October 2010 CEA Newsletter
Issue 42
As CEA prepares for our annual Energy Day event, we are continuing to focus on the energy issues that face the nation. Affordable, abundant, and accessible energy is necessary to fuel a growing economy and ensure the security of our nation. Yet, energy production and consumption must also account for environmental concerns, market volatility, and long-term demand and supply. As demand for energy continues to rise both domestically and globally, supply will be increasingly strained.
Promoting and expanding energy efficiency, conservation and sustainability practices throughout the U.S. economy will produce significant energy and cost savings that will help tackle these hurdles and put us on a path towards a balanced energy future. The positive impact sustainability practices will have on America’s future are indisputable, and it is imperative that businesses, policymakers and consumers collaborate to ensure all sectors of the economy- including residential, commercial and industrial- move toward a sustainable future.
In response to the tragic Gulf of Mexico oil spill accident of April 20, 2010, the Obama administration imposed a six month moratorium on deepwater drilling activities, along with substantive changes to the regulatory structure that governs offshore activities. While the initial moratorium was eventually struck down by the courts as “arbitrary” and “capricious,” this Administration initiated a second moratorium defying the judicial system and insisting that the moratorium remain in place. Meanwhile, tens of thousands of jobs (directly and indirectly) that rely on a robust U.S. oil and gas infrastructure have been lost, with thousands more at risk of being lost very soon.
It is crucial that we all come together now as energy consumers to call on this Administration for a balanced energy policy that promotes fiscal responsibility and economic reinvestment for states. Global energy demand will increase by more than 50 percent between now and 2030 and perhaps by as much as 30 percent here in the United States. In order to meet that demand growth, a reasonable and more appropriate approach is needed to ensure a proper balance between the use of traditional sources of energy and the long-term development of alternatives, as well as improved energy efficiency, conservation, and increased energy research and education. American consumers should be able to depend on the federal government for access to the energy resources they own- a resource that will continue to create millions of jobs, billions of dollars in local revenue, and long-term energy affordability and security.
We have reached a crisis point in our country, and it is time to call on our leaders to begin to make some difficult decisions. Every segment of the energy industry has been impacted and the time for a balanced policy has come. As the Consumer Energy Alliance, we all recognize that the current policy is flawed, if not non-existent, and a policy of continued delay will not suffice. This is indeed an election issue, and as election days arrive in the near future, we call on our Congressional leaders to create an energy policy that addresses the needs of our nation.
David Holt
President
CEA Hosts Energy Day 2010: A Look at Energy Day Past and Present
CEA is proud to be hosting Energy Day 2010, to be held on October 12, 2010. This year’s event will be hosted in Washington, DC, and will include a Sustainability Forum as well as a reception for Members of Congress featuring many of our supporting affiliates. Set in the nation’s capital, Energy Day is an important opportunity for energy consumers, Congressional leaders & staff, the Obama Administration, key stakeholders, policymakers and the media to discuss and share information on exciting energy initiatives and technologies and to recognize the important role of energy in the lives of U.S. citizens, as well as the role Congressional, state and local leaders play in ensuring balanced energy policy, expanded energy efficiency and stable energy supplies.
For the past three years, CEA has held Energy Day in Congressional meeting rooms in Washington, DC, and was primarily directed toward Members of Congress and their Staff. Previous Energy Day events typically included panel discussions on energy sources and technologies, U.S. energy needs and uses, and the impacts of energy on the U.S. economy. These events were smaller in size, lasted about 2.5 hours, and took place around noon or at the end of the day. For 2010 and beyond, however, CEA is working with our partners to broaden Energy Day’s reach with a year-long initiative culminating with an annual festival. Working with our partner organizations, we are designing and hosting events in multiple cities across the nation, and inviting people of all ages and demographics to join us for this special day.
To join us this year, please visit our Energy Day website here to see the schedule of events, and send your RSVP to kkoehler@consumerenergyalliance.org.
Energy Day 2011: Plan to Join Us!
Plans for Energy Day 2011 are already underway, and next year’s festival will be an important event for the city of Houston. Consumers and industry leaders will be coming together to highlight the energy community, and CEA wants everyone to take advantage of the opportunity to sponsor and participate. Some of the highlights next year will be:
• Contests, awards & educational displays to reach youth
• Live music, food & fun appealing to families
• Science, art and multi-media contests for students
• Area school districts and after-school educational programs playing key roles to ensure
energy education and student participation are important parts of Energy Day
throughout the year
• Energy technology represented to attract energy consumers
• Something for everyone!
Sponsorships and participation opportunities are available now. Please contact Kathleen Koehler at kkoehler@consumerenergyalliance.org to receive information and sign up to participate!
Continue to Spread the Word to Sign CEA’s Petition to Lift the Drilling Ban
Sign CEA’s petition urging President Obama to reverse the deepwater drilling ban now. While we witness the devastating consequences of the Gulf of Mexico spill on the environment, we now know that ceasing to drill will cause severe economic repercussions. The oil & gas industry provides significant amounts of jobs and revenue for Gulf residents. The Administration’s kneejerk reaction may have consequences reaching far beyond the oil spill and into the future – rigs are already leaving the Gulf.
Please sign the petition to lift the ban and safeguard American jobs before more damage is done. Sign the petition today!
CEA Welcomes New Affiliate Member: Ernst & Young
Consumer Energy Alliance (CEA) is pleased to welcome a new affiliate member, Ernst & Young LLP, a professional services and auditing firm, specializing in assurance, tax, transaction, and advisory services for all types of businesses.
“Due to the nature of their business on a national and global scale, Ernst & Young is a company with close ties to many facets of the energy industry. Consumer Energy Alliance welcomes Ernst & Young to our alliance, which is committed to supporting a balanced energy policy for America encompassing all resources, including traditional resources, such as oil and natural gas, as well as alternative resources, such as wind, water, solar and more,” said CEA President David Holt. Read the full press release here.
Joining Together to Keep the Focus on Jobs
If you were one of the people who found the news of the Great Recession ending a little ironic, you are not alone. Although the group that tracks recessions announced earlier this week that the recession officially ended in June of 2009, it certainly doesn’t feel that way to America’s almost 15 million unemployed. In fact, the unemployment rate has actually ticked up since the supposed end of the recession. In June of 2009, it stood at 9.5%; this past August, unemployment was 9.6%. Read blog…
Consumer Corner: The Smart Way to Shop for a Vehicle
Automobile manufacturers and dealers use a variety of ways to help consumers make an informed decision when purchasing a vehicle. With so many factors to consider, it’s often hard to decide what is most important. In recent times, the name of the game is saving dollars and cents at the pump. The Department of Energy has created a calculator to help consumers compare cars and save money. By knowing the following information, you can see how owning a more fuel efficient car can add up to significant savings over time:
· Average MPG
· Fuel prices you pay per gallon
· Approximate mileage driven per year
· How long you plan to own your car
Take this information and use it to shop for your next car!
Click here: Fuel Cost Calculator
CEA Weighs in on Hydraulic Fracturing:
“Hydraulic Fracturing Key To Energy Goals,” in Response to National Journal’s “Natural Gas: A Fracking Mess?”
The innovative use of both hydraulic fracturing and horizontal drilling have expanded and deepened both the geology and geography of U.S. natural gas supply by tapping into unconventional gas deposits previously thought unattainable.
EPA’s study is one important policy step to provide information and data necessary for sound decision-making both by the EPA and Congress on the use of hydraulic fracturing for production of shale gas. Congress and EPA should await the study’s results before rushing into long term decisions about how this technology should be regulated. It is also important to consider all aspects of how best to regulate hydraulic fracturing with the dual goals of protecting groundwater resources while realizing the full potential of this resource “game-changer.”
For instance, since shale formations differ between geographies, state regulatory agencies are perhaps better attuned to the unique features of the shale formations in their respective areas and how best to balance natural gas production w…
The innovative use of both hydraulic fracturing and horizontal drilling have expanded and deepened both the geology and geography of U.S. natural gas supply by tapping into unconventional gas deposits previously thought unattainable.
EPA’s study is one important policy step to provide information and data necessary for sound decision-making both by the EPA and Congress on the use of hydraulic fracturing for production of shale gas. Congress and EPA should await the study’s results before rushing into long term decisions about how this technology should be regulated. It is also important to consider all aspects of how best to regulate hydraulic fracturing with the dual goals of protecting groundwater resources while realizing the full potential of this resource “game-changer.”
For instance, since shale formations differ between geographies, state regulatory agencies are perhaps better attuned to the unique features of the shale formations in their respective areas and how best to balance natural gas production with protecting groundwater resources. Applying a uniform or federally regulated “one size fits all” approach to all areas of natural gas shale production in the United States would fail to account for these variations and could actually stifle development of this increasingly important domestic resource.
Additionally, while continued expansion of the technology could spur massive job creation in the U.S., it also presents new opportunities for America’s oil and gas producers and service companies abroad. U.S. companies are currently exporting this technology and working with energy firms in China, India and Western Europe to help them realize their potential to reduce energy imports and meet climate goals through their own domestic development of this less carbon-intensive fuel. This also reduces the market power of OPEC and Russia.
Development of domestic, long-term, large natural gas reserves could and should play an important role in the state of a future U.S. economy that has a lower carbon profile and is less dependent on imported forms of energy. U.S. manufacturing and other natural gas-based industries could and should grow again with a comprehensive energy policy and an appropriate regulatory policy on natural gas that is focused on keeping the U.S. globally competitive.
The world is watching how the U.S. approaches production of these new unconventional natural gas reserves. As we await the EPA report, the continued exploration of this technology is prudent to our national interests.
Click here to see the full article.
CEA REPORT: Final EPA Meeting on Hydraulic Fracturing: CEA Natural Gas Committee Report out of Binghamton
Photo by: Rebecca Catlett / Press & Sun-Bulletin, via AP
Throughout the past spring and summer, we have reported on the progress of the EPA’s congressionally mandated study on the relationship between hydraulic fracturing and drinking water. Before the EPA develops and executes the study, it has been reaching out to stakeholders and the public to obtain additional technical information. This outreach included public meetings in Texas, Colorado, Pennsylvania and New York four states with significant unconventional natural gas production, which concluded with the September 13 and 15 meetings in Binghamton, NY— an area central to the Marcellus Shale play region where active environmental organizations, motivated coalitions of land-owners and other pro-drilling forces, and a state moratorium on hydraulic fracturing have generated significant public awareness of the issue.
Initially, EPA scheduled the Binghamton meeting for mid-August, but was forced to cancel the meetings due to concerns over crowd control and liability after various environmental groups announced plans to bring up to 8,000 people to upstate New York to protest hydraulic fracturing. Once the EPA allotted an extra $20,000 for security costs, the location in Binghamton was finalized, and the EPA organized four separate afternoon and evening sessions to accommodate the high demand for speaking slots.
CEA attended and presented comments at all four of the Binghamton meetings. CEA’s message has consistently focused on a few main points: the need to make sure all public health concerns are addressed, the historical and current aptitude of industry and state regulators to prevent water contamination from hydraulic fracturing; the significant economic potential expanded natural gas development could bring; and the need to base the study on scientific data rather than emotional response and on the narrow parameters of the congressional mandate.
In Binghamton, the opponents of natural gas production provided a series of thoughtful, technical presentations including suggestions for reports and analysis that the EPA should examine. Previously at meetings in Fort Worth, TX and Canonsburg, PA, environmental groups utilized the meetings more for a political protest ignoring the original intent of the meetings and providing a groundswell of anti-drilling sentiment.
Not only were opponents more focused on technical input at the Binghamton meetings, but opponents and proponents of drilling were more evenly matched than prior meetings. Though each side was enthusiastic, the large audiences and protests failed to materialize with only about 300-500 people per session and a dozen or so protesters. In fact, local news reports described the meetings as “underwhelming.”
In the coming months, EPA plans to hold stakeholder meetings with industry in hopes of obtaining more technical data and input for case study selection. Originally, these meetings were intended to occur in the early fall. Yet, due to the delays with the Binghamton meetings and overwhelming interest in the study, EPA anticipates holding these meetings at a later date. With the two-year study already in its six month and without an agreed design, it is likely the results of the study will not be finalized by its target date.
CEA and the Natural Gas Committee will continue to monitor the progress of the EPA study and engage with industry, government and the public where appropriate. CEA believes expanded access and production of natural gas— particularly unconventional shale resources—are essential to spurring U.S. economic growth, providing jobs, and stabilizing energy prices for consumers.
