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David E. Holt, CEA American Gas Association, 1
Grassroots Effort Grassroots Effort During the MMS 2007-2012 During the MMS 2007-2012
5-Year OCS Program5-Year OCS ProgramWhat it Means for New U.S. Energy What it Means for New U.S. Energy
SuppliesSupplies
David E. HoltDavid E. HoltExecutive DirectorExecutive Director
American Gas Association’s 2007 Public Affairs and American Gas Association’s 2007 Public Affairs and Marketing Communications ForumMarketing Communications ForumSawgrass Marriott Resort & Spa Sawgrass Marriott Resort & Spa
Ponte Vedra Beach, FL Ponte Vedra Beach, FL
April 12 – 14, 2007April 12 – 14, 2007
David E. Holt, CEA American Gas Association, 2
Presentation OverviewPresentation Overview Ongoing Energy ImplicationsOngoing Energy Implications Oil & Natural Gas in the OCSOil & Natural Gas in the OCS OCS 5YP Grassroots OCS 5YP Grassroots
CampaignCampaign UnprecedentedUnprecedented Support Support
Consumer Energy AllianceConsumer Energy Alliance Building Relationship/Dialogue with Building Relationship/Dialogue with
Consumers & End-UsersConsumers & End-Users Improving CommunicationsImproving Communications
David E. Holt, CEA American Gas Association, 3
Energy ImplicationsEnergy Implications
U.S. Consumers paid billions more in 2005 U.S. Consumers paid billions more in 2005 for increased transportation fuel costs for increased transportation fuel costs
Higher fuel prices cost U.S. commercial air Higher fuel prices cost U.S. commercial air carriers $9.6 billion in fiscal year 2005 carriers $9.6 billion in fiscal year 2005
During 2003/2004 seasons, U.S. farmers During 2003/2004 seasons, U.S. farmers paid $6 billion for energy-related expenses paid $6 billion for energy-related expenses – 41% increase from previous years– 41% increase from previous years
High energy prices (particularly natural High energy prices (particularly natural gas) have cost the economy 2.8 million U.S. gas) have cost the economy 2.8 million U.S. jobs since 2000jobs since 2000 Since 2004, high energy prices have slowed Since 2004, high energy prices have slowed
U.S. economic growth by 0.5 to 1.0 percentU.S. economic growth by 0.5 to 1.0 percent
David E. Holt, CEA American Gas Association, 4
Policies Adverse to Policies Adverse to O&G Companies Has O&G Companies Has Global ImpactGlobal Impact
Most NOCs use their Most NOCs use their national oil wealth to national oil wealth to develop state develop state authorityauthority
Real Giants – XOM Real Giants – XOM barely cracks top 15barely cracks top 15
Dominant suppliers Dominant suppliers risk weakening their risk weakening their leverage if over-usedleverage if over-used
National Oil Politics National Oil Politics increasingly focused increasingly focused on Energy Securityon Energy Security Venezuela, RussiaVenezuela, Russia
David E. Holt, CEA American Gas Association, 5
David E. Holt, CEA American Gas Association, 6
David E. Holt, CEA American Gas Association, 7
OCS Access Provides OCS Access Provides Universal Benefits for All Universal Benefits for All
SectorsSectors Conservative estimates from MMS indicate 288 trillion Conservative estimates from MMS indicate 288 trillion cubic feet of natural gas and 52 billion barrels of oil in cubic feet of natural gas and 52 billion barrels of oil in the OCS off the lower 48 states the OCS off the lower 48 states This is enough oil to maintain current oil production for This is enough oil to maintain current oil production for
105 years and current natural gas production for 71 105 years and current natural gas production for 71 yearsyears
That is enough oil to produce gasoline for 132 million That is enough oil to produce gasoline for 132 million cars cars and and heating oil for 54 million homes for 15 yearsheating oil for 54 million homes for 15 years
It is enough oil to replace current imports from the It is enough oil to replace current imports from the Persian Gulf for 59 yearsPersian Gulf for 59 years
That is enough natural gas to heat 72 million homes for That is enough natural gas to heat 72 million homes for 60 years, 60 years, OROR to supply current industrial and commercial to supply current industrial and commercial needs for 28 years needs for 28 years OROR to supply current electricity to supply current electricity generating needs for 53 yearsgenerating needs for 53 years
And, that is before the Alaska OCS is considered with And, that is before the Alaska OCS is considered with additional resources of 132 trillion cubic feet of additional resources of 132 trillion cubic feet of natural gas and over 26 billion barrels of oilnatural gas and over 26 billion barrels of oil
David E. Holt, CEA American Gas Association, 8
OCS 5YP Grassroots OCS 5YP Grassroots ObjectivesObjectives
To maximize offshore accessTo maximize offshore access
To build a strong record of support in favor To build a strong record of support in favor of a robust 5-Year Planof a robust 5-Year Plan
To enhance dialogue with To enhance dialogue with government and government and community stakeholderscommunity stakeholders
To balance the record for To balance the record for U.S. accessU.S. access
David E. Holt, CEA American Gas Association, 9
OCS 5YP Strategic OCS 5YP Strategic PrioritiesPriorities
Business & Consumer Business & Consumer Groups (Local Chambers & Groups (Local Chambers & Business Associations)Business Associations)
Military/Veterans GroupsMilitary/Veterans Groups
Transportation, Tourism & Transportation, Tourism & TravelTravel
Targeted Local Citizenry Targeted Local Citizenry from Specific Statesfrom Specific States
Academia & Think TanksAcademia & Think Tanks
Federal & State Federal & State RepresentativesRepresentatives
Organize State-Specific Organize State-Specific CampaignsCampaigns
Ensure Comments & Repeat Ensure Comments & Repeat CommentsComments
Energy ConsumersEnergy Consumers
Coordination with Targeted Coordination with Targeted Stakeholder/Community Stakeholder/Community OutreachOutreach
Editorial Boards/Letters to Editorial Boards/Letters to the Editorthe Editor
David E. Holt, CEA American Gas Association, 10
Aggregate of all Comment Aggregate of all Comment Periods Periods
Shows Great SupportShows Great Support
AGAINST 32,854 (27%)
IN FAVOR 90,855 (73%)
IN FAVOR
AGAINST
90,855 total positive comments (73%)90,855 total positive comments (73%) 32,854 total negative comments (27%)32,854 total negative comments (27%) 123,709 total comments, in all123,709 total comments, in all
David E. Holt, CEA American Gas Association, 11
Increased Participation atIncreased Participation atEvery Stage of ProcessEvery Stage of Process
FOR, 8,998
(80%)
AGAINST 2,276 (20%)
FOR
AGAINST
FOR, 26,966 (69%)
AGAINST 12,267 (31%)
FOR
AGAINST
AGAINST 18,365 (25%)
FOR, 54,891 (75%)
FOR
AGAINST
• Oct: 11,274 (80% positive = 8,998)Oct: 11,274 (80% positive = 8,998)• Apr: 39,223 (69% positive = 26,966)Apr: 39,223 (69% positive = 26,966)• Nov: 73,256 (75% positive = 54,891)Nov: 73,256 (75% positive = 54,891)
David E. Holt, CEA American Gas Association, 12
Improved Participation by Key Improved Participation by Key StatesStates
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
AK FL LA TX NC VA
Oct. 05
Apr. 06
Nov. 06
Significant improvement in each of 5 selected priority Significant improvement in each of 5 selected priority statesstates
Exception: VirginiaException: Virginia
David E. Holt, CEA American Gas Association, 13
Aggregate CommentsAggregate Comments
Industry:Industry: 38,00038,000 60 Plus: 60 Plus: 22,00022,000 Consumer Energy Alliance: Consumer Energy Alliance: 11,00011,000 Other: Other: 21,00021,000
0
5000
10000
15000
20000
25000
30000
35000
40000
Industry: 60 Plus: CEA: Other:
Aggregate Comments: Est of Positive Comment SourceTotal Positive Comments: 91,000
David E. Holt, CEA American Gas Association, 14
Significant Grassroots Significant Grassroots SupportersSupporters Trade AssociationsTrade Associations
APIAPI AGAAGA U.S. Oil & Gas U.S. Oil & Gas AssnAssn
NOIANOIA ACCACC NAMNAM IPAAIPAA Forest & PaperForest & Paper IECAIECA DPCDPC
CompaniesCompanies ShellShell MarathonMarathon MurphyMurphy DevonDevon BPBP Exxon MobilExxon Mobil AnadarkoAnadarko ChevronTexacoChevronTexaco
Affiliated GroupsAffiliated Groups 60 Plus60 Plus Frontiers for FreedomFrontiers for Freedom BIPACBIPAC American Conservative UnionAmerican Conservative Union Freedom WorksFreedom Works Partnership for America Partnership for America
Consumers/End-UsersConsumers/End-Users Consumer Energy AllianceConsumer Energy Alliance Farm Bureaus (NC, CO, VA)Farm Bureaus (NC, CO, VA) Ag-Energy AllianceAg-Energy Alliance Affiliated Industries of FloridaAffiliated Industries of Florida U.S. Chamber of CommerceU.S. Chamber of Commerce Alaska Support Industry AllianceAlaska Support Industry Alliance
David E. Holt, CEA American Gas Association, 15
Grassroots Priorities for Grassroots Priorities for 20072007
Capture Momentum of 5YP & Gulf BillCapture Momentum of 5YP & Gulf Bill
Federal LegislationFederal Legislation
State Initiatives (SC, GA, resolutions)State Initiatives (SC, GA, resolutions)
Onshore Access IssuesOnshore Access Issues
Adequately Fund Federal AgenciesAdequately Fund Federal Agencies
David E. Holt, CEA American Gas Association, 16
Consumer Energy AllianceConsumer Energy Alliance
Examining the Ups & Downs of Examining the Ups & Downs of Our Industry’s Communication Our Industry’s Communication StrategiesStrategies
CustomersCustomers Federal/State OfficialsFederal/State Officials
David E. Holt, CEA American Gas Association, 17
MissionMissionConsumer Energy Alliance supports thoughtful utilization of Consumer Energy Alliance supports thoughtful utilization of all domestic energy resources to help ensure domestic all domestic energy resources to help ensure domestic energy security and reduce prices for consumersenergy security and reduce prices for consumers
Our mission:Our mission: improve consumer understanding of energy security and the improve consumer understanding of energy security and the
thoughtful development and utilization of energy resourcesthoughtful development and utilization of energy resources help create sound energy policy and maintain stable energy help create sound energy policy and maintain stable energy
prices for consumersprices for consumers
Our goal:Our goal: to motivate and provide a voice for consumers interested in vital to motivate and provide a voice for consumers interested in vital
public issues, including:public issues, including: responsible access to available natural resources; responsible access to available natural resources; power generation; power generation; impact of energy prices on business, agriculture and impact of energy prices on business, agriculture and
consumers; consumers; development of a robust, domestic renewable energy development of a robust, domestic renewable energy
industry; industry; and utilization of new technologies that allow for higher and utilization of new technologies that allow for higher
levels of energy efficiency and conservationlevels of energy efficiency and conservation
David E. Holt, CEA American Gas Association, 18
FormationFormation
Non-Profit 501(c)(6), created because:Non-Profit 501(c)(6), created because:
Long history of haphazard dialogue Long history of haphazard dialogue with general public and public with general public and public policy officialspolicy officials
Decade-long failure to enact Decade-long failure to enact substantive U.S. Energy Policysubstantive U.S. Energy Policy
Volatile energy prices = Volatile energy prices = inconsistent media responseinconsistent media response
Need to improve dialogue on near- Need to improve dialogue on near- and long-term domestic energy and long-term domestic energy solutionssolutions
David E. Holt, CEA American Gas Association, 19
BackgroundBackground Officially formed in early 2006Officially formed in early 2006 Successful efforts to build Successful efforts to build
support for expanded U.S. support for expanded U.S. productionproduction
Website dedicated to providing Website dedicated to providing non-partisan information on all non-partisan information on all energy resourcesenergy resources
Energy/Consumer SeminarsEnergy/Consumer Seminars Educational & Outreach EffortsEducational & Outreach Efforts
Conservation GroupsConservation Groups End-UsersEnd-Users Small Business & ConsumersSmall Business & Consumers
David E. Holt, CEA American Gas Association, 20
Board of AdvisorsBoard of Advisors
• Cathy BarnetteCathy BarnetteExecutive DirectorExecutive DirectorAlabama Coastal FoundationAlabama Coastal Foundation
• Jack BelcherJack BelcherGovernment Affairs & Government Affairs & Communications ManagerCommunications ManagerShell Exploration & ProductionShell Exploration & Production
• George Bialecki, Jr.George Bialecki, Jr.President and FounderPresident and FounderAlternative Energy Builders, Inc.Alternative Energy Builders, Inc.Alternative Energy Living Alternative Energy Living FoundationFoundation
• Andrew C. BrowningAndrew C. BrowningDirector, Government RelationsDirector, Government RelationsMethanexMethanex
• Greg CohenGreg CohenPresidentPresidentAmerican Highway Users AllianceAmerican Highway Users Alliance
• Bill ConnorsBill ConnorsExecutive Director & COOExecutive Director & COONational Business Travel National Business Travel AssociationAssociation
• Milton R. Copulos (USA Ret.)Milton R. Copulos (USA Ret.)PresidentPresidentNational Defense Council National Defense Council FoundationFoundation
• Heather McTavish DoucetHeather McTavish DoucetDirectorDirectorInternational Foodservice International Foodservice Distributors AssociationDistributors Association
• Mary DavisMary DavisChief Operating Officer, retiredChief Operating Officer, retiredTime-Life, Inc.Time-Life, Inc.
• Tommy FoltzTommy FoltzVice President, Earth BioFuels, Vice President, Earth BioFuels, Inc. Inc.
• Dr. Michelle Michot FossDr. Michelle Michot FossChief Energy Economist Chief Energy Economist Bureau of Economic GeologyBureau of Economic GeologyCenter for Energy Economics Center for Energy Economics University of Texas University of Texas
• Christine A. HansenChristine A. HansenExecutive DirectorExecutive DirectorInterstate Oil & Gas Compact Interstate Oil & Gas Compact CommissionCommission
• Don JuckettDon JuckettDirector, Geoscience and Energy Director, Geoscience and Energy Office, American Association of Office, American Association of Petroleum GeologistsPetroleum Geologists
• Glenn KramerGlenn Kramer Regulatory Affairs Manager, Hess Regulatory Affairs Manager, Hess CorpCorp
• Jim MartinJim MartinPresidentPresident60 Plus Association 60 Plus Association
• Todd McCrackenTodd McCrackenExecutive DirectorExecutive DirectorNational Small Business National Small Business AssociationAssociation
• Arthur MearsArthur Mears Executive DirectorExecutive DirectorCoast GuardiansCoast Guardians
• Thomas MoskitisThomas MoskitisDirector, External AffairsDirector, External AffairsAmerican Gas AssociationAmerican Gas Association
• Jan-Oddvar Sørnes, Ph.D.Jan-Oddvar Sørnes, Ph.D.Associate ProfessorAssociate ProfessorBodø Graduate School of Bodø Graduate School of Business, NorwayBusiness, Norway
• Todd ThornerTodd ThornerVice President, Business Vice President, Business DevelopmentDevelopmentForesight Wind Energy, LLCForesight Wind Energy, LLC
• The Honorable Frank W. The Honorable Frank W. WagnerWagner
Virginia State SenateVirginia State Senate• Thomas E. WilliamsThomas E. Williams
Vice President, Technology Vice President, Technology Division, Noble Corporation Division, Noble Corporation
•• Energy Industry (Upstream & Downstream) Energy Industry (Upstream & Downstream) •• Alternative Energy Alternative Energy •• •• Small Business Small Business •• Retirees Retirees •• Military Military •• Travel & Tourism Travel & Tourism •• Highway Users Highway Users ••
•• Trucking & Food Distribution Trucking & Food Distribution •• Home Builders Home Builders •• Restaurants Restaurants •• •• GeologyGeology •• Publishing Publishing •• Academia Academia •• Elected Officials Elected Officials
David E. Holt, CEA American Gas Association, 21
Affiliates & Supporters Affiliates & Supporters …and growing rapidly…and growing rapidly
SoutheasSoutheast Energy t Energy AllianceAlliance
David E. Holt, CEA American Gas Association, 22
Questions?Questions?
Contact InformationContact Information
David HoltDavid HoltConsumer Energy AllianceConsumer Energy Alliance
2211 Norfolk Street2211 Norfolk StreetSuite 614Suite 614
Houston, Texas 77098Houston, Texas 77098PH: 713-524-2388PH: 713-524-2388
[email protected]@consumerenergyalliance.org