U.S.A.! U.S.A.!

Source: U.S. Energy Information Administration Note: Petroleum production includes crude oil, natural gas liquids, condensates, refinery processing gain, and other liquids, including biofuels. Barrels per day oil equivalent were calculated using a conversion factor of 1 barrel oil equivalent = 5.55 million British thermal units (Btu).
Source: U.S. Energy Information Administration Note: Petroleum production includes crude oil, natural gas liquids, condensates, refinery processing gain, and other liquids, including biofuels. Barrels per day oil equivalent were calculated using a conversion factor of 1 barrel oil equivalent = 5.55 million British thermal units (Btu).

From EIA.gov

The U.S. Energy Information Administration estimates that the United States will be the world’s top producer of petroleum and natural gas hydrocarbons in 2013, surpassing Russia and Saudi Arabia. For the United States and Russia, total petroleum and natural gas hydrocarbon production, in energy content terms, is almost evenly split between petroleum and natural gas. Saudi Arabia’s production, on the other hand, heavily favors petroleum.

Since 2008, U.S. petroleum production has increased 7 quadrillion Btu, with dramatic growth in Texas and North Dakota. Natural gas production has increased by 3 quadrillion Btu over the same period, with much of this growth coming from the eastern United States. Russia and Saudi Arabia each increased their combined hydrocarbon output by about 1 quadrillion Btu over the past five years.

Comparisons of petroleum and natural gas production across countries are not always easy. Differences in energy content of crude oil, condensates, and natural gas produced throughout these countries make accurate conversions difficult. There are also questions regarding the inclusion of biofuels and refinery gain in the calculations. Total petroleum and natural gas hydrocarbon production estimates for the United States and Russia for 2011 and 2012 were roughly equivalent—within 1 quadrillion Btu of one another. In 2013, however, the production estimates widen out, with the United States expected to outproduce Russia by 5 quadrillion Btu.

Principal contributors: Hannah Breul, Linda Doman

Nashville U.S. Rep. Headlines CEA Southeast Forum

The Tennessean:

U.S. Rep. Marsha Blackburn slams EPA over new emissions limits
She says new rules hamper businesses

Before a gathering of business leaders and energy company executives at Bridgestone Arena on Wednesday, U.S. Rep. Marsha Blackburn slammed the U.S. Environmental Protection Agency over new emissions limits on coal-fired power plants.

Blackburn, R-Brentwood, called the EPA an “activist agency” that has taken enforcement of federal environmental laws too far. The new rules announced last week, she said, would hamper businesses and drive up the price of electricity.

“Since 2009, the EPA has taken on an activist role and has proposed new regulations that would impose tens of billions of dollars in new costs on American businesses and consumers,” said Blackburn, vice chairwoman of the House Energy and Commerce Committee.

“These rules are creating regulatory uncertainty, they are preventing new projects from going forward, they are discouraging new investment and they are stifling job creation.”

The EPA announced new limits on the amount of carbon dioxide that new coal- and gas-fired power plants could emit and renewed an Obama administration promise eventually to impose those caps on older plants.

For new power plants, the EPA proposal caps emissions at 1,100 pounds of carbon dioxide per megawatt-hour of electricity produced. Without more advanced emission controls, a typical new power plant emits about 1,800 pounds.

Goal of 2015

The Obama administration wants tougher standards for existing plants finalized by 2015.

Environmental groups across the nation have praised the administration for the new rules, including groups in Tennessee that have long called on the Tennessee Valley Authority to retire its aging coal-fired power plants.

TVA is working on a $1.1 billion project to install massive equipment at its Gallatin power plant designed to cut mercury, nitrogen oxide and sulfur dioxide emissions — pollutants that can cause respiratory and other health problems. The equipment is needed to meet a separate agreement between TVA and the EPA, four states and three environmental groups.

Scott Banbury, the conservation chairman for the Tennessee chapter of the Sierra Club, said that up until now there have been no national standards for the amount of carbon pollution power plants emit into the air.

“Big polluters have been getting a free ride for decades, while Americans foot the bill in the form of asthma attacks, respiratory illness, floods, wildfires, and superstorms,” Banbury said in a prepared statement.

“We look forward to working with the administration to ensure strong final standards for both coal and gas plants, as well as a strong proposal for EPA’s upcoming carbon pollution protections for existing power plants.”

Blackburn spoke at the Southeast Powering Our Future Forum, hosted by the Consumer Energy Alliance. The alliance is a nonprofit group focused on expanding dialogue between energy interests and consumers.

Its members include consumers, business groups such as the U.S. Chamber of Commerce and energy companies such as ExxonMobil, Chevron, BP and Shell Oil.

“We are all for clean air and for clean water,” Blackburn said. “Every one of us.”

But Blackburn called for an “all-of-the-above” energy policy.

“Our country has been so blessed, so incredibly blessed, with abundant energy reserves,” she said. “Some are tapped. Some are untapped. Some are traditional. Some are alternative.”

Michael Whatley, the alliance’s executive vice president, said EPA rules already are resulting in a “rapid scale down” of coal-fired power plants.

“At the same time, we are seeing electricity demand and population continue to grow,” he said. “It begs the question: How are we going to fill the gap?”

CEA-Florida Featured at State Energy Summit

Historic City News:

Area representative participates in Florida Energy Summit

October 14, 2013 | By St Augustine

Executive director, Kevin Doyle, announced to Historic City News in St Augustine that Consumer Energy Alliance-Florida, a source of sound and unbiased information on US and global energy issues for consumers, will be a sponsor of the Florida Energy Summit that began today in Orlando.

Key stakeholders in the energy industry, academics, and elected officials, will come together today and tomorrow for the 2013 Florida Energy Summit; to discuss how Florida can prepare to take advantage of future economic opportunities in the ever-growing energy sector.

“As a proud sponsor of the 2013 Florida Energy Summit, Consumer Energy Alliance-Florida would like to congratulate Commissioner Adam Putnam and the Florida Office of Energy for organizing this important event,” Doyle told Historic City News from Orlando this morning. “Florida energy policy can be developed to benefit both consumers and the state’s economy by utilizing existing energy resources and promoting an ‘all-of-the-above’ strategy; utilizing everything from oil and natural gas, to nuclear, to renewables.”

According to Doyle, Florida is the nation’s third largest consumer of energy; and, as such, has the opportunity for significant economic growth. Florida’s oil and natural gas industry already supports 286,000 jobs and contributes $23 billion to Florida’s gross state product, according to the Florida Energy Forum.

With smart planning, the state has adequate energy for positive economic growth, Doyle said. In order to take advantage of this opportunity, the state needs to continue to develop energy policies that allow for further development of affordable and stable energy sources to meet long term energy needs.

“Florida has made great progress in energy efficiency; the Energy Summit is an ideal venue to bring together key players to keep this momentum going,” Doyle told local news reporters. “We look forward to the upcoming discussions on Florida’s economic opportunities within the energy sector and how a balanced energy policy will help benefit all Floridians.”

Skilled Workers Wanted

Natural gas is changing the face of the American energy economy and employers are looking for a new generation of skilled employees to keep pace.   Speakers at Consumer Energy Alliance’s 2013 Energy & Manufacturing summit repeated the call for educators to prepare students for careers in the science, math, technology and engineering fields:

Rebecca Lucore, Chief of Staff, Bayer MaterialScience: “There’s a change we have to make in perception,” Lucore said. “We went through a period of time where there was an emphasis on a four-year degree. After that, we went through a period where that wasn’t enough and there was an emphasis on a masters’ [degree]. We still need that, but have gotten away from the fact that these jobs only need two-year technical degree.”

Peter Molinaro, Vice President and Senior Advisor for Government Affairs, Dow Chemical Co.: “With the return of affordable natural gas and natural gas liquids in the United States, the whole world picture has changed. This is probably the single greatest opportunity we have to restore the middle class in America.”

David Gornewicz, Organizer for Ironworkers International Union: “One thing that could stall the whole resurgence of energy and the manufacturing renaissance is a shortage of skilled manpower.”

Jim Cooper, Senior Petrochemical Adviser, American Fuel and Petrochemical Manufacturers: “…But if we don’t solve the workforce issue, just having all that gas down there isn’t really going to do us much good.”

Esther Bush, CEO, Urban League of Pittsburgh: “We know we can’t move forward with business as usual…But we also can’t move forward with the same excuses as usual.”

Anne Pastor, Program Manager, Pennsylvania Steel Alliance: “A worker shortage is a better problem to have than a work shortage.”

Chris Masciantonio, Co-chair, PA Steel Alliance; General Manager for Government Affairs, United States Steel Corp.: “U.S. Steel has added 5,600 employees, with 1,100 jobs added in Pennsylvania. Cheap natural gas has helped lower the cost of production, and pipeline development has help drive up demand for [our] … products.”

Monthly Electricity Bill By State

      State Number of Consumers Average Monthly Consumption (kWh) Price (Cents per Kilowatthour) Monthly Bill (Dollar and cents)
1. Hawaii 417,531 585 34.68 $202.72
2. Alabama 2,142,625 1,284 11.09 $142.41
3. Texas 9,621,481 1,262 11.08 $139.81
4. Maryland 2,208,015 1,030 13.31 $137.17
5. South Carolina 2,101,585 1,221 11.05 $135.01
6. Connecticut 1,453,864 740 18.11 $134.07
7. Delaware 398,109 970 13.70 $132.83
8. Tennessee 2,708,113 1,325 9.98 $132.26
9. Georgia 4,056,147 1,186 11.05 $131.15
10. Mississippi 1,251,640 1,287 10.17 $130.90
11. Florida 8,575,892 1,131 11.51 $130.10
12. Virginia 3,225,395 1,183 10.64 $125.86
13. Louisiana 1,979,175 1,348 8.96 $120.84
14. Arizona 2,575,586 1,070 11.08 $118.62
15. North Carolina 4,201,898 1,151 10.26 $118.09
16. Oklahoma 1,667,223 1,221 9.47 $115.61
17. Pennsylvania 5,249,827 870 13.26 $115.33
18. New Jersey 3,457,325 709 16.23 $115.04
19. Alaska 273,855 649 17.62 $114.42
20. New York 6,987,631 611 18.26 $111.59

 

Source: U.S. Energy Information Agency, http://www.eia.gov/electricity/sales_revenue_price/

CEA Launches Net-Metering Campaign in Arizona

Energy Consumer Advocate Promoting Net Metering Reform in Arizona
Net-roots Campaign Underway Highlighting Cost-Shifting Caused by Current Rules

Houston, TX – Energy consumer advocate Consumer Energy Alliance is launching a net-roots campaign in Arizona recruiting energy consumers to urge the Arizona Corporation Commission to reform the state’s net metering laws.

Energy consumer advocate Michael Whatley said, “Electricity rates should be fair and affordable.  While Arizona should continue to encourage solar to grow, it has to be done in a sustainable way and not disadvantage one community for the benefit of another. We are concerned that there may be too much of a spread in costs between solar and non-solar energy consumers under the current rules.  Fixing the net metering rules now will ensure that all ratepayers are treated fairly as Arizona continues to add solar capacity.”

In neighboring California, a draft report commissioned by the Public Utilities Commission found net metering would cost $1.1 billion annually by 2020.  Residential customers would have to pay $287 million of the estimated $359 million of annual costs shifted away from solar panel customers.

A Consumer Energy Alliance analysis of Arizona’s net metering rules found residents with rooftop solar panels are essentially using the electric power grid for free, forcing other customers to shoulder all of the burden of financing maintenance and upgrading the grid. Under the Arizona net metering rule, rooftop solar customers receive a credit equal to the full retail rate for the power they sell back to the local utility.  The full retail rate includes all of the fixed costs of the infrastructure that makes the electric grid safe, reliable, and able to accommodate rooftop solar panels.

The Arizona Republic reported in July about the inequity between solar and non-solar customers:

[B]ecause their [solar customers’] monthly bills are so low, they pay little of the cost of running the grid, building new transmission lines and paying for other improvements. That cost increasingly is pushed onto non-solar customers…

Consumer Energy Alliance is urging energy consumers in Arizona to visit its website at www.consumerenergyalliance.org/act to make their voices heard.   At the site, energy consumers can email the Arizona Corporation Commission and urge commissioners to update Arizona’s net metering policies to require rooftop solar customers to pay for their fair share.

###

Is Keystone XL Safe? Experts Answer

Andy Black opened his remarks with a simple explanation of why he traveled to York, NE: “We want to answer your questions.”  The forum sponsored by Nebraskans for Jobs & Energy Independence helped assure many Nebraskans who have questions about the safety of a building a new energy pipeline.

Andy Black is the president & CEO of Association of Oil Pipelines in the York News Times:

“This pipeline would be made of high quality steel that would be tested and coated…It would be installed by teams of expert welders. Then trained and licensed inspectors would monitor the construction. Every single weld will be X-rayed and inspected. PHMSA (Pipeline and Hazardous Materials Safety Administration) maintains comprehensive safety regulations and their inspectors would also be in the field, watching. The pipeline would go through high pressure testing with water. And once determined to be sound, it would be ready for operation.

“The pipeline would be managed by control centers – where highly trained experts would look at things such as pressure, temperature and flow changes…They would watch for a potential release. They are authorized to shut down the pumps upon any sign of a release.”

“Safety is of great importance to all of you and the operators…The pipeline is the safest and most reliable way to transport oil – over rail, barges and trucking.

Black was joined by Brigham McCown who ran the Pipeline and Hazardous Materials Safety Administration.  As reported by the Omaha World-Herald: 

But Brigham McCown, who once headed the Pipeline and Hazardous Materials Safety Administration, said further delays in federal approval for the project could raise the likelihood of crude oil spills. That’s because transporting oil by rail, truck or barge carries a greater risk of accidents, he said. “We can’t eliminate our oil dependency overnight,” said McCown, who now works as an industry consultant in Dallas. “If it’s going to be used, how do we move it from point A to B as safely as possible?

More from Andy Black

Pipelines deliver between 11 billion and 13 billion barrels of liquid fuels each day in the United States, and 99.9 percent of it arrives safely, said Andrew Black, president and CEO of the Association of Oil Pipelines.

TransCanada Corp., the company that wants to build Keystone XL, plans to use the latest, corrosion-resistant pipe for the 1,700-mile, underground pipeline. Construction welds would be inspected by third-­party inspectors, which, in turn, would be audited by federal regulators.

The finished 36-inch diameter pipeline would be tested by running pressurized water through its entire length. The test would reveal any manufacturing or construction defects, Black said.

Keystone XL would be operated by trained staff members at a control station, where they would watch for drops in pressure or volume, which could indicate a leak. “In the event of a release, they are authorized by management and told by management to shut down the pumps,” Black said.

Over the past decade, the pipeline industry has reduced such releases by 62 percent, Black said.

Pipeline Safety Experts Answer Questions in Nebraska

Andy Black opened his remarks with a simple explanation of why he traveled to York, NE: “We want to answer your questions.”  The forum sponsored by Nebraskans for Jobs & Energy Independence helped assure many Nebraskans who have questions about the safety of a building a new energy pipeline.

Andy Black is the president & CEO of Association of Oil Pipelines in the York News Times:

“This pipeline would be made of high quality steel that would be tested and coated…It would be installed by teams of expert welders. Then trained and licensed inspectors would monitor the construction. Every single weld will be X-rayed and inspected. PHMSA (Pipeline and Hazardous Materials Safety Administration) maintains comprehensive safety regulations and their inspectors would also be in the field, watching. The pipeline would go through high pressure testing with water. And once determined to be sound, it would be ready for operation.

“The pipeline would be managed by control centers – where highly trained experts would look at things such as pressure, temperature and flow changes…They would watch for a potential release. They are authorized to shut down the pumps upon any sign of a release.”

“Safety is of great importance to all of you and the operators…The pipeline is the safest and most reliable way to transport oil – over rail, barges and trucking.

Black was joined by Brigham McCown who ran the Pipeline and Hazardous Materials Safety Administration.  As reported by the Omaha World-Herald: 

But Brigham McCown, who once headed the Pipeline and Hazardous Materials Safety Administration, said further delays in federal approval for the project could raise the likelihood of crude oil spills. That’s because transporting oil by rail, truck or barge carries a greater risk of accidents, he said. “We can’t eliminate our oil dependency overnight,” said McCown, who now works as an industry consultant in Dallas. “If it’s going to be used, how do we move it from point A to B as safely as possible?

More from Andy Black

Pipelines deliver between 11 billion and 13 billion barrels of liquid fuels each day in the United States, and 99.9 percent of it arrives safely, said Andrew Black, president and CEO of the Association of Oil Pipelines.

TransCanada Corp., the company that wants to build Keystone XL, plans to use the latest, corrosion-resistant pipe for the 1,700-mile, underground pipeline. Construction welds would be inspected by third-­party inspectors, which, in turn, would be audited by federal regulators.

The finished 36-inch diameter pipeline would be tested by running pressurized water through its entire length. The test would reveal any manufacturing or construction defects, Black said.

Keystone XL would be operated by trained staff members at a control station, where they would watch for drops in pressure or volume, which could indicate a leak. “In the event of a release, they are authorized by management and told by management to shut down the pumps,” Black said.

Over the past decade, the pipeline industry has reduced such releases by 62 percent, Black said.

Tom Steyer Using the ‘F’ Word

There it was again, that word.  You know what word I mean.  The “F” word.  Foreign.

In TV ads criticizing the Keystone XL pipeline San Francisco based activist Tom Steyer dismisses jobs operating “a foreign oil pipeline” and uses the “F” word to lead you to believe “foreign oil companies,” like bandits, will pilfer crude oil abroad instead refining it into gasoline and diesel for American motorists.

Americans are sophisticated people and understand when someone is trying to scare them.

Let’s point out Canada is hardly a unknown or distant place. In fact, the U.S. Commerce Department reports 11.5 million Americans visited Canada in 2012 and 22 million Canadians visited the United States.

Now back to Mr. Steyer.  The United States imported 2.425 million barrels crude oil per day from Canada in 2012.   Once operational that number will increase by 730,000 barrels a day and displace crude oil imports from Venezuela and the Middle East.   Now, here is the kicker.  100,000 additional barrels will join the Keystone XL pipeline from not so foreign places like North Dakota and Montana and then be transported to refineries on the Gulf Coast.

Once refined, both foreign and domestic companies employing American workers, will distribute gasoline and diesel to motorists across the United States.

Nothing foreign about it.

 – Michael Whatley 

 

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Michael Whatley is a Executive Vice President for Consumer Energy Alliance where he follows the latest developments on the Keystone XL pipeline.