News

Senateor Bust: Melancon Amendment to CLEAR Act Wouldn’t Do a Thing to End Obama Banin the Gulf, Notwithstanding His Press Release – Which Is Why 215 DemocratsVoted For It. Energy Guardian (8/2, subs.req’d) reports, "The Democratic-led House surprised a lot of people followingthe offshore oil debate Friday when it voted to ease the Obama administration’sban on deepwater drilling. But one needs to look no further than the text ofthe amendment to understand why 215 Democrats and only five Republicans votedfor it. "Nothing herein affects the [Interior] Secretary’s authority to suspendoffshore drilling permitting and drilling operations based on the threat ofsignificance, irreparable or immediate harm or damage to life, property, or themarine, coastal or human environment," the bill says. Interior Secretary KenSalazar continues to argue that a "pause" on offshore drilling is necessarybecause the BP oil spill has strained the federal government’s resources anddeepwater rigs pose a threat because the cause of the spill is unknown. Ineffect, it appears that the moratorium can and will likely stay in place eventhough the House passed legislation to lift it. And that is exactly whatsparked an intrastate squabble that played out on the House floor Fridaybetween Louisiana Reps. Steve Scalise, a Republican, and Charlie Melancon, aDemocrat who authored the amendment. "There were a few sections that got addedin that allows the secretary to have statutory authority, that he doesn’t havenow, to issue more moratoriums even if this current one is stopped," Scalisesaid.

Geta Room: Lois Capps Seeks Out Melancon Ahead of Amendment Vote to Give Him a BigHug on the House Floor – Thanks, Charlie, for the Political Cover.  E&E News (8/2, subs.req’d), reports, "I’m concerned about the breadth of the bill," Rep.Zack Space, a moderate Democrat from Ohio, said before Friday’s vote. "Ithink we all agree we need to do something to prevent mistakes like theDeepwater Horizon from happening again, but not at the expense of compromisingour energy policy altogether." Space voted against the measure. HouseSpeaker Nancy Pelosi (D-Calif.) and other Democratic leaders were able to drumup enough support from other moderate Democrats to achieve the narrow victory.Pelosi, who often serves as her own chief whip on key votes, stalked the Housefloor Friday afternoon with tally sheet in hand, approaching Blue Dog andcentrist Democrats, many of whom later voted in support of the measure.Democratic leaders also attempted to sway support with an amendment that wouldlift the Obama administration’s deepwater drilling moratorium. That measurefrom Reps. Charlie Melancon (D-La.) and Travis Childers (D-Miss.) would end thedrilling ban for companies that are able to show they are meeting strictersafety requirements. In the minutes before the final vote, Melancon stoodtalking with Pelosi when Rep. Lois Capps (D-Calif.), a primary opponent ofoffshore drilling, threw her arm aroundMelancon’s shoulder and gave him a hug. Melancon hugged her back. Roll callvote available here.

America’sGot More Shale Gas than the Entire World Can Use in 150 Years – and ThoseEstimates Will Continue to Grow, Says Colorado School of Mines. Robert Samuelson writes (8/2) in the WashingtonPost, "How much shale gas exists is unknown, but estimates are huge. ThePotential Gas Committee is a group of geologists who regularly estimate futureU.S. gas supplies. In 2000, the group’s estimate equaled about 54 years ofpresent annual consumption; by 2008, it was almost 90 years. "This isn’tthe end," says Colorado School of Mines geologist John Curtis. Globally,one study estimated the recoverable supply at 16,200 trillion cubic feet, morethan 150 times today’s annual world gas use. Some standard drilling techniques,applied imaginatively, liberated shale gas. The first was "fracturing":injecting liquids into reservoirs to create openings that allow the gas to flowup the drill pipe. For years, Mitchell’s engineers experimented with different"fracing fluids." All were expensive, and the resulting gas flowsweren’t profitable. In 1997, engineers tried a less costly mix of sand andwater. The economics of shale gas improved dramatically, says Dan Steward, aformer geologist for Mitchell. Devon Energy, which bought Mitchell’s company in2002, improved the economics further by emphasizing "horizontaldrilling." In conventional wells, the drill goes straight down andcollects gas or oil near the well bore. With horizontal drilling, the pipe isturned sideways when it hits the reservoir and collects gas or oil for hundredsor thousands of feet. Gas flows increase. Fewer wells are needed. Costs drop.

ClotureVote on Senate Anti-Energy Gotcha Bill Slated for Wednesday Evening – No OneBelieves It’ll Pass, Which Suits Unserious Senate Leadership Just Fine. DowJones (7/30) reports, "The most contentious part of the legislationinvolves eliminating the cap on economic damages paid to residents and businessesharmed by oil spills. Democrats want to discard liability caps, currently setat $75 million, in order to avoid putting taxpayers on the hook for damagesthat go beyond the costs of cleanup. On Thursday, the White House called liability limits an "implicitsubsidy" for the oil and gas industry, and said it "stronglysupports" repealing the limit on economic damages claims. Independent oiland gas producers fear being put out of business. Insurers have indicated theywill not offer offshore-drilling insurance without a cap on damage claims. Theresult would be to leave offshore drilling to state-owned and giant corporateoil companies, which can self-insure against damages. "While trying topunish ‘Big Oil,’ Congress is actually harming small, independent companies whoproduce the majority of America’s natural gas and oil," said BarryRussell, the president of the Independent Petroleum Association of America, ina statement. "Members of Congress who vote for this bill will have a lotto explain when they leave Washington this weekend for the congressional Augustrecess."

Meanwhile,EPA’s Pell-Mell Rush to Regulate Every Backyard Bar-b-que in America Has Somein the Enviro Crowd Scared that the Public Will Turn Against Them. Politico (8/2)reports, "The EPA took its first big step in the spring when it unveiled newclimate-themed standards for motor vehicles, the byproduct of several years oflegal wrangling and closed-door negotiations with industry, states andenvironmentalists. More rules will come in January for power plants and othermajor stationary sources. And the EPA is also trying to limit the reach of itsfuture rules on smaller industrial sources by issuing a so-called tailoringrule that sets minimum emission thresholds before any standards would kick in.The legality of the tailoring rule is under scrutiny in court, butconservatives want to drive home their point that the agency – unless orderedotherwise – is obligated under the law to start setting new restrictions onchurches, schools and, maybe someday, lawn mowers. "I don’t know if itsbackyard barbeque grills or hitting small business," said Robert Stavins, aHarvard University economist who has been working on climate rules for severaldecades. "But there will be some regulation that looks silly that just becomesa poster child for the right. And it could lead to less, rather than more,national enthusiasm on climate policy. And people on the right recognize that."

Useof Dispersants Is a Big Reason Why There’s No More Oil Sheen on the Surface inthe Gulf – Which Is Absolutely Infuriating Ed Markey, Who’s Feeling CheatedRight Now. USAToday (8/1) reports, "BP inched closer to cementing the busted oil well asretired Adm. Thad Allen rejected assertions Sunday that federal officialsallowed the energy giant too much leeway to use chemical dispersants in the Gulfof Mexico. Allen told reporters during a conference call that federalregulators did not ignore environmental guidelines. He says some commanders onthe scene had authority to allow more dispersants when needed. "I’msatisfied we only use them when they are needed," Allen said. Documentsreleased by a congressional subcommittee found that Coast Guard officialsallowed BP to use hundreds of thousands of gallons of chemical dispersants inthe Gulf despite a federal directive to use them rarely. On May 26, theEnvironmental Protection Agency ordered BP not to use the chemicals to break upsurface oil except in rare cases, but the Coast Guard routinely grantedexemptions, the documents show, according to CNN. The dispersants contributedto "a toxic stew of chemicals, oil and gas, with impacts that are not wellunderstood," Rep. Ed Markey, D-Mass., chairman of the House Subcommitteeon Energy and Environment, wrote in a letter sent late Friday to Allen, wholeads the U.S. response to the oil spill.

Centerfor Biological Diversity – Setting a New Bar for Litigiousness – Sues to Stop$3 Billion Pipeline Project Slated to Deliver Clean-Burning Natural Gas toOregon.  E&E News (7/30, subs.req’d) reports, "Environmentalists sued today to stop construction of aproposed $3 billion natural gas pipeline that would stretch from Wyoming toOregon. The Center for Biological Diversity filed suit in the U.S. Court ofAppeals for the 9th Circuit in an attempt to block El Paso Corp.’s RubyPipeline, which would transport gas from the Rocky Mountains to Oregon andCalifornia through 675 miles of mountainous terrain. El Paso has secured mostof the major permits necessary to break ground but is still waiting for the finalgo-ahead from the Federal Energy Regulatory Commission. Once operational, ElPaso says the pipe could deliver 1.5 billion cubic feet of gas to a hub insouthern Oregon that feeds into the California market. But the center in itssuit argued that federal permits from the Bureau of Land Management and anendangered species analysis from the U.S. Fish and Wildlife Service are flawed.Noah Greenwald, director of endangered species programs at the center, said thepipeline would jeopardize a number of endangered fish, including the Lahontancutthroat trout, Warner Creek sucker, Lost River sucker and Colorado pikeminnow."Instead of creating an entirely new path of destruction, an existingpipeline route should have been utilized," Greenwald said from his officein Portland, Ore.

West Wing Avoiding this New Poll: 82 Percent of Registered Voters OPPOSENew Energy Taxes. The Hill(7/29) reports, "Most Americans believe taxes on the oil industry would bepassed along to consumers at the gas pump, an industry-backed poll foundThursday. Eighty-two percent of registered voters believed increased taxes onthe oil industry would be passed along to consumers in the form of high pricesat the pump, according to a poll commissioned by the American Energy Alliance.The poll also said 81 percent agree new taxes on oil companies woulddisadvantage American companies over foreign-owned oil companies such as BP,while 76 percent said they believe a tax on American oil companies would hurtU.S. companies that are trying to compete against foreign government-ownedcompanies. The poll was conducted by Voter/Consumer Research on behalf of AEA,the advocacy arm of the conservative Institute for Energy Research, whichreceives donations from oil companies, among other funding source. The surveycomes as lawmakers mull an energy bill to respond to the Gulf of Mexico oilspill and to support increased alternative energy. AEA is hoping to mobilizethe public against new taxes for the oil industry and for the companies beingallowed to continue offshore drilling."

Family Feud Part II: 30 House Dems that Represent Energy ProducingDistricts Band Together to Oppose (Un) CLEAR Act. Real Question is: Will TheyStand Their Ground. The Hill(7/29) reports, "House Democratic leaders are facing resistance fromconservative and centrist members in the party over several provisions in oilspill response legislation that’s headed for a vote Friday, including theremoval of liability caps on offshore oil and gas producers. A group of about30 oil-patch Democrats share the concerns of their Senate counterparts thatremoving the liability cap for future spills would price smaller independentcompanies out of the offshore drilling business. "That’s a big one," said Rep.Gene Green (D-Texas), an ally of the industry. Green told House Speaker NancyPelosi (D-Calif.) Thursday that he was planning to vote against the bill overthe liability language and a provision setting federal authority overwastewater from wells that states currently regulate. "I know a number ofmembers that have said the same thing to her," he said in the Capitol Thursday.Some lawmakers have proposed fixing the problem by creating a spill fund thatall oil companies would pay into, akin to the shared cost plan the nuclearindustry uses to address potential accidents. Another idea, Green said, hasbeen to double or triple the existing $75 million liability cap for producers,but make it unlimited if a company is found to be grossly negligent."

Judgment Day. Do They or Don’t They Have the Votes to Pass MostOverreaching Piece of Anti-Energy Legislation in Recent Memory? We’ll Find out Today.E&E News (7/30, subs req’d), "Democrats may be holding their breath today whenthe House votes on a sweeping offshore drilling reform package. As they rush topass the legislation before leaving for a monthlong recess, Democrats may nothave enough support if oil-state and Blue Dog Democrats opposed to certainmeasures — like controversial language that would eliminate the $75 millionliability cap for companies involved in a spill — align with Republicans, whoare generally opposed to the bill. Still, Natural Resources Chairman NickRahall (D-W.Va.) thinks there are plenty of backers for his measure, H.R. 3534."I feel we do, yes," Rahall said yesterday when asked if Democratshad enough supporters to pass it. The legislation would formally codify areorganization at the beleaguered federal agency tasked with overseeingoffshore oil and gas drilling, give the presidential commission investigatingthe BP oil spill subpoena power, impose new ethics standards on federalregulators and beef up offshore drilling standards. It also would create arestoration program to coordinate efforts to rehabilitate the Gulf of Mexico,create a new industry-funded endowment to protect oceans and boost the Land andWater Conservation Fund, among other provisions."

The Economic Analysis That will Haunt Supporters of the Obama Offshore Moratorium in the Midterms Featured in theWSJ Today. Dr. Joesph Mason writes in the Wall Street Journal, "With each passing day, the Obama administration’s moratoriumon energy exploration in the Gulf of Mexico costs the coastal region more jobsand increases the risk that those jobs will never come back. Now theadministration and some members of Congress want to revise the tax code in waysthat could irreparably harm the U.S. energy sector and threaten the industry’snine million jobs. Research I’ve recently published indicates that under theadministration’s six-month moratorium, set to last until Nov. 30, the GulfCoast region will lose more than 8,000 jobs, nearly $500 million in wages, over$2.1 billion in economic activity, and nearly $100 million in state and localtax revenue. Taking into account the effects outside of the Gulf Coast, themoratorium will cost the United States 12,000 jobs and nearly $3 billion,including almost $200 million in federal tax revenues. If the moratorium lastssix to 12 months longer, as many pundits expect, some 36,000 jobs could be lostacross the country. Under the worst case scenario-a permanent moratorium on alloil and natural gas production in the Gulf of Mexico-nationwide economic losseswould exceed $95 billion and more than 400,000 jobs.This is bad enough. But earlier this week, both the House and Senate proposednew energy bills that will cost $25 billion and $15 billion, respectively-andthe government wants the energy sector to pay the tab. The administration andits congressional allies are considering two changes to the tax code that wouldput U.S. energy companies at a competitive disadvantage to foreign-owned behemothslike BP, China’s Sinopec and Hugo Chávez’s Citgo. These constraints on theenergy sector would handcuff domestic energy development, reduce futureresources, and kill even more jobs."

Rep. Nunes and Co. Out with New "Energy Roadmap" Today; Real Questionis, Will Affordable Energy Advocates Line up in Support. We Sure Hope so, ForWhat It’s Worth.Kim Strassel (7/30) writes inthe Wall Street Journal, "Out of the most tedious congressional debate sometimescomes a little ray of policy sunshine. The GOP got a glimmer this week. Ascongressional Democrats plotted how to make their "oil-spill"legislation a political liability for Republicans, and as Republicans flappedover how to avoid that fate, one GOP member excused himself from the circus.California Rep. Devin Nunes instead unveiled his "Energy Roadmap," acompanion bill to Wisconsin Rep. Paul Ryan’s plan for tax and spending reform.Mr. Nunes wants to get his party thinking about a modern, principled energypolicy. Lord knows the GOP could use the help. Republicans have spent the pastdecade staying largely true to their belief in cheap fossil fuels, but the riseof the climate debate and "green energy" flummoxed them. Unwilling tobe seen as against "clean" energy, they embraced green subsidies.Some excused it as the political price of continued drilling; others just likedthe pork. Mr. Nunes’s interest is how to answer these concerns in a morefree-market way. The Californian’s road map is the product of years of work,most recently with Mr. Ryan and a handful of Republicans with energy expertise-Illinois’sJohn Shimkus, Utah’s Rob Bishop, and Idaho’s Mike Simpson. It’s a bill designedto produce energy, not restrict it. It returns government to the role of energyfacilitator, not energy boss. It costs nothing and contains no freebies. Itinstead offers a competitive twist to government support of renewable energy."

Shocker. Remember ThoseClimatgate Emails that Falsified Temperature Data to Further a PoliticalAgenda? EPA Dismissed them Yesterday, "No Reason to Reconsider the Science ofGlobal Warming."Politico (7/29) reports, "TheEnvironmental Protection Agency Thursday rejected an effort to keep it fromregulating greenhouse gas emissions, saying that e-mails released in last fall’s"Climategate" scandal gave it no reason to reconsider the science of globalwarming. In a sternly written opinion, EPA Administrator Lisa Jackson said shedidn’t agree with requests from the GOP attorneys general from Texas andVirginia, the U.S. Chamber of Commerce and other conservative groups thatquestioned the underlying science linking humans to global warming and alsowarned of the potential economic burdens from new climate rules. EPA lastDecember concluded that greenhouse gases are a threat to public health andwelfare, a decision clearing the way this spring for climate-based regulationsfor new cars and trucks. Next year, the agency is expected to write standardsfor power plants and other major industrial sources of heat-trapping gases. Intheir petitions, EPA’s opponents had highlighted stolen e-mails from prominentclimate scientists that they allege showed collusion to hide contraryinformation debunking global warming. Texas Attorney General Greg Abbott hadalso warned that the EPA rules would lead to "unprecedented bureaucraticlicensing and regulatory burdens on farmers, ranchers, small businesses,hospitals and even schools."

As Anti-AffordableEnergy Advocates Ramp up Their Propaganda Campaign, Those That Actually Produce Energy Head to The Hill andSpell Out Consequences if  CongressImposes New Taxes on Domestic Oil and Nat Gas Production. Houston Chronicle (7/29) reports, "Evenbefore crude began gushing into the Gulf of Mexico, the oil industry was wagingan uphill fight against $36.5 billion in proposed taxes and new regulations ondrilling techniques. But now the collision of election-year politics and theoil spill is fueling dozens of proposals to clamp down on drilling – and hasinspired the industry to ramp up its defense game in the nation’s capital.Industry leaders say they are trying to cut through emotions stirred by imagesof oil-soaked birds and tar balls on Gulf Coast beaches by asking lawmakers fora deliberative response to the disaster. So far, the oil spill has providedfodder to longtime offshore drilling foes and is being used to leverage aflurry of spill-inspired bills and other unrelated energy measures in Congress."There’s this sense of blood in the water," said Lee Fuller, vicepresident of government relations for the Independent Petroleum Association ofAmerica. "The way the politics of this thing is playing out, the oil spilllegislation is being used as a mechanism to try to broadly address a lot ofother energy-related issues."Environmentalists argue that the oil spillhas provided a dramatic and costly illustration of the dangers of offshoredrilling and the need to step up regulation. The House is set to vote today on sweepinglegislation that would stiffen well design standards, impose new oil and gastaxes and get rid of the liability limits that cap what energy companies mustpay after similar incidents."

Must See TV:Click this LINK at 10AM today to Watch LSU Prof. Joe Mason Discussthe Economic Impact of Obama Offshore Moratorium. "As the Senate weighs its options for offshoredrilling reform, how is the current moratorium on offshore drilling affectingoil companies and jobs numbers? During today’s OnPoint, Joseph Mason, aprofessor of banking at Louisiana State University, discusses a new study,commissioned by the American Energy Alliance, on the economic effects of thedrilling moratorium. He explains why he believes the government is dragging itsfeet in investigating the circumstances of the Gulf spill and gives his take onthe various policy options being discussed in Congress. Today’s OnPoint will air at 10 a.m. EDT."

You Know that60 Year Old Process (Hydraulic Fracturing) we use to Extract Oil and NaturalGas? She’s Center Stage in Senate Energy Debate. Wall StreetJournal (7/28)Reports, "A U.S. Senate energy bill drew opposition fromnatural-gas companies on Wednesday after the surprise addition of a measurethat would force companies to disclose the chemicals used at each well beingdrilled in huge gas fields located across the U.S. The opposition, from thegroups Energy In Depth and America’s Natural Gas Alliance, poses a new hurdlefor the energy bill just days before it is due for a vote on the Senate floor.It also suggests the difficulties facing Senate Majority Leader Harry Reid (D,Nev.), who had also sought to benefit natural gas by including incentives fornatural-gas powered vehicles. The battle over drilling-fluid disclosure pitsenvironmentalists and some local activists against a production technique thathas allowed access to vast new natural gas supplies. Environmentalists fearthat the chemicals used in the drilling procedure, known as hydraulicfracturing, will contaminate drinking water. Companies say no evidence existsthat the practice is unsafe. Companies also say that while the chemicals aren’tpublicly disclosed because they are commercially sensitive, the information isshared with local regulators. "The entire universe of additives used inthe fracturing process is known to regulators and the public," Lee Fuller,the executive director of Energy In Depth, a group that represents oil and gasproducers, said in a prepared statement."

Does Josh FoxWork at Politico or Just Ghost Write for Their "Energy" Reporter? DispatchFiled on Senate HF Language About as Accurate as GasLand Itself. Politico (7/29) reports, "Thefight over the Senate offshore drilling "spill bill" shifted Wednesday from theGulf of Mexico to the mountains of western Pennsylvania, as Republicans slammedthe last-minute inclusion of language to regulate a controversial technique toextract onshore natural gas. Senate Majority Leader Harry Reid (D-Nev.) addedthe language Tuesday requiring natural gas drillers to disclose the chemicalsthey pump into the ground as part of the hydraulic fracturing, orhydrofracking, process. Republicans are wary of the addition, which comes onPage 404 of the 409-page spill response bill that Reid wants the Senate to takeup before the recess. But now there is fear that the process could pollutelocal water supplies. That phenomenon came under the spotlight earlier thissummer with the documentary film "Gaslands," in which people living nearhydrofracking projects showed their tap water running dark and murky andsometimes even igniting on fire. Fracking is exempt from many of the federalregulations that govern other forms of energy extraction under the 1974 SafeDrinking Water Act, including a requirement that companies disclose whatchemicals they inject into the ground. (That’s thanks to a provision insertedin a 2005 energy law by then-Vice President Dick Cheney, known as the "Halliburtonloophole" – Halliburton is one of the nation’s leading providers ofhydrofracking services.)"

Cape Wind "Baitand Switch." Offshore Wind Power to Cost at Least 25% (!) More ThanConventional Generation. Good Luck New England. David G. Tuerck and Jonathan Haughton write(7/28) in the Boston Globe, "For years CapeWind Associates, which plans to build 130 wind turbines in Nantucket Sound,told us that it could supply renewable energy to the New England market andsave ratepayers $25 million a year. Considering the cost of installing andoperating the system (about $2 billion in present-value terms), it was alwaysunlikely that Cape Wind could deliver on this promise. Yet, it seemed possiblethat by adding significantly to power supplies, Cape Wind could bring about atleast a temporary decrease in the price of power. Now we learn, however, thatratepayers will pay more for their electricity if Cape Wind builds and goesonline. Recently, National Grid entered into an agreement to buy power fromCape Wind for almost 21 cents per kilowatt hour. It costs National Grid about 9cents per kWh to get the same power from conventional sources. Under the state’sRenewable Portfolio Standard program, the electric companies charge ratepayersan additional 6 cents per kWh for that portion of their service (currently 5percent) that the power companies are supposed to obtain from renewablesources. Hence, power that previously cost 15 cents will now cost 21 cents.National Grid’s biggest customers are protesting this price increase."

Louisiana Congressman’s Fight to Keep Jobs in his District, UnitedStates Being Ignored by Speaker Pelosi and Anti-Energy Members of Congress.The Hill (7/28) reports, "Rep.Bill Cassidy (R-La.) signaled Wednesday that he will seek a House vote tooverturn the Obama administration’s six-month ban on deepwater oil-and-gasdrilling that began in late May. Democrats are unlikely to allow a vote on hisamendment when their Gulf of Mexico oil spill response bill comes to the floorFriday. But Cassidy’s effort nonetheless shows that opponents of the drillingfreeze will use the House debate as a forum to attack what they call aneconomically harmful and unnecessary ban. In addition to scuttling the existingban, Cassidy’s amendment "would also guard against any future moratoria bystating that ‘No Federal official may establish any general moratorium on orsuspension of offshore oil and gas operations that is substantially similar tothe moratorium, the decision memorandum, or any suspension referred to insubsection,’ " his office said. The ban is under attack from many Republicansand Gulf Coast lawmakers from both parties. But administration officials saythe pause is needed while new offshore safety requirements are implemented andinvestigations into the BP spill continue."

Expensive, Unreliable and Intermittent Energy Advocates Not Happy AboutRES being Left on Cutting Room Floor; We Call This a Win for the Consumer. E&E News(7/29, subs. req’d) reports, "Senate MajorityLeader Harry Reid yesterday rebuffed fellow Democrats and renewable industrygroups who insist there are 60 votes to pass a renewable electricity standardas part of the energy and oil spill package coming to the floor next week."I support it, I’ve always voted for it, but right now, we can’t count to60," the Nevada Democrat said yesterday in response to their claims. Reiddid not include language in his scaled-back energy legislation introduced thisweek to require utilities to generate a minimum percentage of their electricityfrom sources like wind, solar and geothermal, saying it did not have enoughsupport to clear the Senate. But many Democrats and renewable energy groupshave blasted the move, saying there are enough votes for a modest renewableelectricity standard. Among them is Sen. Mark Udall (D-Colo.), who says thereare about 62 senators who would support a 15 percent standard.The renewableenergy industry is also disputing Reid’s arithmetic. "We have 60 votes foran RES amendment and will continue to push for its consideration in thisbill," said American Wind Energy Association CEO Denise Bode in astatement before the bill’s formal introduction."

Coal Country Targets Anti-Affordable Energy Members of Congress,Chairman of the House Anti-Natural Resource Production Committee in Mid-Terms.E&E News(7/28,subs. req’d) reports, "Several major coal companies plan to spend big to defeatcandidates they consider "anti-coal," now that corporate campaign spendingrules were relaxed by the Supreme Court last year. Companies and labor unionscan now set up politically active nonprofit organizations that do not havespending limits nor have to publicly report their financial activities. Thismeans nonprofits can launch well-funded advertising campaigns to support orattack candidates, as long as they do not coordinate with the politiciansdirectly. "With the recent Supreme Court ruling, we are in a position tobe able to take corporate positions that were not previously available inallowing our voices to be heard," wrote Roger Nicholson, senior vicepresident and general counsel at International Coal Group of West Virginia, inan undated letter he sent to other coal companies. "We’re requesting your considerationas to whether your company would be willing to meet to discuss a significantcommitment to such an effort." Nicholson listed three Democrats whom theindustry would like to see defeated by pro-coal Republicans this November: U.S.Senate Democratic nominee Jack Conway, who is running against Republican RandPaul for Kentucky’s open Senate seat; U.S. Rep. Ben Chandler (D-Ky.), who isrunning against Republican Garland "Andy" Barr; and U.S. Rep. NickRahall (D-W.Va.), who is running against Republican Elliott "Spike"Maynard."

MotherNature, Fickle Mistress: Oil in the Gulf Biodegrading "Far More Rapidly ThanAnyone Expected" – And Far Too Soon for Enviros’ Fundraising Efforts. NY Times(7/28) reports, "The oil slick in the Gulf of Mexico appears to be dissolvingfar more rapidly than anyone expected, a piece of good news that raises trickynew questions about how fast the government should scale back its response tothe Deepwater Horizon disaster. The immense patches of surface oil that covered thousands of squaremiles of the gulf after the April 20 oil rig explosion are largely gone, thoughsightings of tar balls and emulsified oil continue here and there.  Reporters flying over the area Sundayspotted only a few patches of sheen and an occasional streak of thicker oil,and radar images taken since then suggest that these few remaining patches arequickly breaking down in the warm surface waters of the gulf.  John Amos, president of SkyTruth, anenvironmental advocacy group that sharply criticized the early, low estimatesof the size of the BP leak, noted that no oil had gushed from the well fornearly two weeks.  "Oil has afinite life span at the surface," Mr. Amos said Tuesday, after examining freshradar images of the slick. "At this point, that oil slick is really starting todissipate pretty rapidly."

WHWant to Ram Through Cap-and-Raid in Lame Duck Session – "Premised on SenatorsBeing Liberated from the Tethers of the American People," Says Johanns. E&E News (7/28,subs. req’d) reports, "Cap-and-trade provisions that likely cannot pass theSenate directly this year could be added to a narrower energy package during aHouse and Senate conference, a White House spokesman suggested yesterday. WhiteHouse press secretary Robert Gibbs told reporters he "certainly wouldn’trule it out" that a House-Senate conference committee would reconcilediffering versions of energy legislation by adding climate provisions left outof a narrow package the Senate is expected to take up this week. Gibbs said hedoes not think a climate bill is dead for the year, despite the decision bySenate Majority Leader Harry Reid (D-Nev.) to drop greenhouse gas emissionlimits from the scaled-back oil spill response and energy bill unveiledyesterday. "The plan to do cap and trade in a lame duck is premised onsenators and House members being free and liberated from the tethers of theAmerican people," Johanns said yesterday on the Senate floor. "That’sextraordinary, and it’s deeply troubling." Gibbs said yesterday that aHouse and Senate energy conference could take place before a lame-duck session."We could do it in September," he said.

Unableto Move Anti-Frac Bill Through Normal Means, DeGette, Casey Get Harry Reid toAttach Their Language to Dems’ Last-Train-Out-of-Warsaw Energy Bill. E&E News (7/28,subs. req’d) reports, "The Senate language released late last night contains anew provision that would require oil and gas drilling companies using acontroversial production technique to disclose information about the chemicalsused in the process. The hydraulic fracturing provision was not included in thedraft summary of the legislation that Democrats released yesterday afternoon.The language is a scaled-down version of legislation pushed by Sen. Bob Casey(D-Pa.) in the Senate (S. 1215) and by Reps. Diana DeGette (D-Colo.) andMaurice Hinchey (D-N.Y.) in the House (H.R. 2766) that would regulatefracturing under U.S. EPA. Casey has said he wanted to see fracturing languageincluded in the Senate energy bill and had promised to offer it up as anamendment if it is not included. Hydraulic fracturing is a decades-oldproduction technique that blasts water, chemicals and sand into wellbores tobreak apart compact rock and release trapped hydrocarbons. The technique hasdrawn intense scrutiny from environmentalists and some Democrats about itspotential to contaminate water supplies, but industry maintains the techniqueis safe. The House oil spill legislation does not include the frackinglanguage.

…Whichis Some Funny Timing, Considering PA DEP Once Again Went Out of Its WayYesterday to Debunk Casey’s Mistaken Premise on HF and Water Contamination. KDKA(Pittsburgh, 7/27) reports, "Some people say the drilling for Marcellus Shalehas polluted their groundwater and contaminated their water wells. Bill Eakin,from the village of Rea in Avella, is one of them. He says he and his wife weresickened by their water, after drilling started. They blame Atlas Energy. In astatement, Atlas told KDKA’s Andy Sheehan their tests of the village’s waterwells came up negative: "The results did not indicate contamination due tonatural gas exploration and production activities." On Tuesday, the stateDepartment of Environmental Protection said its independent testing showed thesame thing. "That’s exactly right," Helen Humphreys, a spokespersonfor the DEP, said. "The test results came back with results that are consistentwith water in southwestern Pennsylvania." The DEP says it also has beenunable to verify any contamination cases in the state caused by drilling, eventhough much of the public believes otherwise. "It is counter to a perception and it’s unfortunate,"Humphreys said. "We really need to be sure that people are seeing thedata that we’re seeing."

Notto Gild the Lilly, But: Marcellus Shale Exploration in PA Generated $1.7Billion Last Year for Landowners ALONE; 44,000 Jobs Created While They Were AtIt. MSC president Katie Klaberwrites (7/28) in the Centre(Pa.) Daily Times, "Last year alone, Marcellus producers paid almost $1.7billion to private landowners across the commonwealth. And in the next year anda half, our work is projected to generate more than $1.8 billion in state andlocal tax revenues. We’re also proud of the jobs our industry continues tocreate. According to a recent Penn State study, almost 44,000 jobs in thecommonwealth have been created as a result of Marcellus development. Penn Statealso predicts that in the next decade this work has the potential to create212,000 jobs statewide. Have you heard of the "Marcellus Multiplier"? It’s nota featured flavor at Penn State’s Creamery, although maybe it should be. PennState academics determined that for every $1 invested into Marcellusdevelopment, $1.90 of total economic output is generated across the economy.The entire supply chain that supports our industry – small businesses,manufacturers, local suppliers, contractors – have come to know this economicimpact as the "Marcellus Multiplier." And while tremendous strides by almost every metric have been made,there’s much more to do.

IPAAChief: What Does an Independent Energy Company Look Like? We Might Have a HardTime Remembering in a Couple Years If Folks In Washington Get Their Way. IPAA chairman Bruce Vincent writes (7/28) in theWashingtonTimes, "What does an American oil or natural gas company look like? Itseems like a simple question. But to many policymakers in Washington, thoseresponsible for delivering stable supplies of homegrown oil and gas essentialto keep our economy fueled and energy prices stable for struggling families areall "big oil." This common perception in Washington, and elsewhere,is wildly detached from the facts. America’s independent oil and natural gasproducers drill 90 percent of the nation’s wells. These companies employ, onaverage, just 12 workers. These are important facts. And while some independentproducers are publicly traded companies, many are good old-fashioned family-runand -owned small businesses. … The president’s moratorium on offshore energydevelopment, for starters, is not only creating enormous amounts of uncertaintyfor our producers, but also driving rigs out of U.S. waters to otherenergy-producing nations overseas and compounding the economic fallout alongthe Gulf Coast. Leaders in the Gulf region – who understand better than anyonein Washington how critical the oil and natural gas industry is to our nationand their region’s economy – are continuing their fight for responsibleoffshore energy production and the thousands of jobs our industry supports.

Cancelled:Obama Admin Doubles-Down on Bad Bet Founded on Belief that American People WillEventually Support His Offshore Bans – Cancels 2 More Lease Sales Today. E&E News (7/27,subs. req’d) reports, "The Obama administration today formally cancelled twolease sales that were once part of President Obama’s plan for "the largestexpansion of our nation’s available offshore oil and gas supplies in threedecades." But in the wake of the Deepwater Horizon spill in the Gulf ofMexico, the administration filed notices for the Federal Register that statethe Interior Department needs time to do environmental reviews, scientificanalysis and gather public input. "Cancellation," the notices say,"will allow time to develop and implement measures to improve the safetyof oil and gas development in Federal waters, provide greater environmentalprotection, and substantially reduce the risk of catastrophic events." Oneof the lease sales was off Virginia and the other was in the western Gulf inwaters as deep as 10,975 feet. Obama had announced the decision on May 27 whenhe suspended the 33 deepwater exploratory wells then being drilled in the Gulfof Mexico. Publication in the Federal Register will make it official.

FedsSays Mayor Bloomberg’s Plan to Impose New Hybrid Mandate on Cabbies in NYCViolates the Law – Since Only Feds Can Tinker with Fuel Economy – CA, You Listening? NYTimes (7/27) reports, "The Bloomberg administration’s years-long attempt toforce the city’s cab owners to switch from gas guzzlers to hybrid vehicles wasrejected by a federal appeals court Tuesday morning. The Court of Appeals forthe Second Circuit upheld a judge’s 2009 ruling, in a suit brought by taxifleet owners, that the city’s rules amounted to an effort to mandate fueleconomy and emissions standards, something that only the federal government isallowed to do. If the city wants to appeal further, the next stop is the UnitedStates Supreme Court. A Law Department spokeswoman said officials were "reviewingour options." The city’s effort to force the changeover from the ubiquitousFord Crown Victorias, which get 12 to 14 miles a gallon, to hybrids and othercleaner cars that get much better mileage dates to 2007, when the city issued arule that all cabs put into service beginning October 2009 achieve at least 30city miles per gallon. After a federal judge blocked that rule, the city rolledout another, in March 2009, based on financial incentives. That rule allowedfleet owners to raise their lease rates to drivers by $3 per shift for hybridsand other clean cars, but forced them to drop their rates $12 per shift for CrownVictorias, creating a $15-per-shift difference between gas cars and hybrids.

Bill of Goods: Choleric HouseDems Believe Speaker Lied to Them In Insisting Walking the Plank onCap-and-Raid Was Gonna Be OK – Senate Won’t Leave You Hangin’! WashingtonPost (7/27) reports, "Thirteen months after that tough vote oncap-and-trade, Boccieri and dozens of other House Democrats along the Rust Beltare not at all happy with the way things have turned out. The White House andSpeaker Pelosi had assured reluctant members that the Senate would take up themeasure. Although Senate passage wasn’t a sure thing, House Democrats hoped togo back home to voters with a great story to tell — about reducing dependenceon foreign oil, slowing climate change and creating jobs.  That didn’t happen. Senate leaders,sensing political danger, repeatedly put off energy legislation, and the WhiteHouse didn’t lean on them very hard to make it a priority. In the aftermath ofthe gulf oil spill, the Senate is set to take up a stripped-down bill nextweek, but the controversial carbon-emissions cap is conspicuously missing. Thishas left some House Democrats feeling badly served by their leaders. Althoughlawmakers are reluctant to say so publicly, their aides and campaign advisersprivately complain that the speaker and the president left Democrats exposed onan unpopular issue that has little hope of being signed into law.

The Sun Also Sets: NationalEnviros Continue to Eat Their Own In Expectation of Losing Big in NextElection, and Having Nothing to Show for 2010. E&E News (7/27,subs. req’d) reports, "With Republicans expected to pick up seats on ElectionDay, most advocates of carbon caps say they face a tougher playing field in2011."From an objective standpoint, it looks like what might be the shiftin party balances a little bit might make it harder," said Joe Mendelson,of the National Wildlife Federation. But Paul Bledsoe, a strategist at theNational Commission on Energy Policy, said the presumption that the nextCongress will be less likely to act on climate may not be accurate."Sometimes, when one party has large majorities, it can be difficult toput together a bipartisan coalition," he said. "Sometimes, when theparty balance is closer, it actually becomes easier to put together bipartisancoalitions because you’ve got to get some things done." Bledsoe said theremay also be room for compromise on energy issues outside of climate. "MostRepublicans have vilified the cap-and-trade approach, although many supportedit previously. The question is, ‘Are there other policy measures that couldgain broader acceptance within the GOP?’ And I think it’s a proposition worthtesting." "We’re not focusing on next year," said David Doniger,policy director at the Natural Resources Defense Council’s climate center."We’re focusing still this year on finding a way to get a climatebill." It would be "deeply troubling" for the current Congressnot to address climate and energy legislation, he added.

Meanwhile, "Spill Bill" Releasedby House Dems Last Night Not Something Designed to Attract Bipartisan Support,Observers Say – Will Rs Take the Bait? TheHill (7/26) reports, "House Democrats on Monday unveiled their strategy torespond to the Gulf of Mexico oil spill, a package headed for the floor latethis week that would shore up offshore rig safety standards and block BP fromobtaining new offshore drilling leases. The bill, slated for debate Friday,also increases oil companies’ liability for damages from offshore spills. The238-page plan – a slimmed down combination of bills approved by three panels -would also give subpoena power to a commission President Obama has appointed inthe wake of the Gulf of Mexico spill, while dropping the idea of creating aseparate commission largely appointed by Congress. The House Democraticstrategy includes language from Rep. George Miller (D-Calif.) that would blockBP or any other company with a "significant history" of violating worker safetyor environmental laws. The language – approved by voice vote in the HouseNatural Resources Committee – bars a company from drilling in federal waters ifit has five times the industry average for willful or repeat worker safetyviolations at its oil and gas facilities; has more than 10 fatalities at anyfacility; or incurs fines of $10 million or more under EPA air or water lawswithin the preceding 7 years.

Don’t Mess: Republic of TexasSues Federal EPA for Second Time in 6 Weeks – Not About to Let Those Weaselsoff the Hook on New Permitting Rules.SanAntonio Express-News (7/27) reports, "Texas has sued the federalEnvironmental Protection Agency for the second time in six weeks, escalating afeud over the state’s rules for air pollution from refiners and other largeindustries.  State Attorney GeneralGreg Abbott said Monday he filed a petition with the 5th U.S. Circuit Court ofAppeals, seeking to block the EPA from disapproving the state’s so-calledflexible permits. State officials argue the federal agency had no legal ortechnical justification for rejecting the 16-year-old permitting program, whichcovers 122 refiners, chemical plants and plastics makers. The federal Clean AirAct requires polluters to limit emissions of key pollutants at each sourceinside a plant. The disputed Texas permits set a plant-wide ceiling – adistinction that makes them practically unenforceable, the EPA said inannouncing the decision last month. Gov. Rick Perry and state regulators saythe flexible permitting program cuts red tape and air pollution withoutviolating federal law. In a statement praising the lawsuit, Perry said jobs andgains in air quality would be lost if the EPA’s decision stands. "The EPA’soverreach is as potentially devastating as it is unnecessary," Perry said.

U.S. State Dept. Can Negotiatewith Iran – But When It Comes to Issuing a Routine Permit for the KeystonePipeline, Enviros Strike Fear in the Heart of Foggy Bottom. TheHill (7/26) reports, "The State Department is extending its review of acontroversial pipeline project that would expand U.S. imports of oil fromCanadian [oil] sands, a plentiful energy source that is under fire fromactivists and some lawmakers over its environmental effects. The decision tolengthen the review of TransCanada’s proposed Keystone XL follows complaintsfrom the Environmental Protection Agency (EPA) and a senior House Democrat thatState’s draft environmental review was inadequate. The department is extendingthe mid-September deadline for federal agencies to comment on the project foranother 90 days, possibly delaying a final decision until next year. A deadlinefor the general public to weigh in was July 2.  The decision to give agencies more time comes after EPArecently said the State Department’s draft environmental impact statementneeded to be revised to take into account concerns that the pipeline could polluteair and water and harm migratory birds and other wildlife. The consequences of "airemissions from refineries and the potential contamination of drinking watersupplies from an oil spill have not been fully evaluated," Cynthia Giles, EPA’sassistant administrator for enforcement and compliance assurance, argued in aJuly 16 letter to the State Department.

First the Loss in ‘04, then theSnub for the State Dept. Job, Now Cap-and-Raid Falling Apart — For a Guy WhoOwns a $7M Yacht, Kerry’s Had Some Pretty Bad Luck. WashingtonPost (7/27) reports, "He fell just short of winning the White House in2004. Four years later, he was rumored to be a leading contender to besecretary of state, until President-elect Barack Obama stunned everyone bytapping his former rival Hillary Rodham Clinton. But even as Sen. John F. Kerry(D-Mass.) announced last week that he had failed in his latest politicalendeavor, pushing through a bill to combat climate change, he predictedeventual success. Rather than take up a bill seeking to limit greenhouse-gasemissions, a long-held Democratic goal and campaign priority of Obama’s,Democrats will try to pass legislation over the next few weeks that would raiseliability caps for companies such as BP after oil spills. The measure wouldalso offer some incentives for Americans to buy more-energy-efficient productsfor their homes. The retrenchment comes after months of internal debate amongDemocrats, much of it led by Kerry. Last summer, the House pushed through abill based on the principle of "cap and trade"; it set up emissionslimits for companies that produce greenhouse gases, along with permits foremissions they could trade with one another.

The New Gulf: Anadarko Teams Upwith UK’s Tullow Oil to Make Second Major New Discovery of Oil Offshore Ghanain 3 Years. Bloomberg(7/26) reports, "Tullow Oil Plc, the U.K. explorer with the most licenses inAfrica, discovered a "major new oil field" off the coast of Ghana.  The Owo-1 exploration well "encountereda gross vertical reservoir interval of 154 meters (505 feet)" in the DeepwaterTano license, the London-based company said today in a statement. Samples showit’s a light oil of 33 degrees to 36 degrees gravity on the American PetroleumInstitute scale, Tullow said. "This is a big well and a big result for Tullow,we’ve got here a very substantial light-oil discovery," said Angus McCoss. "It’sreally looking to be another transformational oil field for Ghana." Tullow isthe operator of Deepwater Tano while its partners include Anadarko PetroleumCorp., Kosmos Energy LLC and Ghana National Petroleum Corp. WallStreet Journal (7/27) reports, "Owo is the second major oil discoveryTullow has made offshore Ghana. The first, Jubilee, which will produce itsfirst oil later this year, propelled Tullow into London’s blue chip index. Owocould potentially be even more valuable to the company, analysts said. … If Owohad not found oil, resources in the greater Tweneboa area would probably havebeen capped at 400 million barrels of oil equivalent, but the new find makes itmore likely that the area contains around 1.4 billion barrels, said PanmureGordon analyst Peter Hitchens.

Off-CycleKerry Wants Senate to Come Back in Lame Duck to Pass Carbon CriminalizationMeasure It Didn’t Have Stomach to Pass When It Counted. Bloomberg(7/23) reports, "U.S. Senator John Kerry said Democrats may take up hiscomprehensive climate-change bill in a lame-duck session after the Novemberelections, while calling on President Barack Obama to escalate his advocacy forthe measure. Senate Majority Leader Harry Reid yesterday introduced a morelimited energy bill that doesn’t include a cap on greenhouse gas emissions,citing the lack of support for a broader bill.  The bigger measure "is not dead," Kerry, a MassachusettsDemocrat, said in an interview on Bloomberg Television’s "Political CapitalWith Al Hunt" airing this weekend. "If it is after the election, it may well bethat some members are free and liberated and feeling that they can take a riskor do something."  Kerry, whoco-authored the Senate climate measure with Senator Joe Lieberman, aConnecticut independent, urged Obama to lobby for the bill in private meetingswith undecided senators and at public events. "People have to know it reallycounts," said Kerry, 66. On climate legislation, Kerry said Democrats have "wellover 50" votes for a cap-and-trade program.

Meanwhile,Sen. Reid’s "Spill Bill" Set to be Announced Today Has (At Least) One FatalFlaw: It Prevents Indy Operators from Exploring in the Gulf. TheHill (7/26) reports, "Senate Democratic committee and leadership aideshuddled in the Capitol Building on Sunday to go through the package and plan todo so again Monday morning. The package could be unveiled later Monday. Themain concern with that language is that especially smaller companies may not beable to afford the insurance premiums for projects or be able to receiveinsurance at all for some riskier projects. "It’s just a messaging bill and atrap to force Republicans to vote against this bill," said Robert Dillon,spokesman for Lisa Murkowski (R-Alaska). Sen. Mary Landrieu (D-La.) is workingwith Republicans and Democrats to possibly add language protecting smaller,independent producers. Oil companies under state law already face unlimitedliability, as well as for federally required cleanup costs. Under current lawif gross negligence or regulatory violations are found, federal liability capsdo not apply. Menendez and other lead backers of the language contend that thepublic at large supports the idea. Sen. John Kerry (D-Mass.), though,acknowledged that political reality may dictate the liability should be raisedinstead of lifted entirely. "I think we ought to raise it," Kerry toldBloomberg’s Al Hunt in an interview that aired this weekend. Kerry saidDemocrats "ought to find out what the political market here [is] and the Senatewill bear and get to a realistic figure."

RealOversight: Senate Small Biz Cmte to Hold Hearing Tomorrow on Economic DisasterCaused by Obama Offshore Ban – Prof. Mason (of AEA Study Fame) Set to Testify. E&E News (7/26,subs. req’d) reports, "The Senate Small Business Committee will meet tomorrowto discuss the impact of the Obama administration’s deepwater drilling ban oncompanies operating in the Gulf of Mexico. The committee’s chairwoman, Sen.Mary Landrieu (D-La.), has been a vocal opponent of the six-month moratorium,saying it has further hurt the already-battered regional economy. Tomorrow, shewill have a chance to flesh out those concerns with small business owners,industry experts and local officials from the Gulf Coast region. "We mustcontinue this battle to end the moratorium and save the hundreds of thousandsof jobs that are in jeopardy," she said last week at a Louisiana rallyagainst the moratorium. "Louisiana families need certainty from ourfederal government that paychecks will not turn into pink slips. And our oil supportcompanies need to know that the Gulf is open and ready for business.""The economic health and future prosperity of the entire region is on theline," Landrieu added. "If we are to recover from this oil spill, theGulf Coast cannot afford a second economic disaster."

ObamaHas Yet to Veto a Single Bill that Congress Has Sent Him – But That WillChange, He Says, if Rockefeller’s Endangerment Delay Bill Gets to His Desk. The Politico (7/23)reports, "State and industry-driven lawsuits also are in the works to block theEPA effort, starting with a challenge in a federal appeals court to the agency’sunderlying "endangerment finding" that greenhouse gases contribute to globalwarming and are pollutants that endanger human health. That EPA findingtriggered the requirements to regulate greenhouse gas emissions under the CleanAir Act.  On Thursday, White Houseenergy and climate adviser Carol Browner stopped short of pledging a veto of theRockefeller bill and its House companion. But she insisted that the EPA wouldhave running room thanks to the Supreme Court’s 2007 ruling that affirmed theagency’s authority to write the climate rules.  "We will continue to use all the tools available to us toreduce greenhouse gas emissions," she told POLITICO. "The president believes inthe science. He believes we have a Supreme Court decision and we will continueto move forward."  Prospects of anybill stripping EPA of its authority are uncertain in the current politicalclimate, but a GOP takeover of either chamber in 2011 makes the threat muchmore real.

TheWax Man Cometh: OK Papers Wonder Aloud if Chairman Waxman’s Crusade AgainstHydraulic Fracturing is Pathological, or Merely Compulsive. The Oklahoman(7/26) editorializes, "Hydraulic fracturing’s effect on water supplies has beenexamined for years and likely will be until the last syllable of this administration’sexecutive orders is written. Tomorrow and tomorrow can’t come soon enough forenergy executives.  No adverseimpact from fracturing has been proven. Shaking up rock through fracturing isessential for releasing natural gas from shale formations; natural gas isessential for transitioning power generation away from coal. Gas is also key(along with offshore oil drilling) in reducing dependence on foreignsupplies.  Nevertheless, some poorplayers in Congress won’t let the fracturing issue die a dusty death.California U.S. Rep. Henry Waxman seems obsessed by it. Yet natural gas is arelatively green, clean and abundant fuel.  We hope Waxman isn’t on a witch hunt. Yet we’re notencouraged by his antics when insurance firms made accounting adjustmentsfollowing passage of Obamacare. Then, Waxman waxed indignant and demandedanswers. It was all sound and fury, signifying nothing.  Perhaps the fracturing probe will alsobe a brief candle. Waxman’s strutting and fretting, though, appears to be a dramawith no final act.

SteveMufson Spills Lots of Ink in the WPost About Oil Spilled in the Gulf Over thePast 45 Years – Not a Single Word About Natural Seepage, Where 65% of Its ComesFrom. The WashingtonPost (7/24) reports, "The oil and gas industry’s offshore safety andenvironmental record in the Gulf of Mexico has become a key point of debateover future drilling, but that record has been far worse than is commonlyportrayed by many industry leaders and lawmakers. Many policymakers think thatthe record before the BP oil spill was exemplary. In a House hearing Thursday,Rep. John J. "Jimmy" Duncan Jr. (R-Tenn.) said, "It’s almost anastonishingly safe, clean history that we have there in the gulf."Interior Secretary Ken Salazar said the industry’s "history of safety overall of those times" had provided the "empirical foundation" for U.S.policy. But federal records tell a different story. They show a steady streamof oil spills dumping 517,847 barrels of petroleum — which would fill anequivalent number of standard American bathtubs — into the Gulf of Mexicobetween 1964 and 2009. The spills killed thousands of birds and soiled beachesas far away as Mexico’s Yucatan Peninsula. "The oil industry has drilled42,000 wells in the Gulf of Mexico, and this is the first time an incident ofthis magnitude has happened," said the American Petroleum Institute’spresident, Jack Gerard, who has been urging Congress to avoid imposing toughnew regulations.

BodeSnatcher: Top Brass from AWEA Marauding About the Hill Today Demanding CarveOut for Wind Mandate in Energy Bill. E&E News (7/26,subs. req’d) reports, "Senate Majority Leader Harry Reid spent the weekendputting the finishing touches on a small energy and oil spill response packagehe plans to unveil today and appears to be holding firm against a renewableelectricity standard despite a late lobbying blitz. The Nevada Democrat saidSaturday that the inclusion of an RES would threaten the fate of the entirelegislation. "I don’t think I have 60 votes to get that done," Reidsaid at the progressive Netroots Nation conference in his home state. A groupof environmentalists and clean energy advocates had sent a letter to Reid onFriday asking him to rethink his decision to omit an RES. "Home Star issimply a cash-for-clunkers," said Dillon, referring to last summer’sfederal program that paid consumers to scrap old cars and trucks for newer,more fuel-efficient ones. "It’s just a jobs bill that doesn’t create anyjobs, it just gives money to unions." While the provision mandatesspending for efficiency, Dillon said no one is overseeing it to make sure themoney is being spent well or that improvements are being made.

NewAEA Report on Severe Economic Consequences of Obama Offshore Ban Gets PriorityPlacement of Drudge Report – 20 Million Folks Visit that Joint Each Day. E&P Magazine (7/19)reports, "The presidential offshore drilling moratorium will cost approximatelyUS $2.1 billion in economic loss to the states along the Gulf of Mexico (GoM)in first six months, according to a recently released paper. "The Economic Costof a Moratorium on the Offshore Oil and Gas Exploration to the Gulf Region" waswritten by Dr. Joseph R. Mason, Louisiana State University endowed chair ofbanking and renowned economist. Mason said he estimates the moratorium will seea loss of 8,000 jobs and $500 million in lost wages in the Gulf Coast in thefirst six months. "The moratorium will cost the Gulf Coast region jobs, money,and economic development," he said. "In fact, the moratorium could be morecostly than the oil spill itself." The study, sponsored by Save US Energy Jobs -a project of the American Energy Alliance – also focuses on the spillovereffect the moratorium will have on other job sectors such as mining,transportation, warehousing, wholesale and retail trade, health care,entertainment, education, and waste management. Texas will see a decrease ofapproximately 2,492 jobs, and Louisiana will see a decrease of approximately4,719 jobs. You can downloada copy of Dr. Mason’s report on the AEA website.

SinoSurprise: Everyone Always Knew China Would Overtake USA As World’s LargestEnergy Consumer – But 10 Years Ahead of Schedule? Really, China? WallStreet Journal (7/19) reports, "China has passed the U.S. to become theworld’s biggest energy consumer, according to new data from the InternationalEnergy Agency, a milestone that reflects both China’s decades-long burst ofeconomic growth and its rapidly expanding clout as an industrial giant. China’sascent marks "a new age in the history of energy," IEA chiefeconomist Fatih Birol said in an interview. The country’s surging appetite hastransformed global energy markets and propped up prices of oil and coal inrecent years, and its continued growth stands to have long-term implicationsfor U.S. energy security. The Paris-based IEA, energy adviser to most of theworld’s biggest economies, said China consumed 2.252 billion tons of oilequivalent last year, about 4% more than the U.S., which burned through 2.170billion tons of oil equivalent. The oil-equivalent metric represents all formsof energy consumed, including crude oil, nuclear power, coal, natural gas andrenewable sources such as hydropower. China, meanwhile, disputed the IEAfigures, but didn’t offer alternative data, according to Zhou Xian,spokesperson for China’s top energy agency. China overtook the U.S. atbreakneck pace. China’s total energy consumption was just half that of the U.S.10 years ago, but in many of the years since, China saw annual double-digitgrowth rates.

"Closed-Door"Meetings Among Hard-Core Enviros, Stockholm Syndrome Suffering Utilities, YieldNo Progress on Cap-and-Raid. Politico (7/19)reports, "Sen. John Kerry led more closed-door talks on Monday with topelectric utility and environmental officials in the search for a sweet spot ona bill capping greenhouse-gas emissions from power plants.  Edison Electric Institute President TomKuhn, Environmental Defense Fund President Fred Krupp and David Hawkins, headof the Natural Resources Defense Council’s climate center, huddled for about anhour in the Massachusetts Democrat’s Senate office.  All three declined comment as they left the meeting withKerry, a lead author with Sen. Joe Lieberman (I-Conn.) of legislation thatwould set the first mandatory limit on carbon dioxide emissions from powerplants. Krupp and Hawkins spent several hours last week negotiating with ahandful of big U.S. power companies – including Duke Energy Corp., Exelon andPG&E – on the remaining sticking points related to a power plant-firstclimate bill.

AutoCompanies Want Sen. Stabenow to Drop an LCFS Into Reid’s Climate Bill, ForcingRefiners to Prop Up Things Like the Chevy Volt – Today, the Good Guys SwingBack. TheHill (7/20) reports, "Our families are struggling, but unfortunately it’sbusiness as usual in Washington," according to a 60-second radio ad sponsoredby the Consumer Energy Alliance (CEA) and running in four Midwestern states.The "latest bright idea" from Congress is a low-carbon fuel standard, accordingto the ad. Auto companies and the autoworkers union are pushing such astandard. CEA’s radio campaign cites unnamed studies that claim a standardwould cost consumers up to $2,000 annually and increase gas prices at the pumpby up to 170 percent.  Thecoalition funded a recent studyby Charles River Associates that contended a low-carbon fuels standard startingin 2015 and reducing the carbon intensity of transportation fuels by 10 percentafter that would increase transportation fuels to consumers by 90 to 170percent by 2025.  A low-carbonstandard would also "further damage our ailing economy" and kill up to 1.1million jobs and "10s of billions of dollars" in economic investment in theMidwest, according to the coalition’s ad. "Low-carbon fuel standards may soundlike a good idea, but as usual Congress wants you to pay the price," accordingto the ad.

SeeHow They Run: Autos DENY They’re Working with Stabenow on LCFS Provision forClimate Bill, a Direct Contradiction to What Debbie Told Darren GoodeYesterday. E&E News (7/20,subs. req’d) reports, "Charles Territo, a spokesman for the Alliance ofAutomobile Manufacturers, which represents Detroit’s Big Three, Toyota MotorCo. and a handful of other carmakers, refuted unsourced reports from Politicoand The Hill that the industry is working closely with Sen. Debbie Stabenow(D-Mich.) to craft and push such legislation. "[W]hile we strongly believethat any policy aimed at enhancing energy security and reducing greenhouse gas emissionsneeds to include not only autos, but also fuels and consumers, at this time thealliance is NOT advocating for a low carbon fuels standard to be included inthe [S]enate energy bill," Territo said in an e-mail. Consumer EnergyAlliance — a coalition that includes oil and gas companies and the U.S.Chamber of Commerce — will launch a two-week television and radio campaigntoday in Michigan, Ohio, Indiana and Minnesota that the group says is designedto bring public attention to the issue. "Our families are struggling, butunfortunately it’s business as usual in Washington," the ad opens."The politicians’ latest bright idea: new energy regulations calledlow-carbon fuel standards that will cost you up to $2,000 per year."

"We’reLooking for Pay-Fors": House Ways and Means Searching High and Low to Find anExtra $22 Billion of Your Tax Dollars to Throw Down "Green Jobs" Rat Hole. E&E News (7/20,subs. req’d) reports, "The question of how to pay for an approximately $22billion "green jobs" bill continues to plague House Democrats and maydelay the markup of the bill this week. "We are working on thepay-fors," House Ways and Means Chairman Sandy Levin (D-Mich.) told reportersafter a meeting with House Speaker Nancy Pelosi (D-Calif.) yesterday. The WhiteHouse and Democrats are hoping to add the measure to their ammunition of jobcreation bills before the midterm elections in November. Levin could not give adefinite timeline for the markup of the bill, which may mean it could bepostponed until after the August recess. Last week Levin indicated it would bethis week. At a White House meeting scheduled for later today, administrationofficials are expected to meet with community leaders, stakeholders and energyexperts from the federal government to talk about the administration’s effortsto boost a "clean energy economy," including building efficiency, andthe House Ways and Means green jobs bill. The green jobs package includes severaltop energy priorities for Democrats, including expanding and uncapping a 30percent tax incentive for "clean energy" manufacturing companies,energy efficiency tax credits and a more controversial one-year extension of anethanol tax credit that expires this year, according to a draft summarycirculated last week. But paying for the bill is tricky.

NOAA’sArc: WH Seizes Opportunity with the Spill, Announces Sweeping New Oceans PolicyDesigned to Restrict Access to Energy, Fishing, Fun, Etc.  E&E News (7/19,subs. req’d) reports, "The Obama administration set a new policy in motiontoday intended to improve coordination among federal and state agencies on theuse of the Great Lakes and coastal and deep ocean waters for activities rangingfrom recreation, fishing to energy development. The final recommendations froma task force of federal agencies officials call for a National Ocean Councilthat would seek to make sense of the hundreds of different laws affecting theoceans and unify the diverse federal agencies that can have some effect on theGreat Lakes and marine waters. "This sets us on a new path towardscomprehensive planning," said White House Council on Environmental QualityChairwoman Nancy Sutley. President Obama is expected to sign an executive ordertoday backing the plan, Sutley said. "These final recommendations willsignificantly impact the economic and recreational uses of our oceans, oceanlands and potentially all rivers, tributaries and lands that drain or adjoinour oceans," said Rep. Doc Hastings (R-Wash.), ranking member of the HouseNatural Resources Committee. For more information on why CEQ’s oceans policy isa cold-blooded economic killer, visitthe National Ocean Policy Coalition website.

JudgeWho Stepped Up to Reject Obama Offshore Ban Refuses to Step Down After BeingTargeted by National Enviro Groups. AssociatedPress (7/19) reports, "A federal judge who overturned the Obamaadministration’s initial six-month moratorium on deepwater oil drilling hasrefused to disqualify himself from the case. Several environmental groups hadasked U.S. District Judge Martin Feldman to withdraw from the case because ofhis investments in several oil and gas companies. Feldman refused in an orderissued Friday and posted Monday. Earlier this month, a federal appeals courtrejected the government’s bid to restore its temporary ban on issuing newpermits for deepwater drilling and suspension of 33 existing drilling projectsin the Gulf of Mexico. The Justice Department later issued a new moratoriumthat it hopes will pass muster with the courts.

Hot off thePress:  New AEA Study Finds that ObamaOffshore Moratorium to Cost $2.8 Billion. Politico MorningEnergy (7/19) has the scoop, "Lookfor the oil industry and friends to tout a study coming out today by LouisianaState University financial expert Joseph R. Mason. Mason’s paper, "The EconomicCost of a Moratorium on Offshore Oil and Gas Exploration to the Gulf Region,"concludes that the U.S. will see a loss of about $2.8 billion in economicactivity – $2.1 billion of which will come from the Gulf coast region – as aresult of the first six months of the administration’s offshore drillingmoratorium. Mason is the LBA Chair of Banking at the Ourso School of Businessat LSU and a Senior Fellow at the Wharton School. However, the study is notsponsored by either institution, but by the American Energy Alliance, theadvocacy arm of the Institute for Energy Research, both of which are closelyaffiliated with the fossil fuel industry, and have been vocal advocates ofincreased drilling." Check out the AmericanEnergy Alliance website later this afternoon for the full report.

NewlyMinted Mountaineer Senator Comes out Swinging Against Carbon Caps. TheHill (7/16) reports, "West Virginia’s newlyappointed senator signaled Friday that he’s unlikely to support climate changelegislation, dealing a fresh blow to advocates seeking a spot for emissionscaps in a broader energy bill. Carte Goodwin – who West Virginia Gov. JoeManchin (D) appointed as an interim replacement for the late Sen. Robert Byrd(D) – said at a news conference that he was "reluctant" to discuss specificlegislation. But he added: "From what I’ve seen of the Waxman-Markey bill thatpassed the House of Representatives and other proposals pending in the Senate,they simply are not right for West Virginia." Waxman-Markey refers to thesweeping climate bill the House narrowly approved in 2009. His stance appearsto be a setback for Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.), whoare shopping a scaled-back climate plan that would impose emissions curbs onelectric power plants. Byrd, while a longstanding defender of his state’s coalindustry, had in recent years moved to the left on climate and had been viewedas a swing vote on a global warming bill. Goodwin has close ties to Manchin,who opposes mandatory emissions curbs, and Sen. Jay Rockefeller (D-W.Va.), whohas also expressed skepticism and recently called on the Senate to abandon climatelegislation this year."

History.  China Passes USA as World’s LargestConsumer of Energy; Ends 100 Year Rein. WallStreet Journal (7/19) reports, "Powered by years of rapid economic growth,China is now the world’s biggest energy consumer, knocking the U.S. off a perchit held for more than a century, according to new data from the InternationalEnergy Agency,The Paris-based agency, whose forecasts are generally regarded asbellwether indicators for the energy industry, said China devoured a total of2,252 million tons of oil equivalent last year, or about 4% more than the U.S.,which burned through 2,170 million tons of oil equivalent.  The oil-equivalent metric representsall forms of energy consumed, including crude oil, nuclear, coal, natural gasand renewable sources such as hydropower. "Thefact that China overtook the U.S. as the world’s largest energy consumersymbolizes the start of a new age in the history of energy"," IEAchief economist Fatih Birol said in an interview.  The U.S. had been the biggest overall energy consumer sincethe early 1900s, he said. The IEA is an energy adviser to most of the world’sbiggest economies. China’s voracious energy demand helps explain why thecountry – which gets most of its electricity from coal, the dirtiest of fossilfuel resources – passed the U.S. in 2007 as the world’s largest emitter ofcarbon dioxide emissions and other greenhouse gases." The WashingtonPost also reports.

Saw this cominga Mile Away:  With AmericansOpposed to Cap-and-Trade, Harry Reid Proclaims, "Those words are not in myvocabulary," Yet Presses Forward with Carbon Criminalization. Politico (7/19)reports, "Senate Majority Leader Harry Reid played dumb last week when areporter asked him if the energy and climate bill headed to the floor wouldcome with a "cap" on greenhouse gas emissions. "I don’t use that," the NevadaDemocrat replied. "Those words are not in my vocabulary. We’re going to work onpollution." Moments earlier, Reid had confirmed he was trying to craftlegislation targeting the heat-trapping pollution that comes from power plants.But he’s determined to win the war of words when it comes to a carbon cap – andthat means losing the lexicon attached to past climate battles. Gone, in theDemocrat’s mind, are the terms "cap" and "cap and trade," which are synonymouswith last June’s House-passed climate bill as well as other existingenvironmental policies for curbing traditional air pollutants. In their placeare new slogans recommended by prominent pollsters (and even a neuroscientist)that Reid and allies hope they can use to overcome the long-shot prospects forpassing climate legislation."

Quick TicketHome: Freshman Dem Senator’s Come out in Support of a National Energy Tax. TheHill (7/16) reports, "Freshmen Senate Democrats are pushing legislationthat prices industrial greenhouse gas emissions as part of a broader package ofenergy and climate initiatives. All 12 in the current freshmen Democratic class- in a letter to Senate Majority Leader Harry Reid (D-Nev.) Friday – say aprice on carbon emissions is needed in order to provide market certainty andkeep pace with major developing countries like China and India. Their call fora "polluter pays" approach to climate change echoes that of Democratic leaderslooking to strike a deal on a first-time carbon-pricing program focusing onelectric utilities. Environmental groups and electric utility companies havebeen meeting to try to reach a consensus that could be used by SenateDemocratic leaders as a way to attract centrists in both parties. The Senatefreshmen do not specify the scope of a carbon cap but they do address concerns thathave been raised by manufacturers and other major industrial electricityconsumers about a utility-focused plan raising their production costs andsending jobs overseas."

Why rewrite agood Headline?  "Obama using oil spill to impose an energy tax." Senate Republican Leader MitchMcConnell writes (7/19) in the LexingtonHerald Leader. "The July 7 editorial hitsprecisely the wrong note once again. The tragedy of the gulf oil spill demandsthat our government’s top priority must be stopping the leak and cleaning upthe damage it has caused. But this paper, along with President Barack Obama andthe liberal Democrats who control Washington, see it as a chance to jam througha new national energy tax that has been at the top of liberals’ wish list foryears – long before the Deepwater Horizon exploded and sank. Most Americansknow that this national energy tax – sometimes called "cap and trade"- will hit them every time they fill up their car or flip a switch to turn on alight bulb. And because Kentucky is rich in coal and other natural resources,most Kentuckians understand that a national energy tax will hit our state muchworse than most. But you don’t have to take my word for it. Take it fromKentuckians in every corner of the state, urban and rural, Republican andDemocrat, those directly impacted and those who would feel it indirectly aswell: A national energy tax would hurt their livelihoods, their businesses andtheir families."

New Report:Alaska Dept. of Environmental Conservation Denial of "Open Burn" Permits in ’89Valdez Accident Compounded Enviro. Damage.  Petroleum News(7/18) reports, "Exxon Corp. wanted to burn freshly spilled oil from the 1989tanker spill in Prince William Sound, but a slow response by the AlaskaDepartment of Environmental Conservation blew the opportunity to destroy almostall the oil and save thousands of birds and animals and 1,300 miles of pristineshoreline. "We wanted to burn it, and use dispersant around the edges," said along-time, reliable Petroleum News source who was working for Exxon in Alaskaat the time and has only recently agreed to go on the record. But in order toburn the oil Exxon needed an open burn permit from the Alaska Department ofEnvironmental Conservation, or ADEC. The longer the oil was exposed to thewater, however, the harder it would be to burn. Time was of the essence. PrinceWilliam Sound weather was known for being finicky and brutal. Weather reportsshowed a storm moving in. Exxon was in a race against the clock and the clouds.It asked ADEC for a permit to burn all the spilled oil. Rather than issuing anopen burn permit, ADEC Commissioner Dennis Kelso, part of Democrat Gov. SteveCowper’s administration, demanded Exxon conduct a test burn to demonstrate theeffectiveness of in-situ burning. "Kelso required test burning; Exxon did itand it worked," the source told Petroleum News in a June 2010 interview."