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Consumer Group Launches Arctic Focused Website

Houston, TX – Consumer Energy Alliance (CEA) today launched a new educational campaign, Arctic For All, designed to promote public awareness of Arctic issues and the importance of the Arctic region to the United States. The site provides high-level information for those not familiar with U.S. interests in the region, as well as issue-specific information on Arctic energy development, transportation and geopolitics.

“The Arctic region will be critical to U.S. foreign policy and U.S. energy security in the coming years. It’s important that Americans understand and fully embrace that we are an Arctic nation.  Our ties to the region, and the critical importance of Alaska’s natural resources, should not be taken for granted,” said David Holt, CEA President.

He notes that America must continue its successful re-shaping of energy geopolitics by continuing to rely on Alaska’s tremendous energy potential and infrastructure to ensure that Alaska plays a key role in prolonging America’s Energy Revolution, creating jobs, improving our economy and improving our national security.  To ensure we fully realize this potential, America needs to continue its pursuit of all forms of domestic energy, including the vast potential of our Arctic resources.

“Global energy prices today are due to the U.S. Energy Revolution. The U.S. – in part thanks to Alaska’s energy production – is now the leading oil & gas producer in the world. This is fundamentally changing the global politics of energy, improving our national security, creating more American jobs and, more than any other sector, sustaining our economy.  That’s why CEA is deeply concerned about President Obama’s misguided decision to manage much of the Arctic National Wildlife Refuge as wilderness, including its 1.5-million-acre coastal plain, an area on Alaska’s North Slope estimated to contain vast energy resources.”

CEA believes that this year will be a transformative one for U.S. engagement in the Arctic. In 2015, the United States will assume chairmanship of the Arctic Council, a forum for the eight Arctic nations to discuss and collaborate on regional economic and environmental issues. Moreover, this year U.S. policy makers will continue to make critical decisions that will affect the trajectory of U.S. Arctic energy development and transportation for decades to come.

“Americans need to better understand the opportunities and consequences of U.S. action – or inaction – in the Arctic. Arctic for All provides CEA consumer-advocates and other members of the public information on the benefits of our Arctic resources and tools to keep up to date on new developments,” said Holt.

Arctic for All goes live today with the launch of a website and information campaign that will be supported by radio advertising in several major media markets across the nation. For more information visit Arctic for All or Consumer Energy Alliance online.

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Consumer Energy Alliance (CEA) brings together consumers, producers and manufacturers to engage in a meaningful dialogue about America’s energy future. Our mission is to help ensure stable prices for consumers and improve energy security. CEA promotes a thoughtful dialogue to help produce our abundant energy supply, and balance our energy needs with our nation’s environmental and conservation goals.

Contact
Shawn Martini
Consumer Energy Alliance
smartini@consumerenergyalliance.org
713-337-8820

College Station City Council Supports Continued Low Pump Prices

Texas drilling rig

Statement by Tommy Foltz, Consumer Energy Alliance Executive Vice President

“CEA applauds the City Council’s decision last night,” said Tommy Foltz, Executive Vice President of CEA.  “In fact, American energy consumers from across the country who like low prices at the pump, should be applauding the College Station City Council today.  Cooler heads prevailed last night, and that will likely result in continued fuel cost savings of every driver in Texas and across the country.”

“The unanimous approval of the proposed oil and gas ordinance by the College Station City Council is a giant step forward toward responsible oil and gas development in Brazos county. The thoughtful and deliberate study of this issue has resulted in an updated ordinance that strikes the right balance between all the interests in College Station.

CEA applauds the Council for acknowledging that de-facto bans on development are in no one’s best interest and that cities across Texas can have BOTH environmental protection AND responsible energy development. It is this type of leadership and local coordination that will allow Texas to remain the nation’s largest and best energy producing state.

However, we don’t expect this to be the last we’ll hear about College Station.  We expect continued pressure on College Station officials.  Local communities should resist efforts to unreasonably restrict energy production, supported by outside groups, that negatively impact energy consumers.”

 

State of the Union – To Boost the Middle Class, Look to Energy

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

President Obama will deliver his seventh State of the Union address this evening. From what we know based on a preview of his speech, the president will address tax issues and other programs in support of the middle class. With economic growth picking up and unemployment starting to fall, the president plans to focus on targeted tax cuts for the middle class, tax increases on the wealthy, college affordability, and infrastructure.

CEA believes there are additional ways the president can help boost the middle class and small businesses. He can help promote responsible, environmentally friendly energy production as a way to reduce prices for consumers and grow our economy. As we know, the Energy Revolution has been supporting this economy for the past several years.  Energy affordability is key to middle class, and especially, low income families. Helping to increase energy affordability could go a long way to achieving his goals.

Gas prices are dropping thanks to increased domestic oil production and a global supply glut, saving energy consumers more than $600 million every day. The president can help that trend continue by expanding access to energy resources currently off limits to production on federal lands in the West, and offshore along the Atlantic coast and Alaska’s Chukchi and Beaufort Seas. Production there could add more than 50,000 jobs and create an additional $193 billion in tax revenue across the country.

Additionally, the President could place a focus on reducing electricity costs. Unfortunately, the Administration’s Clean Power Plan and other air emissions proposals are no help in this regard. The Clean Power Plan alone could increase the cost to ratepayers by $289 billion over the next 15 years and reduce reliability and security.

By implementing regulations that take consumer cost into account, leveraging additional resources such as nuclear energy production, and continuing to incentivize renewable energy production and energy efficiency, the president’s actions could promote long-term energy affordability for all Americans.

Other measures like a focus on infrastructure improvement (think Keystone XL and electrical transmission lines) would also help put people to work, reduce costs, and drive economic growth. We look forward to helping American energy consumers realize these and other opportunities in the coming year.

Nebraska Supreme Court vacates lower court’s Keystone XL ruling

Michael Whatley, executive vice president of Consumer Energy Alliance, tells Oil & Gas Journal why the Obama administration should work quickly to approve what will clearly be the safest pipeline in history – the Keystone XL pipeline.

Nebraska’s Supreme Court vacated a lower court’s decision that legislation transferring authority to determine the proposed Keystone XL crude oil pipeline’s route across the state to the governor from the Public Service Commission was unconstitutional.

Four of the court’s seven justices backed Lancaster County District Judge Stephanie F. Stacy’s ruling that LB 1611, which gave then-Gov. Dave Heineman (R) the route approval authority in 2012, was unconstitutional (OGJ Online, Feb. 20, 2014). But the state’s constitution requires a five-vote supermajority for the court to find an enacted law unconstitutional.

“No member of this court opines that the law is constitutional,” the state’s high court said in its Jan. 9 decision. “But the four judges who have determined that LB 1161 is unconstitutional, while a majority, are not a supermajority as required under the Nebraska Constitution… Accordingly, we vacate the district court’s judgment.”

Supporters and opponents of TransCanada Corp.’s proposed 1,179-mile pipeline from Hardisty, Alta., to Steele City, Neb., agreed that the Nebraska Supreme Court’s action puts pressure back on US President Barack Obama to decide whether giving Keystone XL a cross-border permit is in the US national interest.

“We welcome today’s decision by the Nebraska Supreme Court which has thrown out a lower court ruling – and the governor’s approval of our pipeline route remains valid,” TransCanada Chief Executive Russ Girling said on Jan 9. “This decision also means the approved route is valid and removes another delay in making a decision on our Keystone XL presidential permit application. Now, the federal review of our application can pick up where it left off.”

‘No more excuses’

“President Obama has no more excuses left to delay or deny the Keystone XL pipeline,” API President Jack N. Gerard said. “More stable domestic and Canadian oil will enhance our nation’s national and economic security. The project has strong bipartisan support on Capitol Hill and a majority of Americans want to see it approved.”

“Now that the Nebraska Supreme Court has vacated the lower court’s ruling and allowed LB 1161 to stand, it’s time to move forward with the project,” Consumer Energy Alliance Executive Vice-President Michael Whatley said. “The Obama administration should work quickly to approve what will clearly be the safest pipeline in history and help bring jobs and economic opportunity to both the Cornhusker State and the nation.”

Opponents were dissatisfied with the outcome because it hinged on a legal technicality. “Today’s ruling is an affront to citizens’ land rights and democratic self-determination. It continues a trend of everyday Americans being barred access to our courts,” said Luísa Abbott Galvao, Friends of the Earth’s Climate and Energy associate.

“It does not change the fact that Keystone XL is not in our national interest.”

“This ruling clears the way for President Obama to determine whether the dirty tar sands pipeline is in the national interest,” said Danielle Droitsch, the Natural Resources Defense Council’s Canada project director. “The ruling doesn’t make it right for Congress to act as a permitting agency, usurp presidential authority, or short-circuit the president’s obligation to decide whether the pipeline is good for the country. It’s not. It needs to be denied.”

Congress increases pressure

Meanwhile, four days into its first session, the Republican-controlled 114th Congress continued its own pressure on Obama president as the House passed Rep. Kevin Cramer’s (R-ND) bill approving Keystone XL by 266 to 153 votes.

“The election is over. There has been broad bipartisan support for this project from day one,” Energy and Commerce Committee Chairman Fred Upton (R-Mich.) said following the vote. “With the Nebraska roadblock cleared, the president has no excuse left to delay this project. It’s time to build, once and for all.”

The Senate Energy and Natural Resources Committee approved Chairwoman Lisa Murkowski’s (R-Alas.) bill with identical language a day earlier and sent it to the full Senate for consideration and a possible vote next week (OGJ Online, Jan. 8, 2015).

“Literally everything that has happened during the Obama administration—legislation, regulations, and extracurricular activities—happened while Keystone XL’s permit application was pending,” Murkowski said in a Jan. 9 floor speech. “At more than 2,300 days and counting, it is abundantly clear that the president is not going to make a decision—and that Congress needs to make it instead.”

Consumer Energy Alliance pleased with Keystone ruling

With the Nebraska Supreme Court’s pro-Keystone XL ruling made, the decision to construct the pipeline will soon rest on the President’s plate, Michael Whatley, executive vice president of Consumer Energy Alliance, tells Nebraska Radio Network.

The Consumer Energy Alliance is pleased the Nebraska Supreme Court ruled with state law that gave the governor the power to approve the route for the Keystone XL Oil Pipeline.   Executive Vice President Michael Whatley says the issue now lies in Congress and President Obama’s hands.

Whatley says, “President Obama had said he would not move forward in the decision making process until the Nebraska legal challenge had been dispensed with. We are now going to put this back on the presidents plate. There is plenty of other activity that is going to take place from both groups like us that support Keystone as well as folks that oppose it.”

One of the opponents arguments is that President Obama will veto all congressional bills because of environmental and climate change concerns. Whatley says the Obama Administration’s environmental reviews tell the whole story there. They have said this will be the safest pipeline ever built and it is a safe way to transport product. Whatley says, “We’re not saying trust TransCanada on this. We’re not saying trust CEA on this. We are saying trust the Obama Administration when they say this is going to be the safest pipeline ever built.”

Whatley understands the challenges of landowners.  He says every time there is a concern about having a project like this go through their property; you want to take those concerns seriously. He says TransCanada did a significant amount of work working with the landowners. He is confident they will continue to work with landowners in the future.

Consumer Energy Alliance’s Holt previews 2015 policy outlook

David Holt, president of Consumer Energy Alliance, discusses the future of oil and gasoline prices, state action on hydraulic fracturing, Keystone XL, and U.S. EPA’s Clean Power Plan in this E&E TV interview.

What impact are declining oil prices having on U.S. production? During today’s OnPoint, David Holt, president of the Consumer Energy Alliance, discusses the future of oil and gasoline prices, state action on hydraulic fracturing, Keystone XL, and U.S. EPA’s Clean Power Plan.

Transcript

Consumer Energy Alliance’s Holt previews 2015 policy outlook

Monica Trauzzi: Hello and welcome to OnPoint. I’m Monica Trauzzi. With me today is David Holt, president of the Consumer Energy Alliance. David, thanks for coming back on the show.

David Holt: Always good to be back, thanks Monica.

Monica Trauzzi: David, oil prices continue to plummet, and as a result consumers here in the U.S. are seeing very low gas prices at the pump. What are your expectations for how the story line will evolve up to 2015?

David Holt: First of all it’s an amazing event. I’ve been on your show multiple times over the last several years, and from a consumer perspective CEA has always said if we open up energy opportunities, if we look at offshore, if we look at onshore, if we look at energy efficiency conservation, if we do all these things in a sensible way energy prices will go down, putting more money back into consumer pockets, increasing employment opportunities in the rest of the economy — all that is happening now in real time primarily because of private lands, the shale revolution that’s occurred.

Monica Trauzzi: Is that really true? Is that why these global oil prices are going down?

David Holt: I think so. I think the geopolitics of energy have fundamentally changed, and in our lifetime we’ve seen the rise of OPEC replacing primarily what was kind of Texas at the time was setting world oil prices in the late ’60s, early 1970s. Now the United States continues to utilize or use about 25 percent of the world’s oil on a daily basis, but we’ve gone from 65 percent of relying on imports to about 40 percent relying on imports with more opportunity to come. If we look at federal lands, if we look at increasing offshore opportunities while we continue to diversify our energy resources then become more energy efficient, we really can become truly energy independent if not energy self-sufficient. So I think the rest of the world is looking at that now and sees the United States being ascended in energy.

Monica Trauzzi: But there are suggestions that Saudi Arabia, for example, is trying to capture a greater portion of the market by forcing these prices to stay down.

David Holt: Correct.

Monica Trauzzi: There are concerns among U.S. producers that the low oil prices could actually stymie production here in the U.S. So are there long-term negative impacts on the U.S. oil economy if the prices stay this low?

David Holt: First of all, clearly the Saudis are responding to a new situation in the geopolitics of oil. So I think that bears as one example of the point I’m trying to make. Their response to the U.S. in our new energy, self-sufficient kind of dynamic and what that does to world oil prices; lower prices for consumers, lower prices throughout the market is no matter what, a good thing. Prices for oil, I think are hovering around $60 a barrel globally. You don’t know where they’re going to go in the next six months. I think most folks feel like in the next six to 12 months, they might stay around $60 and then you see a slight increase.

So long term, we must continue to keep our eye on the ball and continue to look for more energy resources, continue to diversify energy resources, continue to onshore those jobs in petrochemicals, and plastics, and steel, lower transportation costs, which ultimately lower commodity prices, which has a ripple effect throughout the whole economy. Every household in this country right now, Monica; for Christmas, for the holiday season $500 more in their pocket, because of lower gasoline and energy prices.

Monica Trauzzi: Let’s shift gears. One of the things we’re going to see very early on next year is the turn to reliability discussions relating to the Clean Power Plan. We expect congressional oversight hearings of course, and FERC has also announced that they will be holding a series of technical conferences relating to reliability. How do you view the impact of reliability and its impact on consumer relating to this plan?

Monica Trauzzi: Well first and foremost the EPA rule reducing greenhouse gas emissions look primarily at coal. I think from our perspective, no energy resource should be taken off the grid. No energy resource should be deselected. If we’re going to have a conversation about coal, we need to have a conversation about clean coal technologies, how we continue to diversify our energy resources, maintain a reliable grid, maintain an affordable grid. You don’t want to have one energy form, energy resource be kind of the target if you will, because it’s only a matter of time before other energy resources also could become a target.

So we need to make sure that we’re using all our available resources, nuclear included, and continue to maintain that grid, because most consumers in the Midwest and the Southeast of the United States that are kind of the focus of a lot of coal-fire power plants, they’re the poorest of the poor. They can least afford to see their prices increase. So we call on the EPA, and others, and states that are looking at that to continue to kind of really closely examine that and find a new way to get this done.

Monica Trauzzi: Republicans are expected to bring Keystone legislation up early next year. Recently the president has been given less definitive signals on the future of the pipeline. How do you see these two competing narratives evolving next year?

David Holt: Well I think the president is a very busy man. I think we were disappointed in his statements early in the week, and he seemed to not have the latest information from his own State Department, because the State Department’s own analysis says the Keystone pipeline will be emissions neutral if not a net positive. This is a simple decision in our opinion. Most of the Keystone, the lower leg of the Keystone pipeline, and the president went to Cushing, Oklahoma, about two years ago, and how did the lower lay of the Keystone pipeline saying the jobs that would be created. Those jobs have been created.

Let’s just get that border crossing between the U.S. and Canada approved, and bring that 700,000 or 800,000 barrels of oil of day down to the Gulf of Mexico into the refining sector where it can be refined, and then sold here in the United States replacing, displacing Venezuelan oil. It’s really quite a simple decision. I think the vast majority of the American public supports, the vast majority of Congress supports. It’s up to the president now to make a decision, and you know we’re going on seven years, over six years now we’ve been waiting on this Keystone pipeline decision.

Monica Trauzzi: Do you think some kind of legislation in Congress would be successful in making its way to the president’s desk?

David Holt: Yes, yes, without a doubt. I think something can come out of Congress, sent to the president, I think this is something the president should sign, and we expect him to. There is 2.2 million miles of pipeline in this country. The pipeline industry is the safest form of transportation for oil and natural gas. Much safer than rail, or trucking, or other forms that they’re also currently using. So it’s time to get the Keystone pipeline approved.

Monica Trauzzi: Will we see an energy packet come out of the next Congress?

David Holt: I think you will. I think there is a bipartisan support for an energy package. You know it needs to be all of the above. You know, how do we continue to utilize nuclear power in our future grid? There are other pipeline issues in this country to make sure that we get natural gas to the markets that are increasingly relying on natural gas. You’re seeing emissions overall go down as we use more natural gas to meet or electricity needs. So there are a lot of good things that are happening, but infrastructure, energy diversity, sensible energy plans, the offshore energy development, arctic energy development, all those need to be on the table as part of a comprehensive plan.

Monica Trauzzi: On natural gas last week New York state moved to ban fracking, citing health concerns. Could we see similar moves by other states?

David Holt: I think other states and local jurisdictions are examining hydraulic fracturing. It’s actually probably a good conversation to have, and you want to make sure that citizens in these local areas have all the facts. So from our perspective, bringing other consumers into that discussion is important and it’s positive. What came out of New York last week was I think based on some older, somewhat flawed studies, and they also cited dubious, I think the word was dubious economic benefits, and I think they don’t have to look very far to Pennsylvania to see the significant economic benefits that Pennsylvania as well as Texas, and North Dakota, and Colorado, and other states are seeing because of natural gas production. So it was an interesting study, an interesting response from the governor, and I don’t think it’s based on all the available facts that we currently see.

Monica Trauzzi: And there are, of course, some very heated discussions happening in these localities on the future of fracking.

David Holt: Absolutely, absolutely.

Monica Trauzzi: Alright, we’re going to end it there. Thank you for coming on the show.

David Holt: Monica, always a pleasure thank you.

Monica Trauzzi: Thanks for watching. We’ll see you back here tomorrow. Great! Thank you.

David Holt: A pleasure.

Walker, Sullivan need to take Alaska’s energy message south

Oil pipeline in Alaska with mountain range

In an op-ed that ran in the Alaska Dispatch News, Carl Portman, deputy director of the Resource Development Council for Alaska, and David Holt, president of Consumer Energy Alliance, discuss how Gov. Bill Walker and Sen. Dan Sullivan can galvanize support for sustainable Alaskan energy among the Lower 48 state governors and all members of Congress.

With elections behind us, it’s time to get to the business of growing Alaska’s economy. A principal part of any strategy must include proactive policies that will reverse the decline in Alaska energy production.

Alaska has suffered a dramatic decline in recent decades in part due to federal regulatory uncertainty and litigation in our critical energy industry. Whereas the Lower 48 has seen energy production shoot up 77 percent in the last five years, due largely to state and private ownership of mineral rights, Alaska’s average oil production has plunged from more than 2 million barrels per day in the late 1980s to approximately 540,000 today — dropping the state to fourth nationwide in production.

Years of governmental reviews, litigation and regulatory uncertainty have turned a top domestic source of oil into one being outdone by California, a state that has considered banning fracking and said no to offshore drilling. It now produces more oil than Alaska.

Considering that at least 34 percent of Alaska’s jobs and more than 80 percent of the state’s discretionary spending are dependent upon the petroleum industry, it’s clear that reviving and encouraging the energy industry here is a key to our future.

Our new leaders — including Gov. Bill Walker and Sen.-elect Dan Sullivan — will soon learn that efforts to grow Alaska energy must also take place outside Juneau. Much of their job must include advocating to their Lower 48 peers, given so much of Alaska’s resource base is under federal ownership.

Alaskan voters overwhelmingly want an “all of the above” approach to energy — supporting everything from wind energy to allowing oil and natural gas production in U.S. waters inside the Arctic Circle and in the Arctic National Wildlife Refuge. Without greater access to abundant federal resources onshore and offshore, the future of Alaska energy — and the revenues and jobs it supports — is in jeopardy.

While most Alaskans have been up in arms about the Alaska energy shutout on federal lands and waters, the rest of the United States has remained either silent or unaware. It’s not a stretch to think that Lower 48 disinterest could be the reason, or even a catalyst, for these restrictive federal policies. If no one’s talking, no one’s listening.

Sen.-elect Sullivan and Gov. Walker need to invest some sweat equity educating other members of Congress and governors about how critical Alaska energy is to Lower 48 consumers.

For starters, they should inform Lower 48 consumers on the benefits of Alaska energy. According to the American Petroleum Institute, by permitting onshore and offshore oil and natural gas exploration now, by 2030 new Alaska production could reach 1.6 million barrels of energy equivalent a day. West Coast residents — who consume a vast majority of Alaska’s oil — should support Alaska development. If further declines in production occur, West Coast refineries’ reliance on imported oil will only grow, leaving consumers more vulnerable to supply disruptions that are the norm in unstable oil-exporting countries.

Our leaders should also expound on the national security benefits of Alaska energy. Nearly every member of Congress was not in office during the oil embargoes of the 1970s and the building of the trans-Alaska pipeline. In fact, most members of Congress came to Washington within the past decade and have legislated during an era of U.S. energy abundance and increasing self-sufficiency. However, we must not take our present reality for granted. Taking actions now to encourage federal offshore and onshore production in Alaska will help preserve our gains in energy security for decades to come.

An estimated annual average of 54,700 new jobs that would be created by outer-continental-shelf-related development (OCS) are sustained for 50 years. The total ramps up to 68,600 during production and 91,500 at peak employment. These direct and indirect jobs would be created both in Alaska and the rest of the United States.

Alaska’s energy generates revenue and jobs for Lower 48 residents, too. A Northern Economics report estimates an annual average of 54,700 new jobs that would be created by OCS-related development would be sustained for 50 years. An estimated $63 billion in payroll would be paid to employees in Alaska as a result of OCS oil and gas development and another $82 billion in payroll would be paid to employees in the rest of the United States.

The sustained job creation increases income and further stimulates domestic economic activity.production on federal land and waters and will also send billions of dollars to federal coffers, some of which will be redistributed to state governments and to the Federal Land and Water Conservation Fund, which benefits every state. With regard to Alaska, our congressional delegation will need to secure the state’s fair share through revenue-sharing provisions which already apply to Gulf states that have energy production off their shores.

By galvanizing support for Alaska energy among other governors and members of Congress, Alaska’s leaders can bring attention to the need for policies that support responsible energy development. The louder our voice, the harder it will be for Washington to ignore us.

Carl Portman is the deputy director of the Resource Development Council, based in Anchorage.David Holt is the president of the Consumer Energy Alliance.

 

With Court’s Ruling, It’s Time to Move Forward and Build Keystone XL Now

Last Friday, the Nebraska State Supreme Court issued an opinion in support of the Keystone XL project’s route through the Cornhusker State. The decision upheld the Nebraska legislature’s L.B. 1161 which established the route the pipeline will take through the state. Consumer Energy Alliance Exec. VP Michael Whatley praised the Nebraska Supreme Court for its move today to vacate a lower court’s decision on the constitutionality of L.B. 1161, allowing the law and Keystone XL’s route through the state to stand.

“Now that the Nebraska Supreme Court has vacated the lower court’s ruling and allowed L.B. 1161 to stand, it’s time to move forward with the project. After years of environmental review by the U.S. State Department and the Nebraska Department of Environmental Quality, we know that the current route is safe and environmentally sound. The Obama Administration should work quickly to approve what will clearly be the safest pipeline in history and help bring jobs and economic opportunity to both the Cornhusker State and the nation.”

CEA polling conducted earlier this year demonstrated majority support for Keystone XL amongst nearly all demographic groups in nine states that were surveyed. Overwhelming public support for the project is buttressed by the strong merits and facts of the project and the extensive federal and state level reviews it has undergone.

Top Five Energy Stories of 2014

Lightning during storm at night

This year the news has been full of good news and bad news for U.S. energy consumers. Major policy decisions (or lack thereof), changes in technology and emerging market forces have all played a role in influencing this year’s cheers and jeers in U.S. energy news.

#1: The Energy Revolution Leads to Lower Gas Prices

We’ve proved the critics wrong: the United States can – and has – drilled its way to lower gasoline prices. Burgeoning American unconventional oil and natural gas development has made the United States the top oil and natural gas producer globally and increased the proportion of non-OPEC oil on the global market. Extra supply combined with lower demand has led oil prices to fall to under $60 a barrel. Going into the New Year, the national gas price average is $2.27 – $1.04 cents or 31% less than this time last year.

#2: Electricity Consumers Face Uncertain Future

While gasoline and diesel prices for consumers face a brighter future, our electric bills may not follow a similar fate. Following years of speculation and debate, the U.S. Environmental Protection Agency (EPA) announced its draft Clean Power Plan, which seeks to reduce greenhouse gas emissions from existing fossil-fuel power plants. As proposed, the plan is likely to lead to the premature closure of coal-fired power plants and have a huge impact on the reliability and affordability of our electricity. Moreover, the plan doesn’t fully account for the value of our existing carbon-free nuclear power – a sector that is increasingly facing its own threat of closure. Finally, the influx of distributed generation, such as rooftop solar, has also raised concerns about the costs of maintaining a reliable grid. Combined these challenges raise the specter of higher costs and reliability problems for electricity consumers.

#3: Gulf Coast Pipeline Comes Online While Its Northern Counterpart Remains Stalled

Keystone XL’s southern leg, the Gulf Coast Pipeline, came online this year, delivering crude from Cushing, Oklahoma to Gulf Coast refineries, along with millions in tax revenue, in January. However its northern counterpart, Keystone XL, has now been waiting more than six years for federal approval. As the White House dithers, the new Republican-majority Senate has vowed to make its approval a top priority next year.

#4 Infrastructure Constraints Lead to Winter Price Shock

Not all consumers have been able to benefit from the energy revolution. Last winter, heating and electricity prices skyrocketed for residents in New England in the face of a polar vortex. Without sufficient pipeline capacity to move natural gas to these markets and the closure of nuclear and coal-fired plants, consumers faced record-high prices due to the constrained energy supplies. Despite the wake-up call, policy makers in the region have been slow to support new and expanded pipelines and new electric generation. Inaction will have a high cost: consumers in some areas of New England will pay 40% more for electricity this December over last month due to these constraints.

#5 Energy Policy Influences Voters’ Choices at Ballot Box

Leading up to the election, Consumer Energy Alliance polling showed that energy issues, including offshore drilling and Keystone XL, play a role in how voters view their candidates. It’s not surprising that voters are concerned about a candidate’s views on energy: energy prices are strongly tied to economic growth, and the economy was once again the top issue on voters’ minds this November.

More Than 100,000 U.S. Consumers Tell Feds to Open Up Arctic Energy for Consumers’ Benefit

Contact: Shawn Martini, 303-895-5070
smartini@consumerenergyalliance.org

 

December 22, 2014

Houston, Texas – Today, more than 100,000 U.S. consumers spoke out in support of Alaskan offshore energy. Consumer Energy Alliance (CEA) and its partners have submitted these letters to the U.S. Bureau of Ocean Energy Management (BOEM) just before today’s deadline for comments on a Supplemental Environmental Impact Statement for Chukchi Lease Sale 193. Efforts to explore and produce the American Arctic’s prodigious resources may hinge on the federal government’s actions to finalize this lease sale expeditiously, which was originally held in 2008 but has been upheld by litigation pursued by anti-development groups.

American consumers support a commonsense energy policy that includes expanding access to Alaskan offshore areas where responsible exploration for oil and natural gas can be done. Polling conducted for CEA in fall 2014 found that 73 percent of Alaskans support development of Alaska’s Arctic offshore resources while a majority of residents in other states polled similarly supported Arctic exploration.

In all, 100,033 comments were garnered on behalf of CEA from residents across all 50 states.

LS 193 Comment Map

 

“Just imagine the economic benefits that hardworking consumers and taxpayers would see with expanded Alaskan energy development,” says David Holt, president of Consumer Energy Alliance.

“CEA and our 250 corporate members and 400,000 individual advocates from every sector of the U.S. economy strongly value the contributions that domestic energy production has had for our nation’s consumers,” Holt says. “CEA has long advocated for expanded access to responsible offshore energy production as a means to grow our economy and lower energy prices. We urge the BOEM to listen to the more than 100,000 consumers and 50 companies and organizations that have joined CEA in calling on the federal government to move forward with Arctic energy exploration. We can protect our environment AND develop our domestic energy resources. Those who argue this is the environment versus energy production do nothing more than hurt consumers, limit jobs and stifle economic growth.”

CEA was joined in its support of Alaskan offshore development by Alaskan organizations who understand firsthand the benefits of energy development to the economy and to domestic consumers:

Consumer Energy Alliance – Alaska Executive Director Anne Seneca:

“Alaskans have long supported responsible, safe development of our coastal resources. For decades, Alaskan energy has boosted America’s energy security and supplied abundant resources to our fellow Americans in the Lower-48. Now is the time to ensure Alaska’s and America’s energy future by allowing Arctic exploration to proceed.”

Alaska Trucking Association’s Executive Director Aves Thompson:

“Off Alaska, it is vital that the United States maintain and accelerate opportunities to develop offshore oil and gas, particularly in the resource-rich Chukchi Seas. In addition to boosting U.S. economic growth, Alaskan offshore development will help extend the longevity of the Trans-Alaska Pipeline System (TAPS), helping to supply our nation’s truckers and transporters with stable sources of fuel.”

Resource Development Council of Alaska’s Deputy Director Carl Portman:

“Lease Sale 193 has undergone thorough environmental review and the BOEM has once again acknowledged that exploration can take place in the offshore waters of the Chukchi Sea with minimal environmental impact. Moving forward with exploration could lead to more than 35,000 jobs for Alaskans, new revenue for the State of Alaska and for federal taxpayers, and a new source of oil to keep the Trans-Alaska Pipeline System (TAPS) operating for the benefit of future generations.”

The Chukchi Sea, off Alaska’s northwest coast may be one of the largest untapped oil and gas sources in the entire world. According to federal estimates, development of Arctic oil resources could yield more than 500,000 barrels of oil per day for U.S. consumers, helping to offset overseas imports particularly for West Coast consumers who consume Alaskan energy.

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