oil
A season of paradox
Tuesday, December 22nd, 2009
Folks living within a vast swath of the eastern United States had their festive plans for caroling and last-minute holiday shopping disrupted over the weekend by the biggest snow storm in years. In many regions like the greater Washington D.C. area, the storm shattered old records for December snowfall … and winter hadn’t even officially begun yet.
The blizzard, combined with the sub-freezing temperatures, all but promises a white Christmas in regions hit by the storm.
Of course, snow days and sledding and cozy times together by an indoor fireplace come along with treacherous roads and driveways that need to be shoveled and the high heating bills required to keep everyone warm inside.
And this year, as people brace for those wintertime heating bills, they’ll be chagrined to discover that the soft economy has done little to lower the cost of keeping their homes warm. It’s an ongoing paradox we’ve discussed here before: how the normal rules of supply and demand don’t really apply when the product in question comes from overseas sources that have their own way of artificially controlling pricing.
Last summer, we discussed how oil prices were rising despite soft demand and swelling inventories. This winter, prepare for more of the same. We’re approaching our third straight year of economic downturn, and supplies of heating oil are overflowing, so much so that the early snowy cold spell isn’t expected to make much of a dent. Still, many forecasts show consumers paying more for their heating oil this year than they did in 2008 – when, by the way, it was hardly cheap.
Low demand and high prices: It’s a paradox indeed, but it’s not a mystery. Heating oil prices rise when crude oil prices rise. And here in the U.S., crude prices rise for all sorts of reasons, usually reasons that have little to do with supply or demand, or even the weather. Like so much of the oil we consume, the explanation for those persistently high winter heating prices is located far from home.
Wishing you a warm holiday.
Tags: CEA, Consumer Energy Alliance, domestic energy, energy prices, energy security, energy supply, natural gas, oil
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Old, but not over the hill
Thursday, November 19th, 2009
Here’s an important detail about the strength of our domestic oil industry that is often lost in the larger debate over opening more of the country to drilling and exploration: Yields are up at many existing oil fields.
The American Petroleum Institute reported this week that U.S. crude oil production reached a four-year high in October, due largely to the success of advanced drilling technologies that have helped improve yields in deep waters in the Gulf of Mexico and elsewhere.
It’s a milestone that is important for a number of reasons. It shows that the oil sector is inventive and enterprising, constantly adopting new techniques that will improve on the existing way of doing business.
These high yields, mind you, are coming from some not-so-young properties, at a time when critics maintain that oil is past its prime, and past its peak. And they beg the question, if oil producers can increase yields from existing properties, what might they be able to achieve on a spanking new field in one of the disputed sites around the country?
The 5.36 million barrels of crude oil per day that were produced during the month of October offer strong evidence in favor of additional drilling around the country. It’s a strong level of production that suggests that additional exploration has a high likelihood of success, and also that the producers overseeing the drilling would make the most of each project, just like they are doing at older fields. It flies in the face of the notion that the oil industry favors drilling with abandon, or only wants to break ground on new sites because all of the older ones have dried up. Rather, it reflects a long-term commitment to each and every project.
The debates over new drilling around the country may take a long time to resolve. But it’s nice to know that oil producers are keeping busy while they wait.
Tags: CEA, Consumer Energy Alliance, domestic energy, drilling, energy policy, energy prices, energy supply, natural gas, offshore, oil
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Truckers’ long haul, Part Two
Tuesday, November 17th, 2009
You may recall what we said last spring about the tough times in the trucking industry: a business which really cannot seem to get a break, between the high fuel prices in good times and the dramatic slowdown in demand during tough times (when, by the way, fuel prices often remain pretty high).
Now truckers have something else to keep them awake at night. Investor Warren Buffett’s recent $34 billion purchase of Burlington Northern Santa Fe, the nation’s second biggest railroad, has — at least for the moment — helped to christen railroads the freight transport vehicle of the future, threatening to marginalize trucks.
Now, first of all, let’s be clear that railroads will never eliminate the need for trucks. Take the most extensive rail network conceivable, and it will still come up short delivering goods from the source to the final destination. Of course, it’s possible to see ways that shipping by train is superior to trucking, and vice versa. But for the most part, it’s an apples-to-oranges comparison. Trying to compare the two industries would be like comparing an aircraft to a cruise ship.
Still, the fact that the country’s most prominent investor has put a lot of money behind rail lines doesn’t help raise the public’s appreciation of trucks and the necessary function they provide. And, at a time when so many truckers are going out of business or struggling to make any money at all, it seems fair to ask how the industry might improve its competitive position.
We know there are many variables, such as fuel prices and the volume of goods being transported, that truckers really can’t control. Every industry, however, must do what it can to be as efficient as possible.
This news story about the newly-formed North American Council for Freight Efficiency (NACFE) argues that the fragmented nature of the trucking industry has made it difficult for small operators to identify and adopt the best products to assist with route planning and minimize the hauling of empty containers.
How can this be so hard when there is so much GPS and supply chain technology out there? Consider this video of truckers at NACFE’s inaugural meeting, discussing how there is just not a lot of money available to risk experimenting with a technology that may or may not pay off. The typical independent trucker has a mountain of expenses, including health insurance, that leaves little or nothing left for discretionary spending.
Still, truckers have made progress. Consider Exhibit C, which offers some examples of the proactive steps truckers are already taking today to improve fuel efficiency.
It certainly is not easy being a trucker. But truckers provide an essential service and are working hard to address the challenges their business faces today and tomorrow. A domestic energy policy that would help them control costs would certainly provide some badly needed relief.
Tags: CEA, CEA Blog, Consumer Energy Alliance, diesel, gasoline, haul, high fuel prices, oil, trucking, trucking industry
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The recent history of nuclear power: Sounds a lot like the story of oil
Tuesday, November 3rd, 2009
A promising home-grown source of power is abandoned over safety and environmental concerns and regulatory roadblocks. Said industry addresses those concerns and comes back safer and more environmentally friendly than ever. But the roadblocks remain.
Sound familiar? It’s a story that those of us at CEA are all too familiar with.
As advocates of a balanced domestic energy industry push for more responsible drilling in Alaska and along the country’s outer continental shelf, a parallel battle is waging in the nuclear power industry. It’s been 30 years since ground has been broken on a new nuclear power plant in the U.S., even though nuclear is not only a zero-emissions source of power, but it has a proven ability to generate power on a massive scale. While nuclear power has not been subject to the same sweeping bans placed on oil, it has been stymied by a lot of fence-sitting on the part of lawmakers, who have failed to get fully behind the nuclear industry, with sensible regulations and financial incentives that would help make more plants feasible.
That could be about to change. Lawmakers working to assemble a climate change bill that a majority can agree on are proposing including a nuclear power tax credit that would put nuclear on equal footing with other zero-emissions sources of power like wind and solar. Two prominent U.S. senators, John Kerry and Lindsey Graham, last month published an Op-Ed explaining why nuclear power needed to have the same level of support that wind and solar power enjoy. Nuclear power, they noted, is “our single largest contributor of emissions-free power (which) needs to be a core component of electricity generation.”
“We need to jettison cumbersome regulations that have stalled the construction of nuclear power plants,” the senators wrote.
We at CEA couldn’t agree more. At a time when so many Americans are embracing the need for increased energy security and more stable energy prices, we hope nuclear will receive the long-awaited attention it deserves along side natural gas, oil, and a host of alternative energy sources.
For more information about nuclear power and to get involved, please visit Nuclear Advocacy Network and register with the code word “uranium.”
Tags: CEA, Consumer Energy Alliance, domestic energy, nuclear, oil
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Bipartisan House Letter Urges Caution on Sweeping New Ocean Restrictions
Wednesday, October 28th, 2009
CEA applauds lawmakers for taking a stand in defense and support of offshore energy exploration
WASHINGTON – Imposing a new, potentially sweeping federal oceans program that restricts the responsible energy development offshore would raise energy prices on consumers and expand our already dangerous dependence on foreign energy — that was the message delivered to the White House today by Democrats and Republican lawmakers in the U.S. House.
In a letter dated today, 69 members of the US House urged the White House to proceed with caution before totally recasting our nation’s federal ocean policies. The bipartisan group of lawmakers is particularly concerned with the potential effects such a policy could have on responsible offshore energy production, which helps stabilize energy prices, create good-paying jobs and fund essential social services from all levels of government.
David Holt, president of Consumer Energy Alliance (CEA), released this statement:
“Today’s letter from this strong, bipartisan group of lawmakers should send a message loud and clear to the White House that any policy that seeks to impose restrictions on all aspects of offshore commerce – shipping, fishing and the responsible development of homegrown energy is one that will be challenged by a large segment of Congress.
“Unfortunately, as it stands today, continuing delays have prevented the important work of crafting and implementing a new offshore energy development, creating jobs and finding sound economic footing for the nation. An oceans policy that would further complicate that regulatory chain of command offshore has the potential to erode our nation’s energy security even further, costing Americans jobs, revenues and opportunity in the process.
“These lawmakers that signed this letter, led by Congressman Bill Cassidy, have shown tremendous leadership at a critical time on this issue. CEA is grateful for their hard work and hustle. As this process continues to develop, CEA will continue to fight for expanded access to every form of energy, especially our resources offshore.”
Here are key excerpts from the bipartisan letter, which was signed by 69 members of Congress:
We are particularly concerned about the Task Force’s impact on our nation’s ability to safely develop its own offshore energy, including oil, natural gas and renewable energy. It is critical that the Task Force’s proposals do not inhibit energy activity offshore in domestic waters and undermine the Department of the Interior’s Five Year Leasing Program for offshore energy development. An ocean management policy that puts new restrictions on energy development would not only raise prices for consumers, but would negatively impact Americans working in the offshore energy industry and all Americans whose livelihood depends on access to affordable energy.
According to a recent American Energy Alliance report, expanded drilling in the Outer Continental Shelf (OCS) would generate 1.2 million jobs and $70 billion in additional wages annually, plus $8 trillion in economic output and $2.2 trillion in total tax receipts. The American public has also expressed its overwhelming support for increasing offshore energy production.
We urge the Obama Administration and the Task Force to take an approach to oceans policy that recognizes and promotes access to the abundant American energy resources located offshore.
NOTE: Click HERE to view this letter on-line. Also, click HERE to view CEA’s call-to-action on this issue.
Tags: CEA, Consumer Energy Alliance, domestic energy, gas, Oceans policy, oil
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What do toys from China have to do with oil imported from the Middle East?
Thursday, October 22nd, 2009
It’s been estimated that as much as one quarter of carbon dioxide emissions in China results from the production of goods that are exported, largely to the United States and Europe. It’s part of a phenomenon known as carbon leakage, in which reduced emissions in one country result in higher emissions elsewhere, and quite possibly a net increase in worldwide emissions.
It goes something like this: Country A passes legislation reducing emissions (good), but does so in a way that fails to contemplate the global impact of its move (not so good). As a result of the tighter standards in Country A, the cost of manufacturing goods and services there goes up, resulting in increased demand for those same products out of countries B, C and D, where production costs are comparatively low and emissions standards are slim to nonexistent. Country A loses more of its manufacturing base, and jobs along with it, without ever really achieving its main objective of cleaning up the planet. Its emissions legislation has only served to encourage increased output from some of the places with the lowest environmental standards.
The problem of carbon leakage is often cited as an unintended consequence of carbon offsets. But it also relates to the issue of low carbon fuel standards in the U.S. As CEA recently noted, policies designed to favor production of light crude oils, which in general require less energy to produce than their heavier counterparts, could easily create the unintended consequence of increasing the country’s need for foreign oil.
Now, in one sense, all foreign oil is created equal, at least when you’re measuring the amount the U.S. imports from all over the world. But just for a moment put oil from Canada in a category of its own: yes, it’s foreign oil, but it is at least a nearby and stable source that can help support jobs on pipelines and in refineries near the U.S./Canadian border.
A newspaper in South Dakota recently complained the passage of a low carbon fuel standard could kill a new oil refinery project that had been expected to create more than 1,000 jobs, by cutting off supply of heavy crude oil from Canada. This is not oil that could be easily replaced by a U.S. source: Under a low carbon fuel standard, a refinery in Middle America with a healthy supply of oil in its own backyard might have to tap supplies in the Middle East, where the crude is, as they say, sweet.
“Do a little digging,” the story says, “and you quickly find out that the low carbon fuel standard isn’t at all interested in making the fuel in your car today better, cleaner or more affordable. It’s only interested in making those fuels scarcer, more expensive and less available.”
For more information on low carbon fuel standards, visit our website.
Tags: American energy, carbon dioxide, CEA, China, Consumer Energy Alliance, domestic drilling, emissions, gas, Middle East, oil, toys
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Wind industry to Obama: Don’t throw the baby out with the bath water
Wednesday, October 14th, 2009
Last week we offered a general overview of the Obama administration’s new Ocean Policy Task Force and expressed our concerns that this well-intentioned effort to help the world’s oceans thrive could result in a set of arbitrary restrictions on different industries that depend on oceans and coastal waters. This week, we direct you to the concerns of the American Wind Energy Association, which has done a good job of articulating how easily a well-intentioned plan may veer of course.
You can read AWEA’s full, 14-page response to the Task Force’s initial report here. Essentially, while the wind energy industry fully supports efforts to improve the health of the world’s oceans, it worries that imposing arbitrary limits to industrial activity in offshore waters (and the windy skies above them) could choke off efforts to expand wind power in the U.S. at the very point that the industry is gaining widespread support.
Wind and oil have a lot in common. They are both major sources of power, they have both identified offshore waters as some of the areas that offer the most potential, and they have both encountered resistance from a broad array of groups that stand under an “environmentalist” label, but often have no bigger concerns than that an oil rig or a wind mill on the horizon ruins the view. Which does seem to beg the question: Does a solar panel ruin the “view” of a house? And why do we so often object to images that represent the responsible harnessing of our natural resources?
But anyway, the wind sector, like the oil sector, has watched in frustration as other countries allow responsible use onshore and off, while progress here at home is put on hold.
“For offshore wind to make a significant contribution,” AWEA wrote in its formal response to the Ocean Policy Task Force, “the process of permitting and building the first generation projects of U.S. offshore wind farms as well as developing the needed supply chain and industry-specific infrastructure must get underway.”
The movement toward achieving a balanced domestic power industry and reducing our dependence on foreign oil has seen enough delay. Please continue to make your voice heard to ensure that the Ocean Policy Task Force does not lead to further setbacks. Both the oil sector and the wind sector have made a lot of progress in recent months. We need to keep the momentum going.
Tags: balanced energy policy, CEA, Consumer Energy Alliance, domestic energy, Obama, oceans, oil, water, wind, wind sector
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Don’t wait! Your help is needed on a new campaign!
Friday, October 9th, 2009
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.
Tags: balanced energy policy, CEA, Consumer Energy Alliance, domestic energy, energy, gas, ocs, offshore, oil
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A sweet deal for foreign oil importers
Thursday, October 1st, 2009
Anyone who has worked in the oil industry for a while understands that there’s another meaning to “light sweet,” besides the low-fat dessert the words might first bring to mind. Light, sweet is a kind of crude oil, named for its comparatively low sulphur content, the ease with which it flows out of the ground, and apparently, its sweet taste as well.
Heavy crude oil, sometimes also described as sour, tends to have a more viscous quality. This makes it harder to get out of the ground and barrel for barrel, heavy crudes typically produce less refined fuel than lighter grades.
All crude oils, in other words, are not created equal.
Now, if there was an infinite supply of light, sweet crude oil in the world, oil companies might never have bothered going to the trouble of producing the thicker stuff. Fact is, there’s significantly more heavy crude oil in the world, and a substantial amount in the U.S., particularly California. Because heavy crude is typically a lot cheaper than light crude, companies often find it economical to produce, despite its lower quality.
Factor in all the transportation costs that are saved by producing oil domestically, and that heavy stuff starts to look even more appealing.
That brief primer in crude oil economics offers a sense for why some new emissions policies being proposed are misguided. Specifically, a Low Carbon Fuel Standard being considered by Congress would effectively favor light crudes across the board, no matter where they came from and how much it would cost to produce them.
You can read more about the problem with this overly-simplistic approach to reducing emissions on the site Secure Our Fuels, which offers a scenario of how laws passed in Washington would affect the worldwide crude oil trade:
Saudi crude wins out over Canadian crude. Nigeria beats Colorado. And Libya wipes the floor with California. Just because North American crude happens to be deeper, denser and a little bit more remote than our competitors’ oil.
It might seem inconceivable that a well-intentioned policy could actually increase our dependence on foreign oil, but that is the risk you run with sweeping policies that fail to address the complexity of oil economics that we’ve hinted at above.
When it comes to achieving a balanced energy policy that is good for the environment, the economy and the country, good intentions aren’t enough. They may do more harm than good.
Tags: California, CEA, Consumer Energy Alliance, drilling, gas, heavy crude, light sweet, ocs, oil, Secure Our Fuels, viscous
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Newspapers Call for Increased Energy Exploration off the Carolinas, Highlight Huge Economic Benefits, Safety
Wednesday, September 30th, 2009
- “According to a report released on Sept. 16 by the Southeast Energy Alliance, offshore oil exploration and production could generate up to $250 million in annual revenue for South Carolina. That’s a significant addition to the state’s coffers if the results can be achieved in a way that doesn’t disrupt the $17 billion-a-year tourism industry”
- “Studies and recent history have shown that it’s safe to drill offshore for oil and natural gas. It’s safe for the workers. It’s safe for the economy. And it’s safe for the environment”
- “To be against the exploration and development of every viable form of energy in the United States isn’t a meaningful political stance”
- “Conservation, alternative energy and offshore drilling all offer potential pieces to the energy puzzle. All three should be pursued”
The Greenville News, Editorial. “Gas exploration would help state … South Carolina would benefit if the federal government includes this state among those that will be allowed to conduct exploratory natural gas and oil drilling off the Atlantic Coast. … If harvestable natural gas is found off the coast of South Carolina, it would mark a further step toward energy independence for the United States. Second, such work could provide much-needed revenue to the state and create jobs for some state residents. … The reality is that current technology significantly reduces the risks of drilling for natural gas or oil offshore. … Certainly such an influx of oil and gas could help the nation’s short-term energy independence, until cleaner, renewable energy sources become more economically feasible on a large-scale basis. … According to a report released on Sept. 16 by the Southeast Energy Alliance, offshore oil exploration and production could generate up to $250 million in annual revenue for South Carolina. That’s a significant addition to the state’s coffers if the results can be achieved in a way that doesn’t disrupt the $17 billion-a-year tourism industry. Further, the alliance projects that such efforts would create 2,250 jobs in South Carolina. That’s significant in a state that has consistently lagged behind the nation in job creation in the recent past. Certainly the prospect of energy production off the coast would provide yet another economic development engine in South Carolina, and the idea deserves to be explored. The federal government should allow this pilot exploration program, and it should include South Carolina in these efforts to determine if at least some of America’s short-term energy needs can be met by safely harvesting much-needed energy resources from the Atlantic Coast.” (9/28/09)
Jackson Daily News, Editorial. “Offshore drilling now a necessity … Studies and recent history have shown that it’s safe to drill offshore for oil and natural gas. It’s safe for the workers. It’s safe for the economy. And it’s safe for the environment. … Both industry and some federal government officials have said that modern technology has made the chances of offshore exploration causing significant ecological or environmental damage quite remote. … Industry officials also note that the site for drilling for natural gas is about 40 miles off the North Carolina coast, putting it well beyond the horizon from the shore. That means that the breathtaking beauty of the Atlantic Ocean wouldn’t be disturbed by drilling. … There is no reason why ramping up power production from alternate energy sources should exclude offshore drilling. Conservation, alternative energy (including nuclear) and offshore drilling all offer potential pieces to the energy puzzle. All energy options, including some we haven’t even thought of yet, should be supported if the United States is to grow and prosper in the years ahead.” (9/27/09)
Star-News, Editorial: “Looking out to sea … It is difficult to ignore the estimate by a group representing electric cooperatives that North Carolina could reap $577 million annually from oil and natural gas royalties.” (9/24/09)
Gaston Gazette, Editorial: “Introductory exploration … Studies and recent history have shown that it’s safe to drill offshore for oil and natural gas. It’s safe for the workers. It’s safe for the environment. And it’s good for the economy. … Both industry representatives and federal government officials have said that modern technology has made the chances of offshore exploration causing significant ecological or environmental damage quite remote. … Industry officials also note that the proposed natural gas site is about 40 miles off the North Carolina coast, putting it well beyond the horizon from the shore. That means that the breathtaking beauty of the Atlantic Ocean wouldn’t be disturbed by drilling. … Opponents of offshore drilling say that we should focus on conservation and alternative energy sources, such as wind and solar energy. We have no objection to using wind and solar energy and hope that entrepreneurs will soon make those sources economically feasible. But we see no reason why doing so should exclude offshore drilling. Conservation, alternative energy and offshore drilling all offer potential pieces to the energy puzzle. All three should be pursued.” (9/25/09)
Spartanburg Herald-Journal, Editorial. “Environmental activists are protesting development of every viable energy source … Unless we increase our own exploration and generation, we will become increasingly dependent on rogue states like Iran, Venezuela, Libya and Russia for our energy needs. … But today, right now, to be against the exploration and development of every viable form of energy in the United States isn’t a meaningful political stance. One might ask the Alaska Wilderness League members protesting drilling Monday, while dressed as salmon and polar bears, how they got to Washington. Unless they swam, they need to realize that opposing all domestic energy development doesn’t make much sense.” (9/24/09)
Charlotte Observer, Editorial: “’I believe that North Carolina has the capacity to position herself as a global leader in green energy,’ Gov. Bev Perdue said at a coastal area gathering last week to hear about the proposal. Perdue hasn’t endorsed the wind project. She has authorized a study of potential offshore energy resources, including exploratory drilling. That’s appropriate.” (9/29/09)
READ MORE
- SEA North Carolina Offshore Energy Production Study: Click HERE.
- SEA South Carolina Offshore Energy Production Study: Click HERE.
The Southeast Energy Alliance is a non-partisan organization of businesses, trade associations and non-profit organizations – including Farm Bureaus, Electric Cooperative Associations, Chambers of Commerce and Manufacturing Associations – across the Southeastern United States that understand the importance of the development of sound energy policies to ensure the economic viability of their organization. Utilizing grassroots, grass-tops, public advocacy and education at both the state and federal levels, SEA is dedicated to projects and activities that will ensure access to affordable and reliable energy for families, farms and businesses across the Southeast. SEA is the Southeastern regional affiliate of the Consumer Energy Alliance.
Tags: Carolinas, CEA, Consumer Energy Alliance, exploration, ocs, offshore, oil, SEA, Southeast Energy Alliance
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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
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Silent majorities and dressing for success
Thursday, September 24th, 2009
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.
Tags: CEA, CEA Energy Grass Roots, Consumer Energy Alliance, Consumer Energy Issues, Department of the Interior, energy, energy policy, energy prices, energy security, energy supply, gas, Obama, ocs, offshore, oil, Secretary Salazar
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Saving energy in mid-air
Wednesday, September 23rd, 2009
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.
Tags: airlines, CEA, Consumer Energy Alliance, Consumer Energy Issues, emissions, energy, energy supply, fuel, gas, oil, savings
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CEA Urges Senate to Adopt Commonsense Offshore Energy Exploration Provision
Tuesday, September 22nd, 2009
Amendment would streamline domestic energy development, help stabilize costs for American consumers
WASHINGTON – September 22, 2009 As the US Senate considers an appropriations measure setting aside funds for the US Department of the Interior, Sens. David Vitter (La.), Jim DeMint (S.C.) and John Barrasso (Wyo.) are working to include an amendment in the bill that would streamline and advance energy development along our nation’s outer continental shelf (OCS). Consumer Energy Alliance, which has played a leading role in generating over 150,000 of the more than 350,000 favorable public comments to Secretary Ken Salazar in support of expanded offshore energy production, has urged the Senate to adopt this commonsense provision that would increase domestic energy production, helping to drive down and stabilize prices for American consumers.
CEA president David Holt issued the following statement:
“Our energy security, the price American consumers pay at the pump, and the much-needed jobs and revenues created through environmentally-sound, 21st century offshore energy development must be addressed head-on. This commonsense amendment helps do that, and it deserves strong bipartisan support in the US Senate.
“This amendment, coupled with the overwhelming support that the American people delivered to the Interior Department for expanded offshore energy production yesterday as the 5-year comment period came to an end, should continue to send a strong message to the policymakers that decisive action is needed to help meet our growing energy needs, put Americans back to work, raise revenues for the local, state and federal governments and help get the US economy rolling again.”
CEA has participated in over 100 events over past three months focused on responsibly increasing American energy production, while ensuring environmental safeguards. Early indications suggest that favorable comments to the Interior Department handily surpass those in opposition to American energy production, which would be in line with virtually all public opinion polling.
Over the past several years, public comments to the Interior Department have overwhelmingly favored increased offshore energy production. During the 2006 period, 72 percent of comments received during four separate comment periods favored increased energy production offshore. In 2008, 53 percent backed domestic OCS energy exploration. And, early indications from yesterday’s close of the public comment period, favorable comments will once again lead groups who are opposed to sensible offshore development by a sizeable margin. American consumers once again voiced clear support for increased energy production.
Tags: amendment, American energy, Barrasso, CEA, Consumer Energy Alliance, David Holt, DeMint, domestic, drilling, energy, gas, ocs, offshore, oil, outercontinental shelf, Salazar, senate, US Department of the Interior, Vitter
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CEA Praises Bipartisan, Bicameral Congressional Efforts on Expanding Domestic Offshore Energy Production
Tuesday, September 22nd, 2009
WASHINGTON – September 21, 2009 Following a letter from nearly 100 House Republicans, led by Reps. Doc Hastings (R-WA), Rob Bishop (R-UT), and Tom Price (R-GA), urging Interior Secretary Ken Salazar to move forward with a 5-Year offshore energy production plan that would expand safe American energy exploration, Rep. Dan Boren (D-OK), along with 15 other House Democrats, wrote the secretary recommending that his agency open the outer continental shelf (OCS) for responsible offshore energy development. Today, a bipartisan group of senators, led by Sens. Kay Bailey Hutchison (R-TX) and Byron Dorgan (D-ND), penned a similar letter to Secretary Salazar.
David Holt, president of Consumer Energy Alliance (CEA), a non-profit, non-partisan organization that advocates an “all of the above” approach to securing, reliable energy, issued this statement:
“Thanks to many of CEA’s thousands of grassroots supporters and a clear majority of the American public, a year ago, the federal government made positive, and long overdue, steps toward balancing the nation’s long-term energy policy through lifting decade-old bans on safe and effective offshore energy production here at home.
“CEA praises the strong bipartisan, bicameral commitment from the congressmen and senators who have taken the concerns of their constituents about affordable energy and access to American resources directly to Secretary Salazar. The groundswell of support for increased domestic energy production continues to grow, and, as an organization, we’re grateful for the steadfastness on this issues that so many members of Congress and senators continue to demonstrate.
“As the Interior Department’s public comment period on the 5-year OCS plan came to a close today, we are hopeful and encouraged that these congressional letters, as well as the hundreds of thousands of supportive comments from every day Americans, will resonate with Secretary Salazar as he and his agency move forward in crafting a blueprint for our offshore energy production goals over the next several years.
“Thousands of good-paying jobs, stable energy prices for small businesses, working-families and retirees and less dependence on unstable regions of the world to fuel our economy will result from the developing domestic oil and gas, and renewable energy offshore. At the same time, we must focus on harnessing more wind, solar, coal, hydro, nuclear, biofuels and other alternatives and renewable energy forms, while using what we have more wisely, too.”
Tags: 5-Year, American energy, bipartisan, Bishop, CEA, Consumer Energy Alliance, David Holt, domestic energy, Dorgan, drilling, energy, Five Year Plan, gas, Hastings, house, Hutchison, Minerals Management Service, MMS, offshore, oil, republicans, Salazar
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CEA: More Than 325,000 Americans Tell Secretary Salazar to “Show Us the Energy”
Tuesday, September 22nd, 2009
Holt: “What we need now, and what these letters demand, is decisive action from this administration.”
WASHINGTON – September 22, 2009 More than 325,000 American people sent letters to Interior secretary Ken Salazar over the past six months urging his agency to expand responsible access to critical energy resources offshore, and Consumer Energy Alliance (CEA) helped deliver more than 150,000 of them. As the public comment period on Interior’s Draft Proposed five-year energy plan came to a close this week, CEA president David Holt issued the following statement:
“The unified voices of Americans concerned with rising, unstable and increasingly unaffordable energy costs cannot be ignored. Thanks to the hard work of so many CEA supporters – as well as other organizations committed to advancing policies that help put our nation on a path toward energy security and affordability – Secretary Salazar will have overwhelming public support on his side if his agency and the administration decide to move forward with a commonsense plan that allows the American people to access more of the energy resources they need, demand and rightfully own.
“While the closure of this comment period marks a very early step in what is designed to be a long, deliberative process, the volume and intensity of public response on whether responsible offshore energy exploration should be part of our energy future suggests the status quo energy policies of the past will no longer be an option in the future. What we need now, and what these letters demand, is decisive action from this administration – not an effort to pocket veto these critical offshore energy resources.
“As the process of developing a forward-looking, supply-oriented five-year plan continues to move forward, CEA will remain active in leading the charge for an ‘all of the above’ approach to securing our energy future – a future that includes renewable energy, conventional energy, and a renewed focus on conservation. CEA and its broad-based membership including transportation, agriculture, manufacturing, small business, chemistry, restaurants, retirees and energy providers will continue to provide a platform for the American people to make their views and voices heard in Washington.”
NOTE: Click HERE to view CEA’s official comment letter to MMS.
Tags: 5-Year plan, CEA, Consumer Energy Alliance, drilling, energy, Five Year Plan, gas, Minerals Management Service, MMS, offshore, oil, Salazar
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Key Lawmakers, Upstate Business Community, Energy Producers Join SEA in Unveiling New Offshore Energy Development Report
Wednesday, September 16th, 2009
As South Carolina continues to face double-digit unemployment, new report confirms environmentally sound offshore energy production would create 2,250 jobs in the Palmetto State and $45 billion in government revenues
Greenville/Spartanburg, SC – Offshore exploration and production in the waters off South Carolina could generate up to $250 million annually in revenue share payments and would create approximately 2,250 jobs in the Palmetto State, according to a report released today at a press conference by the Southeast Energy Alliance (SEA). SEA is an alliance of manufacturers, agriculture stakeholders and other energy consumers organized to support the thoughtful utilization of energy resources to help ensure improved domestic and global energy security and stable prices for consumers.
“This report highlights a tremendous economic opportunity for South Carolina,” said Michael Whatley, executive director of SEA. “In addition to creating thousands of high-paying jobs and providing substantial benefits to the state’s struggling economy, offshore exploration and production will generate significant revenues for state and local governments.”
The report, which was distributed at press conferences in Greenville and Spartanburg this morning, details the benefits associated with offshore energy exploration, including the potential for federal revenue sharing, job creation, 21st century technologies, economic growth and potential revenues if it chooses to explore for energy along its Outer Continental Shelf (OCS) miles offshore.
Monies received from potential revenue sharing could ease future budget gaps, helping to meet critical health care needs, fund conservation banking, and support key infrastructure and educational projects. These funds could also ease the state tax burden for South Carolinians.
Harry Cato, Speaker Pro Tempore of the South Carolina House of Representatives, said “This report does not come as a surprise. We have the energy resources offshore, the workforce and the technology to help deliver a genuine economic stimulus to our state. At a time when jobs and economic development are most needed in South Carolina, we cannot afford to turn our backs on offshore energy that can be produced safely and effectively.”
The Greenville Chamber of Commerce’s Vice President, John DeWorken, also weighed in, stating “The Upstate business community continues to fight to ensure South Carolina is a better, fairer, and more attractive place to do business. To reduce the high unemployment rate throughout South Carolina, the state needs to support opening access to the energy reserves off our coast. Offshore exploration and production will create jobs, drive down energy prices and give our state a competitive edge.”
Hank McCullough, community relations manager at Piedmont Natural Gas Company – which delivers energy to one million customers in North and South Carolina and Tennessee – added “Delivering affordable and reliable energy to consumers and small businesses throughout the region is a mission we take very seriously. And the more energy that South Carolinians have access to, the less that families and our region’s businesses will ultimately have to pay to keep our economy moving. Technologies today are safer and more efficient than ever to produce, transport and distribute energy to the folks that rely on it every day to heat their homes, do their jobs, and keep their business healthy and profitable.”
According to the report, the Minerals Management Service (MMS) maps and OCS assessments show that South Carolina’s adjacent waters, which comprise approximately 10 percent of the total Atlantic resource base, are projected to contain as much as 750 million barrels of oil and 6.65 trillion cubic feet of natural gas. Exploration and production in the waters off of South Carolina’s coast would generate $413 million in increased GDP and nearly $45 billion in government revenues.
Additionally, South Carolina could receive millions in potential revenue share payments. 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 the Atlantic Coast, exploration and production off South Carolina’s coast could generate up to $250 million annually in state revenue share proceeds.
NOTE: To view this report’s executive summary, click HERE. To view the full report, click HERE.
Southeast Energy Alliance is a regional chapter of Consumer Energy Alliance (CEA). CEA is a nonprofit, nonpartisan organization that supports the thoughtful utilization of energy resources to help ensure improved domestic and global energy security and stable prices for consumers. We seek to help improve consumer understanding of our nation’s energy security, including the need to reduce reliance on imported oil and natural gas, maintain reasonable energy prices for consumers, properly balance our energy needs with environmental & conservation goals and continue efforts to diversify our energy resources.
Tags: CEA, Consumer Energy Alliance, natural gas, offshore energy, oil, SEA, South Carolina, Southeast Energy Alliance
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Back to school … wear comfortable shoes
Wednesday, September 16th, 2009
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.
Tags: CEA, Consumer Energy Alliance, costs, education, energy, fixed income, fuel, gas, gasoline, oil, school bus
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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.
Tags: CEA, Consumer Energy Alliance, David Holt, energy production, gas, natural resources, offshore, oil
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Modern Gushers
Tuesday, September 8th, 2009
Last week we wrote about Peak Oil propaganda and how predictions of the death of the oil industry were grossly exaggerated. Later that week, BP Plc announced a major, major find in deep waters in the Gulf of Mexico expected to eventually yield 300,000 to 400,000 barrels of oil per day, or about half the capacity from all of Alaska’s North Slope.
Those are heady numbers, even for an industry accustomed to dealing in very large volumes. So here’s another way to wrap your head around the magnitude of BP’s gusher: Early estimates are placing the total reserves at at least four billion barrels of oil and natural gas. Assuming a reasonable 35% recovery rate, this single site could account for about 5% of BP’s total proven oil reserves worldwide.
The fact that it is coming from a region often considered past its oil-producing prime offers a tantalizing sense for how much oil may still be out there waiting to be found.
BP owes this game-changing discovery to an aggressive commitment to explore for new oil, advanced technology that has in recent years enabled it to dig deeper, and government policies that have helped oil companies bear the cost.
Indeed, the newly-discovered oil is 36,000 feet below the Gulf floor, or as described by the Houston Chronicle, nearly a mile deeper than Mount Everest is high.
Not really a gusher at all, this is oil that will require a lot more work and investment to get anywhere close to the earth’s surface. It will likely not be a producing field for more than a decade. The daunting challenge of reaching oil trapped so far beneath the ground has often led critics to argue that it is just not economically feasible to produce. As BP’s massive discovery shows, even the most expensive projects may be cost effective when the volumes being produced are large enough. No one, after all, is suggesting now that BP should walk away from this find.
In the earliest days of oil, most fields were found just a few hundred feet below ground, so shallow that when oil was struck it literally gushed to the surface like a geyser. 3-D seismic drilling technology led to wells dug at 10,000 feet or more below ground. And in 1995, President Bill Clinton recognized the need for new policies for a rapidly-changing industry. He signed the Deep Water Royalty Relief Act to ease the burden of royalties on oil produced at great depths in order to encourage further exploration and development.
Just as the earliest oil producers could not have conceptualized the technology that would transform their industry, they probably could not have predicted the need for government policies such as royalty relief to spur continued exploration and innovation. Those who go around promoting Peak Oil are often blind to the industry’s real potential. Reaching that potential will require a lot of hard work, friendly policies that evolve with the industry … and the ability to think big. (And deep.)
Tags: Alaska, BP, CEA, Consumer Energy Alliance, Deep Water Royalty Relief Act, Gulf of Mexico, North Slope, oil
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