Offshore Technology Conference: Houston, TX

Consumer Energy Alliance will serve as co-organizer of two panels at the 2010 Offshore Technology Conference (OTC) in May 2010 in Houston, Texas:

  • Government’s Role in Supporting Energy & Creating Jobs
  • Private Sector Role in Supporting Energy & Creating Jobs

The focus of the panels is Jobs and the Economy: How the Energy Industry is Creating Jobs, Leading the Economy and Impacting Consumers. Both panels will take place Monday, May 3, 2010.

Find out more about the 2010 OTC Conference here.

Another vital industry that cannot get a break with fuel prices

At CEA, we spend a lot of time focusing on the real needs of real people and the ways they are impacted by domestic energy policy. This blog has frequently addressed the plight of American truckers and the nonstop economic strain they’ve faced in the wake of the oil price spike in 2008 and the ensuing recession that caused demand for their services to drop. Indeed, the trucking sector is a critical component – and one of the unsung heroes — of American commerce.

But this week, when a volcanic eruption in Iceland severely disrupted European and trans-Atlantic air travel, we got to thinking about the non-stop economic strain that the airline sector has faced.

Clearly, stories of Americans being unable to afford their European vacations will never play as well as stories of people struggling to cover the costs of their commutes to work. We sigh about pain at the pump but joke about the strategies — like selling pillows and tasteless food — that  airlines resort to in order to make ends meet.

But the airline industry does a lot more than deliver tourists to the Eiffel Tour. It touches the entire economy. And, it has been struggling for as long as most of us can remember. This headline, Airline industry wonders why it even tries anymore quotes analysts saying that the disruption caused by the volcano – whose name we are not even going to bother spelling – is hurting the industry even more than the September 11, 2001 terror attacks.

BUT, it also stresses that airlines also have a chronic problem: “the inexorable headaches involved in varying fuel prices.” It’s the same problem that truckers have struggled under for so long: It’s very difficult to run a business when you cannot predict how much one of your key supplies is going to cost.

Like truckers, who have often complained that unpredictable prices are a bigger burden than high prices many airlines say volatile fuel prices are their biggest concern. The fact that airline executives such as Delta Air Lines President Ed Bastian are talking about oil price volatility now, when they have so many other concerns, speaks volumes about the burden of this oil price wild card.

Of course, airlines, truckers, workers with long commutes, and other transportation-focused types feel this pain the most. But it reaches much further. Most industries are to some degree, energy-intensive. And most industries are on uncertain ground today, still reeling from a severe economic downturn. They all stand to benefit from a strong domestic energy sector, where the supply and the prices are steady.

CEA to Participate in Upcoming 2010 Offshore Technology Conference

HOUSTON – April 22, 2010   Consumer Energy Alliance will serve as co-organizer of two panels at the 2010 Offshore Technology Conference (OTC) in May 2010 in Houston, Texas:

  • Government’s Role in Supporting Energy & Creating Jobs
  • Private Sector Role in Supporting Energy & Creating Jobs

The focus of the panels is Jobs and the Economy: How the Energy Industry is Creating Jobs, Leading the Economy and Impacting Consumers. Both panels will take place Monday, May 3, 2010.

Find out more about the 2010 OTC Conference here.

2010 OTC Panel Discussion

Consumer Energy Alliance will serve as co-organizer of two panels at the 2010 Offshore Technology Conference (OTC) in May 2010 in Houston, Texas:

  • Government’s Role in Supporting Energy & Creating Jobs
  • Private Sector Role in Supporting Energy & Creating Jobs

The focus of the panels is Jobs and the Economy: How the Energy Industry is Creating Jobs, Leading the Economy and Impacting Consumers. Both panels will take place Monday, May 3, 2010.

The Panel Participants include:

PANEL 1. Government’s Role in Supporting Energy & Creating Jobs (2:00 – 3:10pm):

  • The Honorable Sean Parnell, Governor of the State of Alaska
  • The Honorable Bob McDonnell, Governor of the Commonwealth of Virginia
  • The Honorable Bob McLeod, Minister of Industry, Tourism and Investment, Legislative Assembly of the Northwest Territories
  • Jack Gerard, President & CEO, American Petroleum Institute
  • Dave Lawrence, Executive Vice President, Exploration and Commercial, Shell Upstream Americas

PANEL 2. Private Sectors Role in Supporting Energy & Creating Jobs (3:15 – 4:30pm):

  • Dr. Michael Webber, Instructor, The University of Texas at Austin
  • Randall Luthi, President, National Ocean Industries Association
  • Ken Bromfield, US Commercial Director, Energy Business, Dow
  • Jeff Moseley, President, Greater Houston Partnership
  • David Holt, President, Consumer Energy Alliance

Moderator:

  • Paul Bledsoe, Vice President, National Commission on Energy Policy (confirmed)

Organizers

  • David Holt, President of Consumer Energy Alliance
  • Sandeep Khurana, Advisor, Devon Energy Corporation

BACKGROUND
Energy is the lifeblood of our economy, the backbone of our security and essential to our way of life.  It powers American businesses and homes, fuels the flow of goods and services around the world, and generates tens of millions of jobs that support and sustain our communities.  Whether we’re referring to energy derived from oil, gas, wind, water or waste — the sun, the moon or deep inside the earth — Americans need it all.  And they need it in a form and function that’s stable, affordable, constant and environmentally sound.

While the national economy struggles to recover, many Americans remain unaware of the integral role that energy plays in sustaining economic capacity, maintaining productivity and providing opportunities for growth.  Understanding the role our current resources play in driving commerce, while we move to diversify and expand our nation’s energy portfolio to improve energy security and create jobs and economic benefits are at the core of some of the country’s most pressing needs.

Today’s energy problems remain a critical issue for America’s consumers, businessmen and political leaders, and we must do everything we can now to create economic stability, energy security and stable prices over the near- and long-term.  Elected officials, affected stakeholders and consumers must work together to create a national energy policy that fully recognizes the need to invest in new technology that encourages conservation and allows for advances in development of oil & gas resources, alternative energy, and energy efficiency.  Our nation has the extraordinary potential to fuel and power itself, and we must act today to leverage those resources into new jobs, more revenue, expanded security and greater affordability in the future.

This panel brings together consumers, businesses, energy providers, Members of Congress and State Governors to discuss the complex relationship between energy and economic sustainability along with the importance of energy production in boosting state and national economies and providing jobs while properly protecting the environment.

To read more, view the 2010 OTC Panel Discussion document.

National forests and national resources

A few facts about the nation’s national forests:

  • They comprise 8.5% of all land in the United States.
  • Although the National Parks Service manages them, they are not national parks. Commercial use of national forests is permitted and in many cases, encouraged.
  • Logging is permitted in many national forests such as Alaska’s Tongass National Forest.
  • Much of this land is also open to farming, and mining.

The country’s national forest land, in other words, is not what many people might think it to be. The management of these lands often focuses on harvesting natural resources, while preserving the natural ecosystem, and finding the right balance between the two. In fact, the National Forest Service was established with a “multiple use mandate.”

That little primer should help explain CEA’s interest in a series of public hearings being held this month and next to discuss new rules for managing 155 forests and 20 grasslands in the country’s national forest system. Read much of the recent news coverage of these hearings, and you’ll discover it has been overwhelmingly one-sided, focusing on the very important issue of conservation, but not addressing the equally important matter of making the most of the natural resources on these lands, and doing so in a responsible manner so that people can continue to enjoy these lands and wildlife may continue to thrive.

We suspect the very one-sided nature of the coverage of the debate has a lot to do with a misunderstanding of the national forests and their intended use.

Currently, the U.S. Forest Service is reviewing a proposal to drill an exploratory well in the Shoshone National forest in Wyoming.  CEA supports the thorough review of any proposed drilling projects on these national forest lands, but not the categorical rejection of any and all responsible drilling, in Wyoming, or elsewhere. We don’t want proposed projects like this to be rejected before their environmental and economic impact are even examined.

After all, we’re talking about close to 10% of the country’s land. It stands to reason that some of these lands have valuable natural resources. Placing them off limits without even reviewing proposed projects could put the future development of a range of renewable and non-renewable energy sources at risk. It is important that our national forests be managed in a way that respects the multiple-use mandate established by Congress.

The Dow Chemical Company Joins CEA

HOUSTON — April 20, 2010   Consumer Energy Alliance (CEA) is pleased to welcome a new affiliate member, The Dow Chemical Company, a leader in science and technology, providing innovative chemical, plastic and agricultural products and services to many essential consumer markets.

 

“Dow has shown great leadership in providing innovative energy solutions by combining the power of science and technology. Consumer Energy Alliance welcomes Dow to our alliance, which is committed to supporting a balanced energy policy for America encompassing all energy resources, including both traditional, such as oil and natural gas, as well as alternative, such as wind, water, solar and more,” said CEA President David Holt.

Since 1897, Dow’s focus has been connecting chemistry and innovation with the principles of sustainability to face many of world’s challenges, including energy generation. The company, which employs approximately 46,000 people worldwide, delivers a broad range of technology-based products and solutions to customers in about 160 countries, including high growth areas such as energy.

“Energy has been and will continue to be the catalyst for economic growth and prosperity in the U.S,” said Peter Molinaro, Dow’s vice president of Federal and State Government Affairs.  “Dow uses hydrocarbon energy as both a fuel and an essential raw material to develop innovative products that lead to a more sustainable energy future.  As a result, access to competitively priced energy is important to Dow’s ability to develop these products and grow our operations in the U.S.”

About Dow
Dow combines the power of science and technology with the “Human Element” to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2009, Dow had annual sales of $45 billion and employed approximately 52,000 people worldwide. The Company’s more than 5,000 products are manufactured at 214 sites in 37 countries across the globe. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.

Bayer Corp. Joins CEA

HOUSTON — April 19, 2010   Consumer Energy Alliance (CEA) is pleased to welcome a new affiliate member, Bayer Corporation, the U.S. subsidiary of Bayer AG, a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials that focuses on benefiting people and improving quality of life.

“Known for its innovation and growth, Bayer is a world leader in the development of sustainable solutions for high-performance materials, agricultural products and pharmaceuticals. Consumer Energy Alliance welcomes Bayer to the alliance. By working together, we can achieve a balanced energy policy for America encompassing all energy resources, including both traditional, such as oil and natural gas, as well as alternative, such as wind, water, solar and more,” said CEA President David Holt.

Tracing its roots to the 1860s, Bayer currently employs approximately 16,300 people in North America and markets more than 5,000 products worldwide, notably Aspirin®, which since its launch in 1899 has made the Bayer name world-famous like no other drug product. The corporation is comprised of three subgroups, each a leader in their respective fields: Bayer HealthCare, Bayer CropScience and Bayer MaterialScience.

“Bayer is proud to be a member of the Consumer Energy Alliance,” said Greg Babe, President & CEO of Bayer Corporation and Bayer MaterialScienceLLC. “The CEA plays a pivotal role in the energy sector, and we’re looking forward to working together on key energy issues facing the U.S.”

For more information on Bayer Corporation, visit http://www.bayerUS.com/.

America can’t afford a new gas tax

Today, one day after April 15 when many of us have sent that check into the IRS and are feeling a little poorer, it should go without saying: No one needs a new gasoline tax.

And yet, there’s some serious talk that lawmakers in Washington could introduce a proposed new tax as early as next week.

What are they thinking?

As we all were reminded back in 2008, gas is not a luxury, but a basic necessity. To impose a new tax would be to impose the most regressive sort of tax, in which those with the least means pay the highest burden.

Low incomes, after all, do not correspond with short commutes. Even the most run down jalopy requires fuel. The average American family consumes 2,000 gallons of gasoline a year and for most of these families, gas is already a substantial expense. Some those families have cut back on vacations and impulse purchases during these hard times, but they still have to find a way to work, get the kids to school and get around town for basic errands like grocery shopping.

This argument might sound simplistic, or even quaint, were it not for the fact that just two years ago when gas prices spiked, many people were forced to choose between going to work and buying food.

Supporters of a gas tax may point to point to consumption as a choice, or argue that renewable fuels offer a multitude of alternatives to filling up at the pump.

These are foolhardy arguments. The fact is, only a small minority of folks lives close enough to their place of employment that they can walk and most of the country lacks access to the sort of door-to-door public transportation that will get them where they’re going in a timely manner.

As for alternative fuels, we’re all for them. But the only way we can see wind power working for your daily commute is if you live on the beach and can windsurf to work. More and more alternative energy is being used every day, but it will be decades before enough infrastructure is in place to make a meaningful difference. People are hurting now.

Gasoline prices have, thankfully, abated since the summer of 2008. But we still haven’t addressed the cause of that panic or adopted policies that will ensure a more steady supply of domestic oil and more predictable prices. As another summer approaches, we wait in trepidation to see what prices will do. Our energy policy still needs a lot of work.

So does our economy. Millions are out of work, working fewer hours, or earning less for their labors than they were a year ago. These people need policies that provide a little economic relief, not create more stress.

CEA Statement on Wisconsin’s Commonsense Decision to Abandon an LCFS

CEA president: Dismissal of the LCFS provision is a “key victory” for Wisconsin consumers

WASHINGTON, D.C. – April 14, 2010   Earlier today, Wisconsin media reported that Low-Carbon Fuel Standard (LCFS) provisions were dropped from the state’s Clean Energy Jobs Act currently being considered in the legislature. David Holt, president of Consumer Energy Alliance (CEA), issued this statement in response:

“The removal of the economy-killing LCFS is good news for consumers in the Badger State and we are pleased that Wisconsin’s legislators have woken up to the harsh realities associated with this dangerous proposal. By discriminating against Canadian fuels, an LCFS would restrict Wisconsin fuel supplies, raise gas and diesel prices at the pump and expand our dependence on energy from some of the most unfriendly regions of the world. The decision to drop the LCFS provisions from this bill is an important signal regarding the viability of low carbon fuel standards nationwide – and is particularly important to Wisconsin, which gets nearly half of its oil from our neighbors to the north.

“Unfortunately, the threat of an LCFS still exists in many other parts of the country, including those states that comprise the Midwestern Governors Association (MGA), of which Wisconsin’s governor is a member. CEA encourages the members of the MGA to understand that discriminating against Canadian fuel supplies is bad energy policy. As CEA continues to educate the public about the dangerous realities of adopting LCFS schemes, we trust that more state and national policymakers will take notice and follow Wisconsin’s lead by rejecting these misguided proposals.”

Wind, wind everywhere?

2010 is shaping up as a milestone year for the wind power industry, which continues to see an abundance of new capacity added in multiple states. Last week the American Wind Energy Association (AWEA) released its annual report showing that the domestic wind energy industry installed more than 10,000 megawatts in 2009, about the same amount of generating capacity you’d get from three large nuclear power plants, and enough to power 2.4 million homes. Some 36 states now have utility scale wind power projects and all 50 states have jobs in the wind power sector, the report found.

But you’re just as likely to be hearing about the setbacks that the industry has suffered, most notably the latest blow to the long-contested Cape Wind project off Massachusetts, which an advisory council on historic preservation recommended not be approved.

Interior Secretary Ken Salazar has yet to make a decision on whether to approve Cape Wind, and even that final ruling is sure to be contested in lawsuits that could drag on for years. But the bigger point here is that at a time of unprecedented interest in renewable energy, there is still massive opposition to a renewable energy project that ought to be a no-brainer: a windy site located close to dense population centers.

Nor is Cape Wind unique. In Rhode Island, plans for a smaller wind farm off Block Island also hit a roadblock recently.

Ditto the windy waters off Lake Michigan, where talks for a large-scale wind project have been met with considerable opposition.

To be sure, each of these projects has its own set of complex environmental issues and cost-benefit analyses to address. Yet, so many of these debates continue to center on the visual impact and whether said wind farm would be an eyesore.

Earlier this year, we explained why offshore wind plants are generally considered the most effective way to quickly ramp up supply.

As it stands, the United States still has no offshore wind farms, while much of the rest of the world from Europe and China embraces the image of windmills on the horizon as a symbol of strength and resourcefulness.