Top 5 Energy Stories in 2017

5Federal pipelines approvals

Two stalled, high-profile projects – the Keystone XL Pipeline and the Dakota Access Pipeline, rejected by the Obama administration – were green-lit by the Trump administration. While the details of the former are being worked out following Nebraska regulators’ decision to approve the project statewide via a new route, the latter is online, moving energy via the safest way known – pipelines. Appointments later in the year by the Trump administration allowed FERC to reach quorum and approve a variety of infrastructure projects previously in limbo, which’ll help transport supplies more cost-effectively for companies and consumers.

4Repealing the Clean Power Plan

Trump’s EPA has begun rolling back the Obama-era regulation that required states to cut carbon emissions from existing coal- and gas-fired plants 30 percent below 2005 levels by 2030. The regulation was criticized for being a fiscal back-breaker for lower-income families, who need lower-cost, more-affordable energy like coal and gas to make ends meet. It was also considered a jobs killer by critics, and detrimental to the economy long term.

3Oil prices creep up

Oil prices spent the bulk of the year below the $50-per-barrel mark. But by August, prices exceeded the $50 threshold for the first time in several months; by November, it was over $60. Still, gas prices have remained largely steady – and the oil price recovery has helped put more industry workers back to work.

2Steady gas prices

In late summer, Hurricane Harvey water-logged Houston, idled about 30 percent of the country’s refining capacity and temporarily put local and regional pipelines offline – all of which sent gas prices soaring. But that was a temporarily hiccup in an otherwise steady year in pump prices. Per AAA, in a news release before the end-of-the-year holiday rush, gas prices were just 20 cents more per gallon than the same time last year despite noticeably higher oil prices. “Pump prices don’t seem to be a deterrent for today’s travelers,” Jeanette Casselano, AAA spokesperson, remarked.

1More development, infrastructure needed

The International Energy Agency (IEA) reportedly said energy firms approved the lowest number of new drilling projects in more than 70 years – meaning a tightening of the market could unfold within the next five years, which will dangerously drive up oil and gasoline prices as demand increases. Ongoing resistance in various parts of the nation also continues to hinder efforts to expand or improve the type of infrastructure that could lower household energy costs.

 

North Dakota’s Pipeline Payoff

Pipeline and shutoff valves

Earlier this year, it was reported North Dakota may have been experiencing an oil boomlet as a result of the completion of the Dakota Access Pipeline.  Fast forward, and North Dakota is now producing more oil for American consumers and farmers were able to bring their crops to market faster and more affordably since oil has been taken off of trains.

The Dakota Access Pipeline has also reduced oil-train traffic within the state. The last time oil production was this high, North Dakota saw as many as 12 trains, or 1,200 cars, pass through daily. Today, only two trains do. That’s a victory for the environment and public safety, given that oil-spill accidents occur with much greater frequency on railways than in pipelines.

Read more – The Wall Street Journal

Cold Snap Driving up Energy Costs

Child Shoveling Snow

CEA’s David Holt was featured talking about the need for modernized energy infrastructure in New England to help families burdened by high energy costs as a result of failed public policies.

“New England families will continue to be crushed by the untenable costs of energy prices this winter, and every foreseeable winter, unless our policymakers make energy affordability a priority,” Holt said. “It is imperative state legislators and the region’s public utility commissioners get serious about the burden facing New England energy consumers.”

Read more – Washington Examiner

 

Consumer Group Raises Alarm with New England Energy Prices at Highest Levels Since Polar Vortex

Northeast Snow Storm

BOSTON – December 28, 2017 – Consumer Energy Alliance (CEA) President David Holt today raised concerns on behalf of working families, seniors and households – including those on fixed incomes or living near the poverty mark – about the massive spike in energy costs across New England and the Northeast during the current cold snap.  As reported, natural gas prices recently reached levels not seen since the Polar Vortex.

“CEA has repeatedly urged policymakers to take action and heed the warnings of independent grid operators about the severe lack of pipeline capacity in New England. Yet again, our typical New England winters expose those struggling the most to the impact of years of inaction toward meeting our most basic energy needs. We need action immediately on the region’s man-made energy problems and pipeline infrastructure shortfalls.”

Holt continued, “Compare the New England region to Pennsylvania.  Their natural gas prices are $2.40 compared to almost $34 in Boston because they’ve said ‘yes’ to new and modernized pipeline infrastructure.  New England families will continue to be crushed by the untenable costs of energy prices this winter, and every foreseeable winter, unless our policymakers make energy affordability a priority.  It is imperative state legislators and the region’s public utility commissioners get serious about the burden facing New England energy consumers.”

Recent news reports note that in New England, spot prices [for natural gas]have more than tripled to the highest in over three years and turned the region into the world’s priciest market.

Atlantic Energy Could Bring More Revenue to S.C.

Family Grocery Shopping

CEA’s Michael Whatley discussed the importance of offshore energy exploration recently at a forum in South Carolina.

Environmentally responsible development of these vital American energy resources can help lower energy costs for South Carolina families, farms and small businesses, as well as create tens of thousands of high paying jobs and provide a significant boost to the economy.

Read more – The News Journal

ND Oil Leaders Credit Dakota Access Pipeline for 2017 Production Rebound

Dad cooking with children

North Dakota’s families and farmers are ending the year on a high note.  The reported oil boomlet from earlier this year is in fact happening.  New pipelines have made North Dakota oil more competitive, providing more revenue to communities across the state.

“It has been a game-changer,” said Ron Ness, president of the North Dakota Petroleum Council.

The pipeline system connecting North Dakota with Gulf Coast markets has lowered transportation costs, making the price for Bakken crude more competitive.

Read more – Grand Forks Herald

Every Day Should Be Giving Day in Virginia

Kindergarten teacher with students

Working together to create a healthier environment and encouraging domestic energy production can both be accomplished in Virginia according to CEA Southeast Executive Director Tim Page.

Let’s work together to find common ground on ways to protect the environment, ensure the lowest possible prices, create greater energy security for struggling households, upgrade America’s infrastructure, and push forward with cutting-edge innovations — so that we’re lightening the load for people year-round, and not just on the holidays.

Read more – Richmond Times-Dispatch

Oil and Natural Gas Drillers Will Be Helped by Gains in Takeaway Capacity From Oklahoma’s Scoop and Stack Plays

Construction worker with rebar

Oklahoma’s oil and natural gas production is on the rise, and more pipelines are necessary to continue the economic expansion.

Chu agrees added takeaway capacity will continue to propel drilling momentum within the plays. In October, the Cana Woodford became the second-most active field in the Lower 48, behind the Permian Basin.

Read more – The Oklahoman

It’s Time to Stop Playing Politics With Our Pocketbooks

Construction Workers Cutting Plywood

Tim Page, Consumer Energy Alliance Southeast’s Executive Director recently discussed how offshore energy exploration can help grow South Carolina’s coastal economy and reduce the burden of high energy costs on families living below the poverty line.

The good news is that there are ample opportunities to expand the economy by safely and responsibly developing our Atlantic offshore energy resources, which could help create more than 35,000 jobs, over $18 billion in economic activity, and nearly $4 billion in state revenue.

Read more – Florence Morning News

Budget, Pensions, and Tax Reform Dominate Discussion of 2018 Session at Kentucky Chamber Legislative Preview Conference

Family game night

CEA’s Brydon Ross participated on the Energy Panel at the Kentucky Chamber Legislative Preview Conference to discuss pro-consumer policies that may be considered in the upcoming legislative session that will benefit Kentucky’s families and small businesses.

During the energy and environment panel, Rep. Jim Gooch, Sen. Jared Carpenter and Brydon Ross with the Consumer Energy Alliance discussed state and federal policies important for protecting Kentucky’s low-cost energy advantage and status as an energy-producing state.

Read more – Kentucky Chamber Bottom Line