Poor Infrastructure Is Threatening to Derail the US Shale Boom

November 12, 2018

As we’ve reported previously, constraints in our country’s critical energy delivery network are continuing to impact American energy production, preventing families and businesses from seeing lower energy costs.

In recent months, producers have experienced pipeline bottlenecks due to the vast amounts of oil and gas being pumped out of the Permian Basin, where output has reached around 3.4 million BPD. With the current pipeline capacity sitting at approximately 3.56 million BPD, analysts expect the constraints to begin limiting growth in the region next year.

The Surprising Benefits of Energy Efficient Windows

November 8, 2018

Besides the people who fill it, consistent comfort is one of the most important qualities that help make a house a home. Keeping it comfortable, however, can be a bit challenging at times. After all, whether its summer air-conditioning or winter heat you’re looking to fill your home with during the different seasons – it’s always looking for a way out, which can rob you not only of your comfort but it can also cost you some serious cash.

Fortunately, there are plenty of improvements you can make to your home – helping to make it more efficient and keep you more comfortable for less money. One of the biggest changes you can make is installing energy efficient windows. New windows can make a significant impact on how much energy you use as windows are one of the places where air is most likely to escape. To help you understand why energy efficient windows are such a great choice, here is a little information for you to consider.

What Are They Made Of?

Like most windows, energy efficient windows are made of glass. However, it’s what surrounds the glass that sets energy efficient windows apart from others. That’s because most energy efficient windows are coated with a material that reflects UV rays, preventing them from entering your home. In addition, energy efficient windows usually have two, and sometimes even three panes of glass that make up the unit.

These multiple panes of glass reduce UV transmission even further, plus the space between the panes can be filled with a gas, often Argon or Krypton, which prevents energy transfer. The sashes, which hold the windows and the frame in place, are also made from high-efficiency, long-lasting materials to ensure that no air escapes from the area around the window.

How Do They Work?

The loss of conditioned air from your home is based on the scientific principle known as thermodynamics, which states that matter and energy always move from an area of greater concentration to an area of lesser concentration. In the case of your home, the air that is more highly concentrated is the warmer air. So, in the summer, this is the air outside. In the winter, this is the air inside.

What you’re trying to do is prevent the higher-energy air from being transferred to space where the lower-energy air is. Energy efficient windows accomplish this by placing physical and chemical barriers between the air outside your home and the air inside. The more physical and efficient barriers you’re able to put in place, the slower the transfer of energy occurs, and the more comfortable your home stays.

What Is The Price Difference?

As with any home improvement project, the price you can expect to pay for energy efficient windows can vary widely. Factors that influence the price include the coatings you select for the windows, the number of panes of glass, the materials you choose for the sash, and whether the windows are being installed in new or existing construction.

Triple-pane windows typically cost at least 20-30% more than their double-pane counterparts, given the higher amount of materials and higher potential energy savings. Most new windows you can buy are geared to be energy efficient in some way, so the price you pay truly does depend on the features you select. Like they always say, “You get what you pay for.”

What is the Time of Payoff?

As with the price of the windows themselves, the time it will take you to recoup those costs through energy savings will also vary depending on a number of factors. One of the most important factors is the climate of the city or town where your home is located. If you frequently experience extreme weather where you live, then upgrading your windows will pay off sooner.

Additionally, the cost of the windows, the price of energy, and the overall efficiency of your home will factor into the time it takes to pay off your windows. The single most important factor, however, that determines how fast you can recoup the cost of your windows is what type of windows you’re replacing. If you currently have single pane windows throughout your home, you can expect to see a quick return whether you select double- or triple-pane windows. If, however, your windows were decent and you’re replacing them more for aesthetics or a slight comfort increase, the time to recoup your costs will be longer.

As with any type of energy we use, it is how we use it, and using energy more efficiently will help as energy demand continues to grow. The easiest things you can do to reduce energy waste and increase efficiency is to start doing little things around your house that not only help reduce energy costs for your household but ultimately help reduce the energy you use and lessen your impacts on the environment.

Energy Grows Confidence in New Mexico’s Budget – and Yours!

November 8, 2018

Santa Fe New Mexico Street with Pedestrians

Did you know the U.S. is the number one producer of natural gas? A basic lesson in economics reminds us when you have a large supply of something, the price is usually pretty low. Natural gas is no different, and right now, one million cubic feet of natural gas trades for less than $3.00. You’re likely wondering how much is a million cubic feet of a gas? Convert it to gallons and you’re looking at around 32 gallons or three-quarters of a regular sized barrel. That’s a lot of energy for a pretty small price.

But that wasn’t always the case.

Energy prices in the U.S. used to spike more when global events, often in the Middle East, would cause a disruption in supply. Natural disasters like hurricanes or floods, or other unusual changes in weather can also interrupt our energy supply and when you have a low supply of something that means the price can get pretty high.

And there’s no better place to see that play out than in New Mexico. As natural gas production continues to grow in two areas of New Mexico, both the Permian and San Juan Basins, so do the tax revenues the companies have to pay when they develop these fuels. Companies most commonly refer to them as a severance tax, and in New Mexico, state officials project oil and gas tax revenues like the severance tax could create a budget surplus of close to $2 billion this year.

New Mexico state legislative House Speaker Brian Egolf said the state should know by January if the surplus reaches $2 billion. He also told a local news media that contrary to two years ago when New Mexico faced a $300 million deficit, he sees a windfall from the state’s energy sector. “We see the possibility of hiring, over the next five years, as many as 10,000 teachers in New Mexico,” Egolf said, adding that he wants the bulk of the surplus to go toward education.

In the last decade, as more natural gas has been recovered on U.S. soil, its price has plummeted and remained relatively low. Experts predict they’ll stay low too – for a long time, and that means utility bills have seen a trickle-down effect too. This is good news for small businesses, families, and especially low-income households. In fact, New Mexico families and businesses saved more than $3.4 billion between 2006 and 2016.

As fall turns to winter, we can thank low-cost natural gas for allowing us to heat our homes and know that that turning up our furnace won’t cause too much pain forking out cash from our wallets. I bet the government is feeling the same way too.

Energy Grows Jobs in New Mexico

November 6, 2018

Jobs, jobs, and jobs are the three words we often hear when economists talk about the financial health of our nation, state, region or even our neighborhoods. It was definitely the word of the day during this past election season.

According to a Bureau of Labor Statistics (BLS) update released at the end of 2017 (the most current dataset), employment in the US is expected to increase by 11.5 million between now and 2026. Not surprisingly, the top job categories expected to grow, and grow at a tremendous pace, are focused in the energy industry.

Thanks to oil and gas, nearly a third of the New Mexico economy is being funded by the growth of production in the state. According to Federal Reserve Bank data, New Mexico leads other states in job and wage gains since 2017. The New Mexico Oil and Gas Association (NMOGA) says the average salary for the oil and gas industry is $71,505 – more than $25,000 higher than the average New Mexico salary. Not too shabby for an industry that employs more than 100,000 New Mexicans.

But where are the jobs? In what industries and in what states? What kinds of jobs are we talking about? Burger flipping or desk jobs? It kind of matters, doesn’t it?

Business Insider recently ranked the Top 40 highest-paying jobs that don’t require a bachelor’s degree and roughly 27% are related to the energy industry. Here’s a quick rundown of energy-related professions and what they pay on average. It’s a great guide of job seekers in New Mexico who want to work in the energy industry.

#5 Power distributors and dispatchers. They coordinate, regulate, or distribute electricity or steam. Median annual wage: $81,900.

#11 Powerhouse, substation, and relay electrical and electronics repairers. They inspect, test, repair, or maintain electrical equipment in generating stations, substations, and in-service relays. Median annual wage: $75,670.

#12 Power plant operators. They control, operate, or maintain machinery to generate electric power. Includes auxiliary equipment operators. Median annual wage: $74,690.

#26 Electrical power-line installers and repairers. They install or repair cables or wires used in electrical power or distribution systems. Median annual wage: $68,010.

#27 Gas plant operators. They distribute or process gas for utility companies and others by controlling compressors to maintain specified pressures on main pipelines. Median annual wage: $67,580.

#28 Petroleum pump system operators, refinery operators, and gaugers. They operate or control petroleum refining or processing units. Median annual wage: $67,400.

#37 First-line supervisors of construction trades and extraction workers. They directly supervise and coordinate activities of construction or extraction workers. Median annual wage: $62,980.

#39 Electrical and electronics engineering technicians. They design, build, repair, calibrate, and modify electrical components, circuitry, controls, and machinery for subsequent evaluation and use by engineering staff. Median annual wage: $62,190.

#40 Boilermakers. They assemble, install, and repair boilers, closed vats, and other large vessels or containers that hold liquids and gases. Median annual wage: $62,060.

The Permian Basin, a massive oil reserve that sits across the Texas and New Mexico border, will soon become the third largest oil producing regions in the world, according to IHS Markit. The potential amount of oil that could be produced would surpass output from all other producing nations except Saudi Arabia and Russia.

That means these kinds of great-paying jobs will be around for a while and New Mexico’s future is looking brighter than ever.

Consumer Energy Alliance 2018 Annual Report

November 2, 2018

Read our latest annual report here:

U.S. Secretary of Energy Rick Perry at Consumer Energy Alliance Summit: American Energy a Must for National, Economic Security

November 2, 2018

NORFOLK, V.A. — Domestic energy production and expansions in infrastructure continue to be a must-have for American energy dominance and national and economic security, benefitting American families, small businesses and the environment, including those in Virginia, U.S. Secretary of Energy Rick Perry said today at an energy and security summit hosted by Consumer Energy Alliance (CEA) in Norfolk, V.A.

Perry was joined by the following local and national business leaders, policymakers and organizations to discuss the need for sensible energy solutions that includes the growth of all available U.S. resources – traditional and renewable – and the expansion of its infrastructure network to grow jobs, further expand the economy and fortify U.S. global competitiveness, all while safeguarding the environment:

State Sen. Frank Wagner
Bryan K. Stephens, President & CEO, Hampton Roads Chamber
Brett Vassey, CEO, Virginia Manufacturing Association
Michael Whatley, Senior Executive Vice President, Consumer Energy Alliance

At the event, Perry projected that the U.S. will be a net energy exporter by 2020.

“We are already energy dominant now,” he said. “We’re seeing a 1-million-barrels-a-day increase from 2018 to 2019, and the third-largest oil field in the world is the Permian Basin, in West Texas,” Perry said. “It’s stunningly prolific because of technology and innovation. Its success is due to pipeline infrastructure.”

Whatley said that thanks to the energy revolution unfolding locally and nationally – courtesy of increased production and new technologies – energy consumers from coast to coast have increased disposable income, job growth and economic investment; decreased or stabilized household energy costs; and helped revitalize their communities.

“The key is maintaining an all-of-the-above energy strategy, here and nationally, that urges the growth of all resources and the expansion of all energy infrastructure,” Whatley said. “Such a game plan will help lower energy costs for cash-strapped families and small businesses countrywide and provide stronger opportunities for manufacturers and businesses to create jobs for those who need it most.”

Vassey concurred, saying that “in this commonwealth, we are proud that we still make and move things.”

“I believe if you dream it, you can do it,” he added. “We are doing great things, but we still need to grow our energy capacity to remain competitive. Today, I am proud to help champion the values of affordable, reliable energy.”

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About Consumer Energy Alliance
Consumer Energy Alliance (CEA) brings together families, farmers, small businesses, distributors, producers and manufacturers to support America’s energy future. With more than 500,000 members nationwide, our mission is to help ensure stable prices and energy security for households across the country. We believe energy development is something that touches everyone in our nation, and thus it is necessary for all of us to actively engage in the conversation about how we develop our diverse energy resources and energy’s importance to the economy. Learn more at ConsumerEnergyAlliance.org.

Contact:
Emily Haggstrom
P: 720-582-0242
ehaggstrom@consumerenergyalliance.org

Poll: Florida Wants Affordable Energy, Clean Environment, and Balanced Fuel Mix, Energy an Important Voter Issue

November 2, 2018

Young father and two little kid boys feeding fishes and big brown pelicans

Tallahassee, FL – A new poll released today by Consumer Energy Alliance (CEA) and the Florida State Hispanic Chamber of Commerce finds overwhelming support from Floridians for a balanced approach to energy.

Conducted by MWR Strategies, the poll of 1,005 likely Florida voters shows that 78 percent of Sunshine State residents say that energy will be an issue of importance when they vote on Election Day, with more than 90 percent of Floridians agreeing that both affordable and reliable energy along with clean air and water are important for the state’s families and businesses.

The poll also finds that 75 percent of Florida voters believe that a balanced fuel mix which includes renewables, natural gas, and nuclear is important to help keep electricity affordable and reliable. In addition, the vast majority of Florida voters – 61 percent – would prefer allowing for some exploration and production of energy in the Eastern Gulf of Mexico over a prohibition.

“The poll results show that Floridians overwhelmingly embrace balanced approaches to energy, and recognize that families and businesses in the state will benefit the most when policymakers come together to support both energy and the environment,” CEA Florida Executive Director Kevin Doyle said. “Despite efforts being made by anti-development activists who are pushing for a “Just Say NO!” approach to energy, more Floridians are speaking up loudly and clearly to reject such short-sighted campaigns and instead opting to support efforts to find solutions that will protect families, households, and small businesses across Florida.”

“I’m a firm proponent of a balanced energy supply, which encompasses an “all of the above” approach. The results of this poll demonstrate that Floridians understand the important role that energy plays in Florida’s economy,” said Julio Fuentes, President, and CEO of the Florida State Hispanic Chamber of Commerce.

With Election Day just four days away, the poll also finds that Florida’s gubernatorial and U.S. Senate contests are neck-and-neck. In the race for Governor, Democrat Andrew Gillum leads Republican Ron DeSantis 41 percent to 40 percent, with 18 percent undecided/refused to answer. In the race for U.S. Senate, Republican challenger Rick Scott leads incumbent Democrat Bill Nelson 43 percent to 41 percent, with 16 percent undecided/refused to answer.

The polling memo, topline results and crosstabs can be found at the following links.

The poll has a margin of error of 3.1 percent.

Methodology: MWR Strategies conducted the poll for Consumer Energy Alliance and the Florida State Hispanic Chamber of Commerce. 1,005 likely Florida voters were surveyed via landline or cell phone between October 25 and October 31. The poll carries a 3.1% margin of error.

About Florida State Hispanic Chamber of Commerce

The Florida State Hispanic Chamber of Commerce actively promotes the economic growth and development of Hispanic entrepreneurs and represents the interests of over 604,000 Hispanic-owned businesses across the state that together contribute in excess of $90 billion to Florida’s economy each year.

About Consumer Energy Alliance
Consumer Energy Alliance (CEA) brings together families, farmers, small businesses, distributors, producers and manufacturers to support America’s energy future. With more than 500,000 members nationwide, our mission is to help ensure stable prices and energy security for households across the country. We believe energy development is something that touches everyone in our nation, and thus it is necessary for all of us to actively engage in the conversation about how we develop our diverse energy resources and energy’s importance to the economy.

Media Contact:
Emily Haggstrom
P: 720-582-0242
ehaggstrom@consumerenergyalliance.org

Americans Need a Balance: Cleaner Environment, Affordable Energy

November 2, 2018

CEA’s David Holt discusses the importance of American energy development in creating a sustainable environment and affordable energy for families across the country.

Yet too much of the debate continues to force a false choice between developing our energy and environmental protection. Thanks to improved technology and procedures, plus an array of regulations that’s second to none globally, the industry has helped America continue its role as a world leader in energy conservation. Case in point: The U.S. reduced its carbon emissions by 0.5 percent, the most of all major countries, in 2017, the latest BP Statistical Review of World Energy says, all while the national economy grew by nearly 3 percent.

Energy Grows Paychecks in New Mexico (College Degree Not Required)

November 1, 2018

If you search online for the top paying jobs in New Mexico, you’ll be lead to several lists that primarily include only doctors, surgeons and dentists.

But those professions require three key elements: lots of time, major brainpower, and most importantly costly educations. Let’s face it, not everyone is interested in or cut out to go to college, but everyone is interested in a great paycheck.

Right now, as unemployment in New Mexico continues to hover around 5% and the average salary statewide is roughly $45,674, it’s nice to know there are options for high paying jobs – a lot of them coming from the energy industry. But aside from the CEO, what kind of jobs are there and can anyone besides the boss make good money? If so, how?

Every New Mexican who lives within fifty miles of the now-legendary Permian Basin should take note. In September 2018, the Bureau of Land Management, the government agency responsible for overseeing America’s public lands, held an oil and gas lease sale where companies could bid on energy-producing acreage in the state. The results blew everyone away. A little over $1B in sales were made, shattering the record for all U.S. lease sales.

Aside from the future jobs, this will bring, half of the money received in these auctions goes into the state reserves where the land resides. That’s right, these lease sales just helped bring money to New Mexico with the revenue from this auction totaling roughly 8% of the state’s entire budget.

It’s more than just the typical jobs you consider when you think of energy development. It takes all sorts of people with varying skill-sets to make up an industry, but some skill-sets can have more opportunities than others. The energy industry is no different, but what’s unusual is the number of high-paying jobs that don’t require a college degree.

Business Insider recently ranked the Top 40 highest-paying jobs that don’t require a bachelor’s degree and roughly 27% are related to the energy industry. Here’s a quick rundown of energy-related professions and what they pay on average:

#2 Nuclear power reactor operators. They operate or control nuclear reactors, move control rods, start and stop equipment, monitor and adjust controls, record data in logs, and implement emergency procedures when needed. Median annual wage: $91,170.

#5 Power distributors and dispatchers. They coordinate, regulate, or distribute electricity or steam. Median annual wage: $81,900.

#7 Nuclear technicians. They assist physicists, engineers, and other professionals in nuclear research and nuclear production. Median annual wage: $79,140.