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Consumer Energy Alliance Welcomes New Member Petrohawk Energy Corporation

HOUSTON — September 22, 2010   Consumer Energy Alliance (CEA) is pleased to welcome a new affiliate member, Petrohawk Energy Corporation, an independent energy company specializing in the exploration and development of shale-based oil and natural gas resources in the United States. 

“Petrohawk Energy Corporation is a leader in developing large-scale operations in some of the fastest growing natural gas plays in the country. Consumer Energy Alliance recognizes Petrohawk’s impressive role in the development of domestic energy resources, and looks forward to sharing in the commitment to supporting balanced American energy policy,” said CEA President David Holt.

Petrohawk focuses on a concentrated portfolio of resource assets in four important North American shales: the Haynesville Shale, the Lower Bossier Shale, the Eagle Ford Shale and the Fayetteville Shale. Their operations offer the potential for predictable, long-term production with low costs achieved through effective drilling and completions techniques, efficient field management and scalable operations. Petrohawk was founded on the concept that its specialized geologists, engineers and geophysicists could unlock value by applying their expertise in tight gas drilling and exploration with the latest technologies.

 “We are excited to align with the Consumer Energy Alliance in its mission to expand the dialogue between the energy and consuming sectors to improve overall understanding of energy security,” said Tommy Foltz, Director of Government Relations for Petrohawk Energy Corporation. “As a leader in the natural gas industry, we are excited to work closely with CEA to educate our customers regarding enhanced energy utilization and efficiency for the future.”

 For more information on Petrohawk Energy Corporation, visit www.petrohawk.com.

David Holt: Hydraulic Fracturing Key to Energy Goals

The following op-ed from David Holt, President of Consumer Energy Alliance, appeared on the National Journal website here, in response to the discussion question “Natural Gas: A Fracking Mess?” on September 20, 2010.

The innovative use of both hydraulic fracturing and horizontal drilling have expanded and deepened both the geology and geography of U.S. natural gas supply by tapping into unconventional gas deposits previously thought unattainable.

 EPA’s study is one important policy step to provide information and data necessary for sound decision-making both by the EPA and Congress on the use of hydraulic fracturing for production of shale gas. Congress and EPA should await the study’s results before rushing into long term decisions about how this technology should be regulated. It is also important to consider all aspects of how best to regulate hydraulic fracturing with the dual goals of protecting groundwater resources while realizing the full potential of this resource “game-changer.”

 For instance, since shale formations differ between geographies, state regulatory agencies are perhaps better attuned to the unique features of the shale formations in their respective areas and how best to balance natural gas production with protecting groundwater resources. Applying a uniform or federally regulated “one size fits all” approach to all areas of natural gas shale production in the United States would fail to account for these variations and could actually stifle development of this increasingly important domestic resource.

 Additionally, while continued expansion of the technology could spur massive job creation in the U.S., it also presents new opportunities for America’s oil and gas producers and service companies abroad. U.S. companies are currently exporting this technology and working with energy firms in China, India and Western Europe to help them realize their potential to reduce energy imports and meet climate goals through their own domestic development of this less carbon-intensive fuel. This also reduces the market power of OPEC and Russia.

 Development of domestic, long-term, large natural gas reserves could and should play an important role in the state of a future U.S. economy that has a lower carbon profile and is less dependent on imported forms of energy. U.S. manufacturing and other natural gas-based industries could and should grow again with a comprehensive energy policy and an appropriate regulatory policy on natural gas that is focused on keeping the U.S. globally competitive.

The world is watching how the U.S. approaches production of these new unconventional natural gas reserves. As we await the EPA report, the continued exploration of this technology is prudent to our national interests.

Food for thought

It is common to frame the discussion of energy consumption in terms of the cars we drive and the houses we heat. But there’s a different way to consider the issue: In terms of the food we eat.

This article offers some interesting tidbits on the topic: Between 1997 and 2002, more than 80% of the increased energy use in the United States was food-related, according to some estimates. Increased focus on convenience, often through the sale of prepared food, has required massive amounts of energy. People are also eating out a lot more and all those restaurants use a lot of energy. Methods for processing, storing and cooking food have also become more energy intensive, and even in individual home kitchens, high-tech gadgets that must be plugged into the wall are becoming a lot more common.

Now, in some ways this is a flawed argument. You certainly can’t separate energy consumption in the food sector from that of, say, the transportation sector: Much of our transportation sector is dedicated to transporting food. If we drive the family to a restaurant, is the fuel we use a transportation expense or a food expense? And what about the heating oil that the restaurant uses to create a comfortable atmosphere in which we can enjoy our food? Is it really accurate to call that a food-related expense?

Not necessarily. The country’s economy is so interconnected that the only good way to consider our energy use is arguably to look at it in total.

But there is a benefit of looking at fuel use by industry: It can be a useful way to identify the hidden ways we all use energy even when we think we are just enjoying one of life’s simple pleasures – like a glass of milk. It takes fuel to transport that milk, and more fuel – a not insignificant amount — to refrigerate it. Indeed, households account for 22% of all the energy expenditures in this country – and a lot of that household energy is being burned in the kitchen.

What do you think? Please share your ideas on how we might reduce our food-related energy consumption.

Drilling in the Arctic: We need an honest debate

by Guest Blogger: Jessica Shadian

Earlier this month, Interior Secretary Ken Salazar traveled to Alaska’s North Slope and said that drilling new exploratory wells in the region would have to wait until more was known about the cause of the Deepwater Horizon explosion in the Gulf of Mexico. Salazar raised some valid concerns, specifically that the challenging conditions in the Arctic would could make it particularly difficult to launch a spill response, should the need arise.

But Salazar also erred in suggesting that the United States had the power to protect the Arctic from a devastating oil spill. While the presence of oil and gas interest in U.S. waters in the Arctic is a discussion worth pursuing, the undeniable truth is that regardless of the policy the U.S. adopts in the Arctic waters it controls, a growing number of oil and gas projects in the region are already moving forward.

Consider:

–Just last month, new Arctic drilling commenced off the coast of Greenland following a gas discovery by Scotland’s Cairn Energy. At a time that Greenland is striving to win greater independence from Denmark, many of its political leaders are viewing oil and gas revenues as the source of that independence. An official at Greenland’s bureau of Minerals and Petroleum described the gas find as “an appetizer for all oil companies to come here and do more exploration.”

–Arctic oil and gas drilling has been underway off the coasts of Labrador and Newfoundland in Canada for more than a decade.

–One of the world’s largest natural gas fields is the Shtokman field in Russian waters in the Barents Sea. Although harsh Arctic conditions have so far delayed development of this massive field, interest continues to intensify, and eventual realization is likely.

–A recent border resolution between Russia and Norway opens the door to new development projects in the near future where a wealth of offshore resources are said to exist. Russia has also made clear that its future economy lies in Arctic oil and gas exploration and Norway is likely to move further north into its Arctic waters as its southern fields dry up.

In other words, while the U.S. moves to limit Arctic drilling, oil and gas exploration and production in the Arctic is alive and well. As many well-intentioned groups pursue anti-Arctic oil and gas campaigns, they are diverting the focus from what would probably be a more effective approach: working to ensure that the multiple national interests that are drilling in the Arctic adhere to a strict set of safety regulations, as well as commitments to the communities in which they operate. Although the Arctic Council is expected at some point to try to consider offshore drilling from a pan-Arctic perspective, to date there has been little coordinated effort among different countries.

And although many different countries control different regions of the Arctic, potential environmental calamities would know no borders. If a spill were to occur off the coast of Greenland, it would most likely spread to Canadian waters. While Salazar appears to be taking a tough stance to protect the Arctic, a more practical approach would be to encourage the creation of a regional governance system for coordinating safety regulations and oil spill response measures.

This sort of system could also create the framework for making smaller, local interests a part of the governance system. Many of the parties that own or have rights to receive royalties from offshore development are neither private corporations nor state entities, but rather, local indigenous governments. The Inuit, for example have autonomy over a large stretch of coastline in the Arctic Archipelago, and are also able to negotiate directly with industries on certain resource development matters.

These systems of regional governance are often complex. The key detail to remember is that they do exist. When you consider them along with the larger national governments that control different parts of the Arctic, you get a multitude of groups that can drill for oil and gas in the region, and have a lot of incentive to do so, regardless of the policy the United States adopts. Clearly the U.S. has an opportunity to lead the discussion about safety and responsible resource development in the Arctic. But it would be wrong – indeed negligent — to believe that the U.S. can control the fate of the Arctic or singlehandedly eliminate risks in the region.

Consumer Energy Alliance Welcomes New Member Chamber of Shipping of America

HOUSTON — Consumer Energy Alliance (CEA) is pleased to welcome new affiliate member the Chamber of Shipping of America (CSA), a leading American shipping industry organization.

“Consumer Energy Alliance welcomes the Chamber of Shipping of America to our organization, and looks forward to sharing a commitment to supporting a balanced American energy policy,” said CEA President David Holt.  “CSA takes on an important role in the shipping industry by representing many of its regulatory and legislative needs, which makes them a unique and exciting addition to the CEA family.”

“As a strong voice of the U.S. maritime industry, CSA promotes sound public policy through legislative and regulatory initiatives that include marine safety, maritime security and environmentally-protective operating principles,” said CSA president Joseph J. Cox. “CSA supports a viable domestic maritime industry and promotes open international trade in shipping. Maintaining stable energy costs for ship owners and operators is an important part of keeping the maritime industry and international trade sustainable and successful. By joining Consumer Energy Alliance, CSA shows its solid support of balanced energy, stable energy prices and a robust American energy industry.”

CSA represents 33 U.S.-based companies that own, operate or charter ocean-going tankers, container ships, dry bulk vessels engaged in both domestic and international trades, and companies that maintain a commercial interest in the operation of such ocean-going vessels. For the past five years, continuing this year, CSA is awarding those vessels that have operated for at least the prior two years without any environmental incidents reportable to international, national or local authorities.  Awards are given to over one thousand vessels annually, which operate for an average of five years each in environmental excellence.

For more information on the Chamber of Shipping of America, visit www.knowships.org.

The power of small steps

Butte Community College in northern California is hardly the biggest, or the best endowed college in the country, but it is on track to become the largest solar producing college in the world – and the first college in the country to produce more solar power than it consumes. Already, close to half the energy it consumes comes from solar power generated by its campus, where solar panels rest atop parking spots, walkways and rooftops.

While it’s impressive that a small community college is a leader in campus solar production, Butte’s achievement with solar is all the more notable  considering that it installed its first solar panel on campus just five years ago. Its mantra was initially one of “slow and steady,” but as it gained momentum, it began to see the benefits of adding solar generating capacity, and it picked up the pace. With the recent approval of its Phase III solar project, the school will add about 15,000 additional solar panels to its existing base of 10,000. All told, it will generate enough solar power to fuel 9,200 typical homes, the equivalent, it says, of taking 6,000 cars off the road.

How did it get there? Largely, by recognizing that cost did not have to be a barrier. The vast majority of the funding for its latest solar expansion comes from federal clean renewable energy bonds, or CREBS, low-interest loans that can be used for clean energy projects. Butte has also taken advantage of rebates from Pacific Gas and Electric, the California Solar Initiative and stimulus funding allocated by the 2008 American Recovery and Reinvestment Act.

Of course the college also recognizes that it will recover upfront investments in future energy savings. Already, it says its on-campus solar generation is saving it $300,000 a year in utility costs.

Butte is also a good example of how the benefits of investing in sustainable energy go far beyond saving money and reducing emissions. All those solar panels dotting the campus eventually earned Butte national recognition – and additional grant money to train displaced workers in photovoltaic design and installation.

Do you think upfront investments deter people from solar?

Take This Bill and… Measure it!

Finding a starting point from which to measure is often the hardest first step to evaluating the efficiency of your home’s energy usage. The U.S. Department of Energy is helping us evaluate our households and compare them to others across the country so that we may better understand how to begin to prioritize and conserve. You will need the following information to calculate your “score”:

  • Your last 12 months of utility bills
  • Energy sources from your home (i.e. natural gas, electricity, fuel oil, propane, kerosene, etc.)
  • The square footage of your home
  • 5 minutes to plug in the information and get your results!

Visit the website today to receive your totals, compare to others across the country, and get recommendations for improvement! Click here: Department of Energy’s Home Energy Yardstick

A not-so-happy Labor Day

This past Monday marked another Labor Day that the country is struggling with high unemployment: The U.S. Labor Department kicked off the holiday weekend by reporting that the jobless rate rose to 9.6% in August. You may recall that Labor Day 2009 and Labor Day 2008 were also pretty sober events. Yet, years after the country fell into an unemployment crisis, it is still struggling with the highest unemployment rates seen in decades.

While Labor Day is an appropriate time to take stock of the state of America’s workers, it is important to note this year that the jobs crisis runs far deeper than the official unemployment rate. Labor Day is often associated with good jobs in manufacturing and industry: jobs that offered the opportunity to work hard and earn a wage that could support a family. Yet in the year 2010, that sort of job is increasingly looking like a relic of the past.

Over the past decade, the United States has lost 5.5 million manufacturing jobs. Today, unemployment in the manufacturing sector is significantly higher than the national average. While the unemployed clearly welcome any and all new jobs creation, as a nation we must also focus on the quality of the jobs we create. If high-paying manufacturing jobs are sent overseas in place of low-paying jobs in service sectors, the nation will be less prosperous.

CEA recently kicked off a series of rallies for jobs around the country, in some of the areas hardest hit by the unemployment crisis and the eroding manufacturing base. Our goal is to highlight the need for more quality jobs and the important role that the oil industry has traditionally played in creating secure jobs that pay decent wages.

CEA wants to hear from  you. Was Labor Day an occasion for you to take a break from work? Or, was it a troubling reminder that you had no work? Do you and your family members feel that you are adequately compensated for your work? Or are you finding it harder to get ahead? What do you think about when you think of Labor Day and what do you think America should do to rebuild our economic strength?

CEA Newsletter September 2010

September 2010 CEA Newsletter
Issue 42

The past month has proved to be one for both optimism and great concern. While the Deepwater Horizon spill has been contained and cleanup efforts have made immense progress and continue to move forward, the Administration has continued its policy of delay – despite solid, bi-partisan evidence that drilling can and should be safely resumed.

For example, in a concerted effort to respond to the drilling ban, The Bipartisan Policy Center was recently asked by the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling to generate recommendations for the federal government to determine which suspended activities could be safely resumed. The commission successfully determined that responses were inadequate on both sides and that better technology is required. They also stated that there is now an adequate margin of safety to resume some of the deepwater drilling in the Gulf of Mexico. (To read the Bipartisan Policy Center Report, click here.) It is this type of bipartisan response that is an invaluable resource to us. It is steadily becoming more evident that the response to the spill was much worse than the event itself.

The financial impact on the Gulf Coast and the nation are real, with almost $65 billion in annual revenue generated by offshore Gulf activity.  Further delays – without sound justification – only add to the harm the nation has already suffered.

It also remains troubling that offshore activity in Alaska remains uncertain.  Alaska is not part of the Administration’s stated drilling delay in the Gulf of Mexico, yet the Department of Interior has failed to provide any clear regulatory pathway toward future production.  Alaska – and its massive oil and natural gas resources – remains in limbo at a time when the American public is crying out for more domestic energy.  If, for example, Alaska was a nation, it would have the 9th largest oil resources in the world – ahead of Nigeria, Norway and Libya.

And, while all this regulatory uncertainty and delay continues, Americans consume more than 18 million barrels of oil per day (importing 12 million of those barrels).

The Administration needs to hear from consumers who are concerned about the lack of clear policy direction.  This month, Consumer Energy Alliance is joining other groups to help mobilize folks in Texas and elsewhere to participate in September job rallies.  We encourage you to attend and voice your concern.   To learn more about these dates and locations, click here.

Also, The U.S. Department of Interior’s Bureau of Ocean Energy Management (BOEM) will be hosting a Public Meeting to discuss the Obama Administration’s offshore oil and gas drilling ban. The next forums are scheduled for Tuesday, September 7th, in Houston, and Friday, September 10th in Biloxi, Mississippi.  Coastal communities, affected businesses and local governments have not been given sufficient time to participate in previous public meetings hosted by BOEM and have not had the opportunity to make the Administration aware of our concerns.  It is important for CEA affiliates and friends to attend and show BOEM Director Bromwich that it is time to lift the murky restrictions on Gulf development, spur economic opportunity and get this region and the nation moving again. To learn about the dates, times, and locations, click here.

It is also important to remember that the Gulf is largely spill-free and open for business, despite widespread media stories to the contrary.  In an article published by the Orlando Sentinel on August 26, it was reported that travelers are still avoiding the Florida vacation spots for reasons more associated with rumors and false speculation rather than oil. So with this as a sobering example, we must, as energy consumers, continue to reach out to educate the public and move them to action.

Our only option to tip the scale in our direction is by mobilizing public response. As energy consumers, we need to improve our level of activism and join together to form collective response now.

David Holt

President

 

Lift the Drilling Ban: Put Hardworking Americans Back to Work!
Sign CEA’s petition urging President Obama to reverse the deepwater drilling ban now. While we witness the devastating consequences of the Gulf of Mexico spill on the environment, we now know that ceasing to drill will cause severe economic repercussions. The oil & gas industry provides significant amounts of jobs and revenue for Gulf residents. The Administration’s kneejerk reaction may have consequences reaching far beyond the oil spill and into the future – rigs are already leaving the Gulf.

Please sign the petition to lift the ban and safeguard American jobs before more damage is done. Sign the petition today!

 

YOUR PRESENCE IS NEEDED AT THE RALLIES FOR JOBS!!
In the wake of the Gulf oil spill, Congress and the administration are debating measures that, if approved, could cost American jobs, drive small- and mid-sized firms out of business, threaten our fragile economic recovery and jeopardize our energy security. We must ensure that policies are not implemented that would jeopardize jobs, threaten our nation’s energy security and limit our ability to safely and reliably produce affordable, domestic energy.

The Rally for Jobs is an opportunity for those whose livelihoods depend on the oil and natural gas industry and American consumers to express their concerns with these harmful proposals.

The rallies are planned for TEXAS, OHIO, NEW MEXICO, ILLINOIS, and COLORADO. For dates, locations, times, and more information, click here.

 

Call to Action: Submit Comments to the BOEM to End the Drilling Ban
Currently, the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) Director Michael Bromwich is holding a series of fact-finding forums in several Gulf Coast cities affected by the offshore drilling ban, as well as Anchorage, Alaska and Santa Barbara, California. BOEM plans to provide Interior Secretary Salazar with recommendations on these issues by October 31, 2010, and our voices need to be heard. While the forums will be open to the public, members of the public are encouraged to comment in person at the forums (through comment cards) or by mail or online. Please click here to learn more about ways to submit comments to the BOEM.

 

CEA Welcomes New Affiliate Members

Houston Clean Energy Park
The Houston Clean Energy Park (HCEP) is an 80 acre facility adjacent to a utility substation that was created to allow for harmonization and delivery of clean power into the ERCOT electric grid. In addition to this clean power is the development of the 80 acres into a technology park focusing on tenants with market competitive clean energy, environmental or infrastructure technology firms.

 

Ocean Energy Institute
The Ocean Energy Institute (OEI), founded in 2007 by Matthew R. Simmons, is a think-tank and venture capital fund addressing the challenges of U.S. offshore renewable energy. OEI approaches energy R&D and investment from a systems point of view, grouping the generation, usage, storage and transmission all together as an interdependent set of opportunities. They are working to educate consumers about the benefits of ocean energy and helping to clear obstacles to make ocean energy a reality.

 

Petrohawk Energy Corporation
Petrohawk Energy Corporation is an independent energy company and a leader in the exploration and development of shale-based oil and natural gas resources in the U.S. Their properties are concentrated primarily in the Haynesville Shale and Lower Bossier Shale of Northwest Louisiana and East Texas, the Fayetteville Shale of Central Arkansas, and the Eagle Ford Shale of South Texas.

 

Trans Pacific Oil Corporation
Trans Pacific Oil Corporation is one of the Top 20 Oil and Gas producers in Kansas. They focus on a combined strategy of reserve purchases, exploration, and development for the state of Kansas and the surrounding region. A part of the Kansas industry since 1980, Trans Pacific is a small, independent company committed to attracting business investment opportunities to the Kansas region.

 

Consumer Corner: Take This Bill and… Measure it!
Finding a starting point from which to measure is often the hardest first step to evaluating the efficiency of your home’s energy usage. The U.S. Department of Energy is helping us evaluate our households and compare them to others across the country so that we may better understand how to begin to prioritize and conserve. You will need the following information to calculate your “score”:

  • ·         Your last 12 months of utility bills
  • ·         Energy sources from your home (i.e. natural gas, electricity, fuel oil, propane, kerosene, etc.)
  • ·         The square footage of your home
  • ·         5 minutes to plug in the information and get your results!

Visit the website today to receive your totals, compare to others across the country, and get recommendations for improvement! Click here: Department of Energy’s Home Energy Yardstick

 

America’s Natural Gas Alliance
On August 24th at the Houston CEA meeting, America’s Natural Gas Alliance (ANGA) gave an Energy 101 presentation highlighting the importance of natural gas and its value, specifically to the state of Texas. According to their research, the natural gas reserves in the United States are at a level of 100+ years and growing exponentially each year. They emphasized the importance of clean energy and the cost-effectiveness of natural gas as a consistent energy supply. To view their presentation, click here.

 

ANGA Alliance exists to promote the economic, environmental and national security benefits of greater use of clean, abundant, domestic natural gas. They represent 34 of North America’s largest independent natural gas exploration and production companies and the leading developers of the shale plays now transforming the U.S. clean energy landscape. To learn more about ANGA, visit their website at www.anga.us.

 

BugWare, Inc.
BugWare, Inc. is a consulting paleontology group located in Tallahassee, Florida. An organization that works closely with the oil industry, this group of scientists goes to deepwater oil rigs and determines the age of the strata being drilled via examination of the microscopic fossils found in the cuttings.

“We are among a small number of paleontologists that work in the oil industry,” says Mitch Covington, owner of BugWare, Inc.  Fossils have become increasingly valuable in the exploration for deep water oil reservoirs.  Despite the new & expensive technology employed by today’s oil industry, the microscopic fossils are still a valuable tool for identifying geological layers — a necessity for efficient exploration.  BugWare has the largest concentration of consulting nannofossil specialists working in one office in the country. Covington also writes his own software and delivers state of the art computer data and graphics to display their findings from wellsite or from their office.

Energy issues directly affect BugWare due to the nature of their business. “Our entire existence is dependent upon a healthy deepwater Gulf of Mexico exploration and production policy,” says Covington. And according to his calculations, the moratorium has cut his business by about 90%. “We would like to see a sensible drilling policy in areas that are currently off limits.”

Covington decided to join CEA due to the organization’s ability to be a mechanism for educating the public as well as policy makers. “In an atmosphere adverse to offshore drilling, CEA can help inject logic and common sense into the equation through communication and activism,” he says.

To learn more about BugWare, Inc., visit their website at http://bugware.com/.

Here Comes the Hybrid School Bus

It’s back to school season, but how will all those kids actually get back to school? Public education budgets around the country are tight and many school districts are slashing spending on transportation, reducing or eliminating the school bus.

One city in Wisconsin is taking a different approach, incorporating hybrid buses in its fleet of vehicles in order to save money on fuel even as it reduces emissions. Oconomowoc, in southern Wisconsin, is introducing 11 hybrid school buses and installed a solar charging station. Estimated savings: About 7,500 gallons or $22,500 a year. And, because the buses travel about twice as far as a conventional bus on a tank of fuel, maintenance costs are expected to be lower as well. It all adds up to a lot of resources that could be spent on pencils, paper and books.

And speaking of books, programs like the one being unveiled in Wisconsin achieve more than just saving money and emissions. At a time that schools around the country are trying to teach sustainability, those that practice what they teach are bound to be more effective. Moreover, when cash-strapped schools find creative ways to preserve bus services, they are serving the community by reducing the number of cars clogging the roads making those quick trips to and from school.

In case you ever wondered why we don’t have more solar-powered cars, trucks and vehicles on our roads, these vehicles have traditionally posed multiple challenges with design, since they have only so much surface space to soak up the sun. Early prototypes have been described as tabletops on wheels, with so much space taken up with solar panels that there was barely any room left for a driver.

But while the concept of a completely self-sufficient solar car never took off, solar technology is being incorporated into hybrid plug-in vehicles more and more. The 2010 Toyota Prius incorporates solar panels used to power the car’s ventilation system, and electric and hybrid vehicles will increasingly be able to recharge at solar-powered charging stations.

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