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Holt: 5 Energy Policy Solutions

HumanEvents.com: 5 ENERGY POLICY SOLUTIONS TO GROW ECONOMY
By David Holt

President Obama recently delivered the first State of the Union Address of his second term. While the President scratched the surface of a needed conversation on the nation’s energy policies, much remains to be discussed. After all, our nation’s energy policy is the lifeblood of our economy and as such has a large impact on our nation’s consumers and businesses.

The good news is that the state of the U.S. consumer is resting on a strong foundation. Thanks to new technologies (namely horizontal drilling and hydraulic fracturing), U.S. oil production is at its highest level in 20 years, the U.S. is now the world’s largest natural gas producer, and wind generation capacity reached a record 13,000 megawatts installed in 2012. As Consumer Energy Alliance predicted last year these developments could enable the United States to become energy self-sufficient within the decade.

Taken together, this has improved U.S. energy security and provided a foundation for our economic recovery. Thanks to the abundance of natural gas wholesale electricity prices have dropped by 50 percent since 2008. This is leveling the playing field and bringing manufacturing back to areas of the U.S. – like the Rust Belt states of Pennsylvania and Ohio. Developments like these led Massachusetts Congressman Ed Markey to declare “This is one of the five best story lines of the 21st century for America.”

However, don’t pop the champagne just yet as many challenges lurk in the background. For example, our energy infrastructure is struggling to keep up with supply, new federal proposals could derail our progress, interest groups are attempting to halt continued development and we are essentially flying blind as a national energy policy remains elusive.

Given this, reasonable and responsible federal policies, such as the ones below, should be implemented to ensure our energy abundance, and benefits the U.S. consumer, continue to advance.

Approve a National Energy Policy: Due to a lack a clearly defined national energy policy this activity has essentially been forced to the hands of federal regulators. This imperils the short- and long-term availability of dependable, affordable energy for consumers and thus threatens our continued economic advance.

Make Needed Infrastructure Improvements: Quite simply, the nation’s ability to produce energy is exceeding our capacity to distribute it. There is a glut of oil in Oklahoma, our ability to get natural gas to market is constrained and new renewable energy sources are often far from population centers. Therefore, we should immediately approve the Keystone XL pipeline, advance natural gas pipeline permits expeditiously and support a build-out of electrical transmission infrastructure.

Streamline Federal Permitting: The approval timeframe for a federal application to drill an oil or natural gas well increased to 307 days in 2011. In many states, this process takes less than 30 days. The federal government should streamline the permitting process to improve the efficiency of the permitting system, reducing the risk for litigation, and improve transparency.

Support Energy Efficiency Programs: Increased energy efficiency and conservation can lead to significant cost savings for American consumers and make American businesses more competitive. The federal government should continue to support programs such as ENERGY STAR or NextGen that responsibly encourage efforts to adopt more energy-efficient technologies and behaviors.

Expand access to oil and natural gas and increase R&D for renewable energy: Simply allowing greater access to oil and natural gas resources could generate an additional $1.7 trillion in government revenues. The Department of the Interior should issue a new Five Year Plan that includes annual leasing in the Mid-Atlantic, South Atlantic and Eastern Gulf of Mexico. At the same time, we should better allocate federal support to wind and solar energy to determine ways to increase competitiveness in the marketplace.

Implementing these solutions will result in significant economic advancements as nearly every sector of the economy relies on affordable energy to transport its goods and services, power its facilities, and manufacture its products. Focusing on solutions, avoiding false choices, and empowering our most innovative energy companies will help us reach our true potential but first the federal government must provide a stable landscape for this development to occur.

David Holt is president of the Consumer Energy Alliance.

$.45 Gas Price Spike

EIA.gov:

The average U.S. retail price for regular motor gasoline is up about 45 cents per gallon since the start of 2013, reaching $3.75 per gallon on February 18. The rise in gasoline prices is partly due to higher crude oil prices. However, most of the increase in the pump price of gasoline reflects an increase in the gasoline crack spread, the difference between the wholesale price of gasoline and the price of crude oil.

Governors Seek Revenue Offshore

Coastal state governors are looking to advance OCS development in an effort to generate new tax revenue for their states.  E&E Daily reports:

Governors group pushes for shared revenue, faster permits: A group of governors plans to pressure Congress and the Obama administration this year to make offshore drilling easier and more profitable for states.

Meeting Friday in Washington, D.C., members of the Outer Continental Shelf Governors Coalition said they planned to work with senators on the Energy and Natural Resources Committee on revenue-sharing legislation, which would require the federal government to share royalties with states producing energy off their coasts.

The coalition also expressed support for bringing offshore renewable development into the revenue-sharing fold, an idea committee ranking member Lisa Murkowski (R-Alaska) and Chairman Ron Wyden (D-Ore.) are considering.

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Consumer Group Speaks Out Against Proposed Hydraulic Fracturing Ban

Chicago, IL – The Michigan State Board of Canvassers recently approved a six-month period of signature gathering for a petition by a radical environmental group that wants to ban all hydraulic fracturing in Michigan.

“With Michigan’s unemployment exceeding the national average over the past 10 years, the state cannot afford to eliminate potential economic development and job creation opportunities that increased energy production would create,” said Consumer Energy Alliance Midwest Executive Director Ryan Scott.

“Development of natural resources is creating thousands of jobs, tax revenue and economic growth in other states across the country, and it will likely continue. A ban on hydraulic fracturing in Michigan would result in an export of more jobs to other states and eliminate any hope of turning around the state’s economy,” said Scott.

Scott noted environmental groups in Michigan failed to gather enough petition signatures to place a ban on hydraulic fracturing on the 2012 ballot have a clear objective: stop the development of all fossil fuels, no matter the cost and no matter the facts. Their main argument is that hydraulic fracturing threatens drinking water.

  • The U.S. Environmental Protection Agency (EPA) conducted a study assessing the potential for contamination of Underground Sources of Drinking Water (USDW) due to the injection of hydraulic fracturing fluids. The study concluded that hydraulic fracturing posed little or no threat to drinking water.
  • Former EPA Administrator Lisa Jackson testified to Congress her agency has found no confirmed cases or evidence of contaminated drinking water linked to fracturing fluids.
  • Fracking has been conducted safely in Michigan on over 12,000 wells over the past 60 years. At a state auction in May 2010, the practice resulted in mineral lease sales of more than $178 million, the most lucrative mineral sale in Michigan history.

As fracking in Michigan and around the country is on the rise, do the anti-development groups really think that after a 60 year track record, we need to ban the practice now?

Public opinion in other states where HF is booming is solidly in favor of the industry. A recent study by the University of Pittsburgh Center for Social and Urban Research asked residents of Washington County, Penn., an area 25 miles south of Pittsburgh where there are about 600 gas wells in operation developing the Marcellus Shale, about their perceptions of HF drilling. Of those surveyed, only 10 percent were strongly opposed to drilling, more than 76 percent said drilling offered significant or moderate economic opportunities, and nearly 32 percent had a family member who had signed a lease with a gas drilling company.

Scott sees the facts supporting fracking in Michigan.

“With those facts as a foundation, CEA believes Michigan has the opportunity to further develop the Antrim and Collingwood Shale. As in other states this kind of development can help the state diversify its economy and create much needed jobs for Michigan citizens who have experienced the worst of the national economic slowdown.”

The development of natural gas resources will also spur additional economic growth, particularly in the manufacturing sector which accounts for 21% of Michigan’s GDP and creates nearly half a million jobs. By providing less expensive sources of energy shale development can greatly improve the Michigan economy. For the state that brought the country the assembly line, Michigan has an opportunity to increase its competitiveness by embracing a new, safely developed source of energy to run manufacturing plants and power the economy.

CEA Applauds Approval of Marcellus Shale Production on Airport Land by Allegheny County Council

 

Consumer Group Looks Forward to Future Opportunities for Economic Development,
Investment and Job Growth for Region

Pittsburgh, PA – Today Consumer Energy Alliance (CEA) Mid-Atlantic praised the Allegheny County Council’s decision to approve responsible shale development on Pittsburgh International Airport and West Mifflin County Airport land. CEA Mid-Atlantic’s Director Mike Mikus recently testified during the Allegheny County Council’s February 7th public hearing held to review a proposal to allow safe, responsible energy production on land surrounding Pittsburgh International Airport and the West Mifflin County Airport.

“We applaud the Allegheny County Council and are encouraged by their decision to support future growth for the county and regional economy,” CEA Mid-Atlantic Director Mike Mikus said. “With the energy-based economy that is emerging in the Pittsburgh region fueled by the growth of the responsible production of the Marcellus Shale formation, this is another great example of the opportunity to create thousands of jobs and bring much-needed financial stability to the region and specifically to the airports.”

Mikus added: “The Airport plan approval clearly demonstrates the positive benefits and opportunities that safe, responsible Marcellus production can bring to our region’s residents and businesses. With estimates that this plan could provide over $500 million in revenue to the struggling airport over the next two decades, Allegheny County is in a tremendous position to grow economically.”

The airport property currently contains about 9,000 acres of land suitable for energy production.

USA Today Backs Keystone XL Construction

USA Today:

At a time of rising global competition for energy resources, the pipeline would bring reliable new oil supplies to a U.S. that still imports 40% of its crude, 7.6 million barrels a day last year. And 40% of those imports come from OPEC nations such as Venezuela, Iraq and Nigeria. Keystone is expected to supply 830,000 million barrels a day, a key step toward the long-sought goal of North American energy independence, which suddenly seems attainable.

USA Today contends Keystone XL is an essential part of the U.S. energy plan.

The goal of locking down tar-sands oil and stopping other forms of fossil fuel production such as fracking — as many protesters demanded in Sunday’s demonstration — would be more compelling if the U.S. were ready to shift to renewable fuels such as solar, wind and biomass to power vehicles, heat homes and run factories. Last year, though, renewables supplied just 9.4% of all U.S. energy needs, despite robust tax incentives for wind power and electric cars. Shutting down conventional sources of energy at this point is naive and economically destructive.

Demand might be further reduced by making vehicles and buildings more efficient. A carbon tax or a cap-and-trade system could do the same by making the price of conventional fuels better reflect their cost to the environment.

Until that day, though, the best choice for the economy and the planet is to ensure ample, secure supplies of energy. The Keystone pipeline is an essential part of that strategy.

 

Full Editorial

Consumer Energy Alliance Names Amelie Hereford Director of Communications and Affiliate Relations


HOUSTON, TX – Consumer Energy Alliance has Named Amelie Hereford as Director of Communications and Affiliate Relations

Amelie Hereford will be in charge of managing internal and external communications to further align CEA’s national and state operations, enhance strategic partnerships with our affiliates, and develop CEA’s national affiliate coordination and outreach.

Before joining CEA, Amelie served as the legislative assistant for Arch Coal’s federal affairs office, acquiring significant experience in legislative affairs and public policy within the energy sector. Upon relocating to Houston to attend graduate school, Amelie continued her career in government affairs as a Political Action Committee Specialist in the utilities industry at CenterPoint Energy. Amelie’s background offers CEA a unique blend of communications, policy and government affairs experience across various energy industries.

“We are all extremely excited to have someone of Amelie’s solid energy industry expertise, public policy background and organizational expertise joining the organization,” said CEA President, David Holt. “With CEA’s anticipated growth and increased visibility in the coming months and years, having Amelie take a leadership role in affiliate relations and development, at the national level and across all regional chapters of CEA, will add tremendous value and strength to the organization’s partnerships and promotion of sound energy policy.”

Amelie has a M.A. in Comparative Politics from the University of Houston and a B.A. in Government from the University of Virginia.

Consumer Energy Alliance Recommendations for a Balanced Energy Policy

The United States continues to a lack a clearly defined national energy policy.  Lack of sustained activity at the congressional level has effectively forced policy making in to the hands of federal regulators, many of whom remain constrained by limited resources and near constant litigation by opposition groups.  This situation is not only undesirable; it imperils the short- and long-term availability of dependable, affordable energy for consumers.

In this briefing book, CEA identifies a series of policy recommendations that, if enacted, would establish a balanced energy policy that supports thoughtful increases in U.S. energy production and advances in energy efficiency.  Ultimately, the recommendations provide a blueprint for a sound energy future defined by greater economic opportunity, more resilient energy security, and affordable, abundant energy.

CEA Outlines Policies Needed to Maximize Growth from U.S. Energy Production

CEA outlines five policies needed to safeguard energy affordability and continued economic growth.

HOUSTON, TX – Following up on the President’s third State of the Union address, Consumer Energy Alliance (CEA) today outlined five energy policies that the U.S. should advance to improve positive economic growth, energy stability and affordability. The policies outlined by CEA include:

Approve a National Energy Policy:  Due to a lack a clearly defined national energy policy this activity has essentially been forced to the hands of federal regulators.  This imperils the short- and long-term availability of dependable, affordable energy for consumers and thus threatens our continued economic advance.

Make Needed Infrastructure Improvements: Quite simply, the nation’s ability to produce energy is exceeding our capacity to distribute it. There is a glut of oil in Oklahoma, our ability to get natural gas to market is constrained and new renewable energy sources are often far from the population centers they serve.  Therefore, we should immediately approve the Keystone XL pipeline, advance natural gas pipeline permits expeditiously and support a build-out of electrical transmission infrastructure.

Streamline Federal Permitting:  The approval timeframe for a federal application to drill an oil or natural gas well increased to 307 days in 2011. In many states, this process takes less than 30 days. Moreover, the approval process for new nuclear power plants is measured in years.  The federal government should streamline the permitting process to improve the efficiency of the permitting system, reducing the risk for litigation, and improve transparency.

Support Energy Efficiency Programs: Increased energy efficiency and conservation can lead to significant cost savings for American consumers and make American businesses more competitive.  The federal government should continue to support programs such as ENERGY STAR or NextGen that responsibly encourage efforts to adopt more energy-efficient technologies and behaviors, save energy and reduce consumer prices.

Expand access to oil and natural gas and increase R&D for renewable energy: Simply allowing greater access to oil and natural gas resources could generate an additional $1.7 trillion in government revenues. The Department of the Interior should issue a new Five Year Plan that includes annual leasing in the Mid-Atlantic, South Atlantic and Eastern Gulf of Mexico. At the same time, we should better allocate federal support to wind and solar energy to determine ways to increase competitiveness in the marketplace.

The suggestions stem from the group’s annual Report to Congress which will be distributed to congressional offices in the coming days. In announcing the policies, CEA President David Holt released the following statement:

“It was encouraging to hear the President note that advancing an “all of the above” energy policy is resulting in real improvements to our economy and environment. However, while much has been achieved more work remains to be done to secure our energy and economic future.”

“Right now, we are, in a sense, a victim of our own success, as our ability to produce affordable sources of energy is exceeding our capacity to deliver it efficiently to our nation’s consumers. This is constraining the growth we can achieve and the benefits that will ultimately be provided to the U.S. consumer. As a result, we must invest in our energy infrastructure for both fuels and electricity.  In addition, it’s critical that our elected leaders develop a national energy policy, streamline federal permitting, ensure efficient regulation for our nation’s power providers, including our nuclear and coal utilities, increase support for energy efficiency programs, expand access to oil and natural gas resources, and increase research and development funding for renewable energy systems.”

“The combination of these approaches will enable our energy success to continue and will result in significant economic advancements as nearly every sector of the economy relies on affordable energy to transport its goods and services, power its facilities, and manufacture its products.”

“Given the President’s desire to lead on energy issues, CEA is hopeful that these modest proposals will be advanced in the President’s second term. To do so, we must focus on solutions, avoid false choices, and empower innovation to help us reach our nation’s true energy potential.”

Consumer Energy Alliance Welcomes New Member: Gallagher Benefit Services

HOUSTON – Consumer Energy Alliance (CEA) is pleased to welcome Gallagher Benefit Services as its newest affiliate member.

Gallagher Benefit Services (GBS) and its parent company, Arthur J. Gallagher & Co., are two of the largest commercial insurance and risk management companies in the world. Specializing in bringing health care to its customers, GBS provides health care and benefits packages to a variety of industries throughout the United States, including the energy sector. Offering much more than health care plans and benefits, GBS offers comprehensive technical expertise in health care compliance and PPACA, as well as knowledge of local marketplaces that are tailored to specific regions of the United States. Customers who use GBS’s services rely on them to assist with the design, customization, implementation and management of their employee benefit programs. GBS is proud to be listed on the Houston Chronicle’s Top Places to Work 2012, this honor is due to the culture in the office and employee reviews.

James Wright, energy group managing director for GBS said, “We look forward to partnering with the Consumer Energy Alliance on a number of policy issues in both the health care and energy arenas.  For years, Gallagher has provided benefits packages to the energy industry, many of which are current members of CEA. The complexity of new healthcare regulations being implemented at both the federal and state levels has raised a number of questions from CEA members and Gallagher is looking forward to becoming a resource for the energy industry as companies will have the monumental task of complying with new regulations. We welcome the opportunity to work with CEA and its members.”

“CEA is excited to be working with our first member in the health care industry,” said CEA President David Holt. “It stands to reason that two of the city of Houston’s biggest employers, the energy and health care industries, should be partnering and working together on a variety of issues that have major implications on our economy and our standard of living.  Providing workers in the energy segment with quality care and coverage is always a priority in our industry and partnering with Gallagher will allow CEA the opportunity to stay attuned to the needs of our membership.”

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