American Gas Association, 1 David E. Holt, CEA Grassroots Effort During the MMS 2007-2012 5-Year OCS Program What it Means for New U.S. Energy Supplies.

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


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


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


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




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


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


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


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


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)


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


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


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


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


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


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


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


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


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


Affiliates & Supporters Affiliates & Supporters …and growing rapidly…and growing rapidly

SoutheasSoutheast Energy t Energy AllianceAlliance


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

American Gas Association, 1 David E. Holt, CEA Grassroots Effort During the MMS 2007-2012 5-Year OCS Program What it Means for New U.S. Energy Supplies.

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