Report: Virginia Offshore Energy Development Could Creat 1,900 Jobs, Add $365 Million Annually to GDP

FREDERICKSBURG – Virginia could receive up to $250 million dollars annually in revenue sharing payments from offshore energy development, according to a report released today by the Southeast Energy Alliance (SEA).

The report, officially released at the Virginia Governor’s Energy Conference in Richmond, outlines how offshore energy development could ease state taxes, and could help close future budget gaps, while helping to fund critical health care needs, infrastructure and educational projects.

“A tremendous economic opportunity is ready and waiting just off the shores of Virginia,” said Michael Whatley, executive director of SEA. “By allowing offshore development, the state of Virginia would be able to generate thousands of its own high-paying jobs, and produce revenues amounting to new roads, better schools and an economic upswing for years to come. State officials should internalize what this report lays out, and consider what could be gained by simply allowing Virginia to unlock the resources it already has.”

Currently, Alabama, Louisiana, Mississippi and Texas receive 37.5 percent of the revenues collected by the federal government for offshore energy production. Traditional onshore development states, such as Colorado, Montana, New Mexico, Utah and Wyoming, receive 50 percent of the royalties collected for energy development on federal lands. If the Gulf Coast revenue sharing program were extended to Virginia, exploration and production off the state’s coast could contribute up to $250 million annually to the state budget.

The report also indicates that energy exploration and production in the outer continental shelf (OCS) of Virginia would:

  •  Create more than 1,900 new jobs;
  •  Increase the state’s gross domestic product by $365 million annually by 2030; and
  •  Generate approximately $19.48 billion in federal, state and local revenues. This includes $1.275 billion in government revenues between 2010 and 2030, or an average of $63.75 million per year between 2010 and 2030.

According to the report, maps and OCS assessments from the (former) Minerals Management Service (MMS) show that Virginia’s adjacent waters, which make up about 10 percent of the total Atlantic resource base, are projected to contain as much as 750 million barrels of oil and 6.65 trillion cubic feet of natural gas.

NOTE: To view the full report, click HERE.

For more information, visit www.southeastenergyalliance.org and www.consumerenergyalliance.org.

Senator McGuire Submits Letter to Secretary Salazar

As a result of CEA- Alaska’s outreach work, Senator McGuire sumbitted a letter to Secretary Salazar urging approval of Shell’s application for a permit to drill in the Beaufort Sea. Click here to see the letter submitted by Senator McGuire.

Airport “Toeprints”: A Postscript…

We recently wrote about the carbon “toeprint” involved in airport travel: that is, all the little things that are often overlooked — like fuel guzzling shuttle buses or travelers driving solo to the airport – that can all add up to leave a substantial footprint before you even board the plane.

This week we’re happy to report that Denver International Airport is about to unveil a new green parking lot, Canopy Airport Parking, that will derive power from solar panels, wind turbines, and a geothermal heat pump. The 4,200 car parking lot will also offer free plug-ins for electric and hybrid vehicles and shuttle vans to the airport will run on compressed natural gas, or hybrid battery technology. The parking lot’s operator is claiming the new Canopy structure is the world’s greenest parking lot.

It is a claim that may be hard to verify, but also difficult to dispute. As we noted in our earlier post, we too often overlook all the little things we can do to conserve energy, even as we focus on the big picture. The lesson of Denver’s new airport parking lot is that today, even after years of focus on conservation, there remains a lot of low hanging fruit where new technology can be incorporated and savings can be found. And what better site is there than a parking lot to showcase the multitude of technologies now available to create light, heat and ground transportation with renewable power?

Affiliate Ports-to-Plains Posts Blog in Response to CEA Energy Day

Ports -to-Plains posted a blog on Thursday, October 21, expressing gratitute to the Congressional hosts of Energy Day 2010. Click here to read the blog.

Visit their website at http://www.portstoplains.com/ to learn more about Ports-to-Plains.

Why Seniors Dread Winter

This winter, many seniors who have the means to do so will head south to Florida and other warm locales where they will soak up the sun and wait out all the more unpleasant aspects of the northern winter: the cold, the ice, and the mounds of snow.

Those who stay behind will have not just inclement weather to worry about but also the rising costs of staying warm. Few groups are as vulnerable to high and unpredictable fuel prices as seniors living on fixed incomes. CEA has previously highlighted the plight of seniors struggling to afford basic essentials such as air conditioning and heat. This autumn, as most of us are feeling that familiar chill in the air, there are reasons for elevated concern. You may have read that, for the second straight year, seniors will get no cost of living adjustment in their Social Security payments, a determination based on low inflation. Yet while it’s true that costs of housing and many other consumer goods have not risen in recent years, fuel costs are as volatile as ever. The early word this season is that it’s going to cost considerably more to heat a home this winter. Prices may be flat across the board, but some necessities, like utilities, are getting more expensive.

It is often hard to connect global trade policy with individual lives, but with the squeeze so many seniors feel each winter, we have a perfect – if disturbing – example of how policy affects people. And, while there have been all sorts of changes in the energy industry in recent years, from new oil and gas discoveries to advances in solar and wind power, we find ourselves here in the year 2010 still importing far too much of our fuel from overseas, and as a result, grappling with a lack of energy security and energy price stability that has eluded us for decades.

As the seniors faced with the tough decisions whether to buy groceries or heat their homes remind us, this is not just a theoretical problem.

Lifting the Drilling Moratorium; A Thanks and a Plea

The Obama Administration has announced it will lift the moratorium on deep water drilling in the Gulf of Mexico – about six weeks before it was due to expire next month. This move ends another key chapter in the tragic Deepwater Horizon saga and is also an important first step in restoring economic vitality to the Gulf region.

CEA would first of all like to thank all of our members and supporters for their help in making the case to lawmakers that the moratorium was unduly onerous and could cause lasting economic damage. For months, CEA has shined a spotlight on jobs, and the value that jobs in the energy sector provide to many local economies. What we are hearing today is that it was a concern about lost jobs that lead the Obama Administration to agree to an early end to the moratorium.

And now, since we continue to care more about sound results than symbolic gestures, we ask your continued support in watching what happens next and ensuring that drilling is indeed allowed to proceed under reasonable terms.

No one will soon forget last spring’s explosion: An oil industry that wants to continue to drill in the Gulf must be prepared to accept regulations that will keep their operations safe. What we need to avoid are regulations that are so onerous, or a permitting approval process so weighed down by red tape and delays, that they serve as a de facto ban even after the formal ban is lifted.

While the deep water moratorium was in place, there were widespread reports that it became quite difficult to obtain permits for shallow water drilling as well. Now that the moratorium has been lifted, a similar practice of failing to approve permits on a timely manner could severely limit drilling activity, costing the region more jobs.

As Louisiana Governor Bobby Jindal noted Tuesday in response to news of the moratorium being lifted, The devil is always in the details. It will behoove us all to watch those details closely to make sure the Obama Administration makes good on its word.

CEA’s Energy Day in the Houston Chronicle

Click here to read the article in the Houston Chronicle.

CEA’s Energy Day in 10/13/10 ClimateWire

BUSINESS: U.S. export giants press for one global carbon accounting standard
(10/13/2010)

Joel Kirkland, E&E reporter

The U.S. manufacturing sector can thrive under a global climate change agreement as long as it guarantees the participation of the world’s major polluting and carbon-emitting countries, said an executive at Caterpillar Inc.

“Different paths, different timelines, different objectives for different countries, but everyone’s got to participate before you’ll ever find a real balance in the manufacturing sector,” said John Disharoon, Caterpillar’s director of sustainable development.

Disharoon and executives from two other multinational companies, Dow Chemical Co. and logistics giant Deutsche Post DHL, agreed yesterday that even without a federal program in place to slow emissions growth, global companies need to slash energy use and pollution to remain competitive. As for United Nations-led climate negotiations, they said the U.S. government should demand a consensus on at least one fundamental issue: common accounting standards for greenhouse gas emissions.

“Emissions in China on Wednesday show up on the coast of California on Thursday or Friday,” Disharoon said. “You have to address all emissions worldwide, or major-emitting countries, and put us all on at least the same accounting standard.”

Devising a common approach to counting a nation’s contributions to the tons of carbon dioxide emissions into the atmosphere has been a real bugaboo for negotiators participating in U.N. talks. The United States and China remain deadlocked on the particulars of the Copenhagen Accord.

Major emitting countries signing on to the accord last December agreed to cut greenhouse gas emissions and submit to the same standards of transparency and verification of reductions. Embedded in that goal are the arcane details of measuring and accounting for industrial emissions in large, complicated economies.

A work in progress

Carbon accounting is still a work in progress. There is the U.N. process, but governments, academic institutions and software companies are also developing technology and standards for measuring emissions. This month, White House officials announced the completion of guidelines outlining how federal agencies should measure and report greenhouse gas emissions.

China and the United States clashed at this month’s most recent round of international climate negotiations in Tianjin, China, over how and to whom fast-growing economies should report their emissions. Chinese officials say U.N.-led inspections would infringe on Chinese sovereignty.

Meanwhile, U.S. officials maintain that China’s refusal to submit to an international reporting regime makes it impossible to adopt a binding global climate treaty. Observers of the process say the United States and China distrust each other’s promises to cut emissions.

“That means that a kilowatt of electricity or a ton of carbon reduced in California has got to be measured in the same way as a ton of carbon in Illinois or a ton of carbon in Shanghai,” Disharoon said at a Washington forum sponsored by the Consumer Energy Alliance. A global accounting system is needed, he said, so that multinational companies are treated equally in the context of global trade.

“The only way to do that is to do a price on carbon, and one that’s universal,” he said.

Caterpillar is major U.S. exporter that ships construction and excavation equipment all over the world. This year, it has already exported nearly $10 billion worth of equipment, and in the past three months announced plans to build large manufacturing facilities in Wujiang, China, and Victoria, Texas.

The company also has been an outspoken proponent of adopting a federal policy to cut carbon emissions. Until the start of this year, it had been a member of the U.S. Climate Action Partnership, a coalition of U.S. corporations and environmental groups advocating for steep emissions reductions through 2050.

But Caterpillar also took a lot of heat from the coal industry and others for joining U.S. CAP. Caterpillar joined BP PLC and ConocoPhillips in February and dropped out of U.S. CAP as prospects for action in the Senate dimmed. That month, Caterpillar turned its attention to carbon capture and storage, joining the FutureGen Alliance, a public-private partnership to build a zero-emissions coal-fired power plant in Illinois.

A way forward without climate law

The less government intervention in the markets the better, Disharoon said. “But for really big projects like this, it’s essential that Congress figure out some sort of market-based carbon price mechanism, whether it’s a carbon tax or cap and trade,” he said.

“We’ve thrown that out,” he continued, “but something that works in concert with global agreements, putting us on the right paths where we’re pulling in the same direction as opposed to hog fighting each other about what we’re going to call it.”

There are still ways forward without climate legislation, according to Peter Molinaro, a Dow Chemical lobbyist, and Roger Libby, head of DHL’s corporate public policy.

Focus on energy security, Molinaro said. It entails the same essentials needed to deploy technology to reduce carbon and pollution, particularly the use of alternative fuels and sources of electricity.

“I don’t think it’s over,” he said. “I think we’ll be sort of backing into a carbon policy. By pursuing energy security, we might end up saving people some money and finding the technology to reduce greenhouse gases.”

But Libby said a strong public-private partnership on major projects is critical. A government commitment to infrastructure development, for example, is needed to improve the efficiency of shipping by road and air. “There’s only so much private industry can do on its own,” he said. “We cannot expect all of the roads to be built by private investors.”

Energy Day 2010: Our Energy is Our Power

This week, CEA takes a step back from the various issues that concern us each day, to celebrate energy – in all its forms – and remind consumers, lawmakers and producers all over the country of the importance of standing together, to promote the policies that sustain us all.

CEA is proud to be the host of this year’s Energy Day, an event that promotes energy in all of its forms and celebrates the fundamental role that it serves in our lives. Energy is everywhere. While we debate the best practices for producing shale gas, we do so in buildings supplied with light and heat. When we go online to read about the newest wind power projects all around the country, we are again tapping into a vast network that runs on electricity. Virtually all of us use energy in our homes, our work places and to move from one place to another.

We are all free to choose how we consume and how we conserve our power, but we are all consumers to a greater or lesser extent. And while there is great value in engaging in debate over where we drill for oil, and which renewable sources we invest in, we should not lose sight of the reality that energy makes modern life possible. When that energy is produced here at home, it makes our country stronger and more secure. Only by recognizing that reality will we be able to move toward the best practices for producing it and conserving it.

This year’s Energy Day, which will be held on October 12 in Washington, DC, marks an especially momentous year for the energy industry, which saw the tragic accident in the Gulf, a persistent economic downturn, and increased commitment to sources of sustainable power. Today, the energy industry is grappling with the best ways to allow production in our oil and gas-rich regions in a manner that is both safe and economically feasible. It is working to preserve — and hopefully create – the sort of well-paying jobs that have too often moved overseas. And it is increasingly incorporating energy generated from the sun, the wind, geothermal springs and other less developed sources of alternative power. It will take all of these efforts and more to sustain and strengthen our domestic power sector.

Visit our Energy Day Web site to learn more about the event and the long list of members, from farmers to truckers, manufacturing groups and homebuilders groups who are participating. By understanding the need for secure sources of energy that we all share, we are better able to agree on policies that will serve us.