drilling
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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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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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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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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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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A sweet deal for foreign oil importers
Thursday, October 1st, 2009
Anyone who has worked in the oil industry for a while understands that there’s another meaning to “light sweet,” besides the low-fat dessert the words might first bring to mind. Light, sweet is a kind of crude oil, named for its comparatively low sulphur content, the ease with which it flows out of the ground, and apparently, its sweet taste as well.
Heavy crude oil, sometimes also described as sour, tends to have a more viscous quality. This makes it harder to get out of the ground and barrel for barrel, heavy crudes typically produce less refined fuel than lighter grades.
All crude oils, in other words, are not created equal.
Now, if there was an infinite supply of light, sweet crude oil in the world, oil companies might never have bothered going to the trouble of producing the thicker stuff. Fact is, there’s significantly more heavy crude oil in the world, and a substantial amount in the U.S., particularly California. Because heavy crude is typically a lot cheaper than light crude, companies often find it economical to produce, despite its lower quality.
Factor in all the transportation costs that are saved by producing oil domestically, and that heavy stuff starts to look even more appealing.
That brief primer in crude oil economics offers a sense for why some new emissions policies being proposed are misguided. Specifically, a Low Carbon Fuel Standard being considered by Congress would effectively favor light crudes across the board, no matter where they came from and how much it would cost to produce them.
You can read more about the problem with this overly-simplistic approach to reducing emissions on the site Secure Our Fuels, which offers a scenario of how laws passed in Washington would affect the worldwide crude oil trade:
Saudi crude wins out over Canadian crude. Nigeria beats Colorado. And Libya wipes the floor with California. Just because North American crude happens to be deeper, denser and a little bit more remote than our competitors’ oil.
It might seem inconceivable that a well-intentioned policy could actually increase our dependence on foreign oil, but that is the risk you run with sweeping policies that fail to address the complexity of oil economics that we’ve hinted at above.
When it comes to achieving a balanced energy policy that is good for the environment, the economy and the country, good intentions aren’t enough. They may do more harm than good.
Tags: California, CEA, Consumer Energy Alliance, drilling, gas, heavy crude, light sweet, ocs, oil, Secure Our Fuels, viscous
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CEA Urges Senate to Adopt Commonsense Offshore Energy Exploration Provision
Tuesday, September 22nd, 2009
Amendment would streamline domestic energy development, help stabilize costs for American consumers
WASHINGTON – September 22, 2009 As the US Senate considers an appropriations measure setting aside funds for the US Department of the Interior, Sens. David Vitter (La.), Jim DeMint (S.C.) and John Barrasso (Wyo.) are working to include an amendment in the bill that would streamline and advance energy development along our nation’s outer continental shelf (OCS). Consumer Energy Alliance, which has played a leading role in generating over 150,000 of the more than 350,000 favorable public comments to Secretary Ken Salazar in support of expanded offshore energy production, has urged the Senate to adopt this commonsense provision that would increase domestic energy production, helping to drive down and stabilize prices for American consumers.
CEA president David Holt issued the following statement:
“Our energy security, the price American consumers pay at the pump, and the much-needed jobs and revenues created through environmentally-sound, 21st century offshore energy development must be addressed head-on. This commonsense amendment helps do that, and it deserves strong bipartisan support in the US Senate.
“This amendment, coupled with the overwhelming support that the American people delivered to the Interior Department for expanded offshore energy production yesterday as the 5-year comment period came to an end, should continue to send a strong message to the policymakers that decisive action is needed to help meet our growing energy needs, put Americans back to work, raise revenues for the local, state and federal governments and help get the US economy rolling again.”
CEA has participated in over 100 events over past three months focused on responsibly increasing American energy production, while ensuring environmental safeguards. Early indications suggest that favorable comments to the Interior Department handily surpass those in opposition to American energy production, which would be in line with virtually all public opinion polling.
Over the past several years, public comments to the Interior Department have overwhelmingly favored increased offshore energy production. During the 2006 period, 72 percent of comments received during four separate comment periods favored increased energy production offshore. In 2008, 53 percent backed domestic OCS energy exploration. And, early indications from yesterday’s close of the public comment period, favorable comments will once again lead groups who are opposed to sensible offshore development by a sizeable margin. American consumers once again voiced clear support for increased energy production.
Tags: amendment, American energy, Barrasso, CEA, Consumer Energy Alliance, David Holt, DeMint, domestic, drilling, energy, gas, ocs, offshore, oil, outercontinental shelf, Salazar, senate, US Department of the Interior, Vitter
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CEA Praises Bipartisan, Bicameral Congressional Efforts on Expanding Domestic Offshore Energy Production
Tuesday, September 22nd, 2009
WASHINGTON – September 21, 2009 Following a letter from nearly 100 House Republicans, led by Reps. Doc Hastings (R-WA), Rob Bishop (R-UT), and Tom Price (R-GA), urging Interior Secretary Ken Salazar to move forward with a 5-Year offshore energy production plan that would expand safe American energy exploration, Rep. Dan Boren (D-OK), along with 15 other House Democrats, wrote the secretary recommending that his agency open the outer continental shelf (OCS) for responsible offshore energy development. Today, a bipartisan group of senators, led by Sens. Kay Bailey Hutchison (R-TX) and Byron Dorgan (D-ND), penned a similar letter to Secretary Salazar.
David Holt, president of Consumer Energy Alliance (CEA), a non-profit, non-partisan organization that advocates an “all of the above” approach to securing, reliable energy, issued this statement:
“Thanks to many of CEA’s thousands of grassroots supporters and a clear majority of the American public, a year ago, the federal government made positive, and long overdue, steps toward balancing the nation’s long-term energy policy through lifting decade-old bans on safe and effective offshore energy production here at home.
“CEA praises the strong bipartisan, bicameral commitment from the congressmen and senators who have taken the concerns of their constituents about affordable energy and access to American resources directly to Secretary Salazar. The groundswell of support for increased domestic energy production continues to grow, and, as an organization, we’re grateful for the steadfastness on this issues that so many members of Congress and senators continue to demonstrate.
“As the Interior Department’s public comment period on the 5-year OCS plan came to a close today, we are hopeful and encouraged that these congressional letters, as well as the hundreds of thousands of supportive comments from every day Americans, will resonate with Secretary Salazar as he and his agency move forward in crafting a blueprint for our offshore energy production goals over the next several years.
“Thousands of good-paying jobs, stable energy prices for small businesses, working-families and retirees and less dependence on unstable regions of the world to fuel our economy will result from the developing domestic oil and gas, and renewable energy offshore. At the same time, we must focus on harnessing more wind, solar, coal, hydro, nuclear, biofuels and other alternatives and renewable energy forms, while using what we have more wisely, too.”
Tags: 5-Year, American energy, bipartisan, Bishop, CEA, Consumer Energy Alliance, David Holt, domestic energy, Dorgan, drilling, energy, Five Year Plan, gas, Hastings, house, Hutchison, Minerals Management Service, MMS, offshore, oil, republicans, Salazar
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CEA: More Than 325,000 Americans Tell Secretary Salazar to “Show Us the Energy”
Tuesday, September 22nd, 2009
Holt: “What we need now, and what these letters demand, is decisive action from this administration.”
WASHINGTON – September 22, 2009 More than 325,000 American people sent letters to Interior secretary Ken Salazar over the past six months urging his agency to expand responsible access to critical energy resources offshore, and Consumer Energy Alliance (CEA) helped deliver more than 150,000 of them. As the public comment period on Interior’s Draft Proposed five-year energy plan came to a close this week, CEA president David Holt issued the following statement:
“The unified voices of Americans concerned with rising, unstable and increasingly unaffordable energy costs cannot be ignored. Thanks to the hard work of so many CEA supporters – as well as other organizations committed to advancing policies that help put our nation on a path toward energy security and affordability – Secretary Salazar will have overwhelming public support on his side if his agency and the administration decide to move forward with a commonsense plan that allows the American people to access more of the energy resources they need, demand and rightfully own.
“While the closure of this comment period marks a very early step in what is designed to be a long, deliberative process, the volume and intensity of public response on whether responsible offshore energy exploration should be part of our energy future suggests the status quo energy policies of the past will no longer be an option in the future. What we need now, and what these letters demand, is decisive action from this administration – not an effort to pocket veto these critical offshore energy resources.
“As the process of developing a forward-looking, supply-oriented five-year plan continues to move forward, CEA will remain active in leading the charge for an ‘all of the above’ approach to securing our energy future – a future that includes renewable energy, conventional energy, and a renewed focus on conservation. CEA and its broad-based membership including transportation, agriculture, manufacturing, small business, chemistry, restaurants, retirees and energy providers will continue to provide a platform for the American people to make their views and voices heard in Washington.”
NOTE: Click HERE to view CEA’s official comment letter to MMS.
Tags: 5-Year plan, CEA, Consumer Energy Alliance, drilling, energy, Five Year Plan, gas, Minerals Management Service, MMS, offshore, oil, Salazar
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Chinese pollution in California, Sarah Palin’s solution to global warming, and other tough questions about climate change in the global village
Tuesday, July 7th, 2009
Solid scientific research is what lets us move beyond our own limited observations to take in the big picture. Likewise, it also provides a check on overly emotional reactions.
The environment is, for good reason, a very emotional topic, and we’ve written before here and here about all the coastal communities in the U.S. that are passionate about protecting their beaches.
But as climate change legislation imposing aggressive emissions reductions comes closer to becoming law, its becoming clearer that the U.S. has limited power to clean up what is, quite literally, a global village.
The Washington Post had this to say about the legislation:
Even if it works exactly as planned – delivering a 17 percent reduction in U.S. greenhouse gas emissions by 2020 compared with 2005 levels – it might not slow down the rate of climate change by very much. That is because emissions are a global problem: Greenhouse gases contribute to the Earth’s warming whether they are emitted in China or in Chevy Chase. Even if the United States meets the legislation’s goals for 2020, the world’s total emissions would be reduced by about 3 percent, according to Energy Department projections.
In other words, even as the U.S. contemplates drastic changes to clean up emissions within its borders, scientific research shows us that many other polluters around the world are polluting more and polluting a dirtier kind of pollution than what is found in the U.S. This is not a new argument and for a long time it was a rather abstract one, along the lines of the devil you don’t know being worse than the one you do. Then about three years ago, a toxic cloud from coal-burning power plants made its way across the Pacific and loomed over the skies of northern California. It was no longer an abstract threat … and it wasn’t a one-time event either.
Experts say that on some days close to a third of the air over Los Angeles and San Francisco can be traced directly to Asia, carrying up to three quarters of the black carbon particulate pollution on the West Coast.
Such details are stunning and sobering, even to scientific minds, and seem to provide some of the best arguments supporting global environmentalism over the variety that looks no further than the proverbial backyard.
CEA maintains that offshore drilling in the U.S. – in sites that are carefully selected and protected – could make sense for the economy and the environment. And Sarah Palin, the soon-to-be former governor of Alaska, offered a similar theory this spring.
During a hearing to consider renewed drilling on Alaska’s outer continental shelf, Palin argued that the relatively clean burning natural gas the region is expected to yield could replace dirtier fuels and slow the discharge of greenhouse gases into the environment.
It’s certainly fuel for thought.
Tags: Chinese, climate change, drilling, emissions, environment, global warming, greenhouse gas, pollution, Sarah Palin
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Greenhouse gas emissions and offshore drilling: strange bedfellows or practical politics?
Monday, June 15th, 2009
Could new limits on greenhouse gas emission help to finally loosen up restrictions on offshore drilling?
Seems possible, according to some analyses of how climate change legislation will make it through Congress.
As lawmakers seek broad support for proposals to reduce greenhouse gas emissions 17% by 2020 and 83% by 2050, there’s been a lot of speculation on how so many different constituencies representing the oil sector, farmers, manufacturers and conservationists might be brought on board. This report says one likely scenario would be an agreement for new offshore drilling projects in exchange for reduced emissions:
“That could give some Democrats enough political cover to support the climate bill as their worries about higher energy prices related to the climate bill could be eased by prospects of more domestic oil production,” it suggests.
In reality, swapping reduced emissions for increased domestic oil production is not so strange. Everyone knows that the emissions produced from consuming petroleum are pretty much the same whether the oil comes from Saudi Arabia or the Gulf of Mexico. Blaming domestic drilling for air pollution doesn’t make sense. If it ever seemed feasible that reducing domestic oil production would reduce domestic consumption, that theory has been put to rest by decades of growing dependence on foreign oil. What does make a lot of sense is a strategy for controlling the cost of our oil, particularly today as we embark on potentially costly efforts to develop alternative sources of power.
There are lots of ways to reduce greenhouse gas emissions, from incorporating energy efficient technologies into our buildings, to creating more fuel efficient cars and taking other steps to reduce consumption. But to draw a line in the sand, imposing a “not in my backyard” policy around all the waters off the U.S. is the most ineffective sort of politics, mistaking political correctness for effective policy.
So how did we get to this place of more rational, less kneejerk policymaking?
A recent Houston Chronicle story on the pending climate change legislation describes a process of “manhandling a bill through the congressional sausage machine.” It’s quite a vivid image for explaining a process that is basically just compromise. And when the challenge is daunting, as it is with a proposed 83% reduction in emissions in four short decades, everyone has to be willing to compromise a lot. That can open the door to new – and improved — ways of doing business.
Tags: congress, drilling, emissions, gas, greenhouse gas, Gulf of Mexico, ocs, offshore drilling, oil, Saudi Arabia
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When the economy cools, debate over domestic drilling heats up
Monday, June 1st, 2009
California, with its vast oil reserves on the one hand and its extensive and scenic coastline on the other, has long been ground zero for the crusade against domestic drilling. Overnight, it seems to have become the site for some of the most levelheaded debating on the topic.
The San Francisco Chronicle recently published “Americans want it both ways,” in which Victor Davis Hanson, a historian at Stanford University’s Hoover Institution, highlighted the faulty logic of a community that wants to consume oil but does not want to produce it.
It is, of course, a very clear contradiction that should not even have to be spelled out in a serious editorial. The fact that many of our debates about energy policy seem to skip this basic reality underscores how the benefits of domestic drilling are like the proverbial pink elephant in a room, that everyone sees but no one acknowledges.
Hanson argues that the “not in my backyard” philosophy is not just narrow-minded but could be harmful. After all, where are people more likely to be able to ensure that the oil they consume is developed with respect for the environment: in their backyards or in some distant country that has barely a shadow of the conservation movement here at home?
“If we exploit our own energy carefully offshore and in Alaska, it will mean less sloppy foreign drilling off places like Nigeria or in the fragile Russian tundra to feed American cars and trucks,” writes Hanson. He also mentions all the jobs and money that could be saved if the U.S. produced more oil and imported less.
Anyone who has been following California state politics knows that Hanson’s remarks were prescient. Governor Arnold Schwarzenegger, seeking ways to close the state’s gaping budget deficit, is seeking to open California waters to new oil drilling projects for the first time in 40 years.
The proposal was immediately met with much resistance, but the opposition was not across the board. Many groups, including some local environmental groups in Santa Barbara, near the site of the proposed new project, expressed a willingness to negotiate.
It’s not entirely clear if Schwarzenegger’s proposal represents the best way to expand offshore drilling in California. What is highly encouraging is that the nature of the dialogue is more open and honest than we’ve seen in years. It focuses not just on the alternative sources of power we need to develop for the future, but on the conventional power that is absolutely essential today. And that sort of honestly that addresses our needs as well as our dreams is, in the long run, the best way to come up with real solutions for protecting our environment, along the California coast, and all around the world.
Tags: CEA Energy Grass Roots, consumer energy alliance grass roots, consumer energy alliance grassroots, domestic energy, drilling, energy supply, gasoline, natural gas, offshore, oil, the Consumer Energy Alliance, the Consumer Energy Alliance grassroots, U.S. wealth of energy resources
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