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Report: Shale Saved Ohio Natural Gas Consumers More Than $40 Billion Over 10 Years

Oil and Gas Refinery Workers

Recently, Consumer Energy Alliance released a report, The Benefits of Ohio’s Natural Gas Production to Energy Consumers and Job Creators, examining the impact natural gas production has had on energy consumers across Ohio.

A new Consumer Energy Alliance (CEA) report highlights how domestic shale development saved Ohio consumers more than $40 billion from 2006 to 2016 by driving down natural gas prices. Thanks to prolific natural gas production in the Appalachian Basin, the region now boasts the lowest natural gas prices in the world — and at the end of the day, that means billions in savings to natural gas consumers.

Read more – Energy in Depth

Energy Grows American Manufacturing

Manufacturing on the factory floor

What’s the difference between crude oil and petroleum products? You might think they’re the same thing, but they’re not, they’re different!

For those who’d like to do an online search to seek out the difference – look no further than one of our favorite energy sources, the U.S. Energy Information Administration (EIA).

Here, the EIA describes the distinction this way:

  • Crude oil is a mixture of hydrocarbons that exists as a liquid in underground geologic formations and remains a liquid when brought to the surface. (Think barrels of oil.)
  • Petroleum products are produced from the processing of crude oil and other liquids at petroleum refineries, from the extraction of liquid hydrocarbons at natural gas processing plants, and from the production of finished petroleum products at blending facilities. (Think of these as value-adds – they’re things like gasoline, diesel, jet fuel, and propane.)

In other words, one is a raw material found naturally in our geology and the other is a byproduct that is created or extracted as a result of the refining process.

Think of it like a forest vs. 2x4s you can find at a hardware store. While we can grow and harvest timber – in order to build a home, it helps if that wood is processed or cut into useful shapes, like a 2×4 board. These same 2x4s can also be used to build all kinds of important things besides homes.  They’re used to construct all sorts of things from schools and medical buildings to shops and furniture.

Like crude oil and timber, U.S. manufacturing operates in a similar way, using refined or finished products created from a boon in crude oil production for things that may sound boring and unfamiliar, but end up being the foundation for products used every day across all different types of industries.

That means after all the refined and finished petroleum products are made, they can be sent for further refining to develop petrochemicals – things like methane, polyethylene, polyurethane, and polypropylene. So what you’re thinking. Well these petrochemicals are then sent to manufacturers where they take methane and make rocket fuel (think Elon Musk and SpaceX), ethylene to make polyethylene popular plastic products (think Legos or the carpet in your living room), polyurethane to make foam (think of a baby’s car seat), polypropylene (think that jogging or workout top), or benzene to make cream (think sunscreen to avoid burns)  – these materials are the building blocks of U.S. manufacturing representing various industries and products.

For more than 200 years, since before the Industrial Revolution, the manufacturing industry has played one of the most significant roles in America’s growth and development. Manufacturers have developed products that help us live the lifestyles we afford, which is why it’s a common topic around jobs and growth, and certainly, a reoccurring theme amongst elected officials and policymakers when they discuss and debate the health of our nation’s economy,

And while 12 million Americans still work in the manufacturing industry, it’s not what it once was.  We’ve lost some of those jobs to other countries, and in some cases, we’ve traded those jobs for different, more popular sectors such as health care or information technology (IT.)

But thanks to a resurgence in American oil production, companies that previously sought cheap and easy-to-access energy for manufacturing are returning back home. The issue is rooted in simple economics: if the raw material – in this case, crude oil – is easier and cheaper to obtain here in America, then companies will make the products here, instead of sourcing them out.

Granted there are other factors in the manufacturing equation, such as the price and availability of labor to manufacture goods, but nailing down the energy portion is fundamental for growing manufacturing jobs in America again.

Report: Ohio Consumers Saved More Than $40 Billion Over 10 Years from Lower Natural Gas Prices

Friends Outside with Drinks

COLUMBUS, O.H. — Thanks to increased production and new technologies, which have decreased the price of natural gas, Ohio energy consumers saved more than $40.2 billion between 2006 and 2016, according to a new report released today by Consumer Energy Alliance (CEA) with calculations developed by Orion Strategies.

Residential users saved almost $15 billion, while commercial and industrial users saved upwards of $25.3 billion, the report, titled “The Benefits of Ohio’s Natural Gas Production to Energy Consumers and Job Creators,” said. The analysis examined how the shale revolution across the Marcellus and Utica region has provided benefits to Ohio’s energy consumers by boosting disposable income and revitalizing communities.

CEA’s report examines the benefits of Ohio’s energy production and its role in providing reliable and affordable energy that keeps the lives and the businesses of Ohio moving. CEA continues to strongly support the development of natural gas and other traditional and alternative energy sources while urging policymakers in Ohio to embrace the benefits and growth potential that Ohio energy production brings to families, farms, and factories across the state.

Highlights from the report include:

  • Due to increased production and new technologies, Ohio natural gas consumers have saved over $40.2 billion between 2006 and 2016 simply because of the decreasing price of natural gas, with residential users saving almost $15 billion, while commercial and industrial users saved upwards of $25.3 billion.
  • Prior to the shale revolution, prices for natural gas in Ohio peaked at $10.66 and has steadily decreased to just under $4.
  • After Ohio gas prices peaked at an average of $4.15 per gallon in 2011, increases in shale oil production helped prices fall to some of their cheapest marks in 10 years. In one year alone, AAA found drivers saved $115 billion, an average of $1,100 per household.
  • In the last seven years, shale-related industry employment increased 7.8 percent, employing over 389,000 Ohioans. Average wages across shale-related industries also increased to $98,613 – over $49,000 greater than the average for all industries in the state.
  • More than 700 new businesses have been established statewide to support the shale industry, bringing in over $63.9 billion in new investments.[i] These businesses invested in all aspects of shale energy, from production and transmission to end-use power generation, petrochemical plants, and plastic manufacturing.

“This report highlights the benefits Ohio’s communities are receiving as a result of the state’s role in the U.S. energy revolution and investment in our state’s energy infrastructure,” Chris Ventura, CEA’s Midwest Executive Director, said. “Lower fuel prices have helped Ohioans save over $40 billion in the past decade. This means families have more money to pay for school clothes, grocery bills, and perhaps even to take a vacation that has been put off for far too long.”

Ventura added, “Fortunately, the benefits from the increased production of Ohio’s energy resources are not just limited to residential consumer savings, energy development has also led to the increase in economic investment and job creation we’ve seen over the past decade.”

“Despite the tremendous benefits and critical importance of energy production to Ohio’s families, farmers, and factories, out-of-state activists continue to work to eliminate the production of safe, affordable sources of energy without offering any solutions to help meet consumer demand as well as our environmental goals. CEA believes that it is critical for Ohio’s policymakers, regulators, and leaders to continue to come together in support of Ohio energy production that will keep our state thriving.”

To view the report, click here.

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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 450,000 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

About Orion Strategies

Orion Strategies is a strategic communications and public relations firm with a staff of experienced professionals in public relations, government affairs, grassroots advocacy, polling, research, and creative services. Orion Strategies provides the tools, as well as the expertise, to meet client needs.

Contact:
Brittany Ramos
bramos@orion-strategies.com

Another Cuomo Decision Leaves Families and Businesses on the Losing End of the Stick

Bricklayers are building as a team

Pittsburgh, PA – Consumer Energy Alliance (CEA) Mid-Atlantic Executive Director Mike Butler released the following statement after the New York State Department of Environmental Conservation (NYDEC) denied the renewal of an air quality permit needed to operate the Competitive Power Ventures Power Plant in Wawayanda, New York that has already received state approval for construction. (Read the latest on this developing story)

“Governor Cuomo’s continued politicization of the basic tenets of transparent and fair government has reached a new and unprecedented low by siding with irrational demands of extreme anti-energy groups,” said Butler. “The unfortunate losers in today’s purely symbolic political decision are families across New York and in the region who are struggling to make ends meet and put food on the table.

“New York pays 44 percent more for electricity than the national average and household budgets were crushed last winter during epic cold spells due to man-made constraints of natural gas pipelines – bottlenecks that Cuomo refuses to approve.

“Cuomo’s administration already approved the construction of the power plant but continues to actively deny ways of supplying it with natural gas – now by not renewing its air permit – all to appease Manhattan elites. All the while nearly 3 million New Yorkers live in poverty and can’t afford to pay their energy bills – and others barely get by living paycheck to paycheck.

“It’s time to think about the absurdity of today’s decision. Its decisions like these that undermine faith in our government and hurt the most vulnerable among us. Cuomo needs to stop playing games with our energy infrastructure and quit waging war against his own constituent’s wallets.”

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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

NY Governor Cuomo’s War Against Natural Gas Is Hurting The Poor The Most

New York

CEA’s research on the high cost denying new and modernized energy infrastructure has had on families across New York was recently cited as a result of the Cuomo Administration’s continued politicization of all forms of American energy production.

Natural gas prices in the New York City region skyrocketed in January, causing New Yorkers to pay roughly 46 times more in energy prices than the 2017 average for the area, a May report from Consumer Energy Alliance noted.

Read more – The Federalist Papers

Energy Sector Helps Workers and Business

Worker at construction site with rebar

CEA’s Chris Ventura was joined by LiUNA’s Joel Archibald in discussing training a workforce to build, maintain, and modernize energy infrastructure and why it is necessary to have an honest dialogue on the importance of our energy delivery system.

With partisan groups continuing to push extreme positions that misinform communities about energy infrastructure, we must get the conversation back on track and help build St. Clair County together by focusing on how the sector, with the right training, benefit businesses and the families they employ.

Read more – Times Herald

More Production Here, Not Overseas, Will Thwart Higher Gas Prices

Putting gas in car

CEA’s President, David Holt, discusses the impact high gas prices are having on families across the country and how increases in domestic energy production are helping to ease the burden on family finances.

Pump prices remain uncomfortably high nationwide. In some states, the average price for a gallon of regular gas is above $3.

For some, these prices are not a big deal. For others, they are — especially cash-strapped families in poverty, on fixed incomes or living paycheck to paycheck, all of whom regularly see unnecessarily high, double-digit percentages of their take-home pay go toward energy costs like gasoline, and all of whom have little in savings for last-minute setbacks.

Read more – Newsmax

Line 3 Construction To Provide Boost To Local Economy

Construction worker and backhoe

Modernizing Minnesota’s critical energy infrastructure is set to bring economic benefits across the state.

That’s expected to provide a significant boost to the local and regional economy, according to Stephanie Harris, manager of the Altona and District Chamber of Commerce.

“From an economic standpoint, this is a great opportunity for the business community. I know many have already started preparing for the influx in their customer base. I’ve also spoken to a few business owners who have mentioned increasing their product orders to accommodate the increase of people in our region.”

Read more – Pembina Valley Online

Bigger Oil Pipelines Are Coming to West Texas to Ease Bottleneck

Pipelines at night

As America produces record-breaking amounts of energy, keeping prices affordable for families across the country, pipeline infrastructure constraints are now preventing additional supplies of oil and natural gas from reaching homes, businesses, and power plants.

Bottlenecks have become a problem in the Permian Basin of Texas and New Mexico at the center of the shale boom. Drillers are pumping so much oil and gas that pipelines considered more than adequate just a few years ago now are overwhelmed.

Read more – The Wall Street Journal

Natural Gas Will Bring Affordable Energy

Mom cooking with children

CEA’s Tim Page helps to dispel the myth that renewable energy and natural gas cannot work together to help sustain our environment while keeping energy prices affordable for American families.

Renewable energy and cleaner-burning fossil fuels are sidekicks, helping cut emissions, ensure cleaner water and provide affordable energy, a must for those on a fixed income and the 11 percent of Virginians in poverty, all of whom see a dangerously high, double-digit percentage of their take-home pay go toward unnecessarily high electric and gasoline bills.

Read more – Suffolk News-Herald

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