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Virginia Wind Energy Sale Receives a Gust of Support

Energy Consumer Advocate Urges Similar Steps for Oil and Natural Gas Exploration

Houston, TX – Consumer Energy Alliance (CEA) is pleased with the Department of the Interior’s announcement of its intention to offer a lease for offshore wind production off the coast of Virginia this year.

“The offshore wind lease is a positive step in developing our substantial offshore wind resources,” said CEA President David Holt. “Diversifying our nation’s energy portfolio is an important part of increasing our energy security and reducing price volatility. The wind industry has proven its ability to supply large amounts of clean energy to American consumers onshore, and the proposed offshore lease is the next logical step in increasing our wind energy production.”

Holt also took the opportunity to call for additional leasing of oil and gas exploration and seismic surveys in the Mid Atlantic region.

“DOI should also push to offer leases for seismic exploration in the Mid Atlantic region as a precursor for offshore oil and gas exploration in the region,” he said. “Virginia and other states have repeatedly asked for the opportunity to explore for oil and gas off their coasts and federal regulators should allow for that exploration as part of the President’s commitment to an all-of-the-above approach.”

Natural Gas Drilling Study Boosts Confidence for Energy Consumers

Houston, TX – Consumer Energy Alliance President David Holt expressed confidence after reviewing the preliminary results of a U.S. Department of Energy report which is monitoring water quality near natural gas drilling sites in the Marcellus Shale formation in Pennsylvania.

“Energy consumers count safety as a priority, which is what makes the initial report from the DOE study encouraging.   This information is exactly what the nation’s consumers need to balance the negative rhetoric and dishonest documentaries that falsely raise concerns about the impact from drilling for natural gas.  CEA will continue to track the progress of the study.  It is critical energy consumers have the facts about how natural gas is brought to market.”

The National Energy Technology Laboratory located in South Park, PA is conducting a study “to monitor for any signs of groundwater contamination as a result of hydraulic fracturing operations at a site on the Marcellus Shale formation in Pennsylvania.”  The study is expected to be complete before the end of 2013.  The lab noted there were no signs of concerns but did caution “the results are far too preliminary.”

Gasland II ‘fell short’

Writing at the Fuel Fix blog, CEA President David Holt ads his take to the critical reviews given to Gasland  II, “he fell short by over-simplifying the facts and exaggerating his claims.”

Here is what some of the film’s critics are saying:

“The problem with Gasland is that it is entertainment that actually is ‘science denial’ and thus not fitting as an educational documentary or journalism.” – Daily Kos

“’Gasland Part II’ runs longer than the earlier installment, but ultimately it has less to say. Fox sounds the same alarm with a bizarre mixture of confidence in the message and an awareness of the vanity involved in delivering it.” – IndieWire

“Mr. Fox works in first-person style of colorful mudslingers like Michael Moore…The film runs to two hours and its anecdotal, hopscotch style starts to wear.” – The New York Times

OCS Governors Set 5 Step Plan for Congress

OCS Governors Urge Their Congressional Delegations to Support OCS Energy Development.

Read the letter here.

Note:  A similar version of this letter was sent to all 16 U.S. Senators and 85 U.S. Representatives from the eight OCS Governors Coalition member-states: Alaska, Alabama, Louisiana, Mississippi, North Carolina, South Carolina, Texas and Virginia.

Fuel Fix:

Congress can do more to advance offshore drilling in the Gulf of Mexico and Atlantic Ocean while boosting the economies of coastal states, eight governors said Friday.

Options rage from giving states a greater share of federal drilling royalties to passing legislation that would force the Interior Department to make more coastal tracts available for oil and gas development, the group of coastal governors said.

The governors, including Texas’ Rick Perry, made their pleas in a letter to their congressional delegations in the nation’s capital.

“During this congress, legislators will consider several matters that directly and indirectly affect the future of offshore energy development,” said the governors, who all represent coastal states. “As our federal representatives, we strongly urge you to act in concert to champion outer continental shelf energy and, by effect, the vitality of our coastal and state economies.”

CEA On “Our Region’s Business”

CEA Executive Vice President Andrew Browning and CEA Mid-Atlantic Director Mike Mikus recently appeared on “Our Region’s Business”–a program co-produced by the Allegheny Conference on Community Development and NBC’s Pittsburgh affiliate WPXI-TV–to discuss CEA, making the most of our domestic resources, and the nexus between energy, manufacturing, and the job market.  Browning noted that an informed consumer can impact the overall energy policy debate, talked about how CEA brings a wide variety of voices into the debate to ensure that policy decisions are made in a broader context, and discussed the manufacturing renaissance that is linked to energy production.  Mikus discussed CEA Mid-Atlantic activity in western Pennsylvania, talked about how all those in the region benefit from energy production in the area, and highlighted the need for a rational discussion on energy.

Whatley Disputes Consumer Watchdog Gasoline Claim

CEA Executive Vice President and energy-consumer advocate Michael Whatley disputed a report released today by Consumer Watchdog claiming the Keystone XL would increase gasoline prices:

“Any analysis which attempts to show that adding 830,000 barrels per day of highly-discounted oil to U.S. markets will raise gasoline prices is not worth the paper it is written on. With shipments from Mexico and Venezuela on the decline, Gulf Coast refiners will need to increase their purchases from low-cost North American sources or higher-cost overseas sources. Given that gasoline and diesel prices are pegged directly to crude oil prices, the construction of Keystone XL will reduce prices – a fact clearly understood by the 68% of Americans who support construction of this vital project.”

Citing a 2011 U.S. Department of Energy memorandum on Keystone XL, Whatley noted that:

“Experts at the Department of Energy concluded that Keystone XL and other infrastructure projects that eliminate transportation constraints from Cushing to Houston, ‘would not adversely affect Midwest gasoline consumers.’ The memorandum goes on to detail how Keystone XL would, in fact, lower gasoline prices in fuel markets served by refineries in the Gulf Coast, including consumers in the Midwest. Clearly, Consumer Watchdog and its anti-Keystone XL billionaire backer, Tom Steyer, continue to choose ideology over logic.”

 

From U.S. Department of Energy memorandum to the U.S. State Department (emphasis added):

Eliminating transportation constraints from Cushing to Houston would not adversely affect Midwest gasoline consumers. While Midwest refiners are currently benefiting form high crude discounts compared to PADD I and PADD III refiners, Midwest gasoline consumers are not benefiting from them. Retail gasoline prices reflect the wholesale price of marginal gasoline supplies. In 2010, marginal gasoline supplies to the Midwest were from PADD III (310 thousand barrels/day) and PADD I (180 thousand barrels/day). With substantial additional volumes of light-sweet and other crudes accessible to Gulf Coast refineries, WTI prices would increase. Brent, Argus and other marker crude prices would decline. Crude costs to PADDI and PADD III refineries would lower. Gasoline prices in all markets served by PADD I and III refiners would decrease, including the Midwest. 

Last Week’s Solar Vote in Georgia and Why it Matters

Imagine if a new offensive play became popular and the NFL decided to mandate that every coach run it exactly 6 times per game.

But, trying not to be too ham-handed, the mandate would only stand if it could be ensured the teams would remain competitive.

Such a move would likely be greeted with laughter, and bemusement at why it’s even necessary in the first place.

In a constantly changing environment, coaches choose plays based on what’s most likely to achieve victory for their fans and their franchise.

This rule of thumb can also be applied to energy policy. Rather than a Super Bowl ring however, the ultimate prize for energy consumers is reliability and affordability.

This is why the current debate over solar power in Georgia is important for consumers throughout the entire Southeast, which historically has had the most reliable and affordable power in the country.

In a move that created quite a stir, Georgia’s Public Service Commission (PSC) voted last week to require the state’s largest power provider to add a specific amount of electricity (525 megawatts) generated from a specific source – in this case solar.

However, an exception was added, which says the requirement would only stand if such an increase in solar power puts no upward pressure on electricity rates.

Explaining the thinking behind this move by the PSC, Commissioner Lauren “Bubba” McDonald said after the vote:

“We don’t know what tomorrow is going to be with coal. We don’t know what tomorrow is going to be with natural gas. But we know the sun will be shining.”

On the other hand, the mandate drew a strong rebuke from Georgia PSC Commissioner Stan Wise, who in a blistering critique of last week’s 4-1 PSC vote, admonished his colleagues, saying:

“If you ask Georgia Power today whether this [mandate] will put upward pressure on rates, they will offer a telling response… ‘We don’t know.’ And yet, you are still going to move this forward and put the ratepayer at risk.”

Other critics of the mandate have pointed to the experience of North Carolina, which in 2007 became the first Southeastern state to adopt a full Renewable Portfolio Standard (RPS).  The cost of compliance with the RPS has led North Carolina utilities, according to economists at the Beacon Hill Institute, to request double-digit increases on residential rates. If the current mandate is allowed to proceed, they believe that by 2021 North Carolina would face 3,600 lost jobs, $43 million in lost investment, $57 million in lost real disposable income, and $43 million in lost state and local revenues.

It is not surprising that some NC legislators have aggressively attempted to repeal the mandate, making the case that choosing sources of electricity generation should be done on a least-cost basis, as opposed to being selected by government policy.

Since we don’t know how this new Georgia mandate will affect electricity generation, it becomes a real test for the solar community.

Will forcing the state’s largest power provider to use more solar be a win for Georgia consumers, or will solar be benched in favor of more traditional, more affordable sources of electricity?

Consumers in Georgia, and the broader Southeast, should be watching closely.

Gov. Parnell Has Plan for Exploring ANWR Resources

HOUSTON – Consumer Energy Alliance supports Alaska Governor Sean Parnell’s plan to apply for an oil and gas “exploration plan” in the 1002 area of the 1.5 million acre Arctic National Wildlife Refuge. The $50 million plan, funded by the state of Alaska would provide for a seven year seismic and drilling exploration plan in ANWR’s coastal plain, an area with rich oil and natural gas resources currently off limits to production.

“Alaskan energy production is a key part of American energy security and energy self-sufficiency. Governor Parnell should be commended on his efforts to develop natural resources for the betterment of Alaskans and all Americans,” said David Holt, President of Consumer Energy Alliance.

The plan will use 3-D seismic technology to explore and map oil and natural gas resources closed to production due to congressional inaction and despite strong support from Alaskan voters. ANWR alone holds a potential 10 billion barrels of oil and 35 trillion cubic feet of natural gas. To put this in perspective, 10 billion barrels of Alaskan oil could fuel every U.S. domestic flight for over 40 years. The exploration plan would provide a better picture for policy makers and energy companies assess the value in the “1002 area.”

Ultimately, increased production in Alaska would flow to the lower-48 states through the Trans-Alaska Pipeline System, which has suffered from increasingly low flows as federal officials put ever increasing amounts of Alaskan land off limits to production. The trend has led to increasing foreign imports and higher gas prices, especially for the Western region.

Oil & Gas Producers Join Truckers For Improved Road Safety

Consumer group helps form industry taskforce to improve collaboration and safety

HOUSTON, April 23, 2013 – Oil and gas companies have joined forces with the trucking industry to promote improved road safety and traffic management in heavily travelled producing areas like the Eagle Ford in south central Texas, the Marcellus region in the Northeast and the Bakken in the upper Midwest.

The American Petroleum Institute, the American Trucking Associations and the National Tank Truck Carriers have collected nearly two dozen recommendations for roadway safety and more considerate driving practices.  The recommendations will be used as important reminders for member companies and to help develop informational materials on the need to provide safe and responsible trucking operations for the mutual benefit of producers, transporters and the communities in which they operate.

The Houston-based Consumer Energy Alliance –  a broad-based association comprised of transportation, agriculture, businesses, consumers and energy organizations – launched the initiative in 2012 to seek improved communications about road safety among its membership and the broader public. The recommendations were formally adopted by the parties at a recent meeting in Houston.

The recommendations are available online and include recommendations to hold frequent meetings with motor carriers to evaluate safety issues, methods for encouraging a culture of safety, techniques to promote access to safety education resources, and practices to properly inform all drivers on the delivery and removal of equipment and materials used during oil and natural gas production.

For their part, producers are encouraged to monitor and enforce requirements for proof of regulatory compliance by motor carriers. It is recommended for both transporters and producers to be sensitive to local impacts and, to the extent possible, “schedule deliveries and movements to minimize the traffic impact on local communities.”

“Consumer Energy Alliance believes that North America has a tremendous opportunity to become energy self-sufficient, spur job creation and growth across the entire US economy and that developing these resources is dependent, in part, on responsible and safe trucking operations,” said David Holt, CEA President. “Member companies of these producing and trucking organizations should be applauded for their voluntary and forward-looking action.”

“The industry is committed to protecting our employees, the environment, and the communities where we operate, all while increasing energy security by safely and responsibly developing the energy America needs to fuel its economy,” said Holly Hopkins, API upstream senior policy advisor.  “API and its members participate in many safety outreach programs and educational outreach on safe driving is an extension of API’s 94-year history of promoting and enhancing safety operations.”

Glen Kedzie, American Trucking Associations Vice President, Energy & Environmental Counsel said, “Safety remains ‘Priority 1′ for the trucking industry. Through this collaborative effort of  the transportation and energy sectors, along with continued community involvement and education, ATA is confident that these recommendations will go far in improving safety in oil and gas production and exploration transportation activities.”

“Trucks are the essential workhorses of our country’s ability to take advantage of our shale gas and oil resources to become energy independent. It is the trucking industry’s responsibility to provide safe, efficient, and to the extent possible, considerate truck support of this important energy opportunity,” said John Conley, past President of the National Tank Truck Carriers, and Trucking Safety Taskforce co-chair. “We are delighted to partner with the energy industry and the law enforcement community to provide that safe and reliable truck transportation.”

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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 energy security. We believe energy development is something that touches everyone in our nation, and thus it is necessary for all consumers to actively engage in the conversation about how we develop and diversify our energy resources and energy’s importance to the economy. 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.

American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA is the voice of the industry America depends on most to move our nation’s freight.  

National Tank Truck Carriers is a national trade association that represents the interest’s t of tank truck carriers dedicated to safe and efficient transportation.  Based in Arlington, Virginia, NTTC has 210 carrier members and 300 associate members. 

 

KXL Without Presidential Approval? Can it Happen?

Consumer Energy Alliance President, David Holt, sits down and answers consumer questions. Douglas P. from Indiana wants to know, “Is there anyway to approve the Keystone pipeline without the support of the President?”

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