CEA Newsletter
Issue 35

Message from CEA President David Holt
In recent days, President Barack Obama delivered his first State of the Union address which focused on an increase in government action to combat the nation’s existing economic problems. The President called for assertive development of safe, clean nuclear power as well as increased energy efficiency and renewable energy.

CEA is in complete agreement with the President’s emphasis on these areas of American energy production, but stand strong on our stance that responsible development of these resources must occur as part of a balanced, all-of-the-above energy policy that includes traditional resources, such as oil and natural gas, in addition to alternative sources.

Currently, actions are speaking louder than the words of the President’s recent speech. Over the past year, the Administration has put the brakes on many essential American energy developments, including production of oil shale in the western United States and American offshore resources. The Administration has revoked many oil and gas leases which had already been issued resulting in the potential loss of millions of dollars in royalties for the nation and numerous jobs for its people.

Numerous other initiatives promoted by the Administration would have negative impacts on the economy, including hiking taxes on America’s oil and gas companies – a policy that would lower domestic energy production at a time when the nation needs increased energy sources.

When the nation is calling out for more energy, the Administration is taking action to restrict its development. During the past year, fewer onshore and offshore acres have been leased than in any previous year on record and the government brought in less than 1/10th of the revenue from oil and gas lease sales in 2009 than the year before.

Words are only as strong as the actions behind them. Right now, the United States needs robust and stable energy policy that will encourage economic recovery and job creation. The Administration’s actions are in direct conflict with progress in these areas.

The United States must not unreasonably restrict development of traditional energy sources, such as oil and natural gas. Unnecessary restriction of American resources would put a heavier burden on an already struggling economy and hinder the future success of the United States and her citizens while forcing a stronger national dependence on unstable foreign resources.

The focus of our nation’s energy policy should be balance – a balance between concerns over the environment and climate with the responsibility of ensuring the well-being of the American people, job creation and economic growth. To keep the nation’s interests in balance, it is essential that U.S. energy policies reflect an all-of-the-above approach that includes reasonable and responsible development of traditional resources as well as alternative sources, including solar, wind, wave and more.

As the Administration develops its energy initiatives, CEA is working hard and moving forward in promoting policies and education that will benefit all American consumers. We recognize the importance of American energy development of all types of energy and are working with lawmakers and stakeholders to develop policies favorable to domestic production of renewables and traditional sources.

Thank you for being an active part of CEA. Working together, we will meet our nation’s energy challenges and help secure a successful economic future for America. Your support is critical.

David Holt
Ensure a Balanced Approach to America’s Offshore & Ocean Resources!
Currently, the federal government is considering a plan for our nation’s oceans that, if implemented, would significantly impair our nation’s ability to safely develop its own offshore energy, including oil, natural gas and renewable energy. To help ensure that the Administration and the Ocean Policy Task Force adopt a framework that will strengthen the American economy and improve energy security, please submit a comment in support of the safe and responsible development of U.S. offshore resources. Send in your comments today!
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!
Visit the CEA Store – Show your support!
CEA recently launched an online store complete with CEA and domestic energy development-themed merchandise. We’ve included many unique items that will appeal to every taste and budget, such as T-shirts, sweatshirts, bags, yard signs, buttons, mugs and even a doggie-sized T-shirt for your four-footed friend. Help CEA spread the word regarding the necessity of a balanced energy policy for America! Visit the CEA Store today.

CEA Welcomes New Affiliate Members
CEA is proud to announce the addition of several new affiliate members who have joined our alliance in recent months: American Public Power Association, Association of Oil Pipelines and Nucor Steel. For a complete list of CEA’s valued affiliates, click here.
CEA Blog: One Year Later, Actions Speak Louder Than Words
Check out CEA’s recent blog entry about the actions and restrictions of the Obama Administration during 2009 related to American energy development. Join the conversation at CEA’s website. Read blog…
Consumer Corner: Bring Your Green To WORK!
Maybe you’ve already made your home energy-efficient – now it’s time to take your green to work! EnergyStar.gov is currently promoting a nationwide campaign that encourages all Americans to practice energy efficiency not only in their homes, but also their workplaces.

First things first – create a “Green Team” at your office that encourages others to make an effort when it comes to saving energy. Then, follow a simple checklist to implement green tips. Included on the list are: 1. Set your computer and monitor to automatically enter “power save” mode when not in use, 2. Use a power strip as a central turn-off spot, 3. Unplug laptops, cell phones and chargers after use – leaving them plugged in wastes energy!, 4. Swap out old-fashioned light bulbs for new Energy Star qualified bulbs – last 10 times longer and use 75% less energy!, and 5. Keep air vents unblocked so that air can flow freely. Start your Green Team today!

China Surging Ahead With Clean Energy Development
Over the past year, China has greatly expanded clean energy development efforts, including attaining the position of the world’s largest maker of wind turbines, sparking concern that the United States is falling behind. Read article…
Federal Government Announces Energy Efficiency Plans
The White House recently announced plans to reduce the federal government’s energy use and emissions by 28 percent (from 2008 levels) by 2020. Read article…
Opinion: Highway Users & Energy Companies: Where do our interests meet?
By Greg Cohen, American Highway Users Alliance

With motorists, bus drivers, truckers, RVers, and motorcyclists dependent on reliable and affordable energy, the inseparable relationship between highway users and energy is clear and unquestionable.  Thus, it is not surprising that both the highway and energy industries often support the same policies, including support for additional, stable supplies of fuel and maintaining a strong user fee principle for highway funding.

Both highway users and the energy community agree that an excise tax on gas is necessary to maintain our roads.  And as long as the tax on petroleum is seen by politicians and the public as a user fee specifically for highway usage, legislators cannot use it as a blank check to pursue broad ideological agendas. With this in mind, as long as the user fee is maintained, the United States will continue to have among the lowest taxes on petroleum among industrialized nations. For highway users, this means a cheaper and safer trip.  For energy companies, this means limits to taxation and a better bottom line.

Every day, energy companies and highway users encounter many of the same painstaking issues as we attempt to make the improvements and innovations necessary to keep America moving.  Despite incredible engineering advances that make our modern projects overwhelmingly beneficial for people and the environment, we face the same adversaries.  Both energy and highway projects are routinely delayed for decades by bureaucratic red tape, and opponents remain ever hungry to target our industries for taxation and regulation.  Our consumers are also targeted by those who wish to change our behaviors – sometimes through coercive measures developed by unelected bureaucrats.  We therefore share a unique set of challenges and typically share the same supporters and opponents.

Politically active highway users recognize this, and have reacted to many of these challenges by cooperating hand-in-hand with the energy industry to raise awareness of the benefits of each other’s projects.  Often, the solutions to project delays in the highway and energy fields are similar.

On the nation’s most prominent topic of energy discussion, “cap-and-trade”, the American Highway Users Alliance has joined with some energy companies and many other partners to oppose legislation that places a disproportionate burden on the oil industry.  While we envision a cap-and-trade bill that could garner our support, we have not found one in either the House Waxman-Markey bill or the Senate Kerry-Boxer bill.  We continue to look for Senators who are open to a plan that would exempt downstream fuels from the cap and apply fuel cost increases to highway project funding.  And we have worked tirelessly to publicize the damaging effects that the Waxman-Markey bill would have on fuel prices.

The mutual interests of the highway and energy communities will continue to intersect, just as they do at every gas pump in America, and we will continue to work together on these issues to help make America safer and more mobile.  As two industries that are so vitally important to America’s economy and culture, it is a great relationship to be in.

For more information on the American Highway Users Alliance, visit www.highways.org.
Affiliate Spotlight: Independent Petroleum Association of America
The Independent Petroleum Association of America (IPAA), headquartered in Washington, D.C., is the leading, national upstream trade association representing 5,000 independent oil and natural gas producers and service companies located throughout the United States.

“IPAA is dedicated to ensuring a strong, viable oil and natural gas industry in America, recognizing that an adequate, reliable, affordable and secure supply of American energy is essential to the national economy,” says President and CEO Barry Russell.

From its roots 80 years ago when IPAA began protecting the business interests of America’s independent oil and natural gas producers, the organization continues its mission today. Independent producers currently develop 90 percent of the oil and gas wells in the U.S., produce 68 percent of American oil and produce 82 percent of American natural gas.

“Independent producers are the small, high tech businesses that employ on average 12 employees and drill nine out of every ten wells across the country today. Our members are in the business of energy, which is why America’s national energy policy is of great concern to our association,” explains Russell.

IPAA believes that policymakers should encourage the growth of all energy sources.

“When you reduce investment in American energy resources the result is less American production, lost jobs, more foreign dependency, weakened national security and higher prices for Americans. This is the wrong course for America, especially during an economic recession when American oil and natural gas production has proven to be a job creator and revenue provider for decades,” he emphasizes. “American oil and natural gas investment can be a real economic stimulus package if federal policies would encourage its production here at home.”

IPAA believes that America must embrace conservation, efficiency and all forms of American energy for the future.

“Today, oil and natural gas provide two-thirds of our nation’s energy needs, as well as the fuel for many alternative energy projects. The fact remains, that for the foreseeable future, oil and natural gas will be our main fuel source,” Russell notes. “We urge the administration to move forward with commonsense, long term solutions that encourage domestic energy production. American jobs and our national security are at stake.”

IPAA is an affiliate of Consumer Energy Alliance (CEA) because it brings together industries representing diverse sectors of the U.S. economy who are concerned about securing reliable, affordable, American energy for consumers all across the country.

“IPAA believes there is strength in numbers, and playing an active role in CEA affords IPAA a stronger voice on Capitol Hill,” Russell concludes. “We all agree that the United States needs to find commonsense, long term energy solutions that will benefit the economy and strengthen our national security. This can only be done by promoting an all of the above approach to developing America’s energy resources.”

For more information on the Independent Association of America, visit www.ipaa.org.