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Energy Consumers Should Have All the Facts about Shale Development

In a feature for The Energy Report of the Observer-Reporter, CEA President David Holt explains the need for consumers to be informed about shale energy development.

As president of the Consumer Energy Alliance, David Holt heads an organization that bills itself as the “voice of the energy consumer” wherever that person can be found around the country.

 

Its representation is anchored by 240 member companies in the energy industry, as well as 400,000 individual members. The Houston-based organization, which has supported “across-the-board” energy choices for consumers since its launch in 2006, has been a staunch supporter of the natural gas production industry.

 

During an interview with The Energy Report this month, Holt said one of the biggest challenges to the natural gas industry is the opposition by environmental groups to the industry’s use of hydraulic fracturing.

 

“They’re telling one side of the story, trying to get communities to fear hydraulic fracturing,” said Holt, who added that one of CEA’s missions is to engage communities to broaden the national energy discussion.

 

Last year, the organization hosted more than 20 events and meetings with policy makers in its 20-state network, and also launched a new blog, TheEnergyVoice.com, and a new website.

 

“We try to access areas where energy development may be new,” he said.

 

CEA’s heightened information approach comes at a critical time as shale plays like the Marcellus produce record amounts of natural gas with improved drilling techniques. Holt noted that 25 states have some shale gas strata beneath their surface.

 

While the shale industry has become an employment juggernaut, Holt noted that another $200 billion is being invested in ancillary business related to the boom.

 

At the same time, movements are afoot in several states, including Pennsylvania, to halt shale development.

 

Other states with active anti-drilling movements include Colorado, New Mexico, Illinois, Indiana and Michigan, Holt said.

 

CEA said earlier this month it sent a letter to Pennsylvania legislators asking them to abandon a proposed statewide ban on Marcellus Shale development, known as the Statewide Natural Gas Drilling Moratorium (Senate Bill 1100).

 

“As you know, 2.6 million people in Pennsylvania use natural gas with 38 percent using it to heat their homes,” Holt wrote. “And because of, not in spite of shale gas development, home heating costs in the state are down 50 percent over the past five years.”

 

He added that in 2012, Pennsylvania and West Virginia accounted for 18 percent of the nation’s total natural gas production.

 

“There’s a little bit of a cold war going on here,” Holt said, adding that despite the fact that the natural gas extraction industry has continually made steps to improve its drilling and water usage procedures, “the public still is catching up to that.”

 

“If a community decides it doesn’t want (shale gas development), I can accept that as long as it’s an informed decision,” Holt said. While CEA advocates for opening areas off U.S. shores and promotes the pursuit of shale energy, it also supports diversifying the domestic energy portfolio through the development of renewable energy sources, Holt said, noting that it counts solar and wind companies among its members.

 

Not surprisingly, the organization also supports the Keystone XL pipeline.

 

Despite the rhetoric against it from a variety of environmental groups and citizens, Holt said CEA recently gathered more than 500,000 signatures in support of the project to take to Washington, D.C. He added that surveys have shown that 65 percent of Americans support the pipeline.

 

But it’s not just fossil fuels and their extraction, transport and usage that are under fire from environmentalists, Holt said. He noted that offshore wind development is also facing increasing opposition, and that the addition of electricity transmission lines to the national grid, while in high demand, also receives protests.

 

The overarching policy goal of CEA is to have “reliable diversity from utilities with coal, natural gas, renewables and nuclear,” Holt said.

 

And despite being an adversary to environmental groups’ stand on hydraulic fracturing, Holt believes there can be some common ground.

 

He acknowledged that some environmental groups, including the Environmental Defense Fund, joined several major natural gas exploration and production companies – including Consol Energy, Chevron and EQT – to form the Center for Sustainable Shale Development in Pittsburgh. The center created a certification process for companies that choose to follow the drilling practices that have the least environmental impact.

 

Holt said CEA is on the same page.

 

“We’re always asking, ‘how can industry do it safer, smarter, better,’” he said.

 

“If a community decides it doesn’t want (shale gas development), I can accept that as long as it’s an informed decision.”

 

A Pennsylvania Fracking Ban Would Spoil Benefits

Anti-development efforts promoting a statewide moratorium on shale development would reverse economic progress in Northeastern Pennsylvania, writes CEA President David Holt in the The Times Leader.

Pennsylvania Gov. Tom Corbett recently unveiled a 73-page energy plan, called “Energy = Jobs,” that rests on three pillars: Pennsylvania’s standing as a national leader in energy production, development of a diverse portfolio of energy sources to meet the state’s needs, and development of a first-rate workforce.

As C. Alan Walker, the state’s Secretary of Community and Economic Development recently wrote about the plan, “We’re embracing an ‘all of the above — and below’ energy plan. This means we will encourage private industry to develop all of Pennsylvania’s energy resources, including traditional fossil fuels of coal, oil, and shale gas, and renewable sources like wind, solar, hydropower and biomass.”

Consumer Energy Alliance agrees with embracing an “all of the above” approach since the organization’s mission is to promote U.S. energy production. Together with our diverse membership, we support public policies that ensure consumers can access affordable energy and that the energy is developed safely and responsibly.

We advocate for opening areas off of U.S. shores in the Atlantic, the Arctic and the Gulf of Mexico to energy development. We work with both federal and state governments to promote the pursuit of shale energy. We support diversifying our energy portfolio by developing and utilizing renewable sources of energy. CEA is a strong voice for fortifying America’s energy infrastructure, such as the electric grid or gas and oil pipelines. We encourage power generation that utilizes all available resources at our disposal to keep consumer prices reasonable and electricity reliable.

Unfortunately, far too often energy consumers are confronted by organizations that promote one narrow view: No to everything. No to Arctic development. No to Keystone XL. No to the Gulf. No to wind. No to transmission lines. Anti-development activists see only a binary world. Do nothing or face disaster. The false choice of the environment is pitted against development.

Now these organizations are focused on saying no to Pennsylvania‘s future energy development through their efforts to push a statewide moratorium on shale development. This would turn back the clock on the progress that has been made in the past five years to energize Northeastern Pennsylvania’s economy and would harm development of the Marcellus Shale, which was responsible for nearly one-fifth of the total U.S. natural gas production in December 2013.

Consumers from across Pennsylvania – and nationally— continue to benefit from this tremendous resource. Recently, The Associated Press found that about two-thirds of Pennsylvanians who heat their homes with natural gas went into the winter season paying the lowest prices in a decade for this time of year, according to rate information from the Pennsylvania Public Utility Commission. Utilities credit the huge volume of gas being produced from the Marcellus Shale formation underneath Pennsylvania to pushing down prices. In most cases, prices this past December were less than half what they were in December 2008, when the shale boom was just beginning.

However, the importance of shale energy development in Pennsylvania goes beyond supplying the energy we need to power our industries and heat our homes. It’s laying the foundation for Northeastern Pennsylvania’s economic renaissance. According to the state Department of Labor, Marcellus Shale development supports more than 239,000 jobs in Pennsylvania across a range of sectors, from construction and manufacturing to real estate and hospitality. Even more important, these are high-wage jobs that are improving the lives of middle-class families in our communities across the state. This is bringing good news to Northeastern Pennsylvania, where wages typically lag behind state and national averages.

But shale energy development isn’t only providing job opportunities for Northeastern Pennsylvania residents; it’s also spurring investment in our communities and families while ensuring some of the most stringent environmental standards on record. Just last month, the Pennsylvania Housing Finance Agency approved the use of $2 million to fund housing projects in Northeastern Pennsylvania that stemmed from “impact fee” funding. This comes on top of an announced half-million dollars in funds to Lackawanna County for trail maintenance, park renovation, and water and sewer line projects. An additional $4 million in impact fees were directed to similar projects in Luzerne County.

Shale development is also helping the region’s schools. According to William B. Bush, superintendent of the Elk Lake School District, the district has greatly benefited from receiving financial resources to program development and support. To date, the district has received approximately $2 million in lease and royalty payments, which has enabled the district to keep real estate taxes low. Make no mistake, these opportunities are transforming lives for people across the state, especially here in Northeastern Pennsylvania.

The Keystone State is uniquely positioned for economic growth for many future generations, and its future should not hang in the balance of potential fracking bans or moratoriums.

We can all agree that the benefits of properly regulated shale development are too great to sacrifice. These resources can be developed responsibly, so the false argument that it is either the environment or energy development increasingly rings hollow. Our children deserve a beautiful environment AND good economic opportunities. Pennsylvania shale development can bring both!

Please join CEA and a plurality of Pennsylvanians who, according to a recent Muhlenberg College poll, support continued shale development in the state.

 

 

Reshaping the Economic Landscape in Lycoming County
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About Lycoming County

Located about 130 miles northwest of Philadelphia and 165 miles east-northeast of Pittsburgh. Lycoming County is included in the Williamsport, Pennsylvania, Metropolitan Statistical Area.

Founded: April 13, 1795 (from Northumberland County)

 

Population: 116,111

County seat: Williamsport

Area: 1,216 square miles

Helpful Links

To learn more about how responsible shale gas production is a game changer for the U.S., please read CEA’s New Energy Future Report click here.

To read about CEA’s Marcellus Moratorium effort, please click here.

 

About CEA

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. We believe energy development impacts everyone, and thus it is necessary for all consumers to actively engage in the conversation about the importance of energy to the economy and how we develop and diversify our energy resources. 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.

Pittsburgh, PA – According to the Energy Information Administration (EIA), Pennsylvania is the fastest-growing natural gas-producing state, with estimates that the Commonwealth may be on pace to become the second-largest producer in 2013.

Pennsylvania continues to see a number of significant benefits through reduced energy costs, employment growth and economic revitalization. In fact, the Pennsylvania Public Utility Commission recently projected that about two-thirds of Pennsylvanians who heat their homes with natural gas are heading into December paying the lowest prices in a decade for this time of year.

Significant impacts have also been seen in the counties where natural gas production continues to thrive. Consumer Energy Alliance (CEA) Mid-Atlantic continues to highlight the positive examples of economic influence that domestic shale gas development has had on communities across the nation in Part VIII of their series — this time showcasing Lycoming County, PA.

With more than 115,000 residents, Lycoming County is located about 130 miles northwest of Philadelphia and 165 miles east-northeast of Pittsburgh.

Best known as the birthplace of the Little League World Series, Williamsport, PA., along with the surrounding Lycoming County has become an area known for Marcellus Shale development. In fact, new hope has emerged in towns like Williamsport, PA, as shale gas reserves trapped deep beneath the landscape have provided a tremendous boost to the local economy.

In many ways, shale gas production in Lycoming County has transformed the region’s economic growth, making it the seventh fastest-growing community on a percentage basis in the nation. Click here to watch a video about how the discovery and development of the Marcellus shale has helped make Williamsport, PA one of the fastest growing metropolises in the country.

Dr. Vincent J. Matteo, President of the Williamsport-Lycoming Chamber of Commerce, said he has not seen an economic boom such as the one that simultaneously fills local restaurants and hotels, and generates an influx of optimism among many of the local businesses now benefiting from the area’s burgeoning oil and gas industry.

Click here to view a short clip of Dr. Vincent J. Matteo, President of the Williamsport-Lycoming Chamber of Commerce, discussing the importance of the economic growth taking place in Williamsport-Lycoming.

Matteo also pointed out within the past three years, about 115 new businesses were opened and about 2,000 people have been hired for those businesses.

While established hotels and restaurants are experiencing an uptick in patronage, new businesses are also opening up all over the county. “You’ve seen the growth not only from the companies moving into the area, but from our legacy companies, the ones that have been here that have expanded their employment as a direct result of the natural-gas exploration,” added Matteo.

Click here to hear from more local business owners about some of the ways the Marcellus shale boom has positively impacted their businesses.

In fact, the Congressional Natural Gas Caucus recently convened a field hearing where economic experts from Tioga, Bradford, Clinton and Lycoming counties met to discuss the economic impact of natural gas development in their communities. At the field hearing, Jeff Wheeland, Chairman of the Lycoming County Commission, pointed out that more gas wells were drilled in Lycoming County than in any other county in the state in 2012.

Additionally, U.S. Rep. Tom Marino, R-Lycoming Township, deemed the development of natural gas in the region a “game changer.” Marino also stated that gas development in Lycoming County is booming, with 75 percent of its private land leased to gas developers and the development of the Marcellus Shale beginning to relieve U.S. dependence on foreign oil.

Housing is another prime example of how the surging shale gas industry has impacted Lycoming County’s economy. According to Brent Fish, president of Fish Real Estate, the average cost of a home in the U.S. dropped 30 percent between 2006 and 2012, while the average cost to purchase a home in Williamsport increased 17 percent in areas with oil and gas development, despite a nationwide recession.

Paychecks of residents in areas where Marcellus Shale development is strong are growing as well; from 2010 to 2012, Williamsport-Lycoming County saw a 6% increase to $38,060.

Another important impact from Marcellus Shale development on Lycoming County has been from the large impact fees that have significantly contributed to the county’s economic growth. In fact, Lycoming County received over $16.6 million in impact fees over the last few years. Thanks to the revenue from impact fees, much has been improved.

While most of Lycoming County’s impact fee money went into either improving roads and bridges ($1.1 million) or was deposited in the capital reserve fund ($1.9 million), $330,000 was spent to demolish the old Brodart warehouse on Memorial Avenue in Williamsport to create affordable housing.

Despite the controversy over whether or not the economic benefits will endure the test of time, recent research suggests that the economic boom is likely here to stay. According to a report released by the U.S. Energy Information Administration, the gains in new gas wells are more than offsetting the declines from the existing ones and the Marcellus Shale accounts for three-fourths of the growth in the production across the U.S. With this in mind, it’s clear that shale resource production has become a driving force behind economic growth and job creation, not only in Lycoming County, but across the state and nation.

To learn more about Consumer Energy Alliance Mid-Atlantic please visit www.consumerenergyalliance.org.

A Pipeline to National Security

The U.S. reliance on overseas energy has long been a national security concern. Writing at TownHall.com, CEA’s Michael Whatley breaks down why it is so important for the United States to move ahead with building the Keystone XL Pipeline.

Town Hall.com:

If there were any doubt about the importance of pipelines to national security, it ought to have been erased by recent events in Crimea and Ukraine as the Russian Bear has pawed away the former from the latter. Europe is vulnerable because 16% of its natural gas comes through Ukraine. It is a powerful reminder of why the Keystone XL Pipeline is critical to our own national security.

The Keystone XL Pipeline will deliver 830,000 barrels of oil per day to the Gulf Coast and reduce American dependence on oil from rapidly deteriorating and unstable Venezuela and the ever volatile Middle East by up to 40 percent.

Consider the implications of this. If the 830,000 barrels of oil per day were refined into gasoline, the yield would be 15 million gallons of gasoline per day according to the Energy Information Administration.

Abandoning Shale Resource Boom Would Hurt Pennsylvania

Writing in the Pittsburgh Post-Gazette, Consumer Energy Alliance’s Mid-Atlantic Director Mike Butler discusses a recent Pennsylvania Supreme Court decision to strike down provisions of the state’s shale development law and potential impacts on the economy and consumers. 

Late last year, the Pennsylvania Supreme Court made headlines with a 4-2 decision to strike down several key provisions of the Keystone State’s Marcellus Shale gas development law, known as Act 13. Washington County’s Robinson Township recently announced that it intends to withdraw from a joint lawsuit against Act 13, which prompted Supreme Court action in the first place.

The concerns expressed by Robinson Township are understandable since the reversal of Act 13 will likely impact the development of the Marcellus Shale play to the detriment of the Keystone State’s economy. For many Pennsylvanians, shale energy development has translated into jobs, economic opportunity and real savings. In fact, home heating costs have been cut in half and electricity prices are down 40 percent, due to the bounty of natural gas provided by the Marcellus Shale.

 Consumer Energy Alliance is concerned about impacts stemming from the Act 13 decision since the cost of natural gas will likely increase across the country as a result of efforts to ban shale development in Pennsylvania since the Marcellus Shale recently accounted for 18 percent of all U.S. natural gas production.

 In the backdrop of the evolving debate around shale energy production, one thing is clear: Abandoning the economic development and job creation efforts that the shale resource boom has supported would severely weaken Pennsylvania.

 Policymakers and consumers should focus on working together to find a common-sense approach that leverages the responsible use of our resources to encourage investment, build opportunity and create jobs for Pennsylvanians.

Shale Energy Benefits Too Great to Sacrifice

Writing in the Allentown Morning Call, Consumer Energy Alliance Mid-Atlantic Director Mike Butler discusses the benefits Pennsylvania consumers have seen from the state’s shale energy boom and the harm that a proposed Marcellus Moratorium could impose on the state.

Left-wing advocacy group MoveOn.org recently launched a new effort to oppose innovations that are propelling states like Pennsylvania toward a new abundance of locally produced energy. Not only is this helping to fuel America’s manufacturing renaissance, but it is also helping to make the United States more competitive in the international energy market, advancing our nation’s energy independence and keeping Pennsylvania residents warm in the recent harsh winter weather.

Unfortunately, this anti-development group is pushing activists to work to ban fracking in their local communities, without regard for the benefits that this critical energy resource is doing to help consumers across Pennsylvania and the nation. What are the benefits that would be taken away if Marcellus Shale production was threatened?

Let’s start with the environment. According to the International Energy Agency, the United States is leading all developed nations in reducing our carbon footprint since 2006. In fact, increased use of natural gas for electricity generation has led to a 20-year low in U.S. carbon emissions — without a federal or international carbon tax or cap and trade scheme. While it is important to understand that every energy source, including natural gas, has an impact on the environment, it is increasingly clear that our nation’s shale revolution is improving our environment while bolstering our economy.

Speaking of the economy, according to the state Department of Labor, Marcellus Shale development supports over 239,000 Pennsylvania jobs across a range of sectors, from construction and manufacturing to real estate and hospitality. Even more importantly, these are good-paying jobs that are supporting middle-class families in our communities.

But shale development provides more than work for Pennsylvania residents; it also has spurred investment in our communities and families. Gov. Corbett’s recently unveiled Energy = Jobs Energy Plan estimates that the oil and gas industries will inject more than $14 billion in investment into the Keystone State’s economy by 2020.

Last year, the natural gas industry sent Pennsylvania landowners $1.2 billion in royalty payments, and the state’s largest natural gas utilities have saved ratepayers $3,200 each over the past four years through rate reductions. In addition, legislation that Gov. Corbett signed into law in 2012 authorizing impact fees for shale development has resulted in $400 million in revenue in the last two years — on top of the $1.8 billion in state taxes that the natural gas industry has paid since 2008.

These opportunities are transforming lives for people across the state. Reversing this investment into our communities could be devastating to families across the state and region.

Finally, there is benefit to Pennsylvania’s consumers. Recently, The Associated Press found that about two-thirds of Pennsylvanians who heat their homes with natural gas went into the winter season paying the lowest prices in a decade for this time of year, according to rate information from the Pennsylvania Public Utility Commission.

Utilities credit the huge volume of gas being produced from the Marcellus Shale formation underneath Pennsylvania for pushing down prices. In most cases, prices this past December were less than half of what they were in December 2008, when the shale boom was just beginning.

Consumer Energy Alliance has long supported expanded use of natural gas as part of a comprehensive energy policy. It is clear that the use of natural gas has helped lower consumer prices and significantly reduced greenhouse gas emissions. For these reasons, the alliance supports the safe production of natural gas through sound development of the Marcellus Shale formation’s abundant resources. The Keystone State is uniquely positioned for economic growth for many future generations, and its future should not hang in the balance of potential fracking bans or moratoriums.

That’s why we recently asked the co-sponsors of the Statewide Natural Gas Drilling Moratorium Act to withdraw their support for the bill. As a co-sponsor of this potentially harmful legislation, we ask that Sen. Lisa Boscola, D-Northampton, abandon her support of any moratorium legislation or proposals that would ban Marcellus Shale development.

We can all agree that the benefits of properly regulated shale development are too great to sacrifice. These resources can be developed responsibly, so we do not need to choose between either the environment or energy development — we can have both. Our children deserve a beautiful environment and good economic opportunities. Pennsylvania shale development can bring both! Sen. Boscola, please join CEA and a majority of Pennsylvanians who, according to a recent Franklin & Marshall College poll, support the safe development of shale resources in the state.

 

The War on Energy is Underway

Consumer Energy Alliance’s President David Holt writes in Fuelfix about the benefits consumers have seen from the U.S. shale energy revolution and how anti-development activists are confronting this progress by waging a war on energy.

Consumer Energy Alliance’s mission is to promote U.S. energy production.  With our membership, CEA supports public policies that ensure consumers can access affordable energy and that the energy is developed safely and responsibly.

We advocate for opening areas off U.S. shores in the Atlantic, the Arctic and in the Gulf of Mexico to energy development. We work with both federal and state governments to promote the pursuit of shale energy.  We support diversifying our energy portfolio by developing and utilizing renewable sources of energy. CEA is a strong voice for fortifying America’s energy infrastructure, such as the electric grid or gas and oil pipelines.

Far too often energy consumers are confronted by organizations which promote one narrow view.  The answer is always the same: No.

No to ANWR; No to Keystone XL; No to the Gulf. No to wind. No to transmission lines. Anti-development activists see only a binary world. Do nothing or face disaster.

These narrow views are contrary to the attitudes that have driven America to succeed. As a country, Americans have long prided themselves on being good stewards of the environment. Natural resources, whether they are oil, coal, shale gas, timber, hydro-power or windmills, can all be utilized in an environmentally sound way that benefits the economy.  As a country, America can have both.  We can protect our environment AND develop our resources.

Theodore Roosevelt staked out a balanced approach to natural resource management, which later became one of the founding principles of America’s national park system, when he argued:

“I recognize the right and duty of this generation to develop and use the natural resources of our land; but I do not recognize the right to waste them, or to rob, by wasteful use, the generations that come after us.”

Today, this generation is using its resources to bring manufacturing jobs back from China. It is using these resources to reignite industries once lost to the high cost of energy.  People are going back to work.

The unemployment rate in rural Carroll County, OH dropped from 16.7% to 6.7% because they welcomed responsible shale development.

In the State of Texas employment in the natural gas industry has grown so large that if it were a city, it would have more residents than San Antonio, Austin and El Paso combined.

The next generation is benefiting as well. In Pennsylvania, the Elk Lake School District has seen an infusion of $3 million paid to them because of shale gas development happening on their land.

Revenue is being raised without taking it from a paycheck.  New schools are being built.  More law enforcement officers are being hired. Economically depressed cities, once boarded up and abandoned, are becoming energy capitals.

Anti-development activists are confronting this progress by waging a war on energy.  Despite the improvement in quality of life.  Despite regulatory systems which protect the environment.  Despite energy’s role bolstering the safety of Americans in a chaotic world.

Organizations, such as Food & Water Watch, are advancing town to town misleading consumers into false choices.  Voters in communities in New Mexico, Texas, Colorado, Ohio, Pennsylvania, and Michigan have already been asked to outright ban shale energy development.

Offshore wind development is increasingly facing opposition.  Electricity transmission lines are in high demand but receive protests.

Consumer Energy Alliance will challenge these false questions in every community they arise.  Far too much is at stake to cede the energy future to anti-development activists.

Just as the oil embargoes of the 1970s changed how Americans viewed fueling their automobiles and powering their homes, natural gas development will change Americans’ view of energy use.

Consumer Energy Alliance has long supported expanded use of natural gas, as part of a comprehensive energy policy.  It is clear that the use of natural gas has helped lower consumer prices and significantly reduced greenhouse gas emissions – to the point that the U.S. is meeting the global GHG reduction standards set by the Kyoto Protocol (a benefit that does not receive the accolades it deserves).  To ensure continuation of this success story, CEA and our members will increasingly focus our efforts on protecting the right to access and produce energy.

Americans should be able to access the natural resources found on and below our land. There is no doubt there should be responsible rules and regulations in place to protect from abuse.  But, never should the answer be no, not at all, do nothing.

Jacksonville Can Benefit from Natural Gas Renaissance

CEA President David Holt discussed the future of natural gas development in Florida with the Jacksonville Florida Chamber of Commerce.

Florida Times Union: 

“I think Jacksonville is very well situated as kind of a conduit for the rest of the state of Florida,” Holt said Thursday. “But also, possibly it can be a facilitation area for CNG [compressed natural gas] and LNG [liquified natural gas], from an export perspective and also as a regional hub.”

Kevin Doyle, executive director of the Florida chapter of the Consumer Energy Alliance, will be part of the JAXChamber presentation and said Jacksonville is poised for a major impact on the local economy.

“It’s in a perfect location to be a logistics center, a transportation center,” Doyle said. “I think it’s huge potential, if you look at other ports that have really embraced natural gas and using energy as a tool for commerce development. Jobs are created, infrastructure is created, there are huge capital investments that equal construction jobs and equal transportation jobs.”

Holt pointed to new technologies like hydraulic fracturing and horizontal drilling as the catalyst for “an energy renaissance” underway in the United States.

“Natural gas development has been a game changer for our country and states like Florida and cities like Jacksonville are benefiting and are in a position to capitalize on huge economic development if the right policies are in place.”

The Future

Holt thinks Jacksonville is in a great position to capitalize on this economic opportunity. Great Port, great railroads, and it is a transportation hub. Can be a natural gas hub and energy center for Florida. Maritime refueling using natural gas, CSX is converting some locomotives working with GE to run on natural gas.

A Warning 

Holt did have a warning for Florida. According to Tallahassee.com, “Florida ranks fifth nationally in natural gas consumption, fourth in petroleum consumption and third in retail electricity sales.”

“Natural gas makes up over 60 percent of baseline for power consumption. If supply is threatened, then states like Florida and Florida’s consumers are at risk – price hikes and slower economic development.”

 

Any Threat to the Electricity Grid Is a Tier One Problem

Writing in Fuelfix, Consumer Energy Alliance’s President David Holt discusses the importance of addressing potential threats to the U.S. electricity grid with smart policies that ensure the efficiency and safety of our grid without inhibiting the generation of affordable energy.

There are threats to the U.S. electricity grid which can be prevented, threats that can be mitigated, and there are threats that can be avoided altogether. Let’s walk through each scenario.

We know how important it is to aggressively address vulnerabilities. The August 2003 blackout was the worst in recent U.S. history leaving an estimated 50 million people without power. Businesses closed. Factories shuttered. And families sweltered in August heat. A U.S. Department of Energy taskforce estimates the blackout caused between $4 billion to $10 billion in lost economic activity.

Improving grid infrastructure will prevent problems arising from known threats such as severe weather. Improving transmission technology will help the grid weather whatever Mother Nature throws its way – either in the form of blistering summer heat leading to spikes in A/C use or bitter cold winters causing people to raise the temperature on their thermostat.

Next, we have threats that can be mitigated. The recent attack on a California power station is one of several harsh realities we must better understand, and understand quickly. Part of the responsibility will fall to law enforcement, but part of it should also fall to the most innovative among us. Building an electricity grid which replaces choke points of vulnerability with a system of redundancies will remove the incentive that motivates terrorists in the first place.

The answer isn’t to build prison walls around power stations and transformers. Rather, we must employ smart policies that ensure the efficiency and safety of our grid without inhibiting the generation of affordable energy.

Finally, we have the threats which can be avoided altogether. The EPA will need to address several important questions: What will be the impact on power generation, how will electricity prices be affected, what, if any, assistance will the federal government provide to help reduce this burden on consumers, and, what is the timeline for any changes to our power generation?

Under the best case scenario, these EPA rules will require power generation facilities using coal to either upgrade their equipment or cease production. These facilities will then be replaced by natural gas, nuclear, alternative or renewable energy. Without clear leadership and an understanding of where our energy will come from, what sources are available and when and where new power capacity can be built, these rules will undoubtedly cause electricity prices to spike.

One scenario is not more dangerous than another – each identified threat presents a unique set of challenges. But, one theme is found in each solution – don’t put all of your eggs in one basket.

Consumer Energy Alliance Welcomes New Member: Pennsylvania Coal Alliance

HOUSTON – Consumer Energy Alliance (CEA) is pleased to welcome the Pennsylvania Coal Alliance as its newest affiliate member.

The Pennsylvania Coal Alliance (Alliance), founded in 2012, is an initiative of Pennsylvania bituminous coal mining operators, their employees, and industry suppliers to educate the public and policymakers about the coal industry in Pennsylvania.

“The Pennsylvania Coal Alliance is pleased to partner with the Consumer Energy Alliance,” said the Pennsylvania Coal Alliance CEO John Pippy. “We share many common interests, including the need for affordable and reliable electricity. At a time when many seem to be trying to eliminate coal as an energy source, the Energy Alliance understands the value and importance of coal. We look forward to working together to illuminate the need for reasonably priced and readily available power.”

“CEA is proud to welcome the Pennsylvania Coal Alliance as our newest member,” said CEA President David Holt. “An ‘all of the above’ approach to meeting our constantly growing energy needs is vital to ensuring continued growth and prosperity, and coal should be part of that mix. The recently announced power regulations from the US EPA could impact our electricity mix, raising consumer costs and negatively impacting grid reliability. CEA looks forward to working with the Pennsylvania Coal Alliance and all our members to ensure that there continues to be a thoughtful and constructive conversation about our electricity reliability to ensure rate payers and elected officials make informed decisions that do not harm consumers and our nation’s energy security.”

For more information on Pennsylvania Coal Alliance, visit their website.

For more information on Consumer Energy Alliance, please visit ConsumerEnergyAlliance.org or contact Amelie Hereford at (713) 337-8833, ahereford@consmerenergyalliance.org.

 

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