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CEA in Raleigh to Discuss Impacts of Shale Energy Production

The Associated Press reports on a public hearing in Raleigh, North Carolina focused on proposed hydraulic fracturing regulations in the state, with organizations such as CEA’s Michael Whatley taking to the podium to discuss shale energy impacts for the state.

Nearly 400 people filled an auditorium at North Carolina State University for the first of four meetings during a comment period that lasts until the end of September. The state Mining and Energy Commission will analyze comments and consider revisions to the rules, which then must undergo a fiscal review before legislators have the final say.

Michael Whatley, executive vice president of the Consumer Energy Alliance, said North Carolina manufacturers have been able to add jobs and expand operations because of affordable, domestic, natural gas.

“The CEA strongly supports development of U.S. shale resources and applauds the efforts of the state to move forward with a sensible regulatory regime to oversee production of its energy resources,” Whatley said.

 

Consumer Energy Alliance Welcomes New Member: Kentucky Oil & Gas Association

HOUSTON – Consumer Energy Alliance (CEA) is pleased to welcome the Kentucky Oil & Gas Association as its newest affiliate member.

The Kentucky Oil and Gas Association (“KOGA”) is the industry association for Kentucky’s oil and gas producers. Formed in 1931, KOGA has 250 member companies representing core industry sectors (producers, drillers and field services), associated midstream and downstream sectors (pipelines, transmission and storage, refineries and processors and local distribution companies) and professional services (finance, legal, engineering and surveying).

Kentucky’s oil and gas industry is a $1.1 billion industry in the state’s economy. In 2013, the oil and gas industry supported over 3,200 jobs in direct and downstream industry sectors. The average annual wage for oil and gas jobs is between $50,000 to $60,000. Last year, Kentucky’s oil and gas industry contributed over $40 million in tax revenues to state and local governments.

“This is an exciting partnership with CEA,” said Andrew V. McNeill, KOGA’s Executive Director. “KOGA and CEA’s goal alignment – reliable and affordable energy resources for consumers – is the foundation upon which we’ll build a long and productive relationship between the two organizations.”

“We at CEA are so delighted to have KOGA on board as our latest affiliate member in the Southeast,” said CEA Vice President of State Affairs Brydon Ross. “KOGA’s membership is on the cusp of helping drive a new economic renaissance across the state – especially in Appalachia and Western Kentucky. CEA is excited to partner with KOGA to help advance and harness this promise for consumers across the Commonwealth and country.”

In 2013, thirty-four (34) Kentucky counties reported natural gas production. Over ninety-five percent of the state’s natural gas production comes from Kentucky’s Appalachian counties. Last year, sixty-three (63) Kentucky counties reported oil production. Oil production in Kentucky has increased by 21% since 2011.

For more information on Kentucky Oil & Gas Association, visit their website.

CEA Urges Balanced Approach in State Electricity Decisions

The electricity mix in this country is changing: we’re using less coal, more natural gas and more renewable energy, and we’re learning how to use this electricity more efficiently. These changes bring about opportunities and challenges, many of which have required policy makers to reevaluate the rules of the road.

The increased use of rooftop solar and other distributed generation systems by homeowners and businesses is one such development. Solar power has lessened our dependence on overseas energy, improved air quality and boosted U.S. manufacturing. Falling prices for solar panels and leasing programs have allowed more consumers to utilize solar panels to generate part of their electricity needs.

As adoption of distributed generation grows, many states are examining how this growth affects the grid and the resources needed to support this critical infrastructure.

For many months, Consumer Energy Alliance (CEA), its corporate membership and its individual supporters have been engaging on these questions. Throughout the process, CEA has maintained that the rules and regulations which govern distributed generation systems must be approached in a balanced, sensible manner that:

  1. Ensures that there is continued growth for solar energy and other distributed energy sources.
  2. Provides adequate maintenance for the electricity grid.
  3. Maintains reasonable prices for all consumers.

Recently, CEA learned that the Wisconsin Public Service Commission (PSC) was reviewing rules relating to distributed generation. Understanding the value of consumer input and the need to ensure that this process prioritized consumer interest, CEA engaged its membership and other consumers in Wisconsin to call upon the PSC to promote policies that protect consumers. In early October, CEA submitted a petition to the PSC urging the Commission to remain fair to Wisconsin consumers as it reviewed pending cases.

Because CEA’s comments and petition did not pertain to the merits of any specific rate case, but were rather broader and applicable to all PSC decision-making, CEA requested that its petition be withdrawn from the record. In a letter to the PSC, CEA reiterated its support for a balanced approach to all PSC decisions and affirmed its commitment to a process that recognizes consumers.

With more than 250 affiliate organizations and over 400,000 individual consumers nationwide (including thousands of Wisconsinites) focused on ensuring affordable and reliable energy for all consumers, CEA supports rules that provide proper incentives for net-metering program participants and are fair for all electricity consumers statewide. It is important that consumers pay attention to these challenges and make sure that all voices are heard during discussions about new rules.

CEA has a long history of non-partisan support for all energy resources and a rational dialogue on how energy affects consumers from every sector of the economy nationwide. We look forward to continuing this important mission in Wisconsin and the other states in which we operate.

DAVID HOLT: Promote, don’t hinder, safe and responsible energy production

An op-ed by Consumer Energy Alliance President David Holt in the San Angelo Standard-Times details the economic growth in the counties south of Refugio, Texas, as a direct by-product of the new activity from the Eagle Ford Shale.

Refugio County, Texas is a small, close-knit, ranching community.

Local butcher and county commissioner Stanley Tuttle, owner of Tuttle’s Grocery and Market, said most residents of the 10-square-mile southeastern region are either retirees or workers who travel extensive distances to Corpus Christi or Victoria for work.

“If you weren’t involved with farming or ranching or something of that aspect, there just wasn’t a whole lot more things to do around here,” Tuttle recalled.

That’s not the case anymore.

To make a living, residents once relied heavily on farming and motorists stopping for supplies while traveling on nearby highways. New activity from the Eagle Ford Shale located to in the counties south of Refugio is starting an uptick in economic growth.

“The things that have happened have really helped out,” Tuttle said, referring to the Eagle Ford Shale, which has led to a boost from new service companies relocating into town even though there is no drilling taking place within the county. “They have helped our locals find jobs right here at home, where they don’t have to do the traveling,” Tuttle said.

Jobs are plentiful and housing is in demand – so much so that Refugio is doing all it can to attract developers and build new homes.

The Eagle Ford Shale’s economic benefits are reaching industries across the community.

Cody Walker, owner of Le Blue Sky, Ladies Boutique says business is up – and she credits some of that to the energy boom that has taken place in neighboring counties. “We (have) not only directly but indirectly (been affected) being that their husbands work in the oil fields or have oil field-related companies, and that in turn gives them safe passage to come to Blue Skies,” she said.

Robbie Blaschke, general sales manager at Wilkinson Chevrolet, said demand for lifted trucks has risen considerably since the explosion of Eagle Ford Shale in nearby towns. “These have become a hot commodity here in Refugio County,” he said.

Refugio County is an example of how the rising tides from development like the Eagle Ford Shale are helping lift the economies in adjacent communities.

According to the U.S. Energy Information Administration (EIA), Texas was the leading crude oil-producing state in 2013, exceeding production levels even from the federal offshore areas. This is why the Lone Star State ranks as the ninth largest oil-producing region in the world – greater than Middle Eastern Goliaths like United Arab Emirates and Kuwait.

We can thank the Eagle Ford Shale for this Texas-sized accomplishment. The onshore oil reserve, according to Forbes, is the largest oil and gas development worldwide in terms of total capital expenditures. The Eagle Ford already produces more than 352,000 barrels a day. However, Thomas Tunstall, research director for the University of Texas at San Antonio’s Institute for Economic Development believes that “it’s likely to [reach] the million-barrel-per-day mark this year.”

The benefits that the Eagle Ford Shale has brought to Refugio County and its surrounding communities are endless. In less than half a decade, it has radically remade the economic fortunes of a region, attracting new jobs, tax revenues, and residents. All this from a county that neighbors the Eagle Ford.

The good news is that this trend isn’t limited to Refugio County. The entire state of Texas is also seeing economic benefit. The U.S. Bureau of Labor Statistics recently released a report showing that Texas added 22 percent of all jobs nationwide in April. And Texas’ 5.2 percent unemployment rate is the lowest since September 2008 and more than a full percentage point below the national average.

Unfortunately, some special interest groups like the Sierra Club and Food and Water Watch are intent on stopping energy development – and the lower energy costs and prosperity that come with it. By advancing shale energy, we can bring forth new jobs and new tax revenues to fund schools and local initiatives.

Instead of misleading American consumers, safe and responsible energy production should be promoted. Texas is proof of this. That is why it is vital that the oil and gas industry continue to engage with Texans – and all Americans – about the many opportunities that shale energy offers. Today’s energy renaissance is the latest chapter in our pursuit of the American dream.

How Affordable Energy Helps Keep Healthcare Affordable

Hospitals hum with energy from nurses, doctors and a cast of support staff who provide care and treatment to help the sick heal.

Healthcare professionals rely on their skills as well as facilities and equipment to provide care, all of which requires dependable sources of energy. According to the U.S. Department of Energy, healthcare facilities consume close to 10 percent of the total energy used in commercial buildings in the United States.  A cost the federal government estimates to be more than $8 billion a year.

For hospitals, keeping energy costs affordable helps keep healthcare affordable.

Hospitals have to balance their revenues and expenses the same as any other business. A quick glance by theHouston Chronicle shows that hospital expense sheets include:

  • Insurance
  • Tests
  • Labor
  • Medication
  • Research
  • Supplies
  • Training
  • Liability costs
  • Equipment
  • Capital Expenses

And let’s hope they do. Here’s why: Just looking at that list, the last thing that hospitals need to worry about is how much it takes to power their facilities and state-of-the-art equipment – but they do, according to a 2013 analysis from the U.S. Department of Energy. This analysis lists a variety of ways health care facility decision-makers can make and implement energy improvement projects in their facilities.

  1. The energy-use intensity of hospitals is nearly three times that of a typical office building
    Patient care is energy intensive. Caring for patients requires energy twenty four hours a day, seven days a week. Compare this to the energy needed to run an office or a home, then consider how low energy costs can help hospitals save money. Any changes to regulations governing electricity generation will have a disproportionate effect on hospitals because they are power dependent. The more power costs go up, the more the cost to the patient goes up.
  2. Turning off the lights (or the heart monitor) isn’t an option
    Sound efficiency measures can help hospitals save money, savings that could apply to patient care. However, hospitals are much more limited when it comes to energy conservation. Hospitals need consistent access to power (and back-up power) to operate life-saving equipment and to maintain safe, well-lit and comfortable facilities. Any threats to the reliability of electricity – whether from misguided regulations or grid insecurity – directly threaten the health of our healthcare.
  1. U.S. health care facilities spend $8.8 billion per year on energy
    The U.S. Department of Energy contends the average hospital can cut their energy budget by almost a third saving over a billion dollars per year! Being smart about American energy consumption and energy production stands to improve the healthcare industry’s ability to budget funds in a more useful and important manner. One penny not spent on paying for power is a penny that can be spent on patient care.
  1. Lower energy costs free up funding to improve healthcare services
    As in almost all other areas of our economy, consistent and low energy costs, readily available through an “all of the above energy plan”, is critical to the growth and improved functioning of businesses in America. From the mom and pop dry cleaners on your neighborhood corner to giant industries such as American Healthcare, energy costs determine how funds are allocated in our economy. Hospitals care about energy, and you should too, because lower costs mean a greater ability to focus on your wellbeing.

 image:flickr/jfcherry

Alaska is Key to America’s Energy Success

America is at the beginning of a profound and sustained Energy Revolution. New technologies and innovation are spurring expanded opportunities in oil & gas development, as well as increased use of wind and solar and improvements in energy efficiency.  As this revolution continues, every consumer in every sector of the US economy will benefit from increased employment opportunities, improved standards of living and economic growth.

The early proof of this new reality is clear.  The current geopolitical turmoil in the Middle East and elsewhere would normally increase global oil prices and gasoline prices here at home.  Yet, today we actually see falling global oil prices due primarily to America becoming the #1 oil and natural gas producer in the world.

But if we are truly serious about meeting our growing energy demand and becoming self-sufficient as a nation, we must more thoughtfully develop ALL our abundant energy resources.  While energy production is up 77% in the last five years in the lower 48, it has actually fallen in Alaska due to federal regulatory overreach and ongoing aggressive litigation efforts by national anti-energy groups.

Without the abundant energy resources supplied by Alaska, the United States will never be able to achieve energy self-sufficiency.  The citizens of Alaska understand this. It is time the rest of the nation recognized it. Consider these figures reported recently by CNBC:

  • Alaska’s oil production has plunged from more than 2 million barrels per day in the late 1980s to fewer than 400,000 today
  • Alaska has dropped to No. 4 nationwide in oil production

Clearly, we need more energy production coming from Alaska. And Alaskans overwhelmingly support increasing production, with a recent poll showing that “91 percent say that it is important to them to produce more oil and natural gas here at home”. So, this all begs the second question…

Why is Alaska left behind?

It’s not for lack of resources. Conservative federal estimates peg Alaskan oil resources at more than 35 billion barrels of oil in reserves onshore and offshore. This staggering number underlines how deeply Alaskan energy production would aid US energy self-sufficiency and security, particularly on and for the West Coast. Without the ability to tap into these vast reserves, America faces higher energy prices and greater security risks from our need for oil tying us to Middle Eastern political crises. You can, however, look to the federal government for affecting why Alaska is left behind.

An astonishing  62 percent of Alaska’s land is federally-controlled, and all waters more than three nautical miles offshore are also federally owned and managed. As a result, the state’s energy development has been stymied by the federal government’s inability – or unwillingness – to lease and permit expanded development on federal lands. The federal government has, in part, been influenced by a vocal minority of anti-development activists in the lower 48 who are determined to keep Alaska resources in the ground. These activists have been suing, cajoling, and arguing in any way possible to ensure that Alaskan energy remain off limits.

Speaking of public benefit, despite the decline in production, oil and natural gas development remains a vital component of the state’s economy. Remember, the petroleum industry in Alaska supports:

  • About 90 percent of the state’s discretionary spending

So what onshore and offshore potential does Alaska have? To put it simply: a lot. In order to further the nation’s energy and national security objectives, exploration of Alaska and its Arctic waters must remain a dominant figure in the nation’s energy equation. More onshore and offshore production, accompanied by the right balance of policies and regulations, could accomplish the following:

What Can We Do?

Consumer Energy Alliance (CEA) believes that the U.S. must better educate all consumers on the benefits of Alaskan energy and motivate them to advocate for an “all-of-the-above” energy policy. As a result, consumers will lead the conversation with policymakers on the importance of Alaska to U.S. energy.

CEA has taken steps to make this happen, recently announcing that it submitted more than 128,000 letters from consumers to the Bureau of Ocean Energy Management (BOEM) calling for an expansive 2017-2022 Outer Continental Shelf Oil & Gas Leasing Program that includes oil and natural gas leasing opportunities in the Atlantic, Western, Central, and Eastern Gulf, and off Alaska.

Alaska’s natural resources and pristine environment are a great benefit to Americans. It’s up to us to make sure we tap and utilize these benefits effectively for the greater good of the nation.

Fourth Annual CEA Energy Day Festival a Success

Twenty five thousand people turned out Saturday, along with more than 70 exhibitors, to applaud dozens of Houston area teachers and students who were recognized at the fourth annual Energy Day Festival. Thousands of festival-goers viewed exhibits on a range of STEM (Science, Technology, Engineering and Mathematics) topics including demonstrating the process of liquifying natural gas, showcasing prototype hybrid vehicles, and a simulator for naval Remotely Operated Vehicles.

“STEM jobs are key to our future economic growth, and particularly vital to help continue our ongoing Energy Revolution,” said David Holt, the President of Consumer Energy Alliance, the chief organizer of the festival.  “Energy Day shows students the range of real-world possibilities available to them if they pursue a degree in a STEM related field.” 

The festival, in its fourth year, featured over 70 exhibitors and set a new attendance record. Local law enforcement estimated over 25,000 people attended the one-day event. Students from area schools, teachers and parents volunteered to staff the event.

Consumer Energy Alliance 2014 Annual Report

The Energy Revolution is Supporting Texas-Sized Population Growth

Austin Texas skyscrapers skyline aerial at sunset from helicopter

America is in the midst of an energy boom. We all know this. We also know the positive impact it has had on our nation’s balance sheet.

The U.S. is now set to surpass Russia and Saudi Arabia in crude production, and it has already passed the former as the world’s largest producer of natural gas.

But what often slips under the radar is how energy is also fueling population growth in communities west of the Mississippi River – particularly those in Texas – where nearby production is a daily occurrence.

Recent data from the U.S. Census Bureau shows that three of the nation’s five fastest-growing cities – and seven of the top 15 – are in Texas. San Marcos, located between Austin and San Antonio, topped the list of cities with more than 50,000 people for the second year in a row, registering 8% growth between July 2012 and 2013. It now has 54,076 residents.

Meanwhile, another Texas community, Frisco, saw a 6.5% growth, good for second best on the list. Cedar Park, Georgetown, Odessa, McKinney, and Pearland round out the other Texas cities on the growth chart.

Given the state’s long, storied history of energy dominance – the sector is responsible for more than 12% of all the jobs in Texas – these findings are not surprising. Workers continue to be attracted to the sector’s higher-than-average salaries and job security. Now that producers can access resources once deemed out-of-reach via new hydraulic fracturing technologies, the number of jobs is up – and is likely to increase more in the future.

According to the Census Bureau, mining, quarrying, and oil and gas extraction revenue in the U.S. increased 34.2% to $555.2 billion between 2007 and 2012. The number of employees also grew 23.3% to 903,641, making the sector one of the nation’s fastest growers in employment.

This news comes after the Bureau earlier this year said that six of the 10 fastest-growing metropolitan areas and 8 of the 10 fastest-growing counties in the country are located in or near the oil- and gas-rich fields of the Great Plains and Mountain West. Not surprisingly, Odessa and Midland, Texas, showed up as the second and third fastest-growing metro areas in the country. Austin-Round Rock ranked eighth in population growth.

Sara Higgins, the Midland public information officer, recently gave the Associated Press a simple explanation for Texas’s population growth: “Right now, our economy is booming due to the increased oil and gas activity here in town,” she said.

Shale development is also spearheading another vital and quickly growing American lifeline: manufacturing. Data recently released from Manufacturers’ News Inc. (MNI) says that industrial employment grew 2.5% in Texas from May 2013 to May 2014. It is the third straight year Texas gained manufacturing jobs.

“There’s no doubt that Texas’ economy is being driven by the growth in the energy sector,” said Tom Dubin, MNI’s president.

Other regions that have welcomed energy production with Texas-sized opening arms have also benefited. Data from the Census Bureau shows that the majority of the top 15 municipalities with the fastest population growth were in southern or western states, either in or near the oil- and gas-rich fields.

These numbers do not lie. This energy renaissance is helping Texans by generating jobs, stimulating economic growth, lowering energy costs, and increasing incomes – all contributing to population growth in several Texas cities. Thanks to Texas, energy production is now one of the nation’s fastest-growing industries and will be an engine for economic growth for years – if not decades – to come.

There is real opportunity available, and The Lone Star State is proof of this. Today’s energy renaissance is the latest chapter in Texans’ pursuit of the American dream.

This post was originally published on FuelFix.com

 

Experience Energy Day Festival 2014

Houston Students to Experience Underwater Robots, Freezing Experiments, Scientific Magic Shows and Much More at Upcoming 2014 Energy Day Festival

From Shattering Food and Objects Frozen with Liquid Nitrogen to Energy Magic Shows, Houston’s largest Energy Festival to feature Over 70 Interactive Exhibits and Demonstrations

HOUSTON – Imagine a balloon, still full of air, shrinking before your eyes. Visualize a flower shattering into pieces without plucking its pedals off. Now, stop imagining and come and see an energetic group of professional engineers called The Air Liquide Freeze Team do it live at Consumer Energy Alliance’s (CEA) 4th annual Energy Day Festival on Saturday, October 18th from 11 a.m. to 5 p.m. at Sam Houston Park, at 1000 Bagby St. in downtown Houston.

After that, stop by the refining industry’s booth to see Lynn Hogue with Terrific Science perform “petrochemical magic tricks” such as making slime and shrinky-dinks, or check out the Subsea Tieback Foundation’s SEATIGER – a trailer- mounted tank and mini-Remote Operating Vehicle (ROV) that provides an opportunity for students to experience hands on mini-ROV technology.

Other exciting attractions include the Geophysical Society of Houston booth, where experts will illustrate how geophysicists use acoustic (sound) waves to image the subsurface of the Earth, and the University of Texas’ GeoFORCE team, which will illustrate how stratigraphy works by helping students put how layers of different sediment in plastic tubes at numerous stations.

These exciting demonstrations and interactive experiments will be included in the more than 70 interactive exhibits and demonstrations that will highlight on-going advancements and innovations throughout the American energy sector and trigger students’ interest in STEM-related studies.

Skills in these classroom studies, according to numerous analyses and industry experts, are needed today more  than ever if we are to continue an energy revolution that continues to offer affordable, reliable energy supplies to America’s families, farms, factories and small businesses.

“It is critical that we do everything we can to give the students of today the tools they will need to succeed as the workforce of tomorrow,” said David Holt, president of CEA. “As our nation continues to experience unprecedented growth throughout its energy sector, more and more challenging but highly-rewarding careers will be available for those armed with various STEM skills. Energy Day is a fantastic way to get our children prepared for a successful career.”

With music, food, games, contests, and presentations by energy experts from numerous energy firms nationwide, the free event is the largest energy festival in the nation and provides nonstop fun for all ages. Moreover, more than 75 students and teachers will be awarded at the festival for their achievements in STEM-related competitions.

Energy Day is proudly sponsored by more than 100 Houston businesses, including Direct Energy, Hess Corporation, ExxonMobil, Golden Pass, Torch Energy, Caterpillar, United Airlines, Freedom Solar, and ConocoPhillips.

To learn more about Energy Day and its accompanying 2014 Energy Day Academic Program, visit http://www.energydayfestival.org/.

Watch highlights from last year’s Energy Day Festival:

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