News - American Energy Alliance

Nationwide Coalition Urges Congress to End Wind Welfare

November 6, 2014 by AEA 3 Comments

The American Energy Alliance has joined today with 65 other organizations from across the nation in opposition to the wind production tax credit (PTC). The coalition released a letter today ahead of the upcoming lame duck session, urging Speaker Boehner and Senate Minority Leader McConnell to reject any attempt to revive the wind PTC, specifically in any tax extenders package. The letter reads:

During the lame duck session, one of the top priorities for President Obama and Majority Leader Reid is the passage of a tax extenders package that includes a retroactive extension of the decades old wind production tax credit (PTC). The PTC is a key part of President Obama and Majority Leader Reid’s attack on affordable energy from natural gas, coal, and nuclear. We urge you to reject any attempt to revive the PTC.

First, it makes no sense for the Republicans to give away any leverage they may have with respect to tax reform in the 114th Congress. Calls to “clear the decks” for the new Congress are nonsensical; why would the newly elected Senate and House members (from either party) want to reward Senator Harry Reid for his legacy of dysfunction by allowing him the opportunity to advance his pet priority—the wind PTC—during a lame duck session?

Second, extending the PTC restricts Americans’ access to affordable and reliable energy. The PTC harms Americans in two important ways: it hides the true cost of wind power and encourages states to keep expensive wind power mandates. This makes it easier for the President to promote his restrictions on carbon dioxide emissions from existing power plants because the PTC hides the true costs from ratepayers.

Third, the PTC enables wind operators to use the tax code to engage in predatory pricing against reliable and affordable nuclear, coal, and natural gas power plants. The PTC is such a large subsidy that industrial wind facilities can actually pay the electrical grid to take their electricity and still make money. This predatory pricing is designed to drive nuclear, coal, and natural gas generators out of business and it is only profitable because of the PTC.

If you favor substantive, meaningful tax reform, you should oppose the inclusion of the PTC in any lame duck tax extenders package. Rejecting efforts to extend the PTC is a meaningful way for this Congress to oppose the President’s climate plan. A vote for extending the PTC is a vote for the President and the Majority Leader’s agenda.

Click here to see the full letter.

Filed Under: Blog, Press Releases Tagged With: harry reid, John Boehner, Mitch McConnell, Obama, tax extenders, wind energy, wind production tax credit, wind ptc

AEA Statement on Election Results

November 5, 2014 by AEA 1 Comment

WASHINGTON — American Energy Alliance President Thomas Pyle issued the following statement on last night’s election results:

“This election was a referendum on the policies of President Obama and his allies in Congress. This includes their policies that are designed to make energy more expensive for Americans.

“In states where energy is a key issue like Colorado, West Virginia, Alaska, and North Carolina, our initiatives have been aimed at holding lawmakers accountable for their anti-energy policies such as support for a carbon tax or opposition to the Keystone XL pipeline. And despite the tens of millions of dollars poured into these states to elect anti-energy candidates, the American people agree with us: they are fed up with Washington’s attack on affordable and reliable energy.

“While much of the focus has been on the Senate, it’s important to note the significant victories for common sense in many of the gubernatorial races. The Obama administration’s climate agenda is aimed at stripping states of their rights and establishing control over the economy from Washington, and many of these governors will be on the front lines fighting back. For starters, governors need to stand up against EPA’s carbon dioxide mandates, which are just another way for Washington to boss the states around, control our energy resources, and make electricity prices skyrocket for Americans.

“Make no mistake, we still face an uphill battle in the fight for free markets and commonsense energy policies. And it is those policies that will lead to abundant, affordable, and reliable energy for American families. Last night’s election is by no means the solution, but it is a step in the right direction towards meaningful change. It is up to the newly elected officials across the country to live up to their promises and answer the American people’s call for change. Rest assured, regardless of party, it is our mission to hold our lawmakers accountable.”

###

Filed Under: Blog, Press Releases Tagged With: Election, energy policy, EPA, Obama

It’s Still the Economy, Stupid: Why Green Groups’ Millions Can’t Change Voters’ Priorities

November 4, 2014 by AEA Leave a Comment

Despite $85 million from national environmental PACs and billionaires like Tom Steyer in this election cycle, voters still prioritize the economy over environmental issues. Even the left-wing magazine Slate had the good sense to point out the realities of voter priorities:

“What has all that green gotten these green groups? Not a whole heck of a lot. Steyer and his like-minded allies opened their checkbooks with the hopes of making climate change a front-burner issue. But as the most expensive midterm election in American history wraps up, it’s clear that environmentalists will fall far short of that goal…you find an electorate that’s much more likely to pick a candidate based on the economy, Obamacare, and terrorism than her views on the environment.” [Emphasis added]

Green groups’ money on changing voter priorities has mostly been wasted. Hedge fund billionaire Tom Steyer has shelled out $57 million of his own personal funds, and the League of Conservation voters spent almost $25 million. Steyer’s PAC, NextGen Climate, doled out some of its money on advertisements that only tangentially had to do with climate issues, like this video attacking Cory Gardner’s positions on abortion and same-sex marriage:

Or else, advertisements that seem unrelated to any policy issue, like this “Bananas” video:

Wait, you mean that last one didn’t resonate with most would-be voters? Shocker.

As AEA pointed out last week, polling supports the conclusion that Americans don’t see climate change or environmental issues as their most important concerns. A Pew survey conducted in September revealed that the economy, health care, and terrorism are voters’ top three most important issues, with the environment trailing at 8th out of 11 concerns:

These results square with a poll AEA conducted, which revealed that economic and fiscal issues still reign supreme over environmental and climate issues. AEA found:

“Economy, Fiscal Issues Still Reign Supreme: As voters look toward the new year,four out of five (79 percent) said that Congress and the President should makejobs and the economy one of their top priorities for 2014. Other top priorities included health care (60 percent) and federal spending (59 percent). Less than half of votersthought attention should be on national security (41percent), immigration reform (39 percent), energy independence (35 percent), or environmental issues (31 percent).”

Steyer and his well-funded network of green “shadow organizations” should recognize that their money can’t make voters care about issues that are fundamentally unimportant to them.

Filed Under: Blog Tagged With: 2014, Election, NextGen, Tom Steyer

Coal Brings People Out of Energy Poverty

November 3, 2014 by Daniel Simmons Leave a Comment

For years we have explained the benefits of affordable energy including coal. Coal provides affordable, reliable energy in a world where 1.3 billion people do not have access to electricity and 2.4 billion people do not have clean cooking facilities. This means that coal is critical to helping billions of people have access to the energy that will make their lives better.

Some people think coal is a fuel of the past, but it turns out that since the early 1970s, coal use has outpaced all other sources of energy. And it will continue to do so through at least 2040, as Robert Bryce reports:

“Since 1973, coal consumption has grown faster than any other form of energy. Growth in coal consumption has been critical in providing electricity access in developing countries.

“Based on the results of three different estimates, this paper finds that between 1990 and 2010, about 830 million people—the vast majority in developing countries—gained access to electricity due to coal-fired generation…

“…Coal-fired-generation capacity continues to grow in wealthy countries, too. For electricity production, no other energy source can currently match the black fuel when it comes to cost, scale, and reliability. In all, more than 500 gigawatts of new coal-fired capacity will likely be built worldwide by 2040…”

Billions of people need clean, affordable, and reliable electricity and coal fits the bill. Too bad that people like President Obama and anti-coal activists are working to make it harder for the world’s poor to have access to clean, affordable, and reliable electricity.

Filed Under: Blog Tagged With: coal, electricity, Energy Poverty

Celebrity Hot Air Cannot Mask Realities of Climate Debate

November 3, 2014 by AEA 1 Comment

Celebrity support for a questionable cause is no substitute for facts and real analysis.

Billionaire Tom Steyer’s newest 30-second ad buy is the latest effort to draw on celebrity support to elect anti-energy candidates. The ad is narrated by actor Woody Harrelson and directed by Black Swan’s Darren Aronofsky. Harrelson claims in the ad, “They told us the world was flat and insisted it was the center of the universe…Now they tell us climate change is a hoax. But the truth is undeniable; this is a fight we will win.”

Steyer’s ad follows an aggressive climate push by Leonardo DiCaprio, who delivered an address at the recent U.N. Climate Summit in New York and just released a third video from his radical environmentalist project Green World Rising.

The glamour of celebrity support, though, cannot mask the realities of the climate policy debate. Although the climate movement touts expert opinion, it is worth remembering that Harrelson, Aronofsky, and DiCaprio are not experts on climate science, economics, or public policy.

These wealthy celebrities gloss over the struggles of people in the developing world who still need more access to energy and electricity from affordable sources such as natural gas, coal and oil.

For example, when Leonardo DiCaprio declared at the U.N. summit that the world needs to make collective efforts to address CO2 emissions, he ignored the fact that over 30 percent of clinics and hospitals in Sub-Saharan Africa still lack electricity. Even when health clinics do have power, it is inconsistent and unreliable—outages in Kenya, for example, can last 4.5 hours at a time. The pressing challenge for people who don’t currently have reliable power at hospitals isn’t climate change—it’s access to consistent and affordable electricity.

We should stop taking the word of Hollywood celebrities on complicated policy issues and examine real facts and analyses.

Filed Under: Blog Tagged With: climate change, leonardo dicaprio, Tom Steyer, UN climate summit

Hydraulic Fracturing is Saving You at the Pump

October 31, 2014 by AEA Leave a Comment

A recent study conducted by the American Petroleum Institute (API) showed Americans are saving nearly a dollar per gallon when they fill up for gas because of the innovative horizontal drilling and hydraulic fracturing techniques that gave us access to significantly more domestic oil and natural gas reserves.

This development has gas prices as low at $2.29 per gallon in some communities and AAA reported nationwide gasoline prices are set to drop below $3.00 per gallon on November 1^st. Prices this low would have been unimaginable just a few years before the boom in American energy production.

API Vice President Kyle Isakower explained what policymakers should learn from this boom in a statement, “It’s important for policymakers to recognize that the U.S. energy revolution was not a lucky accident, but the result of decades of American innovation aimed at unlocking our resources here at home.”

In other words, the dramatic changes natural gas and oil have undergone is the ultimate example of free-market—not government mandated—innovation, and the results speak for themselves. For example, the study found that U.S. oil production that utilizes horizontal drilling and hydraulic fracturing jumped from 11 percent of U.S. production in 2008 to 48 percent of U.S. production in 2013. According to the Energy Information Administration this dramatically increased overall U.S. oil production too from around 158 thousand barrels a month in 2008 to over 268 barrels this August, which has helped to lower prices.

Most importantly this makes a huge difference for middle class and lower class Americans who have been struggling to make ends meat in a stagnant economy. For instance, the Consumer Expenditure Survey shows that the lowest quintile of income earners spends twice as much as the highest quintile of income earners on gas as a portion of their income. Having access to affordable transportation not only gives Americans freedom to go where they choose, but also dramatically expands job and housing opportunities too.

In addition to direct benefits to consumers, more oil production in the United States makes us more secure and less dependent on unstable regions for oil imports. The best way to continue to increase energy security is to responsibly unleash the power of markets in order to incentivize further innovation and productive use of our national natural resources.

API’s Isakower explained that government policies threaten continued prosperity and safety, “To build that momentum and strengthen our position as an energy superpower, it’s critical that policymakers turn aside duplicative regulations on hydraulic fracturing and ensure that U.S. consumers can benefit from energy production on federal lands that remain off-limits.” Lets make sure that we continue to benefit from innovative technologies like horizontal drilling and hydraulic fracturing and support free-market energy policy.

Filed Under: Blog Tagged With: AAA, American Petroleum Institute, gasoline prices, horizontal drilling, hydraulic fracturing

Federalism at Work: States Lead on Hydraulic Fracturing Regulation

October 29, 2014 by AEA Leave a Comment

It is not by the consolidation, or concentration of powers, but by their distribution, that good government is effected. Were not this great country already divided into states, that division must be made, that each might do for itself what concerns itself directly, and what it can do so much better than a distant authority.

-Thomas Jefferson

The Ground Water Protection Council (GWPC), a national association of state agencies, recently released a new study that examined what states are doing to effectively regulate hydraulic fracturing in light of its rapid increase in use. The study found “…state oil and natural gas regulatory agencies have been diligent in addressing the technological, legal and practical changes that have occurred in oil and gas E&P [exploration and production] over the past four years.” Effective state regulation of hydraulic fracturing is a modern example of our great federalist system at work.

Scope and Background

The GWPC study was a collaborative effort between the various stakeholders in government, environmental protection groups, and affected industry groups.

This version of the study is an update on a similar 2009 study. The purpose of the update was to identify if state regulations have kept pace with the rapid increase in the use of hydraulic fracturing due to technological increases in horizontal drilling. By and large the authors of the study were confident that new regulations have been effective in mitigating risk.

Specifically, it identified the different approaches that 27states are taking throughout the hydraulic fracturing process to ensure safety, emerging issues, regulatory coordination, and data management. In addition to this analysis, the study made recommendations about emerging issues that states should pay attention to regarding hydraulic fracturing.

States Effective because of Federalist Principles

According to the report states are better able to regulate hydraulic fracturing because state agencies have the most applicable knowledge. The authors of the study concluded, “…on most issues the greatest experience, knowledge, and information necessary effectively rests with state regulatory agencies.” This is because governments must be aware of the various local geological features that surround sites to know how to best guard against potential environmental harm caused by hydraulic fracturing. GWPC stresses, “…the variability between state programs is a natural outgrowth of the unique characteristics of each state. There is no ‘national’ geology, geography, topography, or hydrology. State programs protect water resources best because they address the unique conditions that exist locally.”

The report goes further and says not only would national requirements be less effective, they could also be disastrous in certain situations where a beneficial requirement in one case could lead to environmental destruction in another. For example, the authors wrote, “…it might seem like a good idea to require that surface casing be set a minimum distance below the deepest underground source of drinking water. While that might work in most cases, in some places over-pressured and contaminated zones are located below, but in close proximity to, the deepest underground source of drinking water. In such a case, the mere drilling of the hole into a deeper zone could result in the contamination, rather than the protection of underground sources of drinking water.” Many of the regulations surrounding hydraulic fracturing require local specificity that a federal one-size-fits-all approach cannot provide.

In addition to the benefits of local knowledge there is also increased accountability when regulators are closer or part of the group of people they are seeking to protect. This is because they are the same people who ultimately have to live with the consequences contaminated water- and therefore have greater incentive to get the regulation right.

Finally, competition among states to drive economic growth in a safe environment makes it less likely that states will place overly onerous regulations on industry. When multiple states are finding out what works, what doesn’t work, and how they can improve their processes from other states’ experiences as well as their own, overall effectiveness of regulation increases rapidly. This is very different that when a federal agency proposes a rule because there is limited flexibility to change the rule once promulgated without going through a long and expensive process.

Regulatory Trends

States have been updating and increasing the regulations they impose on the oil and gas industry throughout the entire process of hydraulic fracturing due to the rapid increase in its use since 2010. The regulatory process has been updated from increasing permit requirements before hydraulic fracturing activity even occurs, to ensuring proper treatment and handling of waste and closing of wells once finished.

Regulation of Hydraulic Fracturing Should be left to States

Finally, given their examination of regulations, the authors of the report concluded, “…there is no reason to believe that overlaying additional federal controls on the regulatory process would lead to better, safer, or more environmentally protective development of oil and gas.”

Continuing the successful state regulation of hydraulic fracturing is a great example of our federal system at work. By using local knowledge and involving those most interested in outcomes to perform the regulation, we are keeping groundwater clean while reaping the immense benefits from the hydraulic fracturing revolution. It is up to the U.S. to ensure that it continues to work successfully by keeping hydraulic fracturing regulations in the hands of the states.

Filed Under: Blog Tagged With: Ground Water Protection Council, hydraulic fracturing, natural gas

It’s not what it looks like

October 24, 2014 by Mike Morrison Leave a Comment

America’s oil shale revolution has occurred in spite of President Obama’s attempts to block the widespread use of traditional, affordable energy resources. The President’s war on coal is threatening to shut down enough electrical generating capacity to power 44.7 million homes.

One of the last lines of defense for Obama’s six-year blockade of the Keystone XL pipeline will come and go with the midterm elections, as TransCanada explores other options for the transport of their vast surplus of oil. And with American oil production booming on private and state lands, Obama continues to willfully ignore the enormous potential of our federal lands by holding them under lock and key.

Technological advancements in hydraulic fracturing and horizontal drilling across the American heartland have created thousands of jobs and revitalized small towns from Texas to North Dakota. Put simply, traditional American energy is moving forward – with or without the President – and before long, the levee’s going to break.

Filed Under: Blog, Cartoons Tagged With: cartoon, coal, Energy Security, federal land, fracking, Keystone XL pipeline, Obama Energy Policy

The Divestment Movement is Morally Bankrupt

October 23, 2014 by AEA 2 Comments

This week’s National Journal Energy Insider’s question is “What’s the Value of Divestment?” AEA President Thomas Pyle’s response is below:

In response to the recent climate change rally in New York, the satirical newspaper the Onion quipped, “7.1 Billion Demonstrate In Favor of Global Warming.” Their point? Nearly everyone benefits from the use of natural gas, petroleum, and coal because they provide the reliable and affordable energy that makes modern life possible.

FossilFree, a pro-divestment group, refers to the “singularly destructive influence” of natural gas, petroleum, and coal. They suggest that divesting from those energy sources is a moral imperative, but they have it backwards. Closing the door on reliable, affordable energy from natural gas, petroleum, and coal would have disastrous consequences, such as reversing the decades-long trend of improving the human condition.

In India, for example, electricity generation—largely from coal and petroleum—has increased by 270 percent between 1990 and 2012. During that same time period, GDP per capita has risen by 300 percent, life expectancy has risen by 13 percent, access to improved sanitation facilities has gone up by 103 percent, child mortality has fallen by 55 percent, and PM10 air pollution has dropped by 18 percent (World Bank statistics). It is a morally bankrupt position to want to reverse these trends and condemn people in the developing world to abject energy poverty.

The positive trends mentioned above actually point to something deeper. Making energy more affordable and reliable is the moral choice because energy radically amplifies our ability to live productive, healthy, and long lives. It lightens our load and improves our living conditions in meaningful and tangible ways. With more energy, we can make more water drinkable, build more hospitals, and grow more crops. Even if the worst predictions about the impacts of increased carbon dioxide in the atmosphere turn out to be true, practical solutions point towards using more energy, not less.

But is the divestment movement truly “anti-energy”? Let’s look at the statistics. Last year, natural gas, petroleum, and coal provided 82 percent of our total energy needs in the United States (and a similar share abroad). Divestment advocates are silent on the question of what source of energy can take their place, and that is because nearly all other sources remain impractical. Industrial wind and solar power are unreliable. Hydroelectric power is limited in scale. New cost-effective nuclear power remains elusive. These sources cannot replace the energy we currently get from natural gas, petroleum, and coal, and they certainly can’t provide a rapidly expanding source of affordable, reliable energy for the more than one billion people who have little to no access to modern energy.

Those in favor of divestment preach about the moral imperative to rid themselves of investments in natural gas, petroleum, and coal and yet billions of people around the world are improving their lives right now by using these very fuels. Driving the kids to school, heating and cooling our homes and businesses, and lighting the night – all without breaking the bank. That’s the worldwide pro-energy rally taking place each and every day that divestment activists are trying to drown out.

Filed Under: Blog Tagged With: coal, divestment, national journal, natural gas, petroleum

Climate Change Not a Top Priority for Americans

October 23, 2014 by AEA 2 Comments

Yesterday, Washington Post’s Plum Line blog wrote that climate change is the one “bright spot” for Democrats in the upcoming midterm election. Despite the very real prospect of losing the Senate, the blog asserts, “Liberals may have made a bit of headway in forcing climate change on to the national agenda.”

For support, the article cites a Pew poll finding that large swaths of the population overwhelmingly believe in climate change (such as 18-29 year olds, nonwhites, and college educated whites). It then points to another article that mentions certain segments of the population are increasingly naming climate change as an important issue, such as minorities, the millennial generation, and socially liberal upscale whites.

However, believing in climate change is not the same as prioritizing it as an important issue, and is a far cry from advocating legislative or regulatory action.

Reality check: a Pew article from last month titled “Polls show most Americans believe in climate change, but give it low priority” explains why climate change is not a winning issue. As the article explains, climate change “ranked near the bottom of Americans’ 2014 priorities for President Obama and Congress.” Most people are not focused on climate change. Instead, Pew found that Americans are most concerned with issues such as the economy, jobs, education, and balancing the budget.

Our own polling shows similar results. In fact, as many as four out of five of those polled said that Congress and the President should make jobs and the economy one of their top priorities for 2014. Other top priorities included health care (60 percent) and federal spending (59 percent).

In addition to viewing climate change as a low priority, most American voters have serious reservations about the federal government’s involvement in their energy choices (which is exactly what environmentalists advocate for to address climate change). When asked about specific federal programs that implement the agenda of national environmentalist groups, voters reject them.

This is especially true when polled on the wind Production Tax Credit (PTC), where only 18 percent of those polled said that federal tax credits where the best way to develop and improve alternative sources of energy. The same goes for EPA’s proposed power plant rule, where 60 percent of respondents disagreed with the rule’s implicit mandate on citizens to buy certain amounts of renewable energy (also known as building block number three).

This is not new information for politicians. In 2009, Democrats had an opportunity to pass cap-and-trade legislation when they controlled both chambers of Congress. Like the name implies, cap-and-trade would have capped total emissions of carbon dioxide, hamstringing the economy. This legislation failed on a bipartisan basis because of voter pushback.

Put simply, the vast majority of voters do not see climate change as an important issue, and many rank it near the bottom of their priorities. Bloggers who claim victory for the left on the issue of climate change aren’t taking an objective look at the facts. They can hope that these facts will change, but wishful thinking rarely makes for good policy.

Filed Under: Blog Tagged With: climate change, global warming, plum line blog, wind production tax credit