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Grassroots Petition to Massachusetts Legislature

February 14, 2014

Massachusetts State Legislators
State House
Beacon and Park Street
Boston, MA 01233

Dear Legislators,

Last month Consumer Energy Alliance (CEA) requested the Massachusetts Legislature to abandon any efforts to ban shale gas development in the state.

As you know, harsh winter forecasts make the cost of home heating a new worry for the family budget, especially in New England where the winter forecast is for bitter cold and snow.  With over a million people in Massachusetts using natural gas to heat their homes, why would the legislature move to ban the source of Massachusetts’ natural gas in the middle of the cold winter months?

Make no mistake natural gas plays a critical role in Massachusetts where it generates 68 percent of its electricity and is imported to 3 LNG terminals that supply about 20 percent of New England.

Fortunately, new technologies in shale resource development are creating a boom in natural gas production. According to the Energy Information Administration (EIA), the U.S. produced more than 25 trillion cubic feet of natural gas in 2012 – a trillion cubic feet more than in 2011 — adding to a 25 percent production increase nationally since 2007.

While the Marcellus Shale formation doesn’t stretch into Massachusetts from Pennsylvania and New York, the state does have the Hartford Basin, which tracks through the Connecticut River Valley on a north-south axis through Massachusetts and Connecticut.  Regardless of where the natural gas lies, it’s clear that it is a key component to make natural gas affordable in Massachusetts – from electricity generation to keeping homes warm during a harsh winter.

With this in mind, Massachusetts should be promoting policies that support the responsible development of natural gas – not legislation that would ban it.

CEA members recently petitioned the Massachusetts Legislature to keep the heat on in Massachusetts and abandon efforts to ban shale gas development. CEA believes that advancing this legislation further will leave people out in the cold.  On behalf of our members, we urge you to oppose any efforts to ban fracking in the Massachusetts Legislature.

 

Sincerely,

 

David Holt
President, Consumer Energy Alliance

Grassroots Petition Sent to PA Legislature

February 12, 2014

Pennsylvania State Legislature
State Capitol
Harrisburg, PA 17120

Dear Legislators,

Last month Consumer Energy Alliance (CEA) sent a letter to State Senator Jim Ferlo asking him why in the middle of winter he was working to advance legislation to thwart Pennsylvania’s bustling shale gas economy and  threaten the energy development that is keeping families in Pennsylvania and throughout the northeast warm this winter.

As you know, 2.6 million people in Pennsylvania use natural gas with 38 percent using it to heat their homes. 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. In fact, Pennsylvania’s largest natural gas utilities have saved ratepayers $3,200 over the past four years through rate reductions.  A recent analysis by 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.

Senator Ferlo is refusing to answer.

Pennsylvania is a leader in responsible energy development.  In the month of December 2012, the Marcellus Shale, located in Pennsylvania and West Virginia, accounted for 18 percent of the nation’s total natural gas production.

62 CEA members recently petitioned you to support shale gas development in Pennsylvania and abandon the Statewide Natural Gas Drilling Moratorium, SB 1100.  CEA believes that State Senator Ferlo’s legislation will leave people out in the cold. On behalf of our members, we urge you to oppose SB 1100.

Sincerely,

 

David Holt
President, Consumer Energy Alliance

 

 

Action Taken to Reduce Propane Prices

A pipeline company in Houston Texas must prioritize propane shipments to terminals in the Midwest and Northeast according to Bloomberg.

In an emergency action taken by the Federal Energy Regulatory Commission, Enterprise Product Partners must immediately ship liquid propane gas to regions of the country hit hard by recent cold weather events. Two polar vortexes and high demand for heating have driven propone prices to new highs compared to prices along the Gulf Coast and warmer regions of the nation.  The fuel reached a record $4.90 a gallon on January 23.

“Propane is a major source of heating fuel for many people affected by this year’s cold weather,” said Natalie Joubert, Vice President for Policy at Consumer Energy Alliance. “The FERC order should help bring down home heating costs in the short term, but increasing propane production, pipeline capacity and storage is the best way to help prevent future spikes in propane prices.”

Trucks have been hauling propane from the Gulf Coast region for several weeks in an effort to meet increased demand. But much like crude oil and petroleum products, pipelines are the quickest and most efficient way to transport energy around the country.

*** Update***

The state of Colorado has also taken emergency action to curb propane prices.

Photo by J. Saper

CEA Interviewed about Winter Energy Tips

Consumer Energy Alliance’s Midwest Director Ryan Scott discusses 10 tips for consumers to save money on winter energy bills with Fox-45 in Dayton, Ohio.

We have our answer…Confidently we can now say Keystone XL is in the nation’s interest.

An evaluation of environmental impact of the Keystone XL Pipeline again finds the pipeline’s construction and operation will have minimal impact on the environment. Michael Whatley, who has been following the Keystone XL Pipeline project for Consumer Energy Alliance, had this reaction:

We have our answer. The Keystone XL pipeline will have minimal impact on the environment. The next step of the process will allow the public to register their approval of the project and then for the Administration to make a decision regarding the permit on the merits. KXL is exactly the infrastructure project the American people are looking for to create construction jobs and move the U.S. closer to energy security. Confidently we can now say Keystone XL is in the nation’s interest.

The next step in the permitting process is very important. The American people will be asked if they believe the pipeline is in the nation’s interest. CEA urges you to make your voice heard. Visit the Build KXL Now action page to tell Federal officials you support building the Keystone XL Pipeline and urge the President to issue a construction permit as soon as possible.

Gas prices expected to trend lower

In some more good news for energy consumers, AAA is predicting drivers will pay less for gas prices in 2014 compared to the year before. AAA predicts a 5 cent drop in the average price of a gallon of gasoline this year due to increased domestic oil production, increased refining capacity, and reduced demand.

This confluence of increased supply, coupled with lower demand helped drive down average gas prices in 2013 to their lowest level since 2010. In 2013, the average price of a gallon of regular gas was $3.49, compared with $3.60 in 2012 and $3.51 in 2011, AAA said.

Meanwhile, domestic crude oil and natural gas production has hit quarter century highs, led by dramatic gains in Texas, North Dakota, Pennsylvania and Colorado. These states are home to energy rich shale rock formations which can be fracked to release vast stores of energy.

The Energy Information Administration predicts that prices will steadily decline for the next two years, as domestic oil and gas production continues to rise, reducing the cost of transporting crude oil and ultimately, prices at the pump.

Energy key to solving income inequality

When exploring solutions to income inequality policy makers pay close attention to the costs. The cost of healthcare. The cost of food. The cost of child care. The cost of housing.

What about the cost of energy?

According to the Bureau of Labor Statistics, in 2012 the average U.S. family spent over $4,600 or about 9 percent of their budget to heat and power their homes and fuel their vehicles. Families in the bottom fifth of income earners spent nearly 33 percent more of their budget on energy costs than average $2,500 a year or 12% of their annual budget. Reference the chart to the left and you will find that low-income families spend two and half times more on energy than on health services. Unlike food and housing, consumers cannot shop around for the lowest cost energy. Bargains can be found in the supermarket, but, prices at the pump do not vary from one station to the next. Conservation similarly is not an option when it’s a choice between driving to work or saving a gallon of gasoline.

A solution to remedying income inequality is tackling rising energy costs. The U.S. Energy Information Administration projects the price of electricity will rise 13.6 percent and the price of gasoline by 15.7 percent from now until 2040. Rising global demand, aging and insufficient

energy infrastructure and restrictive government policies all play a role in increasing costs.President Obama has the ability to reverse this trend and lessen the blow to all consumers.

Take the shale gas boom for example. Increasing access to private and state lands and sound state regulatory programs have boosted production of natural gas and led to a significant lowering of prices. IHS CERA predicted that the shale revolution lifted household income by more than $1,200 in 2012 through lower energy costs, more job opportunities and greater federal and state tax revenues.

Policy makers should promote responsible energy development with the knowledge that it will have a positive affect on even the most vulnerable. The president has the power to act. Permitting energy infrastructure – including the Keystone XL Pipeline, opening new offshore areas to oil and natural gas development, and finalizing the nuclear waste confidence rulemaking, could transform the energy economy.

If policy makers want to take meaningful action to help our nation’s low income families, they must pursue actions that help lower – not raise – the cost of energy.

CEA’s Butler: Shale Boosting Keystone State Economy

Writing for the Philadelphia Inquirer, CEA- Mid Atlantic Director Mike Butler says natural gas production in the Keystone State is leading to more jobs and better incomes for middle class families.

Make no mistake, the past few years have been difficult for Pennsylvanians looking to find well-paying jobs. Our state’s unemployment rate has been stuck above 7 percent for more than five years. Many people have become so frustrated that they’ve stopped looking for work. The one bright spot has been Marcellus Shale development, which has offset this larger trend by providing hundreds of thousands of Pennsylvanians with meaningful work and newfound hope for their financial future.

Despite our distance from the Marcellus Shale, some of the examples of this newfound hope are very close to home. In Philadelphia, the once-struggling Aker Shipyard is now “thriving” due to the abundant quantities of oil and natural gas being extracted from shale. Now, instead of facing imminent closure as it was just a few years ago, the shipyard rehired more than 1,000 of its workers – many of whom are members of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers – to fulfill more than $1.1 billion in contracts that are in place through 2017.

Of course, the shipyard and its employees aren’t the only ones benefitting from this surge of employment activity. In Southeastern Pennsylvania, both the Marcus Hook and Trainer refineries have gained new life processing oil and liquids from shale development. Those projects will save and create thousands of jobs for skilled workers.

Meanwhile, across the state, Chris Petrone, of the International Union of Operating Engineers Local 66, noted last year that his 7,000-member union is “very close to full employment, with much of the work being a direct result of the Marcellus Shale.”

At the same time, Abe Amoros of the Laborers’ International Union of North America (LIUNA) said, “Marcellus Shale has been a tremendous boost for our members. . . . We’re glad these jobs are here to stay and will be around for at least a generation.”

Read the entire column here. 

ICYMI: Shale is boosting PA economic recovery

Onshore fracking well pad

Writing for the Philadelphia Inquirer, CEA- Mid Atlantic Director Mike Butler says natural gas production in the Keystone State is leading to more jobs and better incomes for middle class families.

Make no mistake, the past few years have been difficult for Pennsylvanians looking to find well-paying jobs. Our state’s unemployment rate has been stuck above 7 percent for more than five years. Many people have become so frustrated that they’ve stopped looking for work. The one bright spot has been Marcellus Shale development, which has offset this larger trend by providing hundreds of thousands of Pennsylvanians with meaningful work and newfound hope for their financial future.

Despite our distance from the Marcellus Shale, some of the examples of this newfound hope are very close to home. In Philadelphia, the once-struggling Aker Shipyard is now “thriving” due to the abundant quantities of oil and natural gas being extracted from shale. Now, instead of facing imminent closure as it was just a few years ago, the shipyard rehired more than 1,000 of its workers – many of whom are members of the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers – to fulfill more than $1.1 billion in contracts that are in place through 2017.

Of course, the shipyard and its employees aren’t the only ones benefitting from this surge of employment activity. In Southeastern Pennsylvania, both the Marcus Hook and Trainer refineries have gained new life processing oil and liquids from shale development. Those projects will save and create thousands of jobs for skilled workers.

Meanwhile, across the state, Chris Petrone, of the International Union of Operating Engineers Local 66, noted last year that his 7,000-member union is “very close to full employment, with much of the work being a direct result of the Marcellus Shale.”

At the same time, Abe Amoros of the Laborers’ International Union of North America (LIUNA) said, “Marcellus Shale has been a tremendous boost for our members. . . . We’re glad these jobs are here to stay and will be around for at least a generation.”

Read the entire column here. 

Mr. President, Avoid False Choices Offered by Activists

January 27, 2014

 

President Barack Obama
The White House
1600 Pennsylvania Avenue
Washington, D. C. 20500

Dear Mr. President,

Eighteen activists recently asked you to abandon your energy policy. We are writing to offer an alternative view on behalf of the energy consumers we represent and the millions of Americans who support a comprehensive energy strategy.

Consumer Energy Alliance (CEA) advocates for energy policies which:

  • Broaden thoughtful access to offshore and onshore oil & natural gas;
  • Ensure affordable, reliable supplies of electricity for American families, farms and businesses;
  • Increase economically viable use of alternative energy;
  • Enhance energy efficiency and conservation; and
  • Educate the American public about how energy is created and used in the American economy and its affect on the communities in which we live.

Energy development is not a divisive issue. Public polls show a 94 percent approval rating for increasing domestic energy production. Unlike the activists who recently wrote to you, CEA believes the United States should utilize all available resources – oil, natural gas, wind, solar, biofuels, energy conservation, increased efficiency – in order to reliably meet our energy needs, create jobs and continue to stimulate our economy.

As the Department of Energy has recognized, the United States will continue to use fossil energy for our transportation and power generation needs for decades. There is no single solution to meeting our energy and economic needs. U.S. domestic and foreign policy should recognize and embrace the reality that increasing the supply of all domestic energy sources in the most cost-effective, sustainable, environmentally conscious and energy efficient way is in our nation’s interest.

Every sector of the U.S. economy relies on affordable energy to transport goods, power facilities, or manufacture products. Oil and natural gas are a regular part of our daily lives in some way – from shampoo to aspirin to the soles of our shoes – energy is woven into our cultural fabric.

Our common goal should be advancing responsible energy policies that support energy innovation, economic growth and a healthier environment. Energy policy should not be driven by divisive politics.

Modern technology now affords us the ability to refuse the false choice of pitting the environment against energy development.

Mr. President, Consumer Energy Alliance and its members are committed to working with your administration to focus on solutions, avoid false choices, and empower innovation to help the United States reach its energy potential.

Sincerely,

 

David Holt
President,
Consumer Energy Alliance		 Jennifer Diggins
Chairman, Board of Directors,
Consumer Energy Alliance

 

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