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Patriot News Op-Ed: Democrats are on wrong track with call for shale gas moratorium: As I See It

CEA-Mid Atlantic Executive Director Mike Butler makes the case why Pennsylvania Democrats should ask their party leaders to turn back a proposed moratorium adopted this past June as part of its party plank.

Patriot News Opinion Page: 

Much to our dismay, the Pennsylvania Democratic State Committee recently voted 115-81 for a moratorium on hydraulic fracturing to retrieve shale gas.
By Mike Butler

Last year when former President Bill Clinton was traveling through Pennsylvania while on the campaign trail, he spoke to a large crowd in Western Pennsylvania about the economy and some of the bright spots in Pennsylvania’s future. He stated, “In a growing economy, you need to start by counting your blessings.” And, with specific reference to positive shale gas production in the Marcellus and the new cracker facility planned for Beaver County – he once again repeated to the crowd, “We must count our blessings.”

In a time when the unemployment rate around the nation seems to be stagnant and companies are not hiring as many workers, many Pennsylvanians are counting their blessings for the shale gas industry providing thousands of indirect and direct jobs in the construction industry and beyond down the supply chain.

At Consumer Energy Alliance’s Pennsylvania Energy & Manufacturing Summit, James Kunz from the International Operating Engineers, Local 66, stated that they very close to full employment – with much of it attributable to the Marcellus Shale. He also mentioned how these employment opportunities came to his members at the right time. If it weren’t for this “blessing,” they “would have faced double-digit unemployment because of only being able to depend on the building construction and the heavy road and bridge construction in Pennsylvania and parts of Ohio.”

With Pennsylvania being blessed with large amounts of gas – and wet gas that can be processed into ethylene – we are also now blessed with new manufacturing facilities. And this valuable energy resource continues to lure new companies that are dependent on low energy costs to the U.S. – and to Pennsylvania — bringing more job opportunities and economic growth to our region and nation.

Positive economic news has been seen across the state. In 2011, Washington County had the third highest employment surge of any county in the nation. In Philadelphia, the Aker shipyard is rehiring 800 workers to help build two new tankers in response to domestic oil and gas production. Right now almost a quarter-million people in Pennsylvania work to produce natural gas from the Marcellus Shale or in related industries. Even better, job growth projections in Pennsylvania over the next ten years exceed the projected national average.

 

Holt Says Banning Shale Gas in PA would be “Costly Mistake”

Over at Fuel Fix, CEA President David Holt talks about communities facing fracking bans, the latest is in Pennsylvania.

A new trend has taken hold in the development of our nation’s natural gas resources.  From Josh Fox’s controversial films, Gasland and now Gasland Part II, to the “Stop the Frack Attack” demonstration in Washington, anti-development movements have fueled a negative perception of shale gas and hydraulic fracturing.  Now activists around the nation are urging communities to ban the process.

Unfortunately, these scare tactics and bans only serve to misinform the public and challenge the social licenses of those looking to explore new opportunities and the potential benefits they hold for our nation.

In Pennsylvania, where many communities have rejected these proposals, the state’s Democratic Party recently approved a moratorium on hydraulic fracturing in the Party’s platform. As a result,  Consumer Energy Alliance (CEA) recently polled every state legislator asking whether they support or oppose the policy plank.

Energy Exports Lower Trade Deficit

American oil refinery

Energy continues to dominate the economy recovery as news this week shows the value of U.S. coal and petroleum exports doubled in the last two years. The value of oil and gas exports rose by 68% in the same time period.

This helps President get closer to his goal of doubling U.S. exports by 2015 as U.S. companies get better prices for the goods they export.

However this also puts gas prices in a delicate balancing act. While more and higher priced exports of energy commodities will help the broader economy grow, it also puts upward pressure on domestic consumer prices.

Even with greater exports, the U.S. is breaking oil and gas production records every month, with Texas and North Dakota leading the way. The nation is on track to produce more oil at home than we import from overseas, for the first time since 1995!

With additional pipeline infrastructure coming online to help move that oil from the oil fields to the refineries, price spikes may even out.

What would you rather fill your barrel with?

An explanation. The U.S. Department of Energy reports in 2012 the U.S. consumed 18.64 million barrels a day of crude oil and petroleum products while producing 6.49 million barrels a day of crude oil domestically and importing an additional 8.49 million barrels per day. OPEC was responsible for 4.019 million barrels per day of the crude oil imported into the United States. Top among the OPEC countries is Saudi Arabia at 1.356 million barrels per day; Iraq: 474,000 barrels per day; and Venezuela: 906,000 barrels per day (47%).  Among Non-OPEC countries are Canada, which exported 2.408 million barrels per day (28%) to the United States in 2012, and Mexico, which exported 972,000 barrels per day to the United States (12%). Overseas imports (anything outside of North America) totaled 5.561 million barrels per day.

How did Consumer Energy Alliance determine a reduction in U.S. overseas crude oil imports by 43%?

If the Keystone XL pipeline imports 730,000 barrels a day of Canadian crude, U.S. crude oil imports from Canada would rise to 3.138 million barrels of crude oil a day by 2015. According to the U.S. Department of Energy “Energy Outlook,” in 2015 the United States will consume 19.46 million barrels of fuel per day while producing 11.43 million barrels per day and importing 7.27 million barrels per day of crude oil. If Keystone XL were built, by 2015 Canada could export upwards of 3.138 million barrels per day to the United States. Non-Canadian imports will fall to approximately 4.132 million barrels per day. If one assumes Mexican crude oil exports to the United States will remain relatively static over the next three years, then North American crude imports to the United Stats rise to 4.11 million barrels per day and overseas imports will fall to 3.16 million barrels per day. As such, Keystone XL will help lower the demand for overseas crude oil imports from 5.56 million barrels per day to 3.16 million barrels a day – a decline of 43% between 2012 and 2015.

Sasol Moving Forward with U.S. Manufacturing Project

Billed as the largest foreign investment in U.S. history

Over the past few years the U.S. economy has clawed its way back from the economic recession due in large part to the growth of the domestic energy industry. Oil and gas related jobs have lead overall employment growth across the country and provided a much needed boost to local and state economies.

The energy boom is also leading to the resurgence of the U.S. manufacturing industry with industries like fertilizer, steel, petrochemical and equipment manufacturing all seeing a boost due to lower domestic energy prices. Many project that manufacturing growth in the U.S. will provide long-term U.S. economic growth.

The attractiveness of U.S. markets is also luring foreign investment, directing new capitol to U.S. markets and the “onshoring” of jobs. South African chemical giant, Sasol just announced it will direct the largest ever foreign investment in U.S. history with the construction of a $14 billion gas-to-liquids and “ethane cracker” facility. The plant will produce diesel, gasoline and other chemicals from low-cost natural gas produced from U.S. shale resources.

The project will create hundreds of jobs and hundreds of millions of local, state, and federal tax receipts and economic growth.

For Oil, Pipelines are the Safest Way to Travel

The Daily Caller investigates a top concern for everyone involved with the construction of the Keystone XL pipeline: once operating how safe is it?

Excerpt:

Despite criticism from environmentalists, Keystone supporters argue that TransCanada is going above and beyond the safety features required by law to ensure that it will be the safest ever built.

“At the end of the day this is going to be the safest pipeline ever built in North America,” Michael Whatley, executive vice president of the Consumer Energy Alliance, told the Daily Caller News Foundation. “The State Department has said that on multiple occasions.”

Twitter:

Keystone State Lawmakers Respond to Marcellus Moratorium Letter

Rachel Carson Bridge

After Pennsylvania’s Democratic Party recently approved a controversial moratorium on Marcellus Shale development, Consumer Energy Alliance is polling state lawmakers on their support of the policy.

The proposal, offered in June by Monroe County committee member Sue Lyons, riled the party’s caucuses and was met with immediate opposition from the party’s vice-chair Penny Gerber who stated:

“This bill as it currently stands says it is a moratorium on hydraulic fracturing, but it specifies that the moratorium will last until the practice can be done safely. Because no set period of time is provided it truly is a ban on fracking, and this is a thriving industry. It is for that reason I cannot support this bill.”

For this reason, and many others, prominent Democrats across the state joined Gerber in criticizing the policy.  Former Governor Ed Rendell (D-Pa.), who oversaw the growth of the state’s shale industry, called the proposal “ill-advised” as shale development has “helped create wealth in the poorest areas of Pennsylvania.”

At the same time, House Minority Leader Frank Dermody (D-Allegheny) and 17 other Democratic lawmakers recently wrote a letter to party chairman Jim Burn calling the proposal “shortsighted” because it disregards “the many positive impacts” of shale development and would “create significant adverse impacts…with no discernible gain.”

The reason for opposition among prominent Democrats is simple. Marcellus Shale development has provided significant economic growth to the Keystone State.  Specifically, shale development supports over 239,000 jobs with positions in core industries paying more than $90,000 per year.

This level of economic activity has provided benefits to every corner of the state. In Philadelphia, the once struggling Acker Shipyard is now “thriving” and the Allegheny County Airport Authority will receive over $500 million from drilling activity on airport property; in fact, it’s already received $42 million which has reduced operational costs at the airport.

As noted on The Energy Voice last week, Consumer Energy Alliance recently sent a letter to every member of the General Assembly asking whether they support or oppose the policy.  Responses are due by August 15, 2013 and will be posted on our website when they are received so be sure to check back often for updates.

Consumer Energy Alliance Welcomes New Member: Kenworth Alaska

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

Kenworth Alaska is Alaska’s premier full-service Kenworth truck dealer. As part of the Kenworth Northwest dealerships, owned by the Cymbaluk family, Kenworth Northwest and Kenworth Alaska have been serving the transportation needs of the Northwest and Alaska since 1967.

“We, in the trucking industry, are a barometer for the economy of Alaska,” said General Manager Jim Scherieble. “We are one of the first to see any changes to our economy. Kenworth Alaska supports all efforts to further develop our state’s energy resources and help our country become energy independent.”

“Our partnership with Kenworth Alaska, and the entire trucking and transportation industry in Alaska, is a key to ensuring that this vital sector of the economy has a voice in the energy dialogue,” said CEA-Alaska Executive Director Steve Pratt. “Energy consumers in Alaska and throughout the nation benefit from the dedication of the industry to delivering energy from the resource base to the burner tip in a cost effective, safe, and environmentally sensitive manner. We look forward to advancing the interests of consumers.”

For more information on Kenworth Alaska, 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.

Keystone XL would leave the climate in Neutral, but the economy in Drive.

An independent study released today finds the Keystone XL pipeline will have “no material impact” on Greenhouse gas emissions.

IHS-CERA Study:

“Even if the Keystone XL pipeline does not move forward, we do not expect a material change to oil sands production growth. Therefore the Keystone decision itself will not have any impact on GHG emissions…”

CEA Executive VP Michael Whatley reacts:

“The report finds KXL will have little impact on GHG emissions because development of Alberta oil is going to go forward with or without the Untied States. What is at stake here is the economy. Keystone XL would leave the climate in Neutral, but the economy in Drive.  Five billion dollars in new investment and over 40,000 jobs is nothing to shake a stick at. Combine that with American energy consumers being able to access both Bakken and Alberta sourced oil and you move the United States away from being beholden to OPEC countries.“

Alaskans Face Tax Increase

Seward Alaska

Alaska’s contribution to the nation’s energy supply has been in decline since the 1980’s. While the resource is there to stem the decline, and perhaps even reverse the trend, our investment climate has not been friendly to attract the major investment dollars needed to do so. After extensive review, analysis, and research, Governor Parnell and the Alaska Legislature passed SB 21 to reform our tax system to make it more competitive. There is an organized effort to reverse these reforms, increase taxes, and harm Alaska’s competitive position. This resolution allows entities and individuals to go on record supporting a competitive Alaska.

Please join the undersigned organizations to oppose the repeal of Senate Bill 21 by signing below. Print your own copy of the resolution here.

Joint Resolution Opposing Repeal of Senate Bill 21

Whereas, American energy consumers have a direct interest in obtaining competitively priced domestic energy; and

Whereas, Alaskans have a direct interest in robust economic activity to maintain livelihoods; and

Whereas, over 30% of working Alaskans are directly dependent upon oil and gas exploration and development for employment; and

Whereas, over 50% of working Alaskans are directly or indirectly dependent upon oil and gas exploration and development for employment; and

Whereas, Alaska oil production has declined from a peak of over 2 million barrels a day to a little over 500 thousand barrels, and is in free fall at the rate of 5 – 7% per year; and

Whereas, Alaska’s contribution to America’s energy supply and energy security will continue to decline without increased investment in energy production; and

Whereas, determining Alaska’s tax policy is a serious, time consuming and complicated undertaking best done by democratically elected representatives acting in the best interest of the State and its citizens; and

Whereas, the 28th Alaska Legislature spent thousands of hours in committee hearings and floor sessions reviewing, researching, analyzing, modifying, voting on, and passing SB 21 to remove disincentives to investment in Alaska; and

Whereas, legislative hearings demonstrated that SB 21’s removal of investment disincentives will result in more oil production, more revenue for the State of Alaska and more revenue for Alaska’s Permanent Fund; and

Whereas, repeal of SB 21 would result in massive tax increases, reduce Alaska’s global competitiveness, reduce Alaskan employment and income opportunities, reduce US energy production, increase dependence on foreign oil, reduce state revenue, and reduce permanent fund dividends, all of which will adversely affect Alaskans;

Now, Therefore, Be It Resolved, and Let It Be Known, that the organizations and individuals signing below oppose repeal of SB 21 and encourage Alaska citizens to reject placing repeal of SB 21 on the ballot as a referendum.

 

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