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Its a Critical Time for America’s Offshore Energy Future

Offshore oil platform in ocean

[bq]”Its truly a turning point for American offshore energy production.”[/bq]

America’s offshore energy future is in peril!

Anti-energy extremists convinced the Obama Administration to ignore public opinion and remove the Atlantic from future oil and natural gas leasing!  Now they’re turning their efforts to the Gulf of Mexico and Alaska. 

We need your help to tell the federal government to support Gulf of Mexico, Alaska and Atlantic offshore energy production!  If the government fails to do so, our ability to meet the nation’s energy needs through access to affordable, reliable supplies will be placed in serious jeopardy.

Tell the federal government to make the responsible decision: Maintain the Gulf of Mexico and Alaska in the 2017 – 0222 offshore leasing program and take steps now to add the Atlantic!

Dear President Obama and Secretary Jewell:
I write to urge you to maintain the Gulf of Mexico and Alaska’s Beaufort, Chukchi, and Cook Inlet in the final 2017-2022 offshore oil and natural gas leasing program without any further exclusions or restrictions, as well as to convey my strong opposition to the exclusion of the Atlantic and the need to initiate a new five-year leasing program that provides for early and annual Atlantic lease sales, inform future activity by approving pending Atlantic seismic survey applications, and support efforts to expand revenue-sharing to all states with adjacent offshore oil and gas activity.
The decision to remove any possibility of an Atlantic lease sale during the 2017-2022 leasing program conflicts with the broad support that exists for offshore development as expressed by the Governors, legislators and local officials, stakeholders, and the public and it threatens our long-term energy and economic security.   
It also underscores the critical importance of not further reducing the areas available for leasing in the Gulf of Mexico and Alaska.  As BOEM acknowledged in the Proposed Program, the Gulf is “one of the richest oil and natural gas regions in the world.”  A source of nearly 20% of the nation’s crude oil supply, the Gulf remains one of America’s greatest energy resources and we must continue to support its safe development.
Alaskan offshore resources are equally important. As the National Petroleum Council stated in its report to Energy Sec. Ernest Moniz last year, the U.S. government must take steps now to facilitate exploration opportunities in the Alaskan Arctic in order to offset an expected decline in Lower 48 production in the coming decades and ensure the nation’s long-term energy security. 
To ensure that all states are adequately positioned to bear costs related to development in adjacent waters and have access to all the benefits associated with offshore oil and gas activity, the federal government should also support the expansion of revenue-sharing to all states with adjacent offshore oil and gas activity.
A sensible energy policy must include our offshore resources to ensure that the U.S. economy and consumers have access to domestic energy for years to come.  As the Energy Department recently noted, the contribution of oil and gas to the nation’s energy portfolio will be just as much, if not more, in 2040 than it was in 2015.
Recognizing the significant safety advances in recent years that culminated with what the Interior Department called “the most aggressive and comprehensive offshore oil and gas regulatory reforms in the nation’s history,” I urge youto initiate a new five-year leasing program that provides for early and annual Atlantic lease sales, finalize a 2017-2022 program that includes the Gulf of Mexico and Alaska’s Beaufort, Chukchi, and Cook Inlet without any further exclusions or restrictions, inform future activity by approving pending Atlantic seismic survey applications, and support efforts to expand revenue-sharing to all states with adjacent offshore oil and gas activity.
Thank you.

CEA Reacts to Court Decision on Clean Power Plan

Electric transmission lines

[bq]A prudent and reasonable decision.[/bq]

Upon hearing news that the U.S. Supreme Court issued a stay on the EPA’s massive Clean Power Plan regulations, CEA executive vice president, Michael Whatley had the following reaction:

“CEA is pleased with the Supreme Court’s decision to stay the Clean Power Plan pending lower court action. Compliance with the plan presents states and utilities with significant challenges, to say nothing for the cost and effort associated with producing the plans necessary to achieve future compliance. 

“In granting the stay, the Supreme Court has indicated that justices are suspicious of the Clean Power Plan and its radical restructuring of the U.S. electricity grid, generation fleet, and consumer impacts. They have also spared states and consumers the burden and cost of creating compliance plans for a rule which has a good chance of being invalidated by one or more courts.

“The last thing that energy consumers need is for states and electricity providers to take major steps to comply with a rule and then have the rule invalidated – especially when those steps will very likely raise rates across the country. If future courts validate the rule, the states can begin to work on implementation at that point – with nothing lost except a small lag in the rule’s schedule.”

Consumer Energy Alliance Announces New Board of Directors

HOUSTON – Two key manufacturing executives have taken leadership positions on Consumer Energy Alliance’s (CEA) board of directors, the organization’s president David Holt announced today.

Wayne Zemke

Wayne Zemke, a marketing executive with Caterpillar, Inc. and member of CEA’s Board of Directors since 2010, will serve as the new chair of its Board of Directors. Brett Vassey, president and CEO of the Virginia Manufacturers Association (VMA) and a member of CEA’s board since 2013, was named vice chairperson. Zemke’s term follows two successful years for CEA under the leadership of Jennifer Diggins, director of public affairs for Nucor Corporation.

Zemke brings a wealth of marketing and communications expertise to CEA, as well as experience working within the manufacturing industry. For the past 20 years, he has worked for Caterpillar, Inc., the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

“CEA has long benefited from Wayne’s support and counsel,” said David Holt. “He understands how a balanced energy policy that includes all energy from wind and solar to oil, natural gas and coal, helps American consumers and generates numerous benefits for the economy. Wayne’s experience working with Caterpillar brings a critical perspective to the CEA board, and we look forward to utilizing his expertise to advance the interests of energy consumers.”

“Since the U.S. shale energy revolution, we’ve seen firsthand the critical relationship between energy and manufacturing and how both have helped to bolster America’s strong global economic position,” said Zemke. “I am pleased to lead this tremendous organization and look forward to helping CEA advance sound energy policies that will boost new investment and economic activity for all American consumers.”

Brett Vassey

CEA’s new vice chairperson, Brett Vassey, represents Virginia’s estimated 6,000 manufacturing facilities employing over 230,000 Virginians as the VMA’s president & CEO.

“It is an honor to help lead an organization that has long valued the contributions that domestic energy production has had for our nation’s consumers,” said Vassey. “Since sustainable economic growth in manufacturing is contingent upon reliable and affordable energy, I look forward to helping CEA to advocate for expanded access to responsible energy production – including areas off the coast of the Atlantic – as a means to grow our economy, lower energy prices and improve energy security and reliability.”

In addition to Zemke and Vassey, CEA also named Brain Welch, managing director at Wortham Insurance & Risk Management in Houston, as treasurer of CEA. CEA’s board members also include John Heimlich, vice president and chief economist for Airlines for America; Mark Pulliam, solution partner with Sabre Airline Solutions; John Eichberger, vice president of government relations for the National Association of Convenience Stores (NACS); and immediate past chair, Jennifer Diggins, Director of Public Affairs at Nucor.

FAQ: If energy prices are so low, why do we need to drill for more oil and gas?

American oil refinery

Energy is a commodity. Just like agricultural products (corn, beef, etc.) energy (including oil, natural gas, gasoline, electricity) is a basic building block of myriad other products. Because they are a basic unit of production, commodities prices are subject to the direct influence of supply and demand.

The more supply, the lower the price. The more demand, the higher the price and visa versa. Commodity prices are cyclical, meaning they react as broader economic trends expand or contract.

It’s no secret, energy commodities are currently in a downward cycle, due primarily to global oversupply. While it may seem simple enough to simply scale back production of energy as a means of lowering supply and buoying prices, this ignores the significant investments and timelines necessary to achieve the technical feat of actually extracting energy from the ground.

Even during times or low oil and natural gas prices, energy producers must plan for a time when prices rise again and make large long-term investments that require years to recover.  While low energy prices may impact the level of activity in the oil and gas field in the near-term, producers must be allowed to make the investments and build the infrastructure that will allow them to produce more energy when supplies drop and prices rise.

This will not only ensure producers can hire more workers, and help grow the economy, it will also help keep the United States more energy independent and secure.

State of the Union: CEA Applauds American Energy Ingenuity; Requests Presidential Hopefuls Focus on Building New Era of Energy Development

U.S. Capitol building at night in Washington, D.C.

In response to the President’s final State of the Union address, Consumer Energy Alliance President, David Holt issued the following statement:

“President Obama tonight highlighted how the American economy and employment have performed during his two-term tenure, and how the U.S. is now a world leader in emission reductions. Indeed, these are accomplishments for which we should be proud. But the President failed to emphasize how the U.S. energy revolution helped spearhead these legacy-makers, and how it’s led to significantly lower consumer costs, whether it’s through lower gas prices or decreased utility costs.

“While the U.S. energy sector has radically altered geopolitics and has been one of the most impressive catalysts during the Obama Administration for job creation and sustainable economic growth, more work awaits. Our energy infrastructure is struggling, new federal proposals hostile to energy development threaten to derail our progress, and special interests are working overtime to halt responsible resource development, regardless of the millions of jobs at stake.

“Polls have repeatedly shown that safe, responsible energy resource development will be at the top of American voters’ minds when they cast their votes in the 2016 presidential election. We hope that the 2016 presidential candidates keep this firmly in mind as they advance their energy platforms – and that our next president follows suit to support a new era of U.S. energy development. At this juncture, our nation needs energy policy leadership and a firm commitment towards the pursuit of an ‘all of the above’ energy strategy that will greatly benefit the U.S. economy and consumer.”

An Ice-Cold Regulatory Climate

Arctic shipping and recreational boats

[bq]Bogged down by red tape, delays, legal snafus, and the administration’s ill-advised, one-size-fits-all regulatory approach, Alaska is seeing its economic future darken in a hurry – and so is America.[/bq]

CEA President David Holt recently penned an editorial on arctic energy production for Real Clear Energy writing, “Late last year a second major oil company was forced to abandon plans to drill in the Arctic Ocean off the coast of Alaska – and irresponsible, high-fiving anti-development activists, most of whom live thousands of miles away and will not be affected, could not be more thrilled.”

The reasons for the exit from the Arctic are many, but there is one primary reason and it is within our control to mitigate- regulation. Holt writes:

Just-in-time permitting and conflicting agency decisions ensured that Shell would spend all that time and money just to drill one exploratory well in an area of the Chukchi Sea reportedly the size of Texas, where hundreds of other exploratory wells have been drilled successfully. And instead of trying to extend lease terms, the Interior Department placed limits on this season’s drilling activities, leaving one drilling rig idle.

While the Arctic has record amounts of yet-to-be-tapped oil and natural gas resources – and with it, significant opportunities to increase U.S. energy security and create jobs – development can only be achieved if we have an effective, predictable regulatory framework in place.

Which, to date, we don’t. And the outcome will not be good.

Holt says that the fallout from the Arctic exit will be great with impacts coming to the Alaska state budget and economy, to negative consequences for the Trans-Alaska Pipeline to lower 48 gas prices.

The announcements devastated Alaska’s hopes of finding an alternative source of oil to help close its multibillion-dollar budget shortfall and replenish the Trans-Alaska Pipeline, a major energy artery to the lower 48 states operating at about one-quarter capacity because of declining production in onshore oil fields. And with the administration also cutting off access to the resources-rich Arctic National Wildlife Refuge (ANWR) and millions of acres offshore in the Alaska Outer Continental Shelf (OCS) earlier this year, alternatives are limited.

Bogged down by red tape, delays, legal snafus, and the administration’s ill-advised, one-size-fits-all regulatory approach, Alaska is seeing its economic future darken in a hurry – and so is America.

You can read the entire editorial at Real Clear Energy.

Low Gas and Energy Costs Top the List of Consumer Holiday Benefits for 2015

The holiday season can be one of the most enjoyable, yet expensive, times of the year.

But thanks to the U.S. energy revolution, Americans can plan on keeping a few more hard-earned dollars in their wallets heading into the new year.

That’s because consumers are paying the lowest gas prices we’ve seen in seven years. As such, more than 100 million Americans are expected to travel this holiday season, which would be a record high. An overwhelming 90 percent will travel via road, which equates to roughly 1 in 3 U.S. drivers.

According to AAA, Jan. 1 will also welcome the lowest national average for a gallon of regular gas on New Year’s Day since 2009. The average on Dec. 18 was already $2.004, and experts project that it could drop below the $2 benchmark by the end of the holidays.

Twenty-six states the week before Christmas were already reaping the rewards of a statewide average lower than $2 per gallon. The average price of gas is also down significantly in every state compared to the same time a year ago. In fact, 42 states are saving 50 cents or more per gallon.

This means that the projected 500 miles the average American will travel between Dec. 23 and Jan. 3 will be far cheaper this year than it was in 2014, according to estimates by Consumer Energy Alliance (CEA). In alignment, November estimations from Gallup show that the average American will spend $830 on gifts this year, up from $720 last year.

But low fuel prices are just one of many ways rising energy production is saving consumers money. It’s also helping cut winter heating and electricity costs stemming from electronic holiday decorations.

According to Forbes, the average six-foot Christmas tree – when lit up for 12 hours per day for 40 days –will cost:

  • 27 cents if equipped with 50 C-9 LED Bulbs
  • 82 cents if equipped with 200 LED mini-lights
  • $2.74 if equipped with 200 Incandescent mini-lights
  • $10 if equipped with 50 Incandescent C-9 bulbs

Here’s some more good news: There are several other ways that consumers can cut down on energy costs and have more money to spend on gifts for loved ones.

Here are some tips:

Here are a few tips on how to winterize your home and cut heating bills:

  • Allow sunlight to naturally heat your home by opening curtains on your south-facing windows during the day, and then close them at night.
  • Seal the air leaks around pipes, gaps around chimneys and recessed lights in insulated ceilings, and unfinished spaces behind cupboards and closets.
  • Make sure the damper is closed when the fireplace is not in use or open for Santa’s Christmas Eve visit
  • When you are asleep or out of the house, turn your thermostat back 10 to 15 degrees for eight hours, which could save about 10 percent annually on your heating and cooling costs.
  • Turn down water heater temperature to the warm setting (about 120 degrees Fahrenheit); water heating accounts for 14 percent to 25 percent of the energy consumed in your home.

CEA also has a few pointers on how to save on overall energy costs:

  • Limit or reduce the amount of time lights are on
  • Turn off room lights when the tree is lit
  • Turn the thermostat down when you have guests

These are just a few helpful tips that can help limit energy costs throughout the holidays and winter season. We hope you find them useful and that you and your family have a safe and happy holiday filled with low energy and fuel costs!

Power Plant Emissions Reach 27-Year Lows

Electric meter

It’s well established that domestic energy production is good for the economy. Lesser know is that its good for the environment too! Recently, the Energy Information Administration released a report that found carbon dioxide emissions from electricity generation just reached a 27-year-low in the U.S. This means that the nation’s largest emitter of carbon dioxide (electricity generation) is getting more efficient and more environmentally friendly.

power plant emissions at 27-year low

Here are four reasons why:

  • Abundance and Price

The biggest reason for the decrease in emissions is the increased use of natural gas. In recent years natural gas used to generate electricity has more than tripled. Advancements in energy production technology such as horizontal drilling and hydraulic fracturing have increased the supply of natural gas which has resulted in historic low prices, incentivizing energy producers to switch from coal to natural gas. Additionally, federal and state regulation have increased the cost of compliance for electricity generation that utilizes coal, further reducing the use of the fuel.

  • Carbon Intensity

Natural gas emits almost 80 percent less carbon dioxide when it’s burned than other sources of fuel.

  • Power Plant Efficiency

Power plants that run on natural gas are around 25-30 percent more efficient. For every unit of natural gas burned, power plants produce around a quarter more electricity. In April 2015, EIA reported that electric generation was up 44% from April 1998. However, the resources consumed to produce that electricity only increased by 33%.

  • Other Energy Sources

In addition to the increased use of natural gas for generating our electricity, our non-hydrocarbon generation is on the rise. In the first few months of 2014 alone, nuclear power plants produced 3 percent more electricity that the previous year. Similarly, electricity generated from renewable sources like solar, wind and hydroelectric increased by 2 percent.

For energy consumers, this means more affordable electricity rates, and lower home heating and cooling costs. This not only saves families money, but lowers costs for small businesses and helps grow our economy.

However, we must ensure that new regulations like the EPA Clean Power Plan don’t start to erode our progress and unnecessarily drive up energy costs. Rather than federal mandates, state officials are uniquely positioned to regulate natural gas development and electricity generation because they are often familiar with local geographies and possess the requisite expertise on the issue.

A successful “state-first” approach to monitoring emissions can be seen in Colorado where the Governor, the Environmental Defense Fund, and three leading energy companies recently passed the nation’s first oil and gas regulations to control methane emissions. These regulations provide more meaningful and effective rules than any set by the U.S. Environmental Protection Agency.

 

Ultimately, advancements in natural gas production have created an energy renaissance that has led to environmental and economic gains for the U.S. Consequently, emissions are at a record low. Provided that state officials monitor the industry’s emissions, the U.S. can continue down this prosperous path.

Florida has the opportunity to produce its OWN energy resources

Hallandale Beach Florida

But it will take support from citizens like YOU!

If you live in the area, please attend a public meeting to support the exploration for oil and natural gas resources using seismic analysis. The analysis will help to determine if Florida is blessed with abundant energy resources like so many other states are!

The meeting will take place on December 8th from 5:00 – 7:30 p.m. at the Big Cypress Swamp Center, 33000 Tamiami Trail East, Ochopee, Florida 34141

Please join us to show your support for energy exploration!

 

If you can’t come to the meeting, please comment online– 

You can use the following message as the basis for your comments. Just copy and paste them into the comment form:

I support the exploration of energy resources using seismic analysis. The seismic survey could help Florida become less dependent on imported energy resources, grow our economy, and create jobs. It will also contribute to the body of knowledge about the geology of the state of Florida. Please quickly approve the EA to use seismic analysis.

$2 Gas Makes for a Happy Holiday Season!

Planning on traveling for the holidays? Your road trip will be cheaper this year thanks to record levels of U.S. and Canadian oil production and reduced demand. Despite attacks from ISIS and continued unrest in the Middle East, increased crude output combined with lower demand have driven down the national gasoline average price to just over $2 per gallon for the first time since 2008.  

According to AAA, U.S. energy consumers are spending $275 million less each day than they were this time last year. Lower gas prices mean that American consumers will have cash to put toward another present at Christmas or more groceries at Thanksgiving. The extra $275 million in the pockets of American consumers could actually purchase just under 12 million Thanksgiving turkeys!

Families traveling by car for the Thanksgiving holiday can expect to spend $43.88 for the average 500-mile round-trip road journey. This makes the trip over the river and through the woods to Grandmother’s house 28% cheaper than the cost of the same trip in 2014. In 2014, average trip costs were down 8.5% from the previous year.   

 

*Calculations based off of average 500 mile round trip, average fuel economy of 24.1 mpg, and a national average gas price of $2.115 per gallon.

 

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