Consumer Energy Alliance

Consumer Energy Alliance (CEA) is a nonprofit, nonpartisan organization created to help expand the dialogue between the energy and consuming sectors to improve understanding of energy security, more effectively develop and use both renewable and oil & gas energy resources in an environmentally conscious manner, create sound energy policy and maintain stable energy prices for consumers.

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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.

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What do toys from China have to do with oil imported from the Middle East?

Thursday, October 22nd, 2009

China map banner

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.

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Don’t wait! Your help is needed on a new campaign!

Friday, October 9th, 2009

Balance Offshore Ocean Resources

The battle to achieve a balanced energy policy for the U.S. recently got a lot more complicated. Thus far, much of the debate over where we can drill for oil has focused on the country’s coastal waters. But in light of a June 12 memorandum from President Obama establishing an Ocean Policy Task Force, it appears that all the world’s waters will come under closer scrutiny.

In a letter explaining the formation of this new task force, President Obama says we have a stewardship responsibility to maintain healthy oceans, coasts and Great Lakes, and to protect them from the environmental challenges they face.

CEA, of course, supports this goal of developing policies that help the world’s oceans thrive. But we are concerned by the urgency with which the task force was instructed to, essentially, fix all the ills of the world’s oceans – especially considering this matter is barely on the public’s radar screen.

Recently this new task force produced its first interim report, proposing policies that could significantly impact all sorts of activity, including oil exploration and production and possibly bar them.

Now, this new Ocean Policy Task Force is weighing a multitude of issues, not just oil, and certainly not just offshore drilling. But with serious talk so early in this process of setting up a governance system with little to no input from commercial industry, there is a big danger the American energy industry could emerge as one of the big losers of any new ocean policies. This system of ocean governance the task force has drafted could, in fact, limit the country’s ability to develop its own offshore energy, including oil, natural gas, and renewable energy.

Recently, CEA successfully organized a massive letter writing campaign in support of responsible drilling in our coastal waters. Today, we’re asking all our members and supporters once again to start writing. The public comment period on the recommendations outlined in the task force’s interim report closes on October 17.

Like we said earlier, topics such as ocean governance and ocean ecology are as vast as the ocean itself. Likewise, the formation of a system that will enable our oceans, our people and our industries to all thrive is a lot more complicated than we can cover in this post. Check this blog for future updates and details on the Ocean Policy Task Force’s proposals, and all the different groups of people and business who might be impacted.

Our parting message for the moment, though, is Don’t Wait. Make sure your voice is heard now. A draft letter to the U.S. Council on Environmental Quality is available on our web site, along with the mailing address and other contact information. You can also submit your comments and concerns electronically here.

Remind our policy makers about all the ways that a robust domestic energy industry supports the country. And remember that your voices are heard.

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A sweet deal for foreign oil importers

Thursday, October 1st, 2009

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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.

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Silent majorities and dressing for success

Thursday, September 24th, 2009

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You might have seen some news coverage lately about protesters dressed in cute salmon costumes and even cuter polar bear costumes, who delivered with much ceremony, bags of letters to the Interior Department in Washington D.C. that argued against new offshore drilling in the U.S. By the protesters’ own count, 250,000 letters, postcards, and whatnot were delivered.

There was another story that went largely unreported: The Interior Department received an even larger number of letters supporting responsible exploration and production. For the record, more than 360,000 Americans have sent letters of the pro-responsible drilling variety to Interior Secretary Ken Salazar over the past six months. To date, these letters account for more than 60 percent of the comments received by Interior.

That’s a significant margin, and all the more so when you consider the nature of the debate. Let’s face it: In the court of public opinion, oil often faces an uphill battle. It’s easy to call yourself an environmentalist and jump on an anti-oil bandwagon without really knowing all the facts. It can take more time and work to consider the country’s significant energy needs and develop an informed stance on how we meet them.

So first of all, Thank You! For months, CEA has been working on this blog and elsewhere to organize support for responsible offshore drilling. The matter has been in legal limbo since earlier this year, when lawmakers enacted a series of barriers that effectively reversed President Bush’s move to lift an 18-year ban on offshore drilling on most of the country’s outer continental shelf.

In recent months, supporters of producing oil domestically and reducing the country’s dependence on foreign oil have won a few battles, but a larger war on this matter wages. CEA is heartened by the volume of letters sent in support of our position. It underscores not just that there is a silent majority out there, but that a lot of people care deeply about energy independence.

So then, why is it that majority is so often a silent one to the media? Because polar bears do have a lot of appeal. No matter if polar bears are not really at the core of this debate. No matter if they were just polar bear costumes. No matter if those protesters enjoying an early Halloween drove all the way to Washington in cars that run on oil. They play well on TV.

You can entertain ways that our side might dress for comparable success, or comparable media attention, but we haven’t come up with anything really catchy yet. Perhaps this is because the image of responsible oil production and energy independence is really just the image of everyday people going about their business with a little more ease and a little less strain. It’s the image of the family that is not forced to cut back on food to pay for heating oil, of the worker who doesn’t pay excessive amounts of his paycheck on his commute, of the trucker who isn’t taken into the red by filling up at the pump.

If any readers out there can think of an image that might overshadow the salmon costume in Washington, please let us know. Until then, we hope you’ll continue the quiet battle for the attention of our lawmakers. Know that your voices are being heard, even if your attire goes unnoticed.

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Saving energy in mid-air

Wednesday, September 23rd, 2009

Offshore Resources Near Term Opp Banner

The term “as the crow flies” is often used to explain why the actual distance between two spots is shorter than the driving distance. You might think that, unlike cars, airplanes do fly in the same way crows fly, taking the most direct route between Point A and Point B, but it turns out that they don’t. Outdated air traffic control technology doing its best to maintain order in crowded skies means that planes take quite circuitous routes, particularly during takeoff and landing, resulting in widespread delays, noise pollution and greater fuel emissions.

Now that you know this problem exists (it can be hard to follow the path you’re taking through cloud cover), know that a solution is on the way. The federal government has committed $865 million toward a Next Generation Air Transportation System and different companies are developing advanced GPS technologies that would make flight navigation a lot more efficient.

Most commercial planes today must be taken through a complex, sort of stair step landing process, in which they reduce their altitude in stages: slowing down and descending a bit and then accelerating again to maintain the new altitude before air traffic control guides them through another “step” down. That’s what pilots are describing when they say they are beginning their “initial descent.” Passengers may notice this choppy slow down/speed up cycle that begins long before touchdown. It’s a time-consuming and fuel-consuming system and when the air space is really congested, planes are often directed significantly off course as they line up for their turn at this elaborate descent to the runway.

New technology made by the Kent, Washington-based Naverus, and by a subsidiary of Boeing would help flights take more direct paths by using a satellite-guided descent that smoothly takes them from cruising altitude down to the ground with a precision that air traffic control rarely achieves.

This simulated video of a flight across America offers some sense of how so-called direct flights are repeatedly subject to a change of course, but really does not capture all the waste in time and fuel that may result. A recent story on some of the new technology now being tested at Seattle-Tacoma International Airport explains in more detail how flights are often taken significantly off course.

Alaska Airlines, which is already testing the new “Optimized Profile Descent” technology, estimates that it could save 2.1 million gallons of fuel per year, just on flights approaching Seattle from the west.

Factor in more airports using this technology on multiple flight paths, and the savings multiply. Thanks to both the government’s commitment and to some entrepreneurs’ ingenuity, the savings could be right on the horizon.

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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.

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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.”

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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.

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Back to school … wear comfortable shoes

Wednesday, September 16th, 2009

schoolbus banner

CEA has in the past highlighted the problem volatile fuel prices pose to people on fixed incomes, but what about those on declining incomes?

What about schools?

With cash-strapped schools around the country being forced to eliminate physical education and arts programs and cut down to the bone in core academic fields, it was only a matter of time until they turned the knife on their transportation budgets. This Michigan school is one of many around the country that is cutting back school bus service to save money. Under the new system in the Michigan town of Portage, children as young as five who do not have parents available to drive them to school and/or pick them up at the end of the day, will have to walk up to a mile to and from school. School bus transportation, in fact, is at its lowest level in more than a decade, largely because more and more school districts are looking to save money on fuel.

Now, it’s easy to dismiss this matter of school bus transportation as one of the lesser problems faced by schools which are also struggling to pay teachers decent salaries and stock basic supplies. There’s probably even a joke to be made about students getting their exercise on the way to school, now that there may no longer be physical education in school. And wasn’t trudging to school five miles in the snow at one time considered a right of passage in this country?

In all seriousness, this growing lack of transportation to school, at a time of many two-income households where neither parent is available to drive, poses a real problem for many families.

More to the point, the costs of fueling school buses is often just the tip of the iceberg for school districts that also, of course, have to heat their buildings all winter long. This 2008 story about the double-digit increases in heating costs many schools faced pointed out that budgets were so tight that 30% of schools around the country were eliminating or modifying teaching positions. And that was last year, before the worst of the recession hit.

At a time of such drastic cuts in education budgets, you have to wonder how high and unpredictable fuel prices are making a tough situation even worse.

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CEA Praises House Panel’s Efforts to Address Offshore Energy Production as Part of Balanced Strategy

Thursday, September 10th, 2009

WASHINGTON – September 9, 2009   Earlier today, the U.S. House Natural Resources panel with primary jurisdiction over federal offshore energy policy met to discuss pending bipartisan legislation that aims to increase domestic offshore energy exploration and production. 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:

“Today’s hearing focusing on strong bipartisan legislation that aims to ease decades-old restrictions on American energy production offshore was particularly timely. In less than two weeks, the Interior Department’s public comment period regarding the upcoming 5-year outer continental shelf (OCS) plan will close, and the fate of domestic energy production for the next several years, and possibly well beyond that, will in part be determined.

“American consumers are facing difficult economic times right now – and many are being forced to make choices that no one should have to make. At minimum, they should be able to depend on their government for access to the energy resources they own – energy that, if harnessed, could create millions of new jobs, billions in local revenue, and the prospect of long-term energy affordability.

“Of course, offshore energy development is only one leg of our energy policy stool – but it’s an important one if we have any expectation of making our way back to prosperity. Along with it, we must work to increase the availability of energy in all forms – wind, solar, oil, natural gas, biofuels, nuclear – and use what we have more wisely at the same time.

“The dialogue during today’s hearing generally echoed this approach. CEA is optimistic that Secretary Salazar takes today’s hearing into mind, as well as the overwhelming support of the American people for increased offshore energy production, as his department prepares to release its new 5-year plan.”

For more information, visit www.consumerenergyalliance.org.

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And now, a common sense tip on saving energy

Thursday, August 13th, 2009

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The challenge of helping the world consume fuel more efficiently is a highly complex business that owes a lot to cutting edge science and technology. But when U.S. Energy Secretary Steven Chu appeared on Comedy Central recently, he offered some decidedly low-tech advice: Make it White.

White, as in white roof, that is. Chu reminded his modern audience of a basic fact that dwellers of warm climates have understood for centuries: when you paint a roof, or even an entire house white, it absorbs less heat. Way back when, that simply meant that everyone was a little bit more comfortable. Today, it means less air conditioning, lower electricity bills and reduced emissions. By Chu’s own account, if the world could somehow manage to turn all its roofs white within 20 years, it would save about 24 billion metric tons of carbon dioxide emissions – the same amount the entire world emitted last year. “So, in a sense, it’s like turning off the world for a year.” It’s a rhetorical argument of course, but it does show that little changes can add up.

The New York Times cites studies showing that in hot, sunny climates, white roofs reduce air-conditioning costs by at least 20%. They are not much more expensive than standard darker roofs and the investment can pay for itself quickly.

One disclaimer: People who live in places that have cold winters should probably keep dark roofs, which during cold, sunny days help keep homes warmer and reduce heating costs. But if you hail from a place like Arizona or Florida or southern California, take Chu’s advice and go light. Saving energy doesn’t always have to be so complicated.

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CEA August 2009 Newsletter

Wednesday, August 5th, 2009

CEA Newsletter
Issue 29

Message from CEA President David Holt

Last month marked the first anniversary of the withdrawal from the 18-year old presidential moratorium on domestic offshore energy production by President Bush. Though the lifting of the offshore oil & gas drilling ban was a momentous decision, we are still no closer to accessing our vital offshore energy reserves than we were last July. We must continue to work toward a national energy policy that fully leverages America’s abundant offshore energy resources into new jobs, revenue and security for American energy consumers.

As we have often said before – while expanding the use of alternative energy through greater development of wind, solar, nuclear and other energy sources is the ultimate goal, we need to ensure that access to our abundant oil and natural gas resources is achieved as we continue to build that bridge to the future. Further, we have to guarantee that these energy resources are secure and affordable if we have any hope of seeing the national economy rebound.

By curbing our demand, increasing our supplies, especially from conventional energy resources along our coasts, we can reduce our dependence on foreign and unstable regions of the world to keep our economy moving. American families and small businesses deserve policies from the federal government that will actually deliver affordable, efficient and reliable energy. Opening up our offshore areas for responsible energy development is a step in that direction, and Consumer Energy Alliance is proud to tell our federal government that we support offshore oil & gas drilling, as well as offshore alternative energy development.

Please join our efforts and tell the Administration that you support sensible energy production off of our coasts too (click here to send in a letter).

David Holt
President

Support U.S. Offshore Oil & Gas Development!
A significant domestic supply of energy can be safely and efficiently found right here off of America’s shores. The federal government currently administers the considerable energy resources contained in our offshore waters and wants to hear from you about offshore oil & gas and alternative energy development.

Opposition to offshore energy development is mounting. We need you to let Washington know you support reasonable access to America’s offshore energy resources. Send in your comments today!

Support Development of Alaska’s Offshore Oil & Gas Resources!
At a time when the American public is crying out for more domestic energy, Alaska has enormous untapped oil and gas potential, especially in its offshore areas. The waters off Alaska’s coasts hold about 27 billion barrels of oil and 132 trillion cubic feet of natural gas, estimates the federal government.

To begin producing energy from these resource basins, the federal government must take action. Join us in our effort as we build public support for offshore minerals exploration and development in Alaska. Send in your comments today!

CEA Blog: Good for the economy, good for the environment (and not a bad deal for consumers, either)
Check out CEA’s recent blog entry about the government’s cash for clunkers program. Join the conversation at CEA’s website. Read blog…

Consumer Corner: Standby Power
Did you know that many electrical products use energy when plugged in, even if turned off? As you read this, many of your own household appliances and conveniences are using “standby power” – the term for using energy when plugged in, yet not in use.

Standby Power is costly to consumers – about 10 percent of household electricity use is due to standby-powered electronics. At any time, the average home in the United States has 40 products constantly using power without the homeowner realizing it.

To save on home electricity bills and reduce wasteful standby power use, try these tips from the Lawrence Berkeley National Laboratory:

Unplug devices that aren’t being used
Use power strips to cut power to groups of electronics at one time
Purchase low-use standby products

Using tips such as these – and more found here – may save you up to 30 percent of the wasted energy being used in your home.

CEA being honored by Bering Omega Community Services
Consumer Energy Alliance is proud to act as the honorary chair for Bering Omega Community Services’ 15th annual SING FOR HOPE on September 19, 2009. The event will feature an intimate evening of classic opera arias and popular showstoppers from favorite musicals.

Proceeds raised by the event will help support Bering Omega’s efforts to provide compassionate healthcare and social services to people living with HIV/AIDS.

If you would like more information on Bering Omega and will be in the Houston area on September 19th, please visit Bering Omega’s website at www.beringomega.org.

Experts: Global Oil “Crunch” Possible Within Next Five Years
Chief Economist of the International Energy Agency Fatih Birol warned Monday that oil fields throughout the world have passed peak production and that an oil “crunch” could develop during upcoming years. Read article…

Asia Sets its Sights on Solar Power

India and China are pursuing aggressive plans to step up their solar energy programs. Read article…

Affiliate Spotlight: American Public Gas Association
Representing publicly- and community-owned gas utilities, the American Public Gas Association (APGA) has more than 700 members throughout 36 states.

“We advocate on issues that impact our members and the communities they serve. We also work across the nation to educate our members on best safety practices, legislative issues, effective business and operational strategies and host conferences promoting the benefits of natural gas as a responsible and efficient energy source,” says President and CEO Bert Kalisch.

APGA’s vision is to be the voice and choice of public gas. In conjunction, the non-profit’s mission is to be an advocate for publicly-owned natural gas systems and effectively educate and communicate with members to promote safety, awareness, performance and competitiveness.

“As an advocate for public natural gas systems we work on behalf of our members to fight for the issues that affect their businesses and customers. From, transparency issues to supply issues, from the affordability of natural gas to promoting its environmental benefits – energy affects all of us,” Kalisch maintains.

One energy issue that is currently top priority to APGA, according to Kalisch, is promoting immediate use and responsible development of renewable and clean burning fossil fuels such as natural gas.

“We have a plentiful supply of natural gas available in the U.S and it is our hope that future energy plans include this clean, responsible and comfortable choice of fuel.”

APGA’s number one goal is to bring natural gas prices back to a long-term affordable level, Kalisch emphasizes.

“Increasing supply is a critical component of the solution to obtaining this goal. The primary reason we have suffered the price increases we have experienced is a natural gas supply/demand imbalance, supply has not been able or allowed to keep pace with demand.”

The imbalance, in large part, is due to federal policies which restrict exploration and production of natural gas.

“This restriction is ironic in light of other federal policies which favor gas use because of its clean-burning properties,” Kalisch maintains, adding that APGA is extremely concerned that congressional efforts to enact climate change legislation will further exacerbate the demand/supply balance.

“Under climate change legislation, natural gas will most likely become the ‘fuel of choice’ for electricity generation and this will further drive up price unless there are equivalent increases in supply.”

As a member of Consumer Energy Alliance, APGA recognizes the need for a strong U.S. energy policy and responsible development of domestic energy.

“We believe in the power of strength in numbers. That belief is the heart of our association and we believe that being a part of a group like the CEA just strengthens our likeminded messages,” Kalisch notes. “All of the affiliates in CEA may not have identical agendas or platforms, but we all understand the country’s incredible need for a comprehensive energy solution. Together as a group we can work together to move our collective agendas forward and finally see a U.S. energy policy that works for America, its citizens, energy producers and our planet.”

For more information on the American Public Gas Association, visit www.apga.org.

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CEA Applauds New Bill Enlisting New States in Fight for Secure, Affordable Energy

Monday, July 27th, 2009

CEA president says revenue-sharing bill will give states ‘both the authority and the incentive’ to explore for energy off their shores

HOUSTON – July 27, 2009   All of the nation’s 23 coastal states would receive the same percentage of offshore energy revenue currently enjoyed by Louisiana, Mississippi, Texas and Alabama if legislation introduced today in the Senate were to become law. Under current law, Gulf Coast states are entitled to 37.5 percent of the energy royalties produced offshore. States that produce energy on federal onshore lands currently benefit from a 50-50 revenue split with the federal government.

The bill, authored by U.S. Sens. Lisa Murkowski (R-Alaska) and Mary Landrieu (D-La.), would end the current revenue-sharing legal inequity while encouraging new states to help advance key national goals related to energy security, accessibility and affordability.

Consumer Energy Alliance (CEA) president David Holt issued the following statement today applauding the legislation:

“While energy-producing states have always been among the national leaders in job creation, economic development and energy affordability, it’s not unreasonable for them to expect equal treatment with states that generate billions in annual revenues from onshore and offshore production royalties. This bill would end the current inequity, and in the process help deliver a future in which more states are given both the authority and the incentive to produce homegrown energy resources for themselves, their future, and the security and well-being of the American people.”

Added Holt: “CEA has long supported the equitable distribution of these energy-related royalties, and we stand ready and eager to work with Sens. Murkowski and Landrieu to help folks understand why this change in policy is so critical to America’s consumers and producers of energy.”

NOTE: Also today, the Southeast Energy Alliance, the southeastern chapter of CEA, formally released the findings of a recent study on the economic impact that responsible offshore energy development could have on the state of North Carolina. Among its key findings, the report found that offshore oil and gas exploration could create more than 6,700 new jobs in the state, increase North Carolina’s GDP by $659 million a year, and generate approximately $148 billion in federal, state and local revenues. A copy of the report can be found here.

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Report: Offshore Energy Development Could Create 6,700 Jobs and Bring North Carolina up to $577 Million Annually

Monday, July 27th, 2009

As state struggles to meet massive budget shortfall, report confirms huge amounts of revenue exist safely offshore

Raleigh, N.C. – July 27, 2009   North Carolina could receive up to $577 million annually in revenue sharing payments from offshore energy development, according to a report to be released today by the Southeast Energy Alliance (SEA).

The report, which will be distributed prior to a panel discussion on North Carolina’s available offshore energy resources and the potential for federal revenue sharing, discusses job creation, economic growth and revenues that could come to the state if it chooses to participate in offshore energy development along the Outer Continental Shelf (OCS) and if Congress extends a royalty revenue sharing program to the state. Monies received from potential revenue sharing could ease future budget gaps, helping to fund critical health care needs, infrastructure and educational projects, such as roads, bridges and new schools, while maintaining North Carolina’s pristine beaches. These funds could also ease the state tax burden for North Carolinians.

Currently, Alabama, Louisiana, Mississippi and Texas receive 37.5 percent of the revenues collected by the federal government for offshore energy production. Onshore states, such as Colorado, Montana, New Mexico, Utah and Wyoming, receive 50 percent of the royalties collected for energy development on federal lands. If the Gulf Coast revenue sharing program was extended to North Carolina, exploration and production off the state’s coast could generate up to $577 million annually to the state budget.

The panel discussion will be hosted by the North Carolina Farm Bureau, the North Carolina Chamber and SEA. In addition to the host organizations, other panelists will include representatives from the North Carolina Petroleum Council, North Carolina Manufacturers and Chemical Industry Council, North Carolina Utility Contractors Association, Piedmont Natural Gas and the National Ocean Industries Association. Participants will discuss the state’s pivotal role in developing a new federal OCS exploration and production program-determining whether the program will include areas in North Carolina’s adjacent waters-as well as how the revenues generated from participation in the program could be used to strengthen North Carolina’s economy and create jobs.

“This report highlights a tremendous opportunity to boost North Carolina’s economy,” said Michael Whatley, executive director of the Southeast Energy Alliance, and a panelist at the discussion. “In addition to creating thousands of high-paying jobs and providing substantial benefits to the state’s economy, offshore exploration and production will generate significant revenues for state and local governments.”

The report also indicates that OCS energy exploration and production in North Carolina would:

Bill Weatherspoon, executive director of the North Carolina Petroleum Council, who is also a panelist, said, “not only does offshore energy development create much needed direct and indirect jobs, we now know that royalty payments from a potential revenue sharing program would bring in millions to help fund schools and other state initiatives.”

“Nearly 7 out of 10 North Carolinians support the search for needed energy supplies; this is the time for our leaders to listen to the strong majority that support offshore exploration,” added Weatherspoon.

According to the report, the Minerals Management Service (MMS) maps and OCS assessments show that North Carolina’s adjacent waters, which comprise approximately 23 percent of the total Atlantic resource base, are projected to contain as much as 1.74 billion barrels of oil and 15.29 trillion cubic feet of natural gas. However, because of current federal law, seismographic inventory has not been conducted in years.

NOTE: To view the executive summary, click HERE. To view the full report, click HERE.

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CEA Applauds California’s Efforts to Expand American Energy Production, Reduce Consumer Cost

Wednesday, July 22nd, 2009

State budget deal expanding domestic energy access comes on the heels of one-year anniversary of presidential offshore ban lifting

WASHINGTON – July 22, 2009 The California state government has reached a budget deal to meet their state’s $26 billion financial shortfall, which includes expanded domestic energy exploration off Santa Barbara’s resource-rich coast. As the budget deal continues to be negotiated, David Holt, president of the Consumer Energy Alliance (CEA), a non-profit energy consumer advocacy group that supports fully leveraging America’s abundant offshore energy resources into new jobs, revenue and security for American energy consumers, issued the following statement:

“California’s leaders in Sacramento are making positive steps toward reducing the price at the pump for working families and small businesses in their state. With nearly 12 percent of their state’s residents unemployed, efforts to expand offshore energy production, while protecting the environment, will also help thousands get back to work, while generating much-needed government revenues to keep the schools and police forces operating at the same time.

“With today’s advanced, 21st century technologies, offshore energy exploration is safer and more reliable than ever. And while this is a positive step toward delivering affordable and reliable energy to American consumers, we must continue to invest in wind, solar, biomass, nuclear, coal and other sources of domestic energy. Importantly, we look forward to working with Secretary Salazar and others in the Obama Administration to craft a 5-year offshore plan that will thoughtfully open our Outer Continental Shelf, especially Alaska’s energy-rich seas, for exploration. American jobs, our energy security and place in the global market will depend on it.”

Read More:

Schwarzenegger also succeeded in having a proposal to expand oil drilling off the Southern California coast included in the budget agreement. Under that plan, drilling would be allowed from an existing rig off the Santa Barbara coast, generating about $1.8 billion in revenue over time. The proposal, opposed by many conservation groups, would be the state’s first new offshore oil project in more than 40 years.

As investor Gregor Macdonald recently blogged, “The mother lode of untapped capital remains in California’s offshore reserves of oil and gas. Speaking very generally, if California were able to quadruple offshore daily oil and gas production … starting in 2012 – that would represent gross oil sales of nearly $15 billion a year.” Bargain for royalties of 20 percent or more, and you fund a lot of teachers and parks.

Assemblyman Chuck DeVore, R-Irvine, had been pushing for legislation to approve slant-drilling before this year’s budget battle. “I can see rigs from my district,” DeVore noted – and the hotels by the beach are booked. What is more, local oil means good jobs for Californians, less opportunity for transportation spills and fewer American dollars sent to oil-rich countries with competing national interests.

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One year later, a nation still waits for home-grown oil

Tuesday, July 14th, 2009

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July 14, 2008 should have been an historic day. One year ago today, President Bush lifted an 18-year-old ban on offshore drilling in most of the country’s outer continental shelf (OCS). It was a milestone in the country’s longstanding desire to break its addiction to foreign oil by allowing more responsible production at home.
But today, July 14, 2009, not only is there no new drilling activity, but there are troubling signs that our country is moving in the opposite direction, restricting more land and offshore sites than ever before.

A couple of things have happened in the weeks and months since the OCS ban was lifted. First, a severe economic downturn resulted in the highest unemployment in a generation, diminished corporate profits, and widespread failures of small businesses that could no longer make ends meet. And then, at a time when everyone desperately needed a collective break just to get by, lawmakers put up a series of new barriers destined to put the country right back on the old, unsustainable path of buying increasing volumes of fuel from overseas.

This past February, Interior secretary Ken Salazar rescinded 77 leases that had already been awarded on energy-rich land in Utah and shut down an oil shale leasing program that had been focused on cleaner, more efficient ways to tap vast U.S. shale reserves.

A policy of restricting so much domestic oil production was never logical, but in the current environment it is downright foolhardy. The government is pumping hundreds of billions of stimulus dollars into the economy, but cutting off one of our most pervasive industries.

Today, House Ranking Member Doc Hastings along with former Speaker of the House Newt Gingrich and Tom Pyle, who heads the Institute for Energy Research will hold a press conference on Capitol Hill to call attention to this lack of progress over the past year.

The event begins at 11 a.m. For more information about this important event, contact Congressman Hastings’ office at (202) 226-2311.

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Call to action: CEA needs your help in securing greater supplies of offshore oil & gas!

Friday, July 10th, 2009

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The country’s extreme dependence on foreign fuel is all the more stunning when you consider the abundance of untapped oil and natural gas that lies within our borders and below our coastal waters.

The federal government estimates conservatively that there are 288 trillion cubic feet of natural gas and 52 billion barrels of oil in the Outer Continental Shelf (OCS). If those kinds of numbers make you glaze over, here’s a better visual: The estimated reserves would provide enough gasoline for 132 million cars and heating oil for 54 million homes for 15 years along with enough natural gas to heat 72 million homes for 60 years.

Alternatively, it could supply current industrial and commercial needs for 28 years, or all of the country’s electricity generating needs for 53 years. That’s a lot of fuel that wouldn’t have to be shipped here from somewhere else.

And none of that includes Alaska. The federal government estimates that the waters off Alaska hold about 27 billion barrels of oil and 132 trillion cubic feet of natural gas.

This is oil and gas the country badly needs. Even under the most aggressive projections for the development of alternative energy sources, U.S. demand for oil and natural gas is expected to continue to grow for at least 20 years.

The process of selling offshore leases is a complex matter with a complex history that is outlined in more detail on our home page. The key point to remember, however, is that this is a critical time for determining the country’s energy development policy for years to come, and potentially reversing a moratorium on new offshore leasing that has been in place since 1983.

CEA’s members understand that a strong and steady supply of domestic oil will not only help reduce oil price volatility; it will support jobs and all the multiple industries that run on oil, while providing relief to families and small businesses. Now we need your help in making sure that message is heard loud and clear.

The Call to Action on our Web site outlines why more oil friendly policies are critical to our economy, and explains how you can help by writing to the Obama administration. Feel free to use the attached text, or to write in your own words about what greater domestic energy production would mean to you, your business and your community.

And please write soon. The public comments period closes in September.

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Offshore drilling and pristine beaches: No reason you can’t have both

Wednesday, June 24th, 2009

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Anyone unsure about how much oil drilling technology has improved in recent years need look no further than Santa Barbara, Calif.*

Environmental and oil interests in Santa Barbara aren’t always aligned, and yet day to day, they coexist extremely well. That is to say, that on just about any given day in Santa Barbara, you’ll find surfers riding waves, families playing in the sand, sunbathers basking in a climate so perfect it’s commonly called American Riviera … and off in the horizon, a series of oil platforms.

For first time visitors, these rigs are something of a curiosity, but soon enough they become part of the scenery. Far from the beach, there may be heated debates over whether those rigs should be there at all, but on the beach, no one seems bothered.

It’s important to keep Santa Barbara in mind now as many states around the country, including some popular tourist destinations like Florida, consider new offshore drilling projects as a way to breathe life into their economies.

Earlier this month, the Senate Energy and Natural Resource Committee approved expanded oil and gas drilling in the eastern Gulf of Mexico, a region near the coast of Florida which lawmakers had previously deemed an oil-free zone. It was a breakthrough in efforts to adopt a more reasonable offshore drilling policy that would protect the environment and the tourism industry, while stimulating the economy. And while certain groups are, as expected, strongly opposed to any loosening of restrictions in the eastern Gulf, Florida’s tourism industry was not one of them.

Florida’s beaches are a main destination for tourists from around the country and the world, so it’s reasonable to assume the state’s tourism sector would come down on the anti-drilling side, if for no other reason than a desire not to preserve the status quo.

Last year, however, the tourism industry in Florida realized that preventing change in its own backyard would not prevent change from coming.

That change careened into Florida last summer in the form of crippling oil prices that put the brakes on a lot of tourism. Suddenly, a few oil platforms on the horizon didn’t seem like the worst thing that could happen. Not even close, actually.

In a landmark meeting, the state’s tourism executives hosted a summit to consider whether beaches and oil rigs could successfully coexist and the state’s advertising tourism arm, Visit Florida, reversed a longstanding opposition to offshore drilling. Governor Charlie Crist noted that while Florida was obliged to protect its beautiful beaches, it also had to support policies that would enable people to travel to the state.

One year later, the debate is still raging. But the fact that there’s a debate at all — in a state whose beaches attract millions of tourists — is progress.

The oil industry, of course, understands that tourism on the coast and industry offshore can work well together, particularly given its steadily increased focus on cleaner drilling technologies. After years of trying to get the word out about these improvements, people are starting to listen.

*In 1969, there was a devastating spill off the coast of Santa Barbara, and while the oil that washed up on shore is long gone, the memories and the fears still linger. It’s hard to make a strong argument for the merits of offshore drilling without acknowledging that accident. That spill forty years ago set in motion a wave of environmental activism, as well as a drive within the oil industry to develop better, safer drilling practices and operate with heightened sensitivity to its surroundings.

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Thinking outside of the (heated) box

Wednesday, June 17th, 2009

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If you’re reading this from the comfort of a cool, air conditioned office, here’s something to think about:

Many of us winterize our homes, but how often do we “summer-ize” them? Our collective failure to do so could be a major missed opportunity to conserve energy.

The New York Times recently reported on new efforts by the government to invest on insulation that will reduce the need for air conditioning during the hot summer months. The investment is part of some $5 billion in federal stimulus funds being devoted to weatherization, a term commonly associated with sealing windows and drafty doors in the dead of winter. But this year, about 31% of the total amount being spent on weatherizing will be devoted to helping states in hot climates like Florida save on air conditioning. That’s a dramatic shift from traditional spending practices, which would have spent only about 16% of funds on the country’s warm climates.

This shift is the subject of considerable debate. Although heating and air conditioning requirements vary throughout the country, as a rule it does require more fuel and more money to keep a house warm in January than to maintain a cool temperature in August.

In other words, it probably makes sense to spend at least a little bit more on weatherization in places like New England and Minnesota. The question is finding the right balance.

In the meantime, this sort of thinking outside the box is a welcome practice that all of us could engage in more often as we consider how best to use our energy efficiently. Indeed, while conserving power in the winter months is for many of us an ingrained process involving heavy sweaters, lots of blankets and toasty fires, escaping the heat in the summertime – while indoors – often means turning on the air conditioning full blast.

Many who hail from hot states argue that including them in weatherization efforts is not just effective energy policy but also good public policy since so many deaths result each year from extreme hot weather.

While increased research on weatherizing for summer will certainly yield to better practices and technologies, it already looks like a lot can be achieved with some pretty low-tech practices like putting tinted film on windows. If that sort of effort produces good results, it should be easy to justify further investment in the hot states as well as the cold states.

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