domestic energy
An inconsistent “buy American” policy
Wednesday, March 10th, 2010
Last week we had the fortunate timing of blogging about the value of good home insulation on the same day that President Obama renewed his emphasis on this important but often overlooked energy saving measure when he called on Congress to pass a law that would give rebates to consumers who invested in insulation or other efficient energy equipment.
The announcement came with one of the most memorable sound bytes of the Obama Presidency to date: “It’s hard to import windows from China,” the President said, touting the benefits of the rebates in not just saving consumers on their energy bills but also creating jobs here at home.
Unfortunately, it was not just a sound byte, but also an opening for critics to take a look at our national energy policy and ask just how well it has worked to create domestic jobs in the energy sector. While we applaud any program that will boost domestic production of windows, water heaters and the like, we have to wonder if HomeStar is a bit of a red herring, used to distract attention from all the other areas of the energy sector where business is moving overseas.
Consider:
–Wind turbines. As the U.S. derives growing amounts of its power supply from wind, a disturbingly large number of the wind turbines we use are made in China. A large portion of stimulus funds from last year’s Recovery Act have gone toward building wind farms, but investigations have found the vast majority of wind turbines are made in China.
–Solar panels. The New York Times reports that one single Chinese solar panel maker captured nearly a third of the California market last year, while collectively, Chinese solar panel makers more than doubled their share of the California market over the course of 2009. As the American solar business grew, so too grew China’s stake in it.
–Oil. America’s dependence on foreign oil – in 2008 we imported 57% of all the petroleum we consumed — is a longstanding problem, that is arguably so entrenched that it would take a long time to reverse, even with the best intentions. But even judging on the basis of good intentions, there has been little action to support the domestic oil industry. Over the past year, CEA has tracked a pattern of roadblocks, red tape and unnecessary delays that have blocked some promising and environmentally responsible drilling and exploration projects from getting off the ground. Fewer acres were leased for on- and offshore drilling last year than in any previous year.
Oh, and let’s not forget —
–Windows. This little exercise got us curious about the claim that it’s hard to import windows from China. We’re not yet sure if windows are a major export for China, but it wasn’t hard to find some Chinese windows available for export. It should come as no surprise that a global exporter as large as China would find a way to safely export breakable glass. As long as we here in the U.S. discuss the very serious matter of international trade on such a simplistic level (“of course, you wouldn’t ship glass all the way from China”) we’re bound to adopt feel-good policies over those that really make a difference.
Tags: American energy, China, domestic energy, energy efficiency, energy saving, home insulation, homestar, Made in China, Obama, Recovery Act, solar energy, solar farms, wind energy, wind farms, windows
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Not all wind power created equal
Tuesday, February 23rd, 2010
The Wall Street Journal this week issued a kind of report card on all the different sources of alternative energy, where they stand and how much they are growing. One of the most interesting details was that the growth of the wind power sector will depend largely on where that wind comes from. Wind produced offshore is usually preferential to wind coming from a dusty plain in the middle of nowhere. Offshore wind would be generated close to large coastal population centers and would require less costly transmission.
This is the sort of assessment you start to hear once a power source is ready for Phase Two. Wind power has made enormous strides in recent years, both in terms of public acceptance and improved technology. U.S. wind power capacity surged 39% last year alone. The more sobering data point is that it still accounts for just 2% of total power generation in the country. If wind power producers want to increase that portion significantly, they need to start thinking strategically about how and where they build power plants.
This helps to explain why the long-contested Cape Wind project near Martha’s Vineyard, Massachusetts is so vital to the industry’s future. If — over the many objections from coastal property owners to fishermen to the Audubon Society — the project goes through, it would be the largest offshore wind power in the country, potentially offering a whole new paradigm of the power of wind.
But in the meantime, it is the power plants built on land that are generating the most investor interest.
Of course, this isn’t really logical – why a wind farm in remote West Texas would be embraced, while one near a major metropolitan area would be blocked for more than a decade. But if we continue to bow to special interests and let them dictate where these new power plants reside, we could very well be forfeiting the industry’s future promise to be anything more than a niche player. Already, the U.S. is quite far behind: its total wind power capacity ranks fifth worldwide on a per capita basis, behind China.
Once upon a time, when wind was new, any electricity it generated was viewed as a net gain. But those days are gone and the stakes are now much higher.
Tags: alternative energy, balanced energy, cape wind, domestic energy, offshore energy, offshore wind, wind, wind power
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CEA Commends Administration, Department of Energy for Issuing First Loan Guarantee to Build Nuclear Power Plant
Thursday, February 18th, 2010
HOUSTON – February 17, 2010 Consumer Energy Alliance (CEA) applauded the Administration’s announcement yesterday that the U.S. Department of Energy (DOE) will soon be issuing its first loan guarantee to build two new nuclear reactors.
“In a future where carbon will increasingly be constrained, nuclear power generation needs to play an increasingly central role in contributing to the energy mix of the United States — providing baseload capacity and an affordable supply of electricity to power our homes, our businesses and our industries,” said CEA president David Holt.
“More important,” added Holt, “is that the advancement of nuclear energy and other clean energy technologies will also help create thousands of new jobs and provide substantial benefits to consumers, the economy and the environment, all while strengthening our national energy security.”
Pursuant to the president’s announcement, DOE is expected to grant an $8.3 billion conditional loan guarantee for the construction of two nuclear reactors in Georgia by Southern Company. The construction of these new reactors is estimated to generate roughly 3,000 construction jobs and more than 800 permanent operations jobs.
CEA has actively supported policies important to the nuclear energy industry, particularly as they relate to financing support and efficient licensing for new nuclear facilities.
“It is important that the federal government encourage the continued development of nuclear energy, as well as oil, natural gas, wind, solar, hydro, and biomass. These resources must all play a role in meeting our energy needs,” said Holt.
Tags: alternative energy, alternatives, American energy, balanced energy, Department of Energy, DOE, domestic energy, nuclear, nuclear power, nuclear reactors, oil and gas
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More about that letter writing campaign
Wednesday, February 17th, 2010
Last year, CEA launched a successful campaign, which we later reported, sent a bundle of letters supporting responsible drilling to Interior Secretary Ken Salazar. More, recently, we’ve highlighted reports confirming what we said: That those in favor of expanded drilling outnumbered opponents by a two-to-one margin.
Seemingly a cause for celebration, except that no one from Interior is focused on this issue. This disparity between what the public wants and what is happening in Washington is increasingly cause for concern.
The latest to weigh in on the injustice is the Heritage Foundation, which cites that same gaping two-to-one margin (how often is any election won by so much?) and asks the very reasonable question How about some transparency on offshore drilling?
“Government inaction simply doesn’t make sense,” notes Heritage, which last year also sponsored a successful Free Our Energy campaign. “Offshore drilling will create jobs and increase energy supply without cost to the taxpayer. It will create revenues for financially strapped state government and increase revenues for federal governments. President Obama said in his State of the Union address that we should make tough decisions about offshore drilling. It sounds like a pretty easy decision.”
In view of such disregard of overwhelming public opinion, it seems that making your opinion heard – while still vital – is no longer sufficient. In 2010, there will be battles over energy policy, but we will also need to get the word out that the public has spoken and that their views are being discarded. In the coming weeks and months we will provide more information about how to keep the pressure on lawmakers to do the right thing with regards to national energy policy.
In the meantime, keep in mind that two-to-one ratio. It’s a remarkably strong vote of confidence for the policies we at CEA promote. Two out of three people support expanded offshore drilling: The more those numbers are shared, the more pressure the Interior Department will come under to remove some of that red tape that stands in the way of sensible policy.
Tags: American energy, balanced energy, Department of the Interior, domestic energy, domestic oil, drilling, Interior, Ken Salazar, offshore drilling, oil and gas
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Our blog bots don’t like red tape blocking access to domestic energy.
Tuesday, February 9th, 2010
Tags: American energy, balanced energy, domestic energy, oil and gas
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CEA IN THE NEWS: Salazar-oil industry war escalates as Interior announces leasing changes
Tuesday, February 2nd, 2010
Consumer Energy Alliance was in the news on January 6, 2010, in The Hill: “Salazar-oil industry war escalates as Interior announces leasing changes” by Ben German. Read more …
Tags: american resources, domestic energy, oil and gas, oil industry, Salazar, The Hill
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CEA: California LCFS Bad for Consumers, Bad for Producers, and Violates Federal Law
Tuesday, February 2nd, 2010
Consumer Energy Alliance files complaint with District Court in Fresno asking for immediate injunction on Low-Carbon Fuel Standard
FRESNO – February 2, 2010 California’s recently implemented Low-Carbon Fuel Standard (LCFS) violates federal law by attempting to regulate “commerce and conduct” outside of the state, while imposing a mandate that even regulators admit will result in “little or no net change” to the carbon intensity of fuels on “a global-scale.” Such is the formal complaint filed by Consumer Energy Alliance (CEA) in the U.S. District Court for the Eastern District of California today, asking the court to suspend the imposition of a statewide LCFS until a number of substantive legal concerns can be addressed.
“The practical outcomes of the California LCFS are higher fuel costs for consumers, dramatic reductions in the availability of those fuels, and a rapid expansion of the state’s already unacceptable level of dependence on foreign, unstable regimes for its energy,” said Michael Whatley, vice-president of CEA and former chief counsel for the U.S. Senate subcommittee on clean air and climate change. “More relevant to today’s filing, the California LCFS also actually violates federal law – and stands in direct contravention of key consumer protections and safeguards enshrined in the U.S. Constitution.”
Formally adopted last month after the state’s Office of Administrative Law (OAL) issued its final approval, the California LCFS, according to its authors, seeks to reduce the carbon-intensity of fuels included in the state’s transportation mix “while stimulat[ing] the production and use of alternative, low-carbon fuels.” But under the bizarre accounting methodology of the plan, energy sources with physically identical chemical properties and carbon contents can – and, in fact, must be – treated differently under the law, with in-state sources significantly advantaged over resources that are found and produced outside California.
“Perhaps it wasn’t the state’s intent, but as written, the California LCFS is an example of parochial protectionism run amok,” added Whatley. “But make no mistake: This isn’t the type of protectionism that will benefit California consumers; it’s the type that will ensure sources of essential energy are harder to find in the future, and much more expensive to purchase.”
In support of that statement, Whatley pointed to a recent analysis of the proposed state LCFS completed by California-based Sierra Research. In that study, analysts from Sierra found that an LCFS will increase the cost of fuel in California by $3.7 billion over the next decade – all while producing “no detectable change in climate.”
With more than 260,000 grassroots supporters and 130 affiliates representing both the major consuming and producing segments of the U.S. energy sector, CEA has been an active contributor to the national debate on LCFS – including the proceedings in California – for the better part of the last two years.
Last August, the Washington, D.C.-based Center for North American Energy Security, a CEA member, sent a letter to the California Air Resources Board (CARB) detailing the myriad short-comings with the LCFS, and several CEA members (including the National Petrochemical & Refiners Association and the American Trucking Associations – which joined CEA in filing the complaint today) have lodged formal comments with CARB objecting to the plan as well. In addition, CEA wrote directly to U.S. Sen. Barbara Boxer (D-Calif.) in October identifying several significant consequences that consumers should expect to encounter under the initiative.
What follows are several key excerpts taken from the CEA complaint filed in Fresno this morning:
42. Because “carbon intensity” is designed to account not only for a fuel’s physical characteristics, but also the energy necessary to bring the transportation fuel to market in California, chemically identical fuels are assigned different carbon intensities under the LCFS. LCFS § 95486(b), Tables 6–7.
44. By regulating the “fuel pathway” of transportation fuels – i.e., the manner in which transportation fuels are produced and ultimately reach the California market – the LCFS directly regulates interstate commerce and conduct occurring outside of California.
47. CARB has admitted that, because no other states have adopted a similar standard, “fuel producers are free to ship lower-carbon-intensity fuels to areas with such standards, while shipping higher-carbon-intensity fuels elsewhere.” CARB, California’s Low Carbon Fuel Standard: An Update on the California Air Resources Board’s Low Carbon Fuel Standard Program (Oct. 2009) at 1.
48. According to CARB, “[t]he end result of this fuel ‘shuffling’ process is little or no net change in fuel carbon-intensity on a global scale.” Id.
49. In fact, the “fuel shuffling” promoted by the LCFS likely will lead to an overall increase in GHG emissions, because it will mean redirecting fuels and feedstocks destined for California to other states through less efficient and redundant supply lines. Id.; see also CARB, Final Statement of Reasons (Dec. 2009) at 234–35.
50. The burdens imposed by the LCFS on the interstate market for transportation fuels and fuel feedstocks in California are clearly excessive when measured against the putative local benefits of the LCFS in California.
More from Consumer Energy Alliance’s Secure Our Fuels campaign:
- Memorandum of Understanding: Draft NESCAUM MOU dated Nov. 17, 2009
- 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
- Column: Why Are We Conceding Canadian Oil to China?
- Issue Alert: Happy Birthday, China
Tags: carbon footprint, climate change, domestic energy, emissions, Fresno, GHG emissions, LCFS, Low-Carbon Fuel Standard, oil and gas, Secure Our Fuels, U.S. District Court for the Eastern District of California
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CEA: Interior’s Delay on VA Offshore Energy Exploration Could Cost Jobs, Econ. Growth
Tuesday, February 2nd, 2010
Consumer group says safe, responsible offshore energy exploration presents “tremendous economic opportunity”
HOUSTON – January 27, 2010 The Interior Department will not proceed with a long-scheduled offshore energy lease sale in areas 50 miles and beyond the coast of Virginia either this year or next, Reuters reports — despite a request from Virginia Governor Bob McDonnell that commonsense efforts be made right now to ensure that work can finally begin. Following the revelation today from the Department’s Minerals Management Service (MMS), Consumer Energy Alliance (CEA) president David Holt issued the following statement:
“When the governor of the commonwealth of Virginia asks the federal government to partner with his administration in an effort to convert the abundant reserves of energy off his shores into jobs, revenue and energy security for Virginians, you’d hope to see a sensible process move forward. If news today out of MMS is any indication, the federal government appears ready to delay that critical work for at least another year, meaning additional delays in creating jobs, reducing energy costs and getting the U.S. economy moving again.
The Administration should do more to show that it recognizes the tremendous economic opportunity that safe and responsible offshore energy exploration presents to the citizens of Virginia, and the nation at large.
“We’re talking about thousands of high-wage jobs here, and billions in annual revenue that can be raised without imposing a single new tax. When it comes to promoting alternative energy resources offshore, the Administration has compiled an impressive record – and we applaud those efforts. This announcement signals that the Administration may not be looking to maximize our nation’s enormous oil and gas potential offshore with the same enthusiasm. Those who support a balanced, commonsense national energy strategy look forward to continuing to work with the Administration to create jobs, improve our national and energy security and responsibly allow access to our abundant resources.”
NOTE: Identified by the Interior Department as an area for future lease in 2008, the Virginia lease sale, scheduled currently to take place in 2011, has been delayed for at least another year, according to reports.
Late last year, then-Gov.-elect Bob McDonnell of Virginia (now formally the governor) wrote Secretary Salazar a letter suggesting that “[a]ny effort to remove or delay Virginia’s participation in the lease sale would significantly hamper our efforts to create jobs, eliminate much-needed new revenue, and undermine support for President Obama’s stated commitment to make the United States more energy secure.”
Tags: balanced energy, domestic energy, energy policy, Obama, oil and gas, Reuters, VA Offshore, Virginia offshore
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SEA: Salazar Delay on Virginia OCS May Run Afoul of the Law
Tuesday, February 2nd, 2010
Fredericksburg, Va. – January 27, 2010 The decision on the part of the Interior Department to delay administrative action on a scheduled and critically important lease sale more than 50 miles off the state of Virginia may not be consistent with the orders of a federal court, the Southeast Energy Alliance charged today.
“The decision by the Department of the Interior is contrary to the expressed wishes of the state of Virginia and appears to violate an order from the US Court of Appeals,” said Michael Whatley, executive director of the Southeast Energy Alliance and former staff director and chief counsel for the U.S. Senate subcommittee on clean air and climate change. “We are deeply concerned about the Department’s decision to take this lease sale off the table — despite strong public support, and clear instructions from a federal court.”
The 2011 Virginia lease sale was included in the 2007-2012 OCS Oil and Gas Leasing Program published by the Department in 2007 following a three-year development process. The 2007-2012 Program has been the subject of lawsuits regarding the environmental sensitivity rankings used by the Department in developing the program. However, on July 28, 2009, the United States Court of Appeals issued a clarification order that limited any changes to the program arising from the litigation to leasing areas in Alaska.
“The Virginia lease sale was included in the Five Year Program at the request of Virginia following years of careful, thorough consideration by the Department of the Interior,” added Whatley. “Public support for the lease sale is extraordinarily strong and Governor McDonnell has stated that he wants to see the lease sale take place in 2011.” Whatley also pointed to a statement posted today on the website of U.S. Sen. Jim Webb (D-Va.), indicating that both Sens. Webb and Mark Warner (D-Va.) support prompt action on the Virginia lease sale.
The Interior Department’s revisions to the 2007-2012 Program are taking place solely because of the ongoing litigation over its Alaskan provisions, and the federal Court of Appeals has ruled that any changes to the plan during the Department’s reconsideration of the Program must be limited to Alaska. “For the Department to strip it out of the schedule under these circumstances is a direct hit on the families, farms, factories and businesses of Virginia,” Whatley concluded.
SEA is the Southeastern regional affiliate of the Consumer Energy Alliance.
Tags: domestic energy, michael whatley, offshore development, oil and gas, SEA, Southeast Energy Alliance, Virginia leases
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Marcellus bids underscore growing interest in shale
Tuesday, January 19th, 2010
Last month, Exxon Mobil made a major investment in XTO, one of the largest shale gas producers in the U.S., and the in the weeks since then, a number of other major oil companies have moved aggressively to establish or expand their presence in the shale sector.
Earlier this week, five companies submitted bids totaling $129 million — twice as much as the amount forecasted — for the rights to drill in the Marcellus Shale natural gas formation in northern Pennsylvania. This growing interest comes amid mounting evidence of the vast volumes of shale gas, which by some estimates, on a global basis, exceed the world’s oil reserves.
Other shale areas, such as the Haynesville Shale in Texas and Louisiana, are also seeing strong interest from energy producers.
The last time we wrote about shale, we noted that improved production technologies would be key to generating a steady supply of shale gas, and helping to ensure mass production. Of course, this path to mass production is never a smooth one, even for the most promising and abundant energy resources. In addition to the technology challenges associated with production challenges, regulatory challenges are also likely. Already, shale producers in New York say that onerous regulations are driving them out of the state.
We’re not sure what the coming year has in store for the shale gas industry, but we do know that it’s an area we all must watch closely. We’re encouraged by the growing interest in these sites and we need to make sure that the projects, which could contribute significantly to our domestic natural gas supply, are allowed to proceed.
Tags: domestic energy, exxon mobil, marcellus shale natural gas, oil and gas, pennsylvania, shale gas
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In California, progress is … complicated
Thursday, January 14th, 2010
Last year, a severe budget crisis in the country’s most populous state made California the site of a lively – and unexpected — debate over reviving offshore drilling.
Now Governor Schwarzenegger has drafted a new budget, which does indeed include proposals to revive drilling in a large and controversial site, known as the Tranquillon Ridge, off the coast of Santa Barbara. It’s a site that by some estimates could generate $4 billion in revenue for the California. It seems a budget crisis is just what was needed to trigger serious policy discussions about offshore drilling as a source of new revenue.
Of course, as we’ve said again and again, we’re all for healthy debates that might lead to more coastal waters being opened to responsible exploration and production. Still, it is difficult to watch this particular debate unfold without being reminded of how far we still need to go, at least in some parts of the country.
Out west, the prospect of additional drilling is too often regarded as a move of last resort rather than a logical energy and economic policy. Schwarzenegger says that revenue from the Tranquillon site will go directly toward the state’s parks, sparing them additional cutbacks. In addition, it appears broad support for the project hinges on an agreement from the project’s developer to stop oil production there after 14 years.
If you think this all sounds a little funny — dangling the future of the state’s parks systems in order to win approval for the project, while exchanging oil now for no more oil in the future — you’re probably right. Some critics have equated the terms of this proposed project to blackmail.
This is not to say that a happy conclusion is out of the question. If it takes state budget crises to get states interested in their offshore resources, that’s a good thing. Even opponents of the project may come to support it once they see the economic upside.
But it shouldn’t have to be so complicated. Hopefully, when other offshore projects come up for review around the country, it won’t be.
Tags: budget crisis, California, domestic energy, drilling, offshore drilling, oil and gas, santa barbara, tranquillon ridge
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While you were toasting…
Wednesday, January 13th, 2010
CEA’s recent year in review offered a long list of achievements in public policy, technology and public opinion that all helped advance our goals of fostering a strong domestic energy industry and economy.
We also noted that there was a lot more work to be done.
Indeed, word came down on New Year’s Eve that 11 states had committed to following California’s lead in adopting a Low Carbon Fuel Standard, essentially a wildly inaccurate measure of the carbon footprint left by various fuels. We’ve noted before that such standards are less likely to reduce emissions and more likely to increase imports of Middle East crude oil. Yet, because the standard has a nice ring to it and may appear to offer the sort of simple solutions people crave, it is catching on quite quickly.
It is heartening to see pockets of opposition, such as this one out of Pennsylvania that notes that the premise of carbon accounting on which the policy is based is, at best, challenging to calculate, and at worst, just like we said, inaccurate.
But from where we stand now, too many lawmakers are taking the sound byte over the hard science and signing on to what could be a devastating policy for the future of domestic energy and our dependence on foreign resources.
As we outline our goals for the New Year, educating lawmakers, businesses and the general public about this not-so-low carbon standard must be a top priority. The future of many domestic energy suppliers and refiners will be riding on the outcome.
Tags: California, carbon footprint, crude oil, domestic energy, emissions, Low-Carbon Fuel Standard, Middle East
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Frozen Out of the Trans-Alaska Pipeline
Thursday, January 7th, 2010
Permafrost, as everyone who has worked in the oil sector in Alaska knows, describes soil that remains frozen year round. Back in the 1970s, when a group of oil companies collaborated on the groundbreaking (no pun intended) project of building the 800-mile-long Trans-Alaska-Pipeline, permafrost was just one of a multitude of daunting challenges engineers faced. They also had to transport large numbers of workers to highly remote regions, and find a way to secure the pipeline from everything from temperature swings to gunshots. (Because of the permafrost, long stretches of the pipeline were built above ground.)
It was a project on a scale that had never been attempted and the reason so many people saw it through to a successful completion in 1977 is that they knew it was worth the effort. Establishing a reliable means for transporting crude from Alaska’s oil-rich North Slope to points south was a sort of insurance policy for companies that explored in the region that their oil would find a way to market.
Interestingly, the pipeline project was born at a time of severe recession for the country and drew support both for the well-paying jobs it created and the promise of more reliable oil prices from home-grown sources.
It is ironic, then, that today the pipeline is facing an early demise even though estimates of proven oil reserves in Alaska continue to grow. The Anchorage Daily News recently published an extensive analysis of the massive investments that are already required to sustain the pipeline in the face of diminished shipments, and the growing concerns that it will soon not be economically feasible to operate the pipeline at all.
We’ve noted this problem in the past: how the health of Alaska’s oil industry impacts the health of all sorts of other industries on which the state’s economy depends. But as concerns mount about the future of the key vehicle for moving oil through the state, you also have to wonder how a weakened or entirely shut pipeline would affect production and exploration.
It’s a chicken-and-egg argument. The Trans-Alaska Pipeline was built because the demand existed to transport large volumes of oil. But if the pipeline were to go away, would producers have any incentive to stay, let alone, expand in Alaska? Political climates, of course, change with the seasons, but you can’t always patiently wait for a new, more welcoming climate, to blow in. As the saying goes, you must use it or lose it.
There have been some recent victories allowing responsible drilling in Alaska, but there are many more unresolved disputes that are critical to maintaining throughput on the pipeline, and in turn ensuring that Alaska’s oil infrastructure that was installed with great effort just a generation ago, remains intact.
Tags: Alaska, alaska pipeline, Anchorage, domestic energy, oil and gas, trans-alaska pipeline
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Consumer Energy Alliance Issued Support for Final Decision Regarding Cape Wind Offshore Energy Project
Wednesday, January 6th, 2010
HOUSTON – January 6, 2010 Consumer Energy Alliance (CEA) announced its support for the development of the Cape Wind project in Nantucket Sound today as the Interior Department carries out its final review of the plan.
David Holt, president of CEA, issued this statement regarding the project:
“CEA believes that wind farms and other offshore renewable energy projects will become an important part of implementing a balanced energy policy that will support the economy and increase energy efficiency.
Developing offshore wind farms will provide clean, safe and more affordable energy for consumers and is a necessary step toward securing our nation’s energy future. Moreover, development of the Cape Wind Energy Project will add hundreds of jobs to the region of southeast New England and provide a foundation for the region to become a national and global leader in the field of offshore wind power.
The Cape Wind project has been under consideration for quite some time, and CEA hopes that Interior Secretary Ken Salazar will recognize the need for further investment in offshore renewable energy projects and point our nation in the right direction by allowing this project to move forward without any additional delays.”
Tags: cape wind, domestic energy, nantucket sound, offshore energy, wind
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CEA: New Interior Dept. Rules Will Discourage Domestic Energy Production, Deepen Foreign Dependence
Wednesday, January 6th, 2010
HOUSTON – January 6, 2010 Earlier today Interior secretary Ken Salazar announced a series of new federal leasing rules that aim to impede, and in some cases deny, the safe and responsible exploration of energy resources on taxpayer-owned lands. Consumer Energy Alliance (CEA) president David Holt issued the following statement in response:
“Adding layers of additional and unnecessary bureaucratic red-tape to the federal oil and gas leasing process will result in less homegrown energy for American families, seniors and small businesses. At the same time, erecting these needless roadblocks for safely producing American energy will not only lead to more expensive and less stable prices for struggling consumers, but it will also deepen our nation’s dependence on foreign and often unfriendly regions of the world to meet our growing demands and to keep our economy moving.
“With gas prices once again on the rise – and home heating costs expected to continue to spike throughout this severe winter season – policymakers in Washington should be committing their efforts to help stabilize and drive down energy prices through responsibility developing all of our energy resources – not discouraging domestic production, especially our vast oil shale reserves in the Intermountain-West and offshore, particularly in Alaska’s energy-rich seas.
“Responsibly unlocking our domestic energy reserves will help create thousands of good-paying jobs at a time when they’re most needed. And CEA is eager to work with Secretary Salazar and Congress to help craft commonsense energy policies that promote stable prices for all consumers, create jobs and drive down our nation’s foreign energy dependence through developing all of our resources – including alternatives and renewables – safely and effectively.”
Tags: domestic energy, energy security, foreign dependence, Interior Department, Salazar
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CEA Praises Bipartisan Congressional Letter to Interior Dept. on Polar Bear Ruling; Echoes Call for Responsible Offshore Alaskan Energy Production
Monday, January 4th, 2010
HOUSTON – December, 22, 2009 Earlier today, 13 members of the U.S. House of Representatives, led by Congressman Don Young of Alaska, wrote Interior Secretary Ken Salazar, urging his agency to carefully consider the economic and energy security consequences associated with a U.S. Fish and Wildlife Service (FWS) proposal to designate critical habitat for polar bears under the Endangered Species Act. The ruling, which is open for public comment until December 28, could dramatically undercut responsible energy production and job creation in Alaska.
David Holt, president of the non-partisan Consumer Energy Alliance (CEA), issued the following statement in response to the letter:
“Balancing the safe, responsible development of America’s abundant natural resources while ensuring its critical habitat is preserved is something we can do, must do, and in fact have done for many years. Unfortunately, the U.S. Fish and Wildlife Service’s proposal, as currently written, seeks to lock up enormous amounts of American energy – resources that could create thousands of good-paying jobs and help stabilize energy prices for struggling consumers when they need it most.
“Like in so many other industries, the energy industry continues to make great technological advancements each and every day. These advancements not only allow access to energy resources that were once thought to be out of reach, but they also allow exploration to be done in a more responsible, environmentally-mindful manner, ensuring that wildlife are properly protected.
“As this public comment continues forward, it is imperative that the secretary makes certain that sound scientific and economic data is considered. CEA applauds the dedicated work from this bipartisan group of lawmakers, who share our organization’s commitment to advancing policies that promote – not discourage – stable energy prices for American consumers through the responsible development of all of our nation’s energy resources, especially in Alaska.”
NOTE: To view this letter on-line, click HERE.
READ MORE
A 2009 University of Alaska Anchorage study entitled “Economic Analysis of Future Offshore Oil & Gas Development” finds:
- OCS development could generate an annual average of 35,000 jobs over the next 50 years – a six percent increase compared to total statewide employment without OCS development.
- Opportunities would be created throughout the state in both high paying, long-term, year-round jobs and in seasonal and short-term jobs. Of the 6,000 oil and gas sector jobs, about 3,900 could be long-term, year-round jobs.
A November 16 National Association of Regulatory Utility Commissioners (NARCU) study entitled “Analysis of the Impact on the Social, Economic and Environmental Effects of Maintaining Oil and Gas Exploration and Production Moratoria” finds:
- 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 percent;
- Cumulative oil imports from OPEC countries increase by 4.1 billion barrels; and
- Cumulative national payments to OPEC countries increase by $607 billion.
A December 16 Rasmussen poll found “that 68% of U.S. voters believe offshore oil drilling should be allowed”.
Tags: Alaska, domestic energy, fish and wildlife, FWS, offshore energy, polar bear ruling
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The consumer energy year in review
Monday, January 4th, 2010
New Year’s brings a time for all of us to review what we’ve accomplished over the past 12 months and chart a course for the future. It may sound cliché, but with such an eventful year behind us, and so many momentous challenges ahead, those of us here at Consumer Energy Alliance couldn’t resist the urge to compile our own Best of 2009 list. What follows are some of the milestone moments of the past year, in which our strong network of supporters significantly advanced our goal of making our country more energy secure and economically sustainable.
- New respect for Offshore Drilling. Yes, many key offshore sites remain off limits to exploration and production but 2009 was a year that policymakers from California to Florida revisited longstanding bans on offshore drilling. They recognized the advances in technology that are making it possible to conduct major projects with minimal footprint and conducted level-headed debates about reversing longstanding bans. Stay tuned – and stay engaged — for more in 2010.
- The sun rises over the Gulf of Mexico. From the appeals court ruling over the summer allowing drilling to go forward in a vast swath of the Gulf, to new data showing strong yields from some of the older properties in the Gulf, to BP’s massive discovery in that same region, you could say that everything old became new again in the Gulf.
- Silent majority finds its voice. It’s not easy competing against protestors who play fast and loose with the facts and even resort to donning furry animal costumes to get attention. Nonetheless, when the Interior Department solicited feedback on some contested offshore drilling sites, the supporters of responsible drilling significantly outnumbered those who cried “not in my backyard.” This letter writing campaign to Interior Secretary Ken Salazar was a major CEA initiative throughout much of the year, and turned out to be a major success. Thank you!
- Alaska’s oil industry gets some needed relief. Speaking of Ken Salazar, the Interior Department’s recent decision allowing Shell Oil to drill three exploratory wells in the contested Chukchi Sea was a significant milestone in efforts to tap the state’s vast oil and gas reserves.
- Renewable energy tapped for practical purposes. Renewable energy has always been a topic of interest to consumers but in 2009 the country made great strides in incorporating renewable power sources into our overall power supply, while recognizing both the limits of these sources as well as some niche applications ideally suited for renewables. Consider the solar powered trash can and some of the new uses for cow manure.
- The argument against exporting emissions gains traction. Politics might all be local, but emissions can travel halfway around the world in no time. Those of us who support a strong domestic oil industry have always understood the folly of exporting oil production, particularly to distant destinations that lack the environmental standards we have here at home. It’s one of the reasons, we’re so opposed to low carbon fuel standards. We clearly haven’t won this argument yet, but thanks to some of our vocal supporters – and some advanced science that can actually track the movement of things like toxic clouds from coal burning power plants in China – the not-in-my-backyard line of thinking is losing some power.
- Ocean Policy Task Force faces tough questions. If the Administration thought that while no one was looking, it could just impose a new layer of regulations on all of the industries that conduct business along the country’s waterways, it was mistaken. Shortly after the Ocean Policy Task Force was convened, lawmakers began raising questions about who would be setting the new rules and whether they could cost the country jobs.
Of course, we are a long way from winning the battle to prevent regulators from taking control of our oceans. Likewise the effort continues to bring responsible drilling and production to more of our coastal waters and ultimately produce more of the oil we consume in the U.S. In the coming weeks, we’ll outline some of the challenges for the New Year.
But for now, we leave you on an optimistic note. We thank you as always for your support.
Tags: 2009, 2010, Alaska, domestic energy, emissions, five year program, Gulf of Mexico, LCFS, new year, ocean policy, ocean policy task force, oceans, ocs, offshore drilling, renewable energy, year in review
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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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Getting serious about shale
Thursday, December 17th, 2009
Exxon Mobil this week announced plans to buy the independent gas producer XTO Energy for $41 billion – by far the largest deal for the company since the merger between Exxon and Mobil a decade ago.
Clearly this purchase signals a deeper commitment to developing natural gas: XTO has about 14 trillion cubic feet of proven gas reserves. But it also shows a clear focus on producing gas from shale. A large portion of XTO’s reserves are located in so-called unconventional sources, such as shale rock. Shale has long been recognized as a major source of oil and natural gas, but the technological challenges of getting to it have left much of that fuel untapped.
The New York Times offers a good overview of the Exxon Mobil’s systematic strategy in recent years to accumulate unconventional natural gas sources including shale. By adding XTO to its mix of existing properties, the company shifts shale gas production from a niche business to a core one.
In all likelihood, the acquisition will probably set off a race among many oil producers to develop natural gas and oil from shale on a much larger scale. Already, there are many sizable shale development projects underway, such as Range Resources’ Marcellus Shale project in Pennsylvania that produces 100 million cubic feet of natural gas per day – enough to power about 500,000 homes. Chevron has hinted that it is interested in making an acquisition that would give it a base of shale gas reserves large enough to make development economically feasible.
The importance of shale to the global energy industry and to domestic energy independence can hardly be overstated. Recent estimates suggest the world’s supply of shale oil resources exceeds its supply of conventional oil reserves. And the largest deposits are right here in the U.S. Of course, accessing more of that oil, and natural gas, will depend on finding technologically and economically feasible ways to do so.
As more money is committed to this promising source of domestic fuel, the technology used to develop it will inevitably improve, putting more volumes of shale oil and gas on the market. This steady supply tends to lead to greater price stability and that, in turn, increases demand. It’s a cycle by which a commodity comes to be mass produced and all signs suggest that for shale rock, that moment has come.
Tags: domestic energy, exxon mobil, oil and gas, oil shale, XTO Energy
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CEA Praises Airlines Pact to Promote, Increase Use of Alternative Fuels
Wednesday, December 16th, 2009
Consumer group calls the airline agreement “Groundbreaking”
HOUSTON – December 16, 2009 Yesterday, the Air Transport Association of America, Inc. (ATA) – a key Consumer Energy Alliance (CEA) affiliate – announced a landmark industry agreement designed to promote and increase the use of alternative aviation fuel supplies. The memoranda of understanding (MOU), signed by 15 airlines from the United States, Canada, Germany and Mexico, aims to increase supplies for air travel and transportation from Seattle-based AltAir Fuels LLC and Los Angeles-based Rentech, Inc.
David Holt, president of CEA, issued this statement in support of this forward-looking agreement:
“Increasing the use of and access to alternative and renewable energy resources is critical to both long-term U.S. energy security and stable prices for American consumers. This groundbreaking agreement facilitated by ATA is symbolic of the airline industry’s deep commitment to furthering key national objectives related to both our economy and our environment. At the same time, it also demonstrates that enormous technological steps continue to be made to diversify our country’s energy portfolio. More energy, of all forms, is instrumental to reducing fuel-price volatility and to strengthening our economy. ATA, its members, and those who have worked hard to forge this commonsense pact should be commended for their efforts.”
In yesterday’s public statement, ATA’s board chairman and UAL Corporation and United Airlines chairman, president and CEO said:
“Today’s announcement reinforces the proactive steps that airlines are taking to stimulate competition in the aviation fuel supply chain, contribute to the creation of green jobs, and promote energy security through economically viable alternatives that also demonstrate environmental benefits. Our intention as an airline industry is to continue to do our part by supporting the use of alternative fuels. We urge the U.S. government and the investment community also to do their part to further support this critical energy opportunity.”
Tags: Air Transport Association of America, air travel, alternative fuels, alternatives sources of energy, ATA, aviation fuel, domestic energy
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