste department for information on recycling. Alternatively, use a potted tree which can be planted.
2. Unplug lights and decorations during the day to save energy and make your lights last longer.
3. Look for holiday greeting cards made from recycled materials.
4. Use reusable cloth shopping bags for toting holiday purchases rather than paper and plastic bags.
5. Save gift wraps and ribbons for use on next year’s presents. Wrap presents for others in recycled trimmings you’ve saved.
6. Use cloth napkins and reusable dishes and silverware for your holiday gatherings rather than disposable paper and plastics.
7. Purchase rechargeable batteries for electronic gifts.
8. Donate your children’s older or outgrown toys and books to charities and local libraries.

For more holiday energy saving tips, visit the United States Environmental Protection Agency’s website.

Russia May Fund Energy Investment Projects in Iran
Russia and Iran, which together hold significant portions of the world’s natural gas and oil, may develop joint energy ventures in Iran according to a recent statement by Russia’s Energy Minister. Read article…

LED Light Bulbs Use Five Times Less Energy Than Standard Incandescent Bulbs According to Study
Osram, a German lighting company, recently published the results of a study that supports use of LED light bulbs over standard incandescent bulbs to save energy. Read article…

Affiliate Spotlight: American Gas Association
The American Gas Association represents 202 local energy companies that deliver clean natural gas throughout the United States and serve tens of millions of consumers.

“There are more than 70 million residential, commercial and industrial natural gas customers in the U.S., of which almost 93 percent — more than 171 million American — receive their gas from AGA members,” says Vice President of Communications and Marketing Laura Sheehan. “Our mission is to advocate for natural gas utility companies and their customers, and to provide a broad range of programs and services for member natural gas pipelines, marketers, gatherers, international natural gas companies and industry associates.”

AGA recognizes that energy is one of the most important issues in the nation today and that development of sound governmental policies that incorporate clean abundant fuels such as natural gas is critical.

“Energy affects every facet of our lives from traveling to work, to cooking and cleaning, to heating homes and making businesses run,” explains Sheehan. “For nearly a century natural gas has played a key role in making America a prosperous and secure nation, and it is now poised to play an even more important role in meeting the challenge of global climate change while ensuring increased energy efficiencies.

“While we know natural gas is abundant and capable of meeting a broad spectrum of energy demands, we must have increased access to this value-rich fuel in order to keep it affordable for all Americans. For this reason, AGA continues to work with Congress to pass balanced policies that take into account the very real need for increased supplies of traditional and unconventional resources.”

AGA is committed to increasing the domestic supply of natural gas and works actively to encourage legislation favorable to its development.

“The bottom line is this – increased use of this single fuel can help America achieve greater energy efficiency, energy independence, and create and retain jobs, all while making an immediate positive impact on the environment,” she emphasizes. “Simply put, natural gas is the cleanest burning of all the fossil fuels, emitting 45 percent less carbon dioxide than coal and 30 percent less than heating oil.”

“Natural gas is domestically abundant and production has been on the rise, particularly in the unconventional plays such as shale gas. But more conventional supply is needed to meet America’s growing demand, so legislators must allow more access to many of our most promising new natural gas supply areas.”

As a member of Consumer Energy Alliance, AGA’s goal is to facilitate educating consumers about energy awareness through CEA’s communications regarding the latest energy developments, trends and legislation initiatives.

“AGA believes that real, fundamental change starts at the ground level – and that’s what attracts us most to CEA,” Sheehan notes. “CEA’s grassroots approach to consumer education and advocacy is effective and powerful. Its thoughtful, non-partisan campaign to bring together consumers with the energy industry and with Congress will only increase understanding of the energy challenges we face today, which is a win for all involved.”

For more information on American Gas Association, visit www.aga.org.

Tags: CEA, Consumer Energy Alliance, December 2009 newsletter, newsletter
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Cow power

Tuesday, December 1st, 2009

There’s something, well, powerful, about any creature that produces 120 pounds of waste every day. That’s the amount of manure that dairy farmers must clean up every day, from every single cow on the farm. That’s right: 120 pounds of manure. Every day. Every cow.

It’s a lot of waste going to waste, so to speak. Farmers have long joked about turning all that waste, which happens to be rich in methane gas, into real energy. And now that vision is starting to become a reality in California, thanks to a serious push to use more renewable power, and improved technology for breaking down the manure in a way that captures the methane.

Call it Cow Power. Bioenergy Solutions is a company based in Bakersfield, California, that has developed a system to make this conversion from waste to energy more cost effective for farmers. In fact, the company was founded by a group of dairy farmers who became inspired after spending so many days knee deep in you know what.

The company says the technology is still being perfected, but that biomethane plants in general have become more economically feasible now that utilities are working to derive more power from renewable sources. Cow manure may not conjure up the same romantic image as a windmill churning on the horizon or a sleek solar panel basking on the roof of a house. But you can’t get more renewable than a cow that generates that volume of waste, day in and day out.

Bioenergy Solutions says it is currently producing enough power for 1,000 homes, from 2,400 cows. The company has contracts with 40 dairy farms and many more have expressed interest.

These optimistic estimates are derived from limited, small scale production, and offer no guarantee that they could be replicated on a grand scale. Still, the numbers are so encouraging, that it can get you thinking about what could be accomplished with twice, or three times the number of cows.

Before you travel too far down that line of reasoning, remember the 120 pounds of manure that every single cow produces every single day, and ask yourself if we really need more of that.

Perhaps Cow Power is best positioned as a niche industry.

Tags: bioenergy solutions, CEA, Consumer Energy Alliance, cow power, cows, dairy farmers, domestic energy
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Happy Thanksgiving, Happy Travels

Tuesday, November 24th, 2009

In what has become something of an annual pre-Thanksgiving tradition, the latest survey of people’s travel plans this year shows a slight increase in the number of people who plan to travel by car, along with a rather sharp decline in those traveling to their turkey dinner by plane.

These surveys can offer a useful picture of the health of the economy, the affordability of gasoline, and maybe even the state of the American family. But it is also possible that we get carried away interpreting the annual data and overlook the larger point: Travel is something we’ve all come to take for granted.

Some might call it a right. Others see it as a privilege, or even a luxury. Some will scrape together the spare change around the house to pay for a 200-mile drive. Others won’t think twice about flying their entire family across the country.

And yes, some people have decided that they cannot afford to travel this year. It’s a sign of the tough economy we are all still struggling under, as well as a reminder that reasonably affordable travel is not a guarantee, even here in America where families scattered around the country tend to trust that they can all come together during the holidays.

In many ways, whether we stick with familiar territory or seek to discover new places, we live the way we travel: some on a small scale, others with grand plans.

But for the most part, even those of more modest means do travel a fair amount. Just the fact that we seriously review the shifting trends in travel by plane, train and automobile, show how fortunate we are to have so many options for getting around.

Whether you’re braving the crowds and the traffic this Thanksgiving, or staying close to home, we hope you enjoy a happy holiday with family, friends and food. As we give thanks for all these big things that make our lives rich and meaningful, remember too that the convenience of affordable travel makes all of our days run more smoothly.

Tags: CEA, Consumer Energy Alliance, consumers, costs, family and friends, holidays, saving money, Thanksgiving
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CEA Analysis Finds LCFS a Bad Option for Northeast

Monday, November 23rd, 2009

Consumer Energy Alliance analyzes Low-Carbon Fuel Standard compliance scenarios for 11 northeast states

WASHINGTON – November 13, 2009   A regional Low-Carbon Fuel Standard (LCFS) imposed on 11 Northeast and Mid-Atlantic states would result in prohibitively high gasoline, diesel and home heating oil prices, and would likely be logistically impossible to meet under any of the compliance scenarios currently being considered. That’s the conclusion reached in a new analysis produced by Consumer Energy Alliance (CEA) and submitted this week to the Northeast States for Coordinated Air Use Management (NESCAUM).

“Our analysis shows that under each of the compliance scenarios contemplated by NESCAUM, the imposition of an LCFS on the Northeast will lead to substantially higher prices at the pump and restricted access to essential fuels such as gasoline, diesel and home heating oil – without doing a thing to reduce global greenhouse gas emissions,” said CEA vice president Michael Whatley, who participated in two public meetings hosted by NESCAUM in Newark, N.J. and Boston last month.

Created in the 1960s to advocate for the Clean Air Act, NESCAUM is currently working to develop a framework to encourage Northeast and Mid-Atlantic states to adopt model LCFS requirements, thus creating the nation’s first regional standard.  At its core, an LCFS seeks to reduce greenhouse gas (GHG) emissions by restricting the use of conventional fuels such as gasoline and diesel, while increasing the use of alternatives.

In analyzing potential methods for designing an LCFS, CEA considered the consequences of two compliance scenarios reportedly under consideration by the group: 1) forcing fuel producers to meet LCFS mandates by injecting enormous amounts of corn-based ethanol into fuel stocks, or 2) forcing them to purchase carbon credits for the right to remain in business.

Under the ethanol compliance scenario, CEA found that in order to meet a 10 percent emissions reduction target, ethanol would need to comprise a full 50 percent of the region’s fuel supply. To handle this E-50 ethanol, every single car in the 11-state region would need to become a “flex-fuel” vehicle, a significant feat considering that today less than one percent of vehicles on the road meet that standard.

Logistics aside, the plan would also cost some serious money:

In order to handle gasoline with an ethanol blend over 10%, gasoline storage tanks and pumps … will need to be replaced with special tanks and equipment … currently projected to cost between $50,000 and $200,000 per location.

Under the credit purchase scenario, fuel retailers would need to purchase credits from alternative energy producers to comply with an LCFS. However, given the relative lack of commercially available technology in this space at present, it’s not entirely clear how compliance could be met under this scenario — a fact that NESCAUM admits in its report (page 21):

While the outlook of these technologies is promising, the volumes that would be required in order to meet a 10 percent LCFS by 2020 greatly exceed the volumes that have been produced to date.

In formal comments submitted to NESCAUM following its LCFS meetings, CEA also analyzed policy alternatives that could achieve emissions reductions in ways that are cheaper and more efficient than an LCFS. Comparing these alternatives to current LCFS proposals, CEA concludes that an LCFS will raise fuel costs substantially higher than would be the case under new CAFE requirements or the implementation of Renewable Fuels Standards – and will achieve significantly lower emissions reductions.

More from SecureOurFuels.org:

• Analysis: CEA comments to NESCAUM on draft LCFS plan
• Study: LCFS would do nothing to lower global GHG emissions; it may even increase them
• PowerPoint: Carmen Difiglio presentation on LCFS
• Interactive Map: See which states stand to lose the most under an LCFS
• Letter: GOP state rep from Tenn. asks Sen. Alexander to reconsider support for LCFS [WSJ]
• Column: Why Are We Conceding Canadian Oil to China?
• Issue Alert: Happy Birthday, China

Tags: CEA, Consumer Energy Alliance, consumers, LCFS, Low-Carbon Fuel Standard, Secure Our Fuels
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CEA: New Study Reinforces Need to Responsibly Develop Domestic Energy Offshore

Monday, November 23rd, 2009

Consumer group calls untapped domestic oil and gas resources “a game-changer” for the economy

HOUSTON – November 19, 2009   This week, the National Association of Regulatory Utility Commissioners (NARUC) released a comprehensive, independent, long-term analysis of U.S. energy policy. The study, sponsored in part by the non-profit Consumer Energy Alliance (CEA) and conducted jointly by Science Applications International Corporation (SAIC) and Gas Technology Institute (GTI), finds that if status quo energy policies are maintained – namely a federal moratorium on responsible, 21^st century offshore energy development – U.S. dependence on OPEC nations will increase, more American jobs will be moved overseas and overall expenses will rise for American consumers.

In 2007, NARUC adopted a resolution to initiate an independent analysis of the social, economic and environmental effects associated with keeping the outer continental shelf (OCS) off-limits for oil and gas exploration. While congressional and presidential moratoria were lifted last year following record oil prices, a de facto ban remains intact as a result of inaction from the U.S. Department of Interior.

David Holt, president of CEA, released this statement today:

“A clear and growing majority of American consumers continue to favor policies, including responsible offshore energy exploration, that would help drive down and stabilize energy prices across the board. And this study should serve as a wake-up call for elected officials in Washington to act boldly and move forward to develop comprehensive energy policies that will spur economic development, create jobs and get the nation moving again. Developing domestic energy resources offshore – oil, gas, wind, tidal – safely and responsibly must be a national priority.

“And at the same time, we must continue to make key investments into alternative resources and commonsense conservation efforts. Because for every barrel of oil and every trillion cubic feet of natural gas that we produce here at home, by blue collar American labor, American consumers are less energy-dependant on other nations.

“This study paints a clear and equally frightening picture of the dangerous consequences of the federal government keeping so much of our job-creating energy off-limits. With unemployment at a 26-year high, and families, seniors and small businesses fighting to makes ends meet, opening our outer continental shelf for environmentally-sound energy production could be the game-changer our weakened economy desperately needs.”

Here are key highlights from the independent study, which can be viewed on-line by clicking HERE:

• Cumulative domestic oil and natural gas production decreases by 21% and 10%, respectively.
• Average natural gas price increases by 28% and average gasoline price increases by 8.4%.
• Cumulative national real disposable income decreases by $1.163 Trillion ($4,000 per capita).
• Cumulative oil imports from OPEC countries increase by 4.1 billion barrels.
• Cumulative national payments to OPEC countries increase by $607 billion.

Tags: CEA, Consumer Energy Alliance, David Holt, domestic energy, NARUC, national association of regulatory utility commissioners, Oceans policy, offshore energy
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Old, but not over the hill

Thursday, November 19th, 2009

Here’s an important detail about the strength of our domestic oil industry that is often lost in the larger debate over opening more of the country to drilling and exploration: Yields are up at many existing oil fields.

The American Petroleum Institute reported this week that U.S. crude oil production reached a four-year high in October, due largely to the success of advanced drilling technologies that have helped improve yields in deep waters in the Gulf of Mexico and elsewhere.

It’s a milestone that is important for a number of reasons. It shows that the oil sector is inventive and enterprising, constantly adopting new techniques that will improve on the existing way of doing business.

These high yields, mind you, are coming from some not-so-young properties, at a time when critics maintain that oil is past its prime, and past its peak. And they beg the question, if oil producers can increase yields from existing properties, what might they be able to achieve on a spanking new field in one of the disputed sites around the country?

The 5.36 million barrels of crude oil per day that were produced during the month of October offer strong evidence in favor of additional drilling around the country. It’s a strong level of production that suggests that additional exploration has a high likelihood of success, and also that the producers overseeing the drilling would make the most of each project, just like they are doing at older fields. It flies in the face of the notion that the oil industry favors drilling with abandon, or only wants to break ground on new sites because all of the older ones have dried up. Rather, it reflects a long-term commitment to each and every project.

The debates over new drilling around the country may take a long time to resolve. But it’s nice to know that oil producers are keeping busy while they wait.

Tags: CEA, Consumer Energy Alliance, domestic energy, drilling, energy policy, energy prices, energy supply, natural gas, offshore, oil
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Truckers’ long haul, Part Two

Tuesday, November 17th, 2009

You may recall what we said last spring about the tough times in the trucking industry: a business which really cannot seem to get a break, between the high fuel prices in good times and the dramatic slowdown in demand during tough times (when, by the way, fuel prices often remain pretty high).

Now truckers have something else to keep them awake at night. Investor Warren Buffett’s recent $34 billion purchase of Burlington Northern Santa Fe, the nation’s second biggest railroad, has — at least for the moment — helped to christen railroads the freight transport vehicle of the future, threatening to marginalize trucks.

Now, first of all, let’s be clear that railroads will never eliminate the need for trucks. Take the most extensive rail network conceivable, and it will still come up short delivering goods from the source to the final destination. Of course, it’s possible to see ways that shipping by train is superior to trucking, and vice versa. But for the most part, it’s an apples-to-oranges comparison. Trying to compare the two industries would be like comparing an aircraft to a cruise ship.

Still, the fact that the country’s most prominent investor has put a lot of money behind rail lines doesn’t help raise the public’s appreciation of trucks and the necessary function they provide. And, at a time when so many truckers are going out of business or struggling to make any money at all, it seems fair to ask how the industry might improve its competitive position.

We know there are many variables, such as fuel prices and the volume of goods being transported, that truckers really can’t control. Every industry, however, must do what it can to be as efficient as possible.

This news story about the newly-formed North American Council for Freight Efficiency (NACFE) argues that the fragmented nature of the trucking industry has made it difficult for small operators to identify and adopt the best products to assist with route planning and minimize the hauling of empty containers.

How can this be so hard when there is so much GPS and supply chain technology out there? Consider this video of truckers at NACFE’s inaugural meeting, discussing how there is just not a lot of money available to risk experimenting with a technology that may or may not pay off. The typical independent trucker has a mountain of expenses, including health insurance, that leaves little or nothing left for discretionary spending.

Still, truckers have made progress. Consider Exhibit C, which offers some examples of the proactive steps truckers are already taking today to improve fuel efficiency.

It certainly is not easy being a trucker. But truckers provide an essential service and are working hard to address the challenges their business faces today and tomorrow. A domestic energy policy that would help them control costs would certainly provide some badly needed relief.

Tags: CEA, CEA Blog, Consumer Energy Alliance, diesel, gasoline, haul, high fuel prices, oil, trucking, trucking industry
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High unemployment and low carbon fuel standards: Two not-so-great things that are even worse together

Friday, November 13th, 2009

What could possibly be worse than the 10.2% nationwide unemployment we recently highlighted? How about the jobless rates of 11% in Florida, 12.2% in California, and a staggering 15.3% in Michigan?

If you didn’t think Michigan had a big part in the debate over domestic fuel production, think again. The state, which has been bleeding jobs, faces even more economic devastation if a low carbon fuel standard is adopted.

As we’ve outlined previously on this blog, a low carbon fuel standard ostensibly designed to reduce emissions, would actually play out with many unintended consequences. They would favor many types of foreign oil over those located in the U.S. and the Canada – not because Saudi fuel is cleaner fuel, but because it takes less energy to get out of the ground. Factor in the cost of transporting all that light, sweet crude oil halfway around the world, and you have a low carbon fuel standard in name only.

Now, back to Michigan. One of the industries that hasn’t fled the state is an oil refinery in Detroit, which refines fuel from nearby Canada. Heavy fuel, that is, which would not pass muster under new low carbon fuel standards.

This recent editorial in the Detroit News outlined the problem:

“In Detroit, the Marathon refinery produces nearly 100,000 barrels of affordable, reliable fuel a day, and provides thousands of jobs that support families, pay pensions, and provide good-quality health care…. As complex and convoluted a plan as a low-carbon fuel system is, the negative impact it would have on our country’s economic and strategic well-being is simple to understand. The low-carbon fuel proposal is engineered to produce higher prices at the pump, higher unemployment … and expanded dependence on foreign, unstable regimes.”

And further south, residents in Tennessee are also concerned, not just by what a low-carbon fuel standard will mean for their local economy, but by the seemingly arbitrary standards by which fuels would be in or out.

“Fuels are assigned a carbon energy ‘score,’ based on the energy required to bring them to market,” explains this editorial. “The U.S. would be forced to rely on lighter crude from the Middle East.”

“A low carbon fuel standard will also result in volatile gas and commodity prices, the loss of U.S. refinery and pipeline jobs, and an increase in global greenhouse gas emissions.”

That’s right. As we’ve also pointed out here, emissions know no borders. Nor does a balanced energy policy. We’re working on behalf not just of the oil rich states but of the country as a whole, and we’re happy to see that our message resonates widely.

Tags: CEA, Consumer Energy Alliance, fuel, LCFS, low carbon, Low-Carbon Fuel Standard, unemployment
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1983 all over again

Tuesday, November 10th, 2009

Twenty-six years ago, the video of Michael Jackson’s Thriller was broadcast for the first time. The Soviet Union invaded Afghanistan. And here in the United States, unemployment peaked above 10%. That was in 1983.

Sound familiar? Twenty-six years later, Michael Jackson and Afghanistan are still making news. And last week, we learned that the nationwide jobless rate rose to 10.2%, the first time since 1983 that the country has seen double-digit unemployment.

It’s a sobering benchmark that highlights just how serious the country’s jobs crisis remains, and begs a closer consideration of the policies that got us here. At CEA, we talk often about balanced energy policy and the broad economic benefits of a steady supply of homegrown oil. We’ve talked less about specific jobs, but it’s worth emphasizing that expanded oil operations bring with them new jobs, many of them the kind of well-paying jobs that the country has lost as its manufacturing base has eroded.

In Florida, one of the many states now debating opening more offshore waters to oil exploration and development, it is estimated an expanded oil presence could create more than 13,000 jobs.

Have we mentioned North Carolina? Earlier this fall, that state’s governor set up a Scientific Advisory Panel on Offshore Energy that is reviewing the impact of new drilling projects along with offshore wind farms. You don’t hear a lot about North Carolina as a drilling destination, but advocates of expanded oil activity there estimate that more offshore exploration alone could bring in 6,700 new jobs.

It’s worth noting here that we’re all too familiar with the unfortunate term “drill baby drill,” which suggests a preference for drilling anytime, anywhere. That’s not something we’ve ever advocated. We support responsible drilling in regions that are deemed suitable for oil projects. But we also recognize that politics and special interests have too often gotten in the way of fair reviews into what constitutes suitable drilling destinations.

Now that the country is suffering the worst jobs crisis since the last days of disco and Soviet aggression, it appears people are taking a more reasonable look at domestic oil production and all the economic benefits it brings.

Tags: 1983, Afghanistan, CEA, Consumer Energy Alliance, Drill, drill baby drill, Michael Jackson, offshore resources
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Taking the drilling debate south for the winter

Sunday, November 8th, 2009

Texas. California. Alaska. And now, Florida. That’s the latest site of what has become a series of heated debates over offshore drilling. All around the country, lawmakers overseeing diminished state and local coffers are proposing opening up some regions that are now off limits for offshore drilling, and longtime opponents are clinging to outdated arguments.

This kneejerk sort of reaction of turning to oil in the most desperate of economic circumstances is in many ways regrettable. A robust domestic energy industry, after all, has a lot more to offer us all than some emergency funds. But it’s also an opportunity for which many of us have waited a long time and for that reason, we all need to become active participants in these debates and do what we can to educate policy makers and the general public.

Based on what we’ve seen coming out of Florida so far, this is not a battle that will be easily resolved. But there does appear to be a fair amount of genuine interest in hearing what the oil industry has to say. Consider some of the arguments that were made – and covered in the press – during a series of symposiums like this one recently held in Tallahassee:

–The majority of oil released into the ocean has been shown to come from natural seeps from the ocean floor.

–Transporting oil long distances in tankers poses a greater environmental hazard than producing it close to home and transporting it on pipelines.

–Offshore drilling and coastal tourism have a strong track record of coexisting well together, even before the introduction of directional drilling technologies, which minimize the surface disturbance.

As these debates gain momentum around the country, we are struck by how people everywhere have such similar concerns. They want economic stability for the country and a sustained or improved quality of life for themselves.

But as we shift our focus from California to Alaska to Florida, we’re also reminded that while the domestic drilling debate is in many ways a no-brainer, it does take on a different tone in different locales. If we really want to make progress nationwide, we must understand the specific concerns of all different communities, from the tundra to the tropics.

Finally, we cannot forget what is at stake: What is quite likely the world’s largest supply of oil and oil equivalents. As this advocate recently argued, “Leading the world in resource reserves would be something of a prize, if Washington would permit our corporations and entrepreneurs to actually access it.”

Tags: CEA, Consumer Energy Alliance, drilling, Florida
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The recent history of nuclear power: Sounds a lot like the story of oil

Tuesday, November 3rd, 2009

A promising home-grown source of power is abandoned over safety and environmental concerns and regulatory roadblocks. Said industry addresses those concerns and comes back safer and more environmentally friendly than ever. But the roadblocks remain.

Sound familiar? It’s a story that those of us at CEA are all too familiar with.

As advocates of a balanced domestic energy industry push for more responsible drilling in Alaska and along the country’s outer continental shelf, a parallel battle is waging in the nuclear power industry. It’s been 30 years since ground has been broken on a new nuclear power plant in the U.S., even though nuclear is not only a zero-emissions source of power, but it has a proven ability to generate power on a massive scale. While nuclear power has not been subject to the same sweeping bans placed on oil, it has been stymied by a lot of fence-sitting on the part of lawmakers, who have failed to get fully behind the nuclear industry, with sensible regulations and financial incentives that would help make more plants feasible.

That could be about to change. Lawmakers working to assemble a climate change bill that a majority can agree on are proposing including a nuclear power tax credit that would put nuclear on equal footing with other zero-emissions sources of power like wind and solar. Two prominent U.S. senators, John Kerry and Lindsey Graham, last month published an Op-Ed explaining why nuclear power needed to have the same level of support that wind and solar power enjoy. Nuclear power, they noted, is “our single largest contributor of emissions-free power (which) needs to be a core component of electricity generation.”

“We need to jettison cumbersome regulations that have stalled the construction of nuclear power plants,” the senators wrote.

We at CEA couldn’t agree more. At a time when so many Americans are embracing the need for increased energy security and more stable energy prices, we hope nuclear will receive the long-awaited attention it deserves along side natural gas, oil, and a host of alternative energy sources.

For more information about nuclear power and to get involved, please visit Nuclear Advocacy Network and register with the code word “uranium.”

Tags: CEA, Consumer Energy Alliance, domestic energy, nuclear, oil
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Consumer Energy Alliance Supports Expanded Domestic Nuclear Power to Create Jobs and Increase National Energy Security

Thursday, October 29th, 2009

HOUSTON – October 28, 2009   Consumer Energy Alliance (CEA) announced its support for a comprehensive set of policy initiatives proposed by the nuclear energy industry that aim to ensure the necessary expansion of nuclear energy and provide affordable energy to consumers.

In particular, CEA actively supports policies important to the nuclear energy industry, especially as they relate to financing support and efficient licensing for new nuclear facilities.

“CEA remains committed to advancing nuclear energy and other clean energy technologies that help to create thousands of new jobs and provide substantial benefits to consumers, the economy and the environment, while strengthening national energy security,” said CEA President David Holt.

“As the legislative debate over energy policy moves forward, ensuring a balanced, thoughtful approach – both now and into the future – is vitally important. Nuclear, as well as, oil, natural gas, wind, solar, hydro, and biomass must all play a role in meeting our energy needs,” said Holt.

Tags: affordable energy, CEA, Consumer Energy Alliance, domestic energy, nuclear energy, Obama
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CEA November 2009 Newsletter

Wednesday, October 28th, 2009

CEA Newsletter
Issue 32

Message from CEA President David Holt
As we prepare for the upcoming winter season and the excitement of celebrating holidays with family and friends, increased heating bills and energy concerns are also on the minds of many Americans. The higher energy costs associated with cooler temperatures highlight the need for a balanced American energy policy which focuses on reasonable and responsible use of all resources, including traditional and alternative.

One significant resource of American energy is our nation’s offshore area. The Obama Administration recently established the Ocean Policy Task Force to propose policies for the management of our oceans and coasts, as well as the resources and activities within those waters.

While the Task Force is rightly concerned with the environmental stewardship of our oceans and coasts, they released an Interim Report that proposes a system of oceans governance that could significantly impact our nation’s ability to safely develop its own offshore energy, including oil, natural gas and renewable energy.

In September, the Obama Administration closed its public comment period on a new Five Year Program to oversee offshore energy leasing. The Interim Report proposes policies that could undermine such a program and hurt consumers in the long-run.

We must urge President Obama and his Task Force to issue an oceans governance policy that successfully recognizes the importance of striking a balance between the protection of our oceans and their economic uses, particularly where responsible energy production is concerned.

Join CEA in this effort to secure a balanced approach to regulation of America’s offshore and ocean resources. Visit CEA’s website to learn more and participate in this important effort.

Thank you for being part of CEA’s valued membership and participating in our efforts to empower America.

David Holt
President

Ensure Balanced Approach to America’s Offshore & Ocean Resources
To help ensure a balanced oceans policy that will secure our energy and economic future, please tell President Obama and the Ocean Policy Task Force today that you support the development of a policy that does not actively prohibit the safe and responsible development of our offshore energy resources. Send in your comments today!

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!

CEA Blog: Lawmakers voice concern over Ocean Policy Task Force
Check out CEA’s recent blog entry about President Obama’s Ocean Policy Task Force and concerns that it would block American offshore oil development and impose restrictions that would cost Americans jobs.  Join the conversation at CEA’s website. Read blog…

Consumer Corner: Prepare To Cut Costs This Winter!
As you prepare your home for colder temperatures this winter season, use a few of these easy, energy-efficient tips from Energy Star and the U.S. Department of Energy to save both energy and money.

1. Set the thermostat comfortably low to save big – for instance, resetting your temperature from 72 degrees to 65 will save 10 percent on your heating bill.
2. Save on hot water by setting your electric water heater temperature to 120 degrees Fahrenheit and taking shorter showers.
3. Open window coverings during the day to allow the sun’s warmth in and close them at night to keep the chill out.
4. Make sure your home is leak-free – check all the nooks and crannies around windows, doors, plumbing and more.
5. Insulate your hot water heater and hot water pipes to prevent heat loss.
6. Install storm windows to reduce heat loss by 25 to 50 percent.
7. Keep your heating equipment in tip-top shape and replace all filters regularly.

President Announces Multi-Billion Dollar Investment in Smart Energy Grid
President Obama recently announced plans and funding of a more efficient, reliable and stronger modern energy smart grid to meet American electricity needs. Read article…

Arizona’s First Commercial-Scale Wind Energy Development Keynoted by Salazar
Noting America’s need to reduce its “dangerous dependence on foreign oil,” Secretary of the Interior Ken Salazar recently participated in a dedication ceremony for a large wind energy project in Arizona. Read article…

American Association of Petroleum Geologists: Informing Policy with Science
By David Curtiss
The American Association of Petroleum Geologists (AAPG) is the world’s largest scientific and professional geological association, with more than 34,000 members in 116 countries. Founded in 1917 and headquartered in Tulsa, Oklahoma, AAPG is not a trade association.  We do not represent the petroleum industry.  Rather we represent the science and profession of petroleum geology.  Our members include professionals active in industry, government, and academia.  They are practitioners of the science.

AAPG’s purpose is to foster the spirit of scientific research among its members and to advance the science of geology, particularly as it relates to petroleum, natural gas, other subsurface fluids, mineral resources, and the environment.  To achieve these goals, AAPG publishes the Bulletin, a juried monthly geologic science journal and the Explorer, a monthly newspaper with upstream information news; sponsors continuing education schools, seminars, and field trips; holds annual scientific meetings both in the U.S. and internationally; publishes specific geologic books and materials; and provides geologic information to the general public.

The Association has three divisions.  The Division of Professional Affairs certifies petroleum geologists, petroleum geophysicists, and coal geologists.  It also enforces the code of ethics that AAPG members agree to uphold.  The Division of Environmental Geosciences uses geologic knowledge to solve environmental challenges, and publishes Environmental Geosciences, a juried quarterly geologic science journal.  The Energy and Minerals Division focuses on energy minerals (e.g., coal and uranium), geothermal, hydrates, and unconventional petroleum resources.

Four years ago, AAPG opened the Geoscience & Energy Office in Washington, DC (GEO-DC) to bring the collective scientific expertise of AAPG members to policy makers.  Our objective is to provide the scientific understanding that enables policy makers to craft more informed laws and regulations.

For example, for the Energy 101 briefing at the CEA October meeting in Washington, D.C., my colleague Don Juckett focused on a key point that is often misunderstood in policy circles:  the difference between a petroleum resource and petroleum reserves. In brief, a petroleum resource denotes the total endowment of hydrocarbons in a particular exploration area or geologic basin.  It is an estimated amount based on geologic knowledge and conditions, and includes both discovered and undiscovered hydrocarbons.

A petroleum reserve is a more narrowly defined estimate of hydrocarbons, including geologic, engineering, and economic factors.  For publicly traded companies the definitions of reserves are set forth by the U.S. Securities and Exchange Commission.  Reserves are discovered hydrocarbons that can be produced at a given price (or price range) – it is an oil company’s inventory in storage.  When you produce oil or natural gas, you are pumping and selling from your reserves.

Converting an oil and natural gas resource into an oil and natural gas reserve takes three things: 1. Access to the resource, which in the U.S. is located either on public or private lands both onshore and offshore; 2. Technology that improves our ability to find and produce oil and natural gas; and 3. Investment climate conducive to the significant capital expenditures needed to produce oil and natural gas and deliver it to consumers.

As we speak to policy makers we spend a lot of time focusing on these issues – access, research and development, and tax reform – as well as other policy and regulatory issues.

Another topic we have been working on is the dramatic energy workforce shortage facing the United States and the world in the next decade.  We are talking about everyone, from petroleum geologists and geophysicists and electrical power line workers, to nuclear engineers and the skilled trades working in energy.  No part of the energy sector, including the government and regulatory arena, is immune from the dramatic “graying” of the workforce.  This is an issue where the Consumer Energy Alliance has provided significant leadership since its inception.

For more information about AAPG, the issues we are working on, or if you have a question about the science of finding oil and natural gas please contact David Curtiss at 202-684-8225 or dcurtiss@aapg.org.

Affiliate Spotlight: Air Conditioning Contractors of America
For more than 40 years, the Air Conditioning Contractors of America has served the nationwide educational, policy, and technical interests of the small businesses who design, install, and maintain indoor environmental systems.

“ACCA members characterize the extent of America’s economic diversity. The typical ACCA contractor member employs less than 10 people, but many of our members have hundreds of workers. ACCA protects the interests of the small business residential and commercial contractors of the HVACR industry,” says Vice President of Government Relations Charlie McCrudden.

Affordable and reliable energy sources help control the fluctuation of fuel prices and allow the small business contractors of the HVACR industry to grow their businesses.

“The typical ACCA member has a fleet of vehicles used to service and install HVACR systems in homes and buildings. Fuel expenses represent a significant cost of doing business as a service contractor,” explains McCrudden.

ACCA has a longstanding history of supporting efforts to encourage energy efficiency in residential and commercial buildings though increased building performance.

“Every day, thousands of ACCA members help homeowners and building managers realize the comfort and cost benefits of energy efficient heating, ventilation, and air conditioning, (HVAC) equipment.  ACCA members would like to see more incentives for building owners and homeowners to reach for higher efficiency HVACR appliances. At the same time, ACCA members would like to see more access to affordable energy sources so that normal market conditions can keep fuel prices low,” he emphasizes.

As a member of Consumer Energy Alliance, ACCA’s goal is to work with other stakeholders to ensure access to energy at reasonable prices.

“ACCA is a member of CEA because the collective voice of the Alliance membership is louder than the individual organizations combined,” McCrudden notes. “As a trade association representing small business contractors who rely on their fleet vehicles, ACCA is very concerned about access to energy and its effect on price.”

For more information on Air Conditioning Contractors of America, visit www.acca.org.

Tags: AAPG, ACCA, air conditioning contractors of america, American Association of Petroleum Geologists, CEA, Consumer Energy Alliance, LCFS, Obama, ocean policy task force, oceans, ocs, offshore energy
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Bipartisan House Letter Urges Caution on Sweeping New Ocean Restrictions

Wednesday, October 28th, 2009

CEA applauds lawmakers for taking a stand in defense and support of offshore energy exploration

WASHINGTON – Imposing a new, potentially sweeping federal oceans program that restricts the responsible energy development offshore would raise energy prices on consumers and expand our already dangerous dependence on foreign energy — that was the message delivered to the White House today by Democrats and Republican lawmakers in the U.S. House.

In a letter dated today, 69 members of the US House urged the White House to proceed with caution before totally recasting our nation’s federal ocean policies. The bipartisan group of lawmakers is particularly concerned with the potential effects such a policy could have on responsible offshore energy production, which helps stabilize energy prices, create good-paying jobs and fund essential social services from all levels of government.

David Holt, president of Consumer Energy Alliance (CEA), released this statement:

“Today’s letter from this strong, bipartisan group of lawmakers should send a message loud and clear to the White House that any policy that seeks to impose restrictions on all aspects of offshore commerce – shipping, fishing and the responsible development of homegrown energy is one that will be challenged by a large segment of Congress.

“Unfortunately, as it stands today, continuing delays have prevented the important work of crafting and implementing a new offshore energy development, creating jobs and finding sound economic footing for the nation. An oceans policy that would further complicate that regulatory chain of command offshore has the potential to erode our nation’s energy security even further, costing Americans jobs, revenues and opportunity in the process.

“These lawmakers that signed this letter, led by Congressman Bill Cassidy, have shown tremendous leadership at a critical time on this issue. CEA is grateful for their hard work and hustle. As this process continues to develop, CEA will continue to fight for expanded access to every form of energy, especially our resources offshore.”

Here are key excerpts from the bipartisan letter, which was signed by 69 members of Congress:

We are particularly concerned about the Task Force’s impact on our nation’s ability to safely develop its own offshore energy, including oil, natural gas and renewable energy.  It is critical that the Task Force’s proposals do not inhibit energy activity offshore in domestic waters and undermine the Department of the Interior’s Five Year Leasing Program for offshore energy development.  An ocean management policy that puts new restrictions on energy development would not only raise prices for consumers, but would negatively impact Americans working in the offshore energy industry and all Americans whose livelihood depends on access to affordable energy.

According to a recent American Energy Alliance report, expanded drilling in the Outer Continental Shelf (OCS) would generate 1.2 million jobs and $70 billion in additional wages annually, plus $8 trillion in economic output and $2.2 trillion in total tax receipts.  The American public has also expressed its overwhelming support for increasing offshore energy production.

We urge the Obama Administration and the Task Force to take an approach to oceans policy that recognizes and promotes access to the abundant American energy resources located offshore.

NOTE: Click HERE to view this letter on-line. Also, click HERE to view CEA’s call-to-action on this issue.

Tags: CEA, Consumer Energy Alliance, domestic energy, gas, Oceans policy, oil
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Lawmakers voice concern over Ocean Policy Task Force

Wednesday, October 28th, 2009

Word seems to be getting out about President Obama’s Ocean Policy Task Force and the need for all groups that use the oceans to be included in the discussion. Some 69 members of the House of Representatives have sent a letter to the task force, expressing concern that it could set in place new policies that would block offshore oil development and impose other restrictions that could cost American jobs.

As Doc Hastings, the representative from Washington state put it, “We can protect our oceans without inflicting more economic damage in the middle of a serious recession.”

CEA, which has in the past successfully organized letter-writing campaigns to the Interior Department over contested offshore drilling leases, more recently rallied our members and supporters to weigh in on the Ocean Policy Task Force, and its initial report that proposed a new system of governance of the country’s Great Lakes and coastal areas.

It seems a lot of people agree that this is a very complex and sensitive matter that deserves the input of many parties before any new policy is established.

In recent months CEA has been repeatedly pleased, not just by our members’ efforts to engage in this challenging grassroots work, but also in the results that we’ve achieved. Last month, our letter writers arguing in favor of responsible offshore drilling, out-wrote the other side.

What’s gratifying about the strong response to the Ocean Policy Task Force is that it is so far-reaching. Objections have poured in from places ranging from San Francisco to Louisiana, and representing industries from oil to wind power to fishing. As our own blog-bot (see blog from October 15) said, we all want to do what’s right to protect the oceans. But clearly a lot of people are concerned about doing the right thing in the right way. Keep up the good work!

Tags: CEA, Consumer Energy Alliance, energy, Obama, oceans policy task force
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What do toys from China have to do with oil imported from the Middle East?

Thursday, October 22nd, 2009

It’s been estimated that as much as one quarter of carbon dioxide emissions in China results from the production of goods that are exported, largely to the United States and Europe. It’s part of a phenomenon known as carbon leakage, in which reduced emissions in one country result in higher emissions elsewhere, and quite possibly a net increase in worldwide emissions.

It goes something like this: Country A passes legislation reducing emissions (good), but does so in a way that fails to contemplate the global impact of its move (not so good). As a result of the tighter standards in Country A, the cost of manufacturing goods and services there goes up, resulting in increased demand for those same products out of countries B, C and D, where production costs are comparatively low and emissions standards are slim to nonexistent. Country A loses more of its manufacturing base, and jobs along with it, without ever really achieving its main objective of cleaning up the planet. Its emissions legislation has only served to encourage increased output from some of the places with the lowest environmental standards.

The problem of carbon leakage is often cited as an unintended consequence of carbon offsets. But it also relates to the issue of low carbon fuel standards in the U.S. As CEA recently noted, policies designed to favor production of light crude oils, which in general require less energy to produce than their heavier counterparts, could easily create the unintended consequence of increasing the country’s need for foreign oil.

Now, in one sense, all foreign oil is created equal, at least when you’re measuring the amount the U.S. imports from all over the world. But just for a moment put oil from Canada in a category of its own: yes, it’s foreign oil, but it is at least a nearby and stable source that can help support jobs on pipelines and in refineries near the U.S./Canadian border.

A newspaper in South Dakota recently complained the passage of a low carbon fuel standard could kill a new oil refinery project that had been expected to create more than 1,000 jobs, by cutting off supply of heavy crude oil from Canada. This is not oil that could be easily replaced by a U.S. source: Under a low carbon fuel standard, a refinery in Middle America with a healthy supply of oil in its own backyard might have to tap supplies in the Middle East, where the crude is, as they say, sweet.

“Do a little digging,” the story says, “and you quickly find out that the low carbon fuel standard isn’t at all interested in making the fuel in your car today better, cleaner or more affordable. It’s only interested in making those fuels scarcer, more expensive and less available.”

For more information on low carbon fuel standards, visit our website.

Tags: American energy, carbon dioxide, CEA, China, Consumer Energy Alliance, domestic drilling, emissions, gas, Middle East, oil, toys
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