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Penn. State Senators asked to ‘Keep The Heat On This Winter’

It’s January.  It’s Cold.

No surprise there, but why in the middle of the harsh winter months are Pennsylvania State Senators working to advance legislation to put a moratorium on shale gas development in Pennsylvania?  The bill is SB 1100 or the Statewide Natural Gas Drilling Moratorium Act.  If made into law, Pennsylvania’s bustling shale gas economy would come to a halt.

Who would be affected?

In total 2.6 million people in Pennsylvania use natural gas with 38% using natural gas to heat their homes.   And, because of, not in spite of shale gas development – home heating costs in Pennsylvania are down 50% over the past five years.

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

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.

Don’t be left out of the cold this winter. Join Consumer Energy Alliance in keeping the heat on in Pennsylvania.

Consumer Energy Alliance is urging state legislators to abandon the Statewide Natural Gas Drilling Moratorium Act. (SB 1100.)

 

Consumer Energy Alliance Welcomes New Member: Southeastern Coastal Wind Coalition

HOUSTON, TX – Consumer Energy Alliance (CEA) is pleased to welcome the Southeastern Coastal Wind Coalition (SECWC) as its newest affiliate member.

The mission of the Southeastern Coastal Wind Coalition is to advance the coastal and offshore wind industry in ways that result in net economic benefits to industry, utilities, ratepayers, and citizens of the Southeast

“The Southeastern Coastal Wind Coalition is pleased to partner with Consumer Energy Alliance to advance both land-based and offshore wind energy for the benefit of energy consumers,” said SECWC President, Brian O’Hara. “By providing low-cost, reliable, and zero-emissions energy, wind power offers immediate economic benefits to energy consumers while also delivering long-term price stability by providing a hedge against fluctuating fuel prices. We are pleased that CEA recognizes the critical role wind power plays in our energy mix and we look forward to working with them to grow our nation’s use of wind energy.”

“CEA is committed to an all-of-the-above energy strategy, and an important piece of that is responsibly utilizing our offshore resources – including oil, gas and wind,” said CEA-Southeast Executive Director, Adam Waldeck. “The Southeastern Coastal Wind Coalition has been a strong and respected voice for land-based and offshore wind power, and we are pleased to welcome them as CEA’s newest affiliate member.”

Top Energy Stories of 2013

2013 was a year of big stories for the energy industry. CEA’s Shawn Martini breaks down some of the biggest stories in energy and how they are benefiting the U.S. with Manny Haley of KRMS in Osage Beach, MO.

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Keystone XL and Environmentalism

Listen to CEA’s Vice President for Policy, Natalie Joubert, talk about the benefits of Keystone XL, and the interaction between energy production and environmental protection.

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Act 13 and Pennsylvania’s Economic Future

Blue flame of gas stove

The Keystone State made headlines a week before the Christmas holiday when the Pennsylvania Supreme Court struck down several key provisions of the State’s Act 13, which Governor Tom Corbett signed into law in February 2012.

In its 4-2 decision, the Court declared portions of the law unconstitutional and puts shale gas development zoning rights back in the hands of local municipalities and counties. As the basis for its ruling, the Court cited Article 1, Section 27 of the Commonwealth’s Constitution, which guarantees its citizens access to “clean air, pure water” and other environmental preservation rights.

What the ruling means to Pennsylvania

The ruling, simply stated, will negatively impact the development of the Marcellus Shale to the detriment of the state’s economy. The  legislation has authorized municipalities to adopt impact fees that have generated $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. Dave Spiegelmeyer of the Marcellus Shale Coalition said that the Supreme Court decision will weaken Pennsylvania’s already challenged business climate and undo the economic development and job creation efforts that the natural gas boom has fostered in recent years.

In a written statement, Pennsylvania Governor Tom Corbett called the ruling a “disappointment,” citing Act 13 as a “bipartisan accomplishment…which raised the bar on environmental protection standards while respecting the rights of local governments.”  Senator Pro Tempore Joe Scarnati, R-Jefferson, and House Speaker Sam Smith, R-Jefferson said in a joint statement that the ruling will “harshly impact the economic welfare of Pennsylvanians.”  They also noted that the legislation had the initial support and input from the Pennsylvania State Association of Township Supervisors, until the group later opposed it in court.

What the ruling means to energy consumers

Overall, this carefully crafted piece of legislation allowed for a balance of oil and gas production and environmental protection. With this revocation, there is little doubt that consumers across the country will be impacted by the Pennsylvania Supreme Court’s decision, since the Marcellus shale play accounted for 18% of all natural gas production in the United States in December. Consumers across the country have benefit from the gas boom to the tune of an average $1,200 per year per household. With the ruling, however, Consumer Energy Alliance (CEA) is concerned that the cost of natural gas may increase for consumers.

Be sure to check back for updates on this issue.  Along with its Marcellus Moratorium efforts, CEA will continue to review the impact of the Supreme Court’s decision on shale gas operations in Pennsylvania.

Celebrating the Gift of Energy Abundance this Holiday Season

In recent weeks, Americans have been barraged with headlines regarding our country’s new found energy abundance.  Just last month the International Energy Administration (IEA) predicted the United States will become the world’s largest oil producer by 2015.  In fact, U.S. oil production has grown by 18 percent in the past year, and has reached its highest output in 25 years. Additionally, the U.S. recently surpassed Russia and Saudi Arabia as the world’s top oil and natural gas producer. New estimates released by the Energy Information Administration showed America pulling ahead of both countries in oil and natural gas production for 2013 while also lowering energy costs.

Developments like these led President Obama to declare recently that, “After years of talk about reducing our dependence on foreign oil, we are actually poised to control our own energy future.”

With such positive energy forecasts for the nation, American energy consumers  can be hopeful that they will receive the gift of lower energy prices throughout the holiday season and into 2014. And that certainly will be important to Americans this year – whether they are traveling for the holidays, using additional electricity for lighting their homes or entertaining friends and family.

According to AAA, an estimated 94.5 million Americans will travel an average of 805 miles over the holiday season. Recent analysis by Consumer Energy Alliance (CEA) predicts that holiday travel = may end up costing American drivers about $148.00.  However, since the national average price for a gallon of regular unleaded gasoline is now $3.22 – six cents less than at the same time last year – fuel costs to travel to grandma’s house will likely be cheaper this year.

For the year, AAA recently stated that the national average so far was $3.50 per gallon, 10 cents cheaper than the annual average per gallon, because refineries increased capacity to take advantage of increased North American crude oil supplies.

In 2012, the Bureau of Labor Statistics estimated that the average consumer spent $2,549 on gasoline. Therefore, CEA estimates that the average consumer will spend around 5% of their annual gasoline expenditures during the holiday. By comparison, Gallup shows that the average American will spend $704 on holiday gifts this year.

There is also good news for consumers that are concerned about higher electricity costs around the holidays from those lighted holiday decorations. Fortunately, consumers won’t break the bank to light their Christmas tree this holiday season. According to a recent analysis by CEA, the average six foot Christmas tree will cost a little less than $4.00 to keep lit up with mini lights (for 4 hours a day for one month) during this holiday season.

Make no mistake, CEA believes that consumers should be spending more on holiday presents, not on energy costs. The good news is there are simple steps consumers can take in their own homes to offset holiday spending by managing their energy use.

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

1. Open curtains on your south-facing windows during the day to allow sunlight to naturally heat your home, and close them at night.

2. Seal the air leaks around pipes, gaps around chimneys and recessed lights in insulated ceilings, and unfinished spaces behind cupboards and closets.

3. When fireplace is NOT in use (or not open for Santa’s Christmas Eve visit) make sure the damper is CLOSED.

4. When you are asleep or out of the house, turn your thermostat back 10° to 15° for eight hours and save around 10 percent a year on your heating and cooling bills.

5. Turn down the temperature of your water heater to the warm setting (120°F). Water heating can account for 14 percent to 25 percent of the energy consumed in your home.

 

CEA also has tips for how to save on overall energy costs this holiday season:

  1. Limit the amount of time lights are on
  2. Turn off room lights when the tree is lit
  3. Turn the thermostat down when you have guests

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

The 5 Best Stories for Energy Consumers of 2013

Electric meters for apartment building

Its been a busy year for U.S. energy production with consumer prices on the decline due to increasing domestic supplies of natural gas and oil. Here are the Top 5 energy related news stories that benefit consumers in 2013. 

1) U.S. Overtakes Russia as the World’s Largest Oil and Gas Producer

Experts estimated that the United States overtook Russia as the world’s largest oil and gas producer in November of this year. The change creates a net positive for consumers as the country produces an ever increasing amount of oil and gas from domestic sources. This reduces our dependence on foreign sources of oil and natural gas, and lowers transportation costs, translating to lower prices for end users. It also provides new economic growth as jobs are created, incomes rise, and tax bases expand due to the expanding energy industry. Which leads to our next story…

2) Oil and Gas Boom Contributes $1200 to Household Income

Energy experts IHS Global Insight concluded in a recent report that the domestic oil and gas boom, lead chiefly by hydraulic fracturing, has created the equivalent of $1200 of real disposable household income to American families in 2013. The $1200 is made up of a mixture of lower consumer prices, lower utility rates and rising incomes thanks to the availability of lower-cost domestic oil and gas resources. Speaking of utility rates…

3) Utility Rates Decline

Thanks to the boom in domestic natural gas production from shale and hydraulic fracturing and the lower prices it brings, consumers are paying less on their monthly utility bills. In localities across the country, household utility bills are declining so much that U.S. consumers pay as little as one third of what European consumers pay for home heating and electricity. For example, in Pennsylvania, ratepayers have enjoyed a 33% drop in natural gas rates over the past five years. This reduction is also helping low income residents…

4) Natural Gas Production Contributes More to Low Income Utility Bills than Federal Assistance

In 2012, the federal Low Income Home Energy Assistance Program (LIHEAP) provided $3.5 billion in assistance to low income households to help pay for utility bills. Analysis shows that due to the U.S. energy boom – on private and state lands, under increasing leadership from state Governors and legislatures — utility rates are as much as 62% lower in 2013 than from the period between 2003 to 2008. This translates to a savings of more than $110 billion to American households, far outpacing the aide provided by LIHEAP and further helping to boost economic growth…

5) Lower natural gas prices continue to bolster domestic manufacturers

Energy-intensive manufacturers, particularly steel, chemical and plastics producers, continued to expand operations in the United States due to competitive natural gas prices. In 2013, U.S. natural gas prices averaged nearly four times less than what European and Asian manufacturers pay. This competitive advantage has led manufacturers to reinvest in the United States, helping to narrow the U.S. trade deficit. According to IHS Global Insight, the expansion in shale energy production will result in a reduction in the U.S. trade deficit of more than $164 billion by 2020. For consuming industries like chemical manufacturers, this competitive advantage is predicted to lead to a rise in U.S. chemical exports by 45 percent over the next five years.

Offshore Gold Awaits

Offshore oil rig at sunset

Opening the offshore Atlantic Outer Continental Shelf (OCS) to oil and natural gas exploration could create nearly 280,000 jobs along the East Coast and across the country by 2035 according to Randall Luthi writing for the Richmond Times Dispatch. Luthi is President of the National Ocean Industries Association who cosponsored the study into Atlantic OCS energy production with the American Petroleum Institute.

Companies are predicted to add nearly $200 billion in additional investments, contributing up to $23 billion per year to the U.S. economy, including $17 billion to the Atlantic Coast states alone. Bonus bids, rents and royalties from offshore oil and gas leases could generate more than $50 billion in new revenue to state and federal treasuries. The added benefit is the addition of 1.3 million barrels of oil equivalent per day. That’s more than a million barrels of oil equivalent we wouldn’t need to import.

Luthi also says that individual states like Virginia could collect as much as $2 billion in taxes and royalties for the state treasury and as many as 25,000 jobs.

Read more about the study at TapOffshoreEnergy.com

Consumer Energy Alliance 2013 Annual Report

2013 Consumer Energy Alliance Annual Report

OPEC is Meeting This Week, What Does that Mean for Gas Prices?

The OPEC powers are meeting in Vienna this week to discuss production levels and Iran’s new role under the reduced sanctions regime. CEA’s Policy Advisor Michael Whatley breaks down what this means for prices here at home for listeners of WRPW in Normal, Il.

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