Energy Consumers Disappointed that Administration Continues to Strangle U.S. Economy

HOUSTON – July 12, 2010 Consumer Energy Alliance (CEA) president David Holt issued the following statement in response to the Administration’s renewed and misguided call for a moratorium on domestic offshore oil and natural gas production, which was initially overturned in a recent federal court ruling:

“Today’s actions by the White House, while expected, are unfortunate and will result in fewer jobs and fewer stable supplies of affordable energy for struggling American consumers, particularly those along the Gulf Coast, whose economy has been shaken to its core.

“Safely and effectively producing domestic oil and natural gas offshore provides secure supplies of homegrown energy for the nation and is responsible for tens upon tens of thousands of American jobs. While we look to diversify our energy over the next several decades, offshore energy production is critical to our nation’s ability to compete, and for American consumers, families, seniors and businesses to thrive.

“While the presidential commission on offshore energy production held its first public hearing earlier today to determine appropriate steps forward, today’s action by the White House will only increase economic uncertainty, costing even more jobs and keeping more job-creating American energy unnecessarily off-limits.”

What does pond scum have to do with crossing the pond?

Despite the widespread effort to promote alternative sources of power, we still don’t hear a lot about alternative jet fuel. That’s partly because of the large volumes of fuel that jets consume, which would require a reliable, mass-produced source of power.

And speaking of reliability, airlines are not something you want to experiment with. Any new source of fuel would have to have shown the highest standards of reliability before it was used in passenger jets.

This is not to say that airlines are not searching. Just this week, Boeing and Alaska Air teamed up with Washington State University to explore the production of locally made biomass for use in aircraft. The project will focus on biomass sources that are plentiful in the Pacific Northwest, including oilseeds, wood byproducts and algae, aka pond scum.

The partnership is the latest development in an industry seeking a new paradigm and increasingly focusing on, yes, pond scum. In recent years, whenever alternative jet fuel has been seriously discussed, that discussion has typically turned to algae.

Two years ago, Wired Magazine noted that the case for jet fuel made from algae was compelling: it’s cheap, it is grown all over the world, and it appears that it can be harvested without disrupting the food supply.

There is still a problem of scale. Today the biomass industry is not nearly large enough to steadily produce a large supply of fuel from algae or any other plant source. But the momentum is building. The College of William and Mary this week launched a new project to study the production of biofuel from algae harvested in a lake near campus. It says that contaminated storm runoff has fueled the growth of algae in the lake, and by removing it, it should restore a friendlier habitat for fish and plant life.

CEA-Alaska Executive Director Dave Harbour Submits Testimony on Offshore Drilling

Click here to view CEA-Alaska Executive Director Dave Harbour’s testimony to Chancellor Fran Ulmer on offshore drilling, as given July 7, 2010.

David Holt: Offshore Oil Will Continue to Matter

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 “Should Congress Expand Offshore Drilling?” on July 12, 2010.

As we search for solutions to the tragedy in the Gulf, our country cannot and should not turn a blind eye to the energy needs of our country. To protest offshore oil production is to ignore the fact that much of our economy is oil-dependent – from the jobs dependent on the oil industry to the transportation of goods and the consumer economy. Halting offshore oil production will absolutely increase our dependence on foreign oil, while not necessarily improving the environmental impact of oil production at all.

In the wake of April’s tragic accident, we can all agree on the need to improve drilling safety and to take steps to ensure that this never happens again. But we all also need to recognize that our continued reliance on foreign oil have left us held hostage to unstable energy prices, in addition to having a huge political impact on our country. Also, we must not continue to ignore the fact that all oil comes from someone’s backyard and when we refuse to drill at home, we often wind up importing oil from places around the world that do not share our tough environmental standards.

All energy production comes with some costs and pretending that the halting of offshore oil production in the Gulf is the answer to safer drilling, or that it will somehow magically lesson our need for oil is just naïve and could have dangerous consequences.

We should continue to pursue stricter safety standards that ensure that a catastrophe like this never happens again, and we should refuse to make short term, knee jerk reactions that have the potential to harm our economy while having no positive impact on the environment.

Cal Dooley: Moratorium on deepwater oil and natural gas development is detrimental to nation’s recovery

The following op-ed from Cal Dooley, President and CEO of CEA affiliate the American Chemistry Council, appeared on The Hill’s Congress Blog website here on July 8, 2010.

American manufacturers need a vibrant offshore oil and natural gas industry to continue supplying the nation with materials critical to health, safety, technology, productivity and energy efficiency. Policies that make domestic energy less available or more expensive will harm U.S. manufacturing, including chemical manufacturing and the many other industries we serve.

That’s why I am so concerned about the moratorium on deepwater oil and natural gas development in the Gulf of Mexico.  Unfortunately, there are already indications that the spill could be used to punish the oil and gas industry or to justify a new era of sharp restrictions on domestic energy development. Our leaders cannot allow this early reaction to turn into a long-term policy. Such an approach would only damage the nation’s recovery and job growth, in and well beyond the Gulf, and our ability to compete globally.  U.S. manufacturing would be on the leading edge of the decline.

The consequences of a tighter and more expensive supply of oil and natural gas would be felt by every American. We seem to forget that these energy sources power much more than transportation. The chemical industry’s unique use of oil and natural gas illustrates the point. Like other manufacturers, we use oil and natural gas to heat and power our factories. But we also use these sources as vital raw materials for products that become the “building blocks” for thousands of consumer goods.  A remarkable 96 percent of U.S. manufactured goods are touched by chemistry. We employ more than 800,000 Americans and help create more than 5.1 million jobs in the overall economy.

So what’s the sensible path for policymakers? A sound U.S. energy strategy must develop a broad set of energy options. We’ll need to boost energy efficiency and conservation as well as energy diversity, including alternatives and renewables, nuclear, carbon capture and storage, and combined heat and power. Chemistry is key to the effort: its products and processes are relied on for a long list of renewable energy and energy efficiency applications, from solar panels, wind turbines and energy-efficient appliances to building insulation, lightweight vehicle parts and compact fluorescent light bulbs. Achieving greater greenhouse gas emissions reductions will require a robust, competitive U.S. chemical industry.

Domestic oil and natural gas are other elements of the strategy that we cannot overlook or take for granted. If we’re not careful, the moratorium on deepwater drilling in the Gulf – currently under legal review – could signal the start of a policy that would jeopardize millions of American jobs and drive up the cost of business for the industrial sector. With the chemical industry already facing high costs for energy, intense foreign competition, and razor-thin margins, we need domestic, competitively-priced oil and gas more than ever.

While Americans may intellectually understand that domestic oil and natural gas resources are essential, the devastation apparent from the Gulf spill weighs heavily in developing the right policy responses.  We need to map out an effective national energy strategy, looking past emotions to weigh the sober facts. The Gulf’s offshore industry produces 30 percent of the nation’s oil and 11 percent of the nation’s natural gas. Of that amount, nearly 70 percent of the oil and 30 percent of the gas comes from deepwater drilling. This production cannot be easily replaced.

Instead of focusing on punitive measures against the oil and gas industry, the prudent response would be to rededicate ourselves to offshore safety and tighter oversight. Until this spill, the offshore industry had a strong safety and environmental protection record. According to the U.S. Department of the Interior’s Mineral and Management Service, offshore operators produced 4.7 billion barrels of oil since 1980, with a release rate of less than 0.001 percent. As some have already suggested, that safety record might have created a sense of overconfidence that contributed to the spill. What we know for sure is that this disaster has already sounded the alarm for other offshore operators.

The oil and natural gas obtained in deepwater off of our coasts are essential to U.S. manufacturing – today and for decades to come.  With proper oversight, the industry should be given the opportunity to continue doing its important job.  As Congress develops a comprehensive energy policy, lawmakers should oppose a ban on offshore development in the Outer Continental Shelf while promptly considering how to end the drilling moratorium in the Gulf.

Saving on gasoline and other summertime power tips

Have you ever turned off the car air conditioner when you noticed you were running low on gas, hoping the to save enough fuel to get to the next service station? It’s a logical practice that can work – provided, that is, that you don’t open the windows instead, while racing down the freeway at 65 miles per hour.

At a time, when many of us will be hitting the road for the beach, the mountains or just some community cookouts we thought it would be worth reviewing some basic skills for surviving the summertime heat without breaking the bank.

AC or Open Window?

The air conditioner/open car window is becoming a real dilemma this month with record high temperatures in many parts of the country making it virtually impossible to sit in a car for long without some kind of air circulation. But this primer, which puts some conventional wisdom to the test, notes that at speeds above 50 miles per hour, “you’re better off closing the windows” and putting on the AC. Although car air conditioning can increase fuel costs significantly, using the “vent” settings on climate control can help you conserve fuel even as you drive in cool comfort.

Drive further for cheap gas or pay more for convenience?

While driving the extra miles to the local service station with the slightly cheaper gasoline prices is usually a penny-wise and pound-foolish strategy (not to mention a waste of time), drivers embarking on lengthy road trips can achieve significant savings on gasoline by doing some research on costs in different states, and planning stops accordingly. Gasoline costs can vary significantly from state to state, because of different state tax rates.

Consider this: “If you’re already planning to cross the George Washington Bridge, then you should plan to buy gas on the New Jersey side, where a full tank will cost about $4 less, which will help you pay the $8 toll for the bridge.”

Prepare for power outages

It seems like just yesterday that much of the country was blanketed in snow and we were offering tips on Surviving a Blizzard in Relative Comfort.

Fast forward five months and power outages are on the rise again. Of course the best practice for consumers is to do their part to prevent blackouts in the first place by limiting power use during peak demand times. Bit it’s also useful to remember that when the power goes down, you may need more than just a flashlight. This consumer site reminds us that power outages also affect refrigeration and in some cases, water supply as well. Simple moves like keeping a cooler and some bottled water on hand will help ensure you’re well-nourished and hydrated, even as you dine by candlelight and flashlight.

Keeping the heat out

Think about it: There are two main strategies for keeping your home cool. You can bring cool air in, with an air conditioner. Or you can keep it out in the first place. Too often we opt for the first strategy when the more economic approach is using a combination of the two. This Guide to Green Living reminds us to close the drapes on windows facing the sun as a low-tech step to simply block the heat and limit the need for cooling. So simple and so often overlooked.

Indeed, so many power saving tips are simple common sense. But if you incorporate them on a regular basis the savings can add up. Happy summer!

Yucca Integral to US Nuclear Energy

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 “Nuclear Power Going To Waste?” on July 7, 2010.

The Federal Government made a legal commitment to dispose of the high-level nuclear waste at the Yucca Mountain facility years ago, and the Administration’s recent decision to shut down the facility’s development not only puts the future of safe, and affordable nuclear energy production into question, it also raises the question of the ultimate disposal of nuclear waste. Current storage facilities, while very safe, were not intended for permanent storage and would have to be expanded if the government does not proceed with the Yucca facility.

The Administration’s Blue Ribbon Commission, which is currently investigating alternatives to the Yucca Mountain repository, does not preclude the government from maintaining its commitment to moving forward with the facility now. Alternative solutions – from expanding onsite storage at nuclear facilities to relying on new recycling technologies — are years away, and even some of those alternatives will still produce byproducts that require a safe depository.

The government has a legal obligation to provide for the long-term storage of highly radioactive waste at this facility – and they have already collected $34 billion from the industry to do just that. Nuclear energy is a clean, reliable energy form that will help to stabilize domestic energy prices, if and only if, Congress and the Administration are fully behind making it a part of a well rounded domestic energy program.

Lift the Moratoria Rally – July 21st!

The Gulf of Mexico, as well as the nation, is suffering from the economic consequences of the President’s Moratoria on offshore development.

Several CEA Friends and Affiliates in Louisiana are holding a Lift the Moratoria Rally in the Louisiana CajunDome on July 21st from 11am to 1pm.

For more information:

Lift the Moratoria for Louisiana’s Jobs and America’s Energy Future
July 21:  11am – 1pm
PH:  225-388-9525
Website:  http://www.rallyforeconomicsurvival.com/

Made in America: An update on solar

Last we wrote about solar power, we noted how it was still off limits to large segments of the American population, or made available only through private donations and subsidies. We’ve also highlighted the problem of American solar technology manufacturers shifting production to China.

And while both limited access and cheaper manufacturing opportunities overseas remain big problems facing the solar industry, there have recently been some signs of progress, both major and more symbolic.

First, the symbolic: TrendSetter Solar Products, a small manufacturer of solar panels, announced plans to move production from China to the United States. We call this a somewhat symbolic success, because TrendSetter, which also makes solar-powered hot water heating systems, is a small player. The company’s name notwithstanding, TrendSetter may not have a lot of influence over the business decisions made by larger companies under pressure to lower manufacturing costs. Still, every American job does count and any sign of companies bringing production back to the U.S. is certainly welcome.

The more significant recent development was a major deal announced last week for the Department of Energy to award two big solar players close to $2 billion to help create badly needed jobs and speed the adoption of renewable power.

The bulk of that investment will go to Abengoa Power, which is in the process of constructing a 240-megawatt project outside of Phoenix, a plant that will be among the world’s largest. And because Abengoa is building this plant with solar energy storage capabilities, it will be able to deliver power after dark and when it’s cloudy outside – another big milestone in making solar a steady and reliable source of power.

As these recent developments show, there has been meaningful progress in expanding the reach of solar power in the U.S. and advancing the technology to help build it into a more universal source of power.

This past weekend, the nation celebrated Independence Day, a holiday that always reminds those of us at CEA about the importance of energy independence. Solar power, long a source of promise, is starting to realize its potential not just as a universal source of power but also as a strong American energy industry.

And you thought the Smart Car was small

British engineer Gordon Murray best known for his Formula 1 racecars has unveiled his long-awaited T.25 City Car.

It’s an ultra energy-efficient vehicle that’s so small that three of them, parked nose to the curb, can fit into a single parking space.

Early reviews say the vehicle makes hybrids look wasteful and traditional compact cars look massive. And because the design is based on a so-called “safety cell” that has protected race car drivers in high-speed crashes, it is being taken seriously as a vehicle that could be on the road in the not-too-distant future.

The T.25 weighs about 1,200 pounds and measures eight feet long by about four feet wide: smaller than a Smart Car but nonetheless able to hold two back-seat passengers, as well as a driver up front.

The car’s design is groundbreaking and its 74 miles per hour could one day offer consumers real savings. (Because a new efficient manufacturing process was developed at the same time that the car was designed, Murray believes that production could begin within two years.)

But in the T.25 Murray has done more than just reduce the usual car size and improve its fuel efficiency. He has developed something that is so “outside the box” that it arguably isn’t even a car at all – at least in the traditional sense. The T.25 introduces an entirely new paradigm for tired concepts like commuting and running errands around town.

Case in point: Because of its narrow width, two T.25s can fit in a single car lane. The first T.25s to hit the road probably won’t be driven in that fashion, but if it comes to be adopted in large numbers, you can imagine the possibilities for easing traffic. Considered in that light, it’s almost comparable to a motorized scooter. But one that provides protection from the elements. And carries passengers in comfort.

When addressing old and persistent problems like high fuel costs, it always helps to think creatively and think big. It’s too early to say whether the T.25 will go the way of the Mini or the Segway but it’s one of the most innovative concepts that the consumer transportation sector has seen in a long time.