Minerals Management Service
CEA October 2009 Newsletter
Friday, September 25th, 2009
CEA Newsletter
Issue 31
Message from CEA President David Holt
September 21st marked the close of a nationwide public comment period by the Federal Government that allowed Americans to have their voices heard in the vital debate regarding development of U.S. offshore resources, including oil, natural gas and wind projects.
Though naysayers have received prominent placement in recent media reports, the real winners here are the overwhelming numbers of Americans who stood tall in favor of reasonable and responsible development of America’s offshore areas.
More than 360,000 positive comments were received by the government supporting a new 5-Year Plan for the development of resources off of America’s coastlines. This number, which accounts for more than 60 percent of the total comments received, sends a strong message to elected officials in Washington: Americans want more American energy.
Throughout the comment period, CEA stood strong in our support of offshore oil & gas drilling, as well as offshore alternative energy development. Working with our valued affiliates and individual consumers like you, CEA implemented a major campaign to get the word out about the importance of this effort and encourage Americans to comment and contribute to the discussion.
The tremendous results in favor of offshore development speak volumes. Washington has heard what you have to say. Your voice has made a difference in shaping American energy policy and will assist in leading the United States on a path of domestic energy development that will be good for the economy, Americans and the country.
CEA recognizes your hard work and we thank you for being part of our efforts to empower America! We consider you an essential part of our alliance and look forward to continuing to work with you to do what’s right for America and its citizens.
Yet, the work is not over. As we move forward from this great victory, CEA remains dedicated to working toward a national energy policy that fully leverages America’s abundant energy resources into new jobs, revenue and security for American energy consumers.
As part of this effort, please take part in our nationwide educational campaign – Secure Our Fuels, which highlights the damaging economic effects associated with the national Low Carbon Fuel Standard (LCFS) currently being considered by Congress. For more information on the Secure Our Fuels campaign, click here.
Again, thank you and congratulations! With your help, the tides are turning.
David Holt
President
Help Defeat Efforts to Ban North American Energy and Increase Prices at the Pump!
The Low-Carbon Fuel Standard (LCFS) is being sold to the American public as a way to blend transportation fuels with low-carbon alternatives so that tailpipe CO2 emissions can be reduced. But the fact is that affordable and reliable lower-carbon fuel options are not yet available. As a result, an LCFS simply will increase the cost of diesel fuel and gasoline and will place certain domestic supplies of transportation fuels off limits. Increasing the cost of transportation fuel and U.S. dependence upon foreign sources of petroleum is simply unsound energy policy.
Join our effort to defeat these measures, which would put an economic stranglehold on America and leave U.S. consumers stuck with higher prices at the pump. Send in your comments today!
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, according to federal government estimates.
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 Welcomes New Affiliate Members
CEA is proud to announce the addition of the many new affiliate members who have joined our alliance in recent months: Amway, Applied Fiber Manufacturing, LLC, EarthQuest Institute, Entergy Arkansas, Entergy Mississippi, The Fertilizer Institute, New England Fuel Institute and Santa Barbara County Energy Coalition. For a complete list of CEA’s valued affiliates, click here.
CEA Blog: Silent majorities and dressing for success
Check out CEA’s recent blog entry about the overwhelming amount of public support for developing America’s offshore energy resources, recently brought to light by the federal government’s collection of public comments on the issue. Join the conversation at CEA’s website. Read blog…
Consumer Corner: Tell Us How Energy Affects YOU!
Energy issues are important to all Americans – and they should be – because they affect all aspects of everyday life, including your businesses, your household costs and your free-time expenditures!
When you drive your kids to school in the morning or board an airplane for a vacation flight, you are affected by the energy policies that government officials in Washington put in place. Access to American energy resources affects your weekly grocery bill, how much you pay at the gas pump, your heating and cooling costs, the business decisions you make – every part of your life!
CEA wants to know your thoughts about how energy affects you. Share your energy story with CEA by sending an e-mail to info@consumerenergyalliance.org. We want to hear from YOU!
Wind Energy Could Cut Emissions in China By 30 Percent, Study Asserts
Switching to wind power for electricity needs could cut China’s emissions by 30 percent over the next 20 years, according to a recent study. Read article…
Venezuela and Russia Develop As “Comrades-In-Arms-And-Oil”
Ties between Russia and Venezuela are steadily growing stronger with increased economic development schemes, including energy and weaponry deals, between the two countries. Read article…
Affiliate Spotlight: Agriculture Energy Alliance
As farmers and agribusinesses face a looming crisis because of public policies that create demand for natural gas while restricting access to supply sources, the Agriculture Energy Alliance, which represents more than 100 growers and agriculture-related business, works to inform and educate Congress, the Administration and state-elected officials about the energy challenges facing the agricultural sector.
“The U.S. farm sector is being weakened by constraints on onshore and offshore natural gas development, even as global demand for food is growing every year,” says Coordinator for the Agriculture Energy Alliance Rosemary O’Brien, who also serves as Vice President of Public Affairs at CF Industries.
To address these concerns, AEA encourages elected and appointed officials to continue the good work begun in the Energy Policy Act of 2005 and take further measures to reduce natural gas demand and increase natural gas supply.
“By increasing domestic natural gas production, we increase our food security,” explains O’Brien.
Ensuring the stable development of American natural gas resources is essential to maintaining a successful agricultural economy, according to O’Brien, because the farm sector depends on significant use of natural gas for food processing, irrigation, crop drying, heating farm buildings and homes, crop protection chemicals and nitrogen fertilizer production.
“With wise development and utilization of our own national energy resources, Congress can help ensure that farming remains an economically viable occupation,” she emphasizes.
As a member of Consumer Energy Alliance, AEA’s goal is to join with other like-minded groups to work on energy policy, specifically access to U.S. offshore production.
“CEA presented opportunities to work with a larger coalition and to enhance our policy goals in a very positive way,” O’Brien notes. “We have been excited to work with CEA since their leadership has shown creativity, enthusiasm and focus on complex energy policy issues.
“CEA is the type of group AEA likes to associate itself with as perseverance and working on shared goals is the only way to accomplish results. In short, CEA is solution-oriented. We work well with CEA, and we appreciate the quality of advice and input we receive from them and their collaborative efforts on behalf of their coalition.”
For more information on the Agriculture Energy Alliance, visit www.agenergyalliance.com.
Affiliate News: National Oilheat Summit Sees Bright Future For Industry
NEFI joined nearly every national, regional and state oilheat industry association, along with various industry leaders, for a national oilheat industry policy summit in Baltimore, MD on Tuesday, September 15th. The big news coming out of the summit – these various oilheat stakeholders are joining together to pursue a brave new future for the industry and its consumers.
Those attending the summit overwhelmingly approved a statement encouraging Congress and appropriate state bodies to help the industry move towards a “leaner, greener and cleaner” new product through adoption of an ultra low sulfur standard and expanded use of bio components. The group also embraced solar technology as a key component of the overall industry effort to lower the carbon intensity of heating oil applications.
The summit also heard many presentations on the benefits of pursuing a lower sulfur bio-blended product, supplemented with solar technology, as well as how best to “tell the story” nationwide. “It is an exciting time for the industry,” said Peter Carini (NEFI-member) of Champion Energy, New York, which was echoed by Robert Boltz of Pennsylvania, NEFI member Jim Townsend of Townsend Oil, and Don Allen of E.T. Lawson of Virginia, the moderator for the summit. He added: “As an industry, we face many challenges, but most of them can be met if we embrace this exciting opportunity to create a new product that will be environmentally responsible and competitive, ensuring that our industry is part of the solution to the energy, security and climate change challenges that face our Nation.”
Over 80 industry representatives participated in the Summit.
Affiliate News: NSBA Report Shows On-Bill Financing Improves Energy Efficiency
On September 16, 2009, the National Small Business Association released a report showing that small business collectively could reduce greenhouse gas emissions by 259 million tons each year if they improved their energy efficiency by just 25 percent. The report, “On-Bill Financing: Helping Small Business Reduce Emissions and Energy Use While Improving Profitability,” goes on to highlight the significant savings small businesses stand to achieve through on-bill financing.
“This report obliterates that old paradigm that environmental conservation is anathema to economic growth,” said NSBA President Todd McCracken. “Quite simply, small businesses can increase their profitability while reducing their carbon footprint.”
On-bill financing is a mechanism that enables small businesses to work with their utility company to improve their energy efficiency. In practice, a local utility company identifies a small business with potential savings and evaluates their energy use and the company’s financial stability. The utility company then extends a low- or no-interest loan to the small business to make energy-efficient upgrades. The small-business owner repays the loan by continuing to pay the average monthly bill and any money paid in excess of what their actual costs are will go directly to pay down the loan.
Currently implemented in several states, on-bill financing programs have made thousands of loans to small businesses with unparalleled success. According to the report, energy-efficiency programs such as on-bill financing can help the average small business save $4,932—and oftentimes more—every year on its energy bills. The report also makes recommendations on how the federal government can help facilitate additional on-bill financing programs.
“The number one reason small-business owners cite for their inability to make their firms more energy efficient is cash-flow,” stated Keith Ashmus, NSBA chair and co-founding partner at Frantz Ward LLP, Cleveland, Ohio. “Programs such as on-bill financing can eliminate this very significant barrier many small businesses simply can’t overcome.”
NSBA has long held the belief that energy efficiency and entrepreneurial growth can and do go hand-in-hand. The current state of the U.S. economy makes it absolutely crucial to have government policies that foster, not hinder, entrepreneurial growth. With 29.6 million small firms—comprising 99.7 percent of all U.S. employer firms—small businesses stand to make significant, positive and lasting improvements to both the economy and the environment.
This report was sponsored by NSBA with funding from the Bipartisan Policy Center. Please click here to access the full report.
Since 1937, NSBA has advocated on behalf of America’s entrepreneurs. A staunchly nonpartisan organization, NSBA reaches more than 150,000 small businesses nationwide and is proud to be the nation’s first small-business advocacy organization. For more information, please visit www.nsba.biz
Tags: 5-Year plan, Agriculture Energy Alliance, American energy, CEA, CEA Monthly, CEABlog, Consumer Energy Alliance, David Holt, energy, gasoline, Minerals Management Service, MMS, natural gas, newsletter, ocs, October 2009, offshore, oil, Outer Continental Shelf, resource development, Russia, Venezuela, wind
Posted in CEA News | 2 Comments »
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
Posted in CEA News | No Comments »
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
Posted in CEA News | 2 Comments »
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:
- Create more than 6,700 new jobs;
- Increase the state’s gross domestic product by $659 million annually by 2030; and
- Generate approximately $148 billion in federal, state and local revenues. This includes $9.68 billion in government revenues between 2010 and 2030, or $484 million per year.
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.
Tags: CEA, Consumer Energy Alliance, gas, Minerals Management Service, MMS, North Carolina, offshore, oil, payments, revenue sharing, Southeast Energy Alliance
Posted in CEA News | No Comments »
CEA April 2009 Newsletter
Friday, April 3rd, 2009
CEA Newsletter
Issue 25
Message from CEA President David Holt
Next month, Capitol Hill will once again be buzzing with participants of Energy Day, CEA’s exciting and informative annual event held on Capitol Hill in Washington, D.C.
With gasoline and utility prices constantly fluctuating, energy security a top priority and reasonable, responsible use of our nation’s resources of vital concern, CEA invites all consumers, business owners, manufacturers, energy providers and other stakeholders to come together with Members of Congress for this important day to discuss U.S. energy policy, energy security and the impact of volatile energy prices.
Energy Day, which is free and open to the public, will be held on Wednesday, May 13th from 11:30 a.m. to 1 p.m. in the Capitol Visitors Center.
Each year, CEA is excited to unite Members of Congress and their staffs with a unique collection of stakeholders who are all trying to find common solutions to stabilize energy prices and secure resources. Working together and participating in an open dialogue, we can make a difference and make America’s energy policy work for Americans.
Energy Day will feature senior executives from a range of industries who are allied with Consumer Energy Alliance, including: 60 Plus Association, Agriculture Energy Alliance, Air Transport Association, American Chemistry Council, American Gas Association, American Highway Users Association, American Iron & Steel Institute, American Petroleum Institute, American Public Gas Association, American Trucking Associations, Environmentally Friendly Drilling Project, Independent Petroleum Association of America, Independent Petroleum Association of Mountain States, National Association of Manufacturers, National Association of Neighborhoods, National Ocean Industries Association, Nuclear Energy Institute, Southeast Energy Alliance and many more!
All of the participating organizations will have experts available to present materials and information to event attendees.
Mark May 13 on your calendar now and join us for CEA’s Energy Day – we hope to see you at this “don’t miss” event!
David Holt
President
Attend Public Hearing to Support Development of Offshore Resources: Help Secure America’s Energy Future!
Take action in support of developing offshore energy resources by attending a public meeting near you: April 6 in Atlantic City, New Jersey; April 8 in New Orleans, Louisiana; April 14 in Anchorage, Alaska; and April 16 in San Francisco, California.
Don’t miss this opportunity to have your voice heard! This meeting is one of four being held across the nation by the U.S. Department of the Interior’s Minerals Management Service (MMS) to take comments from the public on America’s offshore energy development plan.
Attending this event to show your support of a robust national energy policy which will secure America’s energy future and jumpstart the nation’s economy is essential! Public comments expressed at the meetings will shape America’s development of our offshore energy resources.Find out more…
Support the Five-Year Plan Draft Proposed Program to Develop Offshore Oil & Gas Resources!
A significant domestic supply of energy can be safely and efficiently found right here off of America’s shores. The U.S. Minerals Management Service (MMS) 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!
Consumer Corner:Spring Clean Your Energy Use!
Each year, people across America take part in the annual tradition of spring cleaning their homes, garages, work places and lifestyles, but consumers should give their energy use a good once over too!
Heating and cooling costs are a significant part of household budgets throughout America – on average 43 percent of utility bills! There are many free and low-cost strategies consumers can put into action to lower these costs. Spring cleaning energy use is beneficial because not only does it save consumers a few bucks, but it also focuses consumers on being good stewards of energy resources.
This spring, there are five top steps to take in streamlining your energy use: 1) Look for assistance from your local utility or state; 2) Conduct an energy audit; 3) Have your cooling system serviced; 4) Find and seal your air leaks; and 5) Install a programmable thermostat, according to EnergySavers.gov, a U.S. Department of Energy website devoted to providing tips to the American public on energy consumption.
The five spring to-dos are part of EnergySavers.gov’s “Stay Cool, Save Money” campaign, which focuses on providing consumers with ways to save money during the spring and summer. Find out more ways to prepare for summer’s energy costs…
The Refining Community: Facing Today’s Realities and Tomorrow’s Challenges
While today’s headlines tout increased government spending, and Congressional hearings address AIG, the financial collapse and the BCS football championship structure, little attention has been focused on the relative health of today’s American refining community and how, given the challenges we face in a vulnerable global economy, we are still able to safely and reliably supply consumers with the fuels they need and the building blocks manufacturers require to produce. All too often the 1.9 million men and women of the domestic oil, gas and refining community are dismissed by policymakers and the mainstream media as being part of the economic problem instead of being recognized as part of the solution. Our businesses and employees are, in fact, key components to an economic recovery. While other American businesses are receiving billions in taxpayer dollars to help erase their financial missteps, our businesses are retooling and adjusting their operations to best suit current demand for refined products with a weather eye toward what the future could hold.
Refiners purchase oil on the open market and are the first to be affected by volatile crude markets. In 2008, with the price of crude hovering near $150 a barrel, American refiners struggled to make ends meet. Demand for diesel and gasoline was lower than normal, yet the price to produce both remained significantly high.
Within months, refiners experienced the opposite extreme – lower crude prices, but still lower-than-normal demand. Inventories grew with fewer buyers. That is the situation today, as a number of refiners ponder just how much diesel and gasoline they need to produce to meet current demand.
It is true that a new refinery, from the ground up, has not been built in more than 30 years, but the reality is that domestic refiners, on the aggregate, have constructed the equivalent of one new large-scale refinery each year for the past 12-15 years through expansion projects at existing facilities. This represents not only a more cost-effective approach, but also one that is more beneficial to consumers as it supplies more fuel to the marketplace faster. Currently, U.S. refining capacity amounts to nearly 18 million barrels per day (bbls/day):
• 9 million bbls/day gasoline;
• 4 millions bbls/day fuel oil;
• 1.4 million bbls/day jet fuel; and
• 3.4 million bbls/day other petroleum-based products.
Given the current global economy, more than 400,000 bbls/day of production capacity, representing more than $15 billion in investment, has been put on hold. During the fourth quarter of 2008, independent refining and market revenue fell $3.2 billion. Many refiners actually lost money, though those instances are rarely, if ever, reported.
While operating and expansion costs amount to billions of dollars annually, refiners also spend billions every year to continually upgrade facilities and install newer, cleaner technologies. From 1995 to 2004, domestic refiners spent nearly $50 billion to comply with environmental emissions regulations. By 2020, we will spend more than $20 billion to comply with new clean fuels regulations.
Compliance with the new Renewable Fuels Standard and its various requirements is not even factored into these costs. Some businesses face at least $150 million in additional costs to purchase RIN, Renewable Identification Number, credits to comply with the law. Lobbyists for the corn-based ethanol industry are now advocating for higher blends of their product into gasoline – beyond the currently approved 10 percent (E10) blend. The challenge, however, is that most of the 240 million vehicles on American roads today, to say nothing of the smaller engines in lawnmowers, boats, and other non-road vehicles, will not operate properly or even safely on fuels with higher ethanol blends. These vehicles and small engines are not even under warranty should a difficulty arise. Ethanol also burns at higher temperatures, leading to greater unregulated emissions due to its overwhelming effect on engines’ emissions controls.
While ethanol, both corn-based and cellulosic, which does not yet exist in commercial quantities, will be an integral part of the nation’s fuel mix, policymakers can ill afford to sacrifice safety and environmental quality in a rush to judgment on permitting higher blends.
The current federal biofuels policy is often promoted as part of the broader political agenda for “energy independence.” The question remains, however, if “energy independence” can – or should – ever be achieved.
After 35 years of bipartisan political advocacy on its behalf, the nation is no closer to reducing its reliance on foreign sources of energy. Today, the concept of “energy independence” seems to have morphed into one of “energy isolation,” which American businesses and consumers can ill afford if there is ever a significant supply disruption in the United States. Fuel diversity, or “energy security,” is the more realistic, desirable and achievable goal to ensure a safe and reliable supply of fuel for consumers. Achieving energy security means working with our close neighbors and strategic allies, not against them in the marketplace, to ensure a diverse fuel mix. Canada and Mexico are top suppliers of crude oil products to the United States. With their proximity, transportation and distribution costs are low, and the opportunity for an environmental event is dramatically reduced.
Despite the doom and gloom of most mainstream reporting, our economy will recover, and with that recovery, demand for petroleum-based products will increase as drivers return to the roads and trucks resume transporting and providing goods and services. As we move down that path, we hope policymakers will look to realistic, long-term solutions for energy security instead of bending under the pressure of two-year cycle political expedience. The American business community requires greater certainty for its investments, but, more importantly, American consumers deserve the safe, reliable supply of products that would be guaranteed under a more realistic policy approach.
This article was contributed by Charles T. Drevna, President, The National Petrochemical & Refiners Association (NPRA). If you have any questions or would like additional information, please contact Brendan Williams at bwilliams@npra.org.
Department of Interior Pushing “Dated” Data in Review of Outer Continental Shelf
Highlighting renewable sources of energy, such as wind power, as needed alternatives to fossil fuels, the summary review of energy resources on the U.S. Outer Continental Shelf, published recently by the U.S. Department of the Interior, is pushing “dated” data in making estimates on the development of recoverable oil and natural gas assets, according to industry experts. The data used in the report includes thirty-year old seismic data for many areas and does not include any of the large new discoveries since 2006. Read article…
Venezuela Increases Oil Shipments to U.S.
Contrary to its promise to comply with OPEC cuts, Venezuela increased crude shipments to the United States in January reaching 1.2 million barrels a day – a 14 percent increase from the previous month. On Jan. 1, the South American oil giant was supposed to begin significant decreases in exports – about 16 percent to meet OPEC guidelines. Read article…
Affiliate Spotlight:American Highway Users Alliance
Dedicated to improving highway safety and mobility, the American Highway Users Alliance is a strong and influential advocate for the interests of the “motoring public”.
Motorists pocketbooks and quality of life are deeply
affected by the predictable supply of affordable energy.
Founded in 1932, the non-profit organization focuses on national issues through lobbying, media relations and grassroots campaigning, promoting a vital link between federal-state-private sectors.
“One of our most important internal goals is to generate massive grassroots activism from within our current and future membership base,” notes Greg Cohen, president and CEO of American Highway Users Alliance.
The Highway Users’ membership is varied, including many types of groups as well as individuals and businesses who use highways in the United States, which the Alliance identifies as “the most mobile nation on earth”.
“Our members come from diverse industries and interests that rely on an efficient national highway network to transport their products, customers, employees, and members. Members include about 300 companies, non-profit trade associations, and automobile clubs representing millions of people,” comments Cohen.
Energy issues affect the members of Highway Users in various ways, depending on whether the member is a motorist, rural farmer, manufacturer, other business or other type of highway user.
“Volatility in energy markets creates some obvious problems for highway users,” Cohen points out. “For motorists, the price of mobility impacts their choices for housing, employment, shopping and recreation. For fleet operators, predictable fuel costs are critical to developing their logistics model and creating a profitable business plan. For farmers and rural drivers, their long distance driving is more severely impacted by price spikes. For manufacturers and construction companies, the price of energy can have extreme impacts on the production price of equipment and products (such as asphalt).”
Securing a stable and predictable energy supply is a necessary path to economic growth and better quality of life for all members of American Highway Users Alliance, according to Cohen.
“We would like to see a stable, growing supply of energy in the United States through a massive investment in supply expansion. We also would like to see the American public become more educated on the economics of the issue and the enormous steps taken by companies to protect and enhance the environment as they develop energy sites,” explains Cohen.
“If the public as a whole understands the enormous benefits to the economy and quality of life that help all of our citizens, we will win the battle of ideas,” he continues.
Another issue of great interest to The Highway Users is ensuring that transportation and energy sectors are not unfairly over-regulated.
Cohen notes that there is the potential for tremendous government regulation brought about by the increased influence of environmental activists in Congress and the Administration.
“It is important that we all help each other to fight harmful regulations that directly or indirectly attack energy and transportation consumers. We are very concerned about fighting these battles and need as much help as possible,” he stresses.
As a member of Consumer Energy Alliance, The Highway Users values participating in opening channels of communication between the energy industry and highway supporters.
“Motorists, truckers, and companies who are active in The Highway Users are financially-motivated and/or civically-motivated to support the energy industry on some of their key priorities and issues,” asserts Cohen. “We hope that the relationships we form within CEA will help to get energy companies more engaged on safety, congestion and logistics issues that have a hidden but high impact on their bottom lines.
“There are a variety of issues – both energy and transportation related – where working together can yield better results than going it alone.”
For more information on American Highway Users Alliance, visit www.highways.org.
Tags: 60 Plus Association, Agriculture Energy Alliance, Air Transport Association, American Chemistry Council, American Gas Association, American Highway Users Association, American Iron & Steel Institute, American Petroleum Institute, American Public Gas Association, American Trucking Associations, Capitol Hill, CEA, CEA Energy Day, CEA Energy Grass Roots, congress, Consumer Energy Alliance, Consumer Energy Alliance Energy Day, consumer energy alliance grass roots, consumer energy alliance grassroots, energy, Energy Day 2009, energy policy, energy prices, Environmentally Friendly Drilling Project, Independent Petroleum Association of America, Independent Petroleum Association of Mountain States, Minerals Management Service, National Association of Manufacturers, National Association of Neighborhoods, National Ocean Industries Association, Nuclear Energy Institute, Southeast Energy Alliance, U.S. Department of the Interior’
Posted in CEA News | Comments Off
CEA: Gulf lease sales generate millions for U.S. taxpayers, ensure long-term energy affordability for all
Wednesday, March 18th, 2009
HOUSTON – March 18, 2009 David Holt, president of Consumer Energy Alliance (CEA), issued the following statement today after the Minerals Management Service (MMS) announced that energy-rich areas up for sale in the central Gulf of Mexico produced more than 475 bids and generated more than $700 million for the U.S. taxpayer:
“With our economy facing unprecedented challenges, today’s lease sale in the Gulf provides new hope that millions of new jobs, billions in new revenue, and a serious plan to ensure long-term energy affordability are well within our reach.
“The sale also marks the beginning of an important new chapter in the history of offshore exploration: the establishment of revenue-sharing partnership with the states. It’s a component we’ve fought hard to promote over the years, and one we’re convinced will lead to more energy for consumers, more revenue for taxpayers, and greater security for our nation.
“Lease Sale 208 didn’t result in a single drop of oil today, or a single unit of new natural gas – but it did produce more than $700 million for the American taxpayer. Such is the promise and potential of responsible offshore energy exploration. And now is the time to turn that potential into the affordable energy we need to put our economy back on track.”
CEA is a non-profit, non-partisan energy consumer group that has long advocated a national energy policy that focuses on creating a diverse portfolio of energy supplies, from wind to solar to biofuels to petroleum and clean-burning natural gas.
With more than 100 affiliated organizations and thousands of consumer-advocates, CEA’s mission is to expand the dialogue between the consuming and energy sectors to improve overall understanding of energy security and the thoughtful development and utilization of energy resources to help create sound energy policy and maintain stable energy prices for consumers.
Tags: biofuel, CEA, CEA Energy Grass Roots, Consumer Energy Alliance, consumer energy alliance grass roots, consumer energy alliance grassroots, Consumer Energy Issues, energy, energy policy, exploration, Minerals Management Service, MMS, natural gas, offshore, oil, petroleum, solar, wind
Posted in CEA News | Comments Off
CEA March 2009 Newsletter
Tuesday, March 3rd, 2009
CEA Newsletter
Issue 24
Message from CEA President David Holt
A balanced approach to meeting America’s energy needs, including utilizing oil, natural gas and offshore wind resources, is the course that CEA consistently pushes forward as the best option for the country, its people, and our leaders.
Balance is one of the key components of stabilizing energy prices – so that consumers and businesses don’t experience rapid fluctuations in cost. To achieve the goal of stable energy sources and reasonable prices, we must put in place a commonsense, long-term approach for resource development.
Currently, the Five-Year Plan Draft Proposed Program to Develop Offshore Oil and Gas Resources is on the table and up for public discussion. Anyone who wants to let the government know that they support development of offshore oil and gas resources may do so by sending in comments to the U.S. Minerals Management Service (MMS).
CEA is calling for participation and through our “Call to Action”, you can send in your comments to make your voice heard on this important issue that is so vital to our country’s stability and security. Already tens of thousands of small business owners, consumer groups, and everyday Americans have visited CEA’s site to register their views. You, too, can make your voice heard. Take action!
Recently, U.S. Department of the Interior Secretary Ken Salazar announced that his agency would extend by several months the current development and comment collection process for the new, supply-oriented, five-year energy plan.
Though we at CEA realize that the new administration in Washington would like to study this plan in greater depth, consider improvements, and allow as many Americans to comment on the plan as possible, we also believe that the time is now to handle the American energy crisis. From this perspective, any significant delay in securing a serious, robust energy strategy for our country would be disappointing.
CEA believes, supports, and promotes that we have the power to stimulate our economy, create new jobs, and bring in billions in additional revenue, by developing our untapped oil and gas resources. We also call for a balanced approach that would incorporate alternative resources, such as wind, solar, biofuels, and nuclear. But an easy, effective and important step is to open up areas previously off limits to offshore oil and gas exploration. By doing so, we open America up to a new world of opportunities, stability and security.
Join with CEA in supporting offshore oil and gas production as part of a balanced plan for developing American energy resources. We believe and we’re sure you’ll agree – it’s the right thing to do.
David Holt
President
Support the Five-Year Plan Draft Proposed Program to Develop Offshore Oil & Gas Resources!
A significant domestic supply of energy can be safely and efficiently found right here off of America’s shores. The U.S. Minerals Management Service (MMS) currently administers the considerable oil and natural gas resources contained in our offshore waters and wants to hear from you about offshore oil and gas development.
Opposition to offshore energy development is mounting. We need you to let Washington know you support reasonable accesss to America’s offshore energy resources.
Support Offshore Wind Power!
The Minerals Management Service is now accepting public comments on a final proposal to develop an offshore wind energy facility off of the Massachusetts coast.
The Cape Wind Energy Project has the potential to power more than 200,000 homes in Massachusetts.
Consumer Corner: New options for energy efficient homeowners
The recently-enacted stimulus bill provides significant changes to energy efficient tax credits available to consumers for home improvements, including roofing, insulation, windows and doors, central air conditioning, water heaters, residential solar and wind energy systems, fuel cells, and much more.
The bill highlights provides an extension of tax credits available for 2009 until 2010, a raise in the tax credit from 10 percent to 30 percent of the cost and an increase in the maximum tax credit available. The maximum tax credit for the two-year period (2009-2010) was increased to $1500, significantly higher than the previous max of $500. The cap does not apply to several improvements, including: solar water heaters, geothermal heat pumps, and solar panels.
Additional consumer information is available online from Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy, which promotes saving money and protecting the environment by using energy efficient products and practices. Find out more…
Energy and the Domestic Steel Industry
The U.S. steel industry has the world’s lowest energy consumption per ton of production. As major consumers of energy (20 percent of production costs), and natural gas in particular, steel companies have been hit hard by high and extremely volatile prices.
The steel sector continues to make significant progress to further reduce energy use in steel production by improving energy efficiency. Despite the recent revitalization of the industry including heightened productivity, improved profitability and a voluntary reduction of energy intensity by 33 percent since 1990, these higher energy costs have a significant impact on the sector’s bottom line. The industry is currently conducting research into the next generation of iron and steelmaking technologies that will dramatically reduce or virtually eliminate CO2 emissions. These new “breakthrough technologies” are being developed, and if successful, will be available for commercial use in 15-20 years.
The industry believes that a comprehensive energy policy must embrace all forms of energy. Existing energy sources including nuclear power, wind power, off-shore exploration, and bio-gas – must all be further developed and deployed. Future energy from clean coal and sequestration technologies require further research and development to be deployed commercially at scale. A comprehensive domestic energy policy must pursue all of these options to ensure a secure and sustainable energy future for American manufacturers and consumers.
The nation has suffered too long without a forward looking energy policy. A main priority for the domestic steel industry is working with Congress to promote development of U.S. energy resources to help secure future economic growth. The foundation of a sound, comprehensive energy policy should:
- Provide all consumers with green, affordable, abundant and reliable energy. Greening the electrical grid is the fastest way to CO2 reduction and has the additional benefit of reducing the CO2 footprint of major electricity users such as steel.
- Reduce our dependence on foreign suppliers by exploring our own domestic supply and provide financial incentives for states allowing exploration and production off their shores;
- Grant targeted tax credits for investment in wind and other renewable energy projects;
- Encourage safe and clean nuclear power through regulatory streamlining and offering sufficient resources to solve the issue of nuclear waste; and
- Update and expand electrical grid/distribution network.
America must enhance the production of domestic resources to preserve the competitiveness of the U.S. steel industry.
Jennifer Diggins from the American Iron and Steel Institute contributed this article. If you have any questions or would like additional information, please contact Ms. Diggins at JDiggins@steel.org.
Affiliate Spotlight: American Association of Petroleum Geologists
Dedicated to the energy and environmental geosciences, the American Association of Petroleum Geologists (AAPG) is the world’s largest scientific and professional association of geologists with more than 31,000 geoscientists in 116 countries.
Since 1917, the organization has been fostering a spirit of scientific research among its members and advancing the science of geology particularly related to petroleum, natural gas, other subsurface fluids, mineral resources and the environment.
“Our members are individuals who have specific educational and professional credentials,” notes David Curtiss, director of AAPG’s Geoscience and Energy Office in Washington, D.C. “We are not a trade organization and have no corporate members.”
“AAPG is about energy and environment, and our organizational focus is global. Our members work in industry, seeking to find and develop new energy sources around the world. Our members work in government, regulating industry activities and managing public lands on behalf of the people. And our members work in academia, advancing the science and educating the next generation workforce,” Curtiss says.
Energy supply sources throughout the world, including North America, are very important to both AAPG and its members.
“Roughly two-thirds of our members live and work in the United States, and we have large membership groups in Canada and Mexico, so North American energy resources are clearly important to AAPG members. But in a global market every supply source is important,” Curtiss explains.
When it comes to policy on energy issues, AAPG hopes to accomplish two goals, says Curtiss.
“AAPG seeks to provide policy makers with the best information possible on the science and practice of exploring and developing geological energy resources. Second, AAPG communicates to policy makers and the public its views on a variety of policy issues through its Statements. The issues include diverse topics, such as access to federal lands, federal R&D needs, geological data preservation, and workforce development.” (Read Statements from AAPG here.)
AAPG is active in enabling certification for its members and promoting the spread of member experts’ knowledge and ideas to others.
“Through our Division of Professional Affairs we provide certification opportunities for our members, and the Division’s Government Affairs Committee works to provide the knowledge and expertise of AAPG’s membership to policy makers and regulators,” says Curtiss.
Other branches of AAPG include the Energy Minerals Division, which focuses on non-traditional resources, geo-thermal, and coal, and the Division of Environmental Geosciences, which brings geological knowledge and methods to environmental problems.
AAPG is an affiliate of Consumer Energy Alliance in an effort to connect to those who use energy, such as consumers, and those who develop energy.
“AAPG’s focus is energy geoscience, and the needs and interests of our diverse membership. Being an affiliate of CEA connects our scientific and professional expertise through the economic value-chain to the end-user, the consumer,” comments Curtiss. “As each affiliate connects to CEA and learns about the other groups, the result is a realization of how policy issues affecting a specific affiliate in a different industry can actually impact the entire network.”
Being a part of the network that CEA facilitates is beneficial to companies, associations, and consumers, Curtiss points out.
“This is a unique perspective that cuts across typical stove-pipe thinking. It clarifies that energy, economic, and environmental policy cannot be developed in isolation, because they are interdependent. That is reality, and what makes CEA’s efforts to inform and educate policy makers and the public to these issues so vitally important.”
For more information on AAPG, visit www.aapg.org.
Upcoming Events: March Energy Summit in Houston
Houston, the Energy Capital of the World, is hosting a day-long energy summit, Americas Energy Future: Assessing Our Paths to Energy Security, on March 24 to bring together business executives, energy experts, public policy leaders, elected officials and more. Panels will discuss energy supply and demand; the role and impact of technology; infrastructure requirements and costs; public policy implications and solutions; and the future of federal energy policy. Find out more…
Tags: AAPG, American Association of Petroleum Geologists, biofuels, Cape Wind Energy Project, CEA, CEA Energy Grass Roots, clean coal, coal, Consumer Energy Alliance, consumer energy alliance grass roots, consumer energy alliance grassroots, Department of Energy, Department of the Interior, Energy Star, EPA, Evironmental Protection Agency, Five-Year Plan Draft Proposed Program, fuel cells, Geoscience and Energy Office, Minerals Management Service, MMS, natural gas, nuclear, offshore, offshore oil, offshore wind, oil, Secretary Ken Salazar, Secretary Salazar, solar, tax credits, US Steel Industry, wind
Posted in CEA News | Comments Off
CEA January 2009 Newsletter
Thursday, January 29th, 2009
Issue 22
From the President
Consumer Energy Alliance is pleased to announce we have redesigned our website to increase our ability to effectively communicate with consumers and promptly deliver letters to members of Congress, the Administration and various regulatory agencies about the importance of balanced national energy policy – ultimately allowing us to be even more responsive to our Affiliate and grassroots members in 2009. You can view the new website at www.consumerenergyalliance.org.
In addition to a brand new look and feel, we have added more energy information and included the capability to post CEA Affiliate energy-related news & presentations. Specifically, the site’s reference library offers users the opportunity to look up useful research links to various government and regulatory websites, information on legislative & White House issues, as well as quick facts for energy consumers. The added news & presentations posting capability allows users to access a broader range of information on issues concerning energy consumers, end-users and producers. Users are also able to respond to calls-to-action, access our newsletters and press releases, as well as download our latest presentations and publications.
While we have all contributed to the national dialogue on energy, it continues to be very important that we educate and mobilize concerned stakeholders to help secure reliable and stable energy solutions – and the economic opportunities that a thoughtful energy policy provides.
CEA hopes this new website will encourage our Affiliate and grassroots members to continue supporting our effort in helping Washington develop a comprehensive energy strategy that properly balances the near-term use of oil and gas resources, the long-term development of alternative energy and enhanced energy efficiency. We ask that you remain an active part of our membership and possibly consider a modest donation to CEA through our website by clicking here.
In the coming months, CEA is looking to build a strong nationwide network of citizen and company supporters. It will be a challenge, but with your support we are confident we can achieve it.
In all, the key to moving our nation forward on energy is to make sure Congress and the next Administration make informed decisions. A strong grassroots effort focused on the thoughtful development and utilization of all of our domestic energy resources will do just that.
We all know that there is no silver bullet to fix today’s energy problems. How we meet our nation’s energy challenges is going to be an ongoing debate for many years and we look forward to working with you to meet those challenges. Your support is critical.
David Holt
President
Support Offshore Oil & Gas Development in Virginia!
The U.S. Minerals Management Service (MMS) is seeking public comments in preparation for its Environmental Impact Statement (EIS) regarding potential energy development offshore Virginia. Comments will be accepted through January 13, 2009.
It is important that the MMS understand that opening up offshore Virginia to responsible energy development will play a critical role in creating a robust national energy policy and securing our energy future.
Support a New Five Year Plan to Develop Offshore Oil & Gas Resources!
A significant domestic supply of energy can be safely and efficiently found right here off of America’s shores. The U.S. Minerals Management Service (MMS) currently administers the considerable oil and natural gas resources contained in our offshore waters and wants to hear from you about offshore oil and gas development.
Opposition to offshore energy development is mounting. We need you to let Washington know you support reasonable accesss to America’s offshore energy resources.
Recent rise in oil prices due to OPEC cuts and tension in the Middle East
Oil prices have risen more than 40% since mid-December due to OPEC’s decision to cut supply and the growing conflict in the Middle East. Experts warn that a continuing rise in prices could hurt American consumers, who are already concerned about jobs and a sagging economy. Read article…
Dispute between Russia and the Ukraine impacts European gas supplies
A dispute over gas supplies between the Russian Federation and Ukraine has shut down heating systems in many parts of central Europe, as the export of Russian gas to the region is halted. Read article…
SEA/VMA Climate Change Forum discusses responsible path forward on carbon regulation
The Southeast Energy Alliance (SEA) and the Virginia Manufacturers Association (VMA) hosted an important Climate Change Forum in Williamsburg, Virginia last month that featured a robust discussion on the climate change debate that will take place in Washington in 2009, the perspectives of stakeholders in the nuclear and natural gas production industries and a keynote address by Senator-Elect Mark Warner (D-VA).
Conducted in conjunction with VMA’s annual Industry Leadership Forum, the joint SEA-VMA event focused on the potential to reduce the costs of climate change regulations by increasing production of domestic natural gas, expanding nuclear generation and eliminating proposals to force all sectors of the economy to purchase carbon emissions credits at auction.
Speakers at the Climate Change Forum included David Holt of Consumer Energy Alliance, David Hudgins of the Old Dominion Electric Cooperative, Jeffry Vorberger of the National Ocean Industries Association, Libby Cheney of Shell, Brydon Ross, a senior aide to Senator Mel Martinez (R-FL), and Virginia Attorney General Bob McDonnell.
Although there has been significant debate on the science and the merits of carbon emissions regulation over the last decade, Congress has failed to either have a serious legislative debate on the issue or pass any meaningful climate change legislation. During the 110th Congress, the Senate debated language sponsored by Senators Barbara Boxer (D-CA), John Warner (R-VA) and Joe Lieberman (I-CT), which could have negatively impacted our economy by restricting the use of coal to produce electricity without allowing expanded use of nuclear or natural gas based-generation. However, this legislation was criticized and eventually denied a vote on the Senate floor.
With the new Obama Administration and the new Congress, the likelihood of a major climate change debate – as well as passage of climate change legislation – has never been higher.
As we enter into 2009 in Washington this year, SEA will continue to work with its members and partners to ensure that any proposals to regulate carbon emissions are coupled with responsible policies that will minimize the societal costs of carbon reductions in order to prevent the economic harm likely to come if legislation like the Boxer-Warner-Lieberman bill is resurrected.
Tags: alternative energy, carbon, carbon emissions, CEA, CEA Energy Grass Roots, climate, Climate Change Forum, coal, congress, Consumer Energy Alliance, consumer energy alliance grass roots, consumer energy alliance grassroots, Consumer Energy Issues, domestic, EIS, electricity, energy, energy policy, Environmental Impact Statement, Europe, Five Year Plan, government, Industry Leadership Forum, Minerals Management Service, MMS, National Ocean Industries Association, natural gas, New Five Year Plan to Develop Offshore Oil & Gas Resources, nuclear, Obama, offshore oil, oil, Old Dominion Electric Cooperative, OPEC, Russia, SEA, Southeast Energy Alliance, Ukraine, Virginia Manufacturers Association, VMA
Posted in CEA News | Comments Off