Author: GTD Group (Page 1 of 23)

Over the past several weeks, I have been presented questions regarding energy issues. I share some of the questions and my answers with you:

Do you really believe that Mexico will effectively privatize its energy sector?
We need to hope that Mexico is successful in privatizing its energy sector. Since 1938, Mexico has been under strict governmental guidelines with no privatization in place. Over the past several years, there has been an oil production decline in Mexico. Mexico has strong potential to enhance oil and gas production by the support of US technology alone. Mexico’s energy security only means a more secure North America.

How can “I” be involved in our energy future?
As I state in my book, America Needs America’s Energy: Creating Together the People’s Energy Plan”, the first step we can take is to conduct a self-audit of our own personal energy use. In my book, I provide forms. The idea is create your own personal energy plan for several years ahead. For instance, your goal for 2015 may be to convert your car to CNG. At the end of each year, you can check to see if you have met your goals. If not, you can either adjust your goals for the next few years or list the steps needed to achieve your personal energy goals in the future. You may want to include others in this initial planning stage, such as your family, your company, or your organization.

Is it that important that America becomes energy independent?
Our national security has long been one of the most important assets we cherish. Today, nothing in America moves without energy, but the definition of energy security isn’t confined to fuel for transportation. It also extends to power generation. To be independent means not just avoiding foreign oil, but creating a forward-thinking infrastructure that provides for our lifestyle needs. Energy security ensures we have the reliable energy sources to meet our needs that are available within our own country. By aiming forward to energy independence, we will lead our country to economic prosperity and energy security.

Is it still possible that there will be a future “hydrogen economy?”
How fast we will move forward towards a hydrogen economy is yet to be seen. The Energy Policy Act of 2005 authorized more than $2 billion for a hydrogen fuel cell program by 2020. Hydrogen is used presently to power commercial buses, and hydrogen is used in many commercial applications for welding metal, to dying fabrics, to making electronic plastics and fertilizers.

As I stated in my book, America Needs America’s Energy, hydrogen pros: it burns cleanly, can be quickly refueled, is the most abundant element on the planet and is twice as efficient as gasoline. The hydrogen cons: a large quantity of energy is required to produce it for energy, there is no significant infrastructure, and few refueling stations for hydrogen-powered cars.

It is critical to realize that natural gas (CH4) will be an important factor when we enter the hydrogen economy.

It is time we come together! The US has the immediate challenge of striving for energy independence. It is extremely important that the US be in a strong position of securing energy reserves within its own boundaries. America Needs America’s Energy!

Please let me know what you think, go to www.peopleseenergyplan.com Facebook: America Needs America’s Energy, with 12000 supporters and counting. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

In 2008 former Speaker of the House Newt Gingrich broke ground in this book, Drill Here, Drill Now, Pay Less, noting, “America is suffering from an artificial energy crisis that is also a dangerous national security crisis—artificial because America is gifted with enormous reserves of energy.” In 2011 President Clinton took up the topic in Back to Work, insisting, “The surest way to create jobs, cut costs, enhance national security, cut the deficit by up to 50 percent, and fight global warming is to change the way we produce and consume energy”.

So the dialogue continues and the United States still does not have a strategic plan. From President Nixon in the 70s to President Obama, we have been told time and again that an energy policy is in the works and a national energy plan is on the way. Instead, we seem to see more regulations and more legislation.

For the first thirty years of my thirty-seven year career in the energy industry, very little serious attention was paid by the media or government officials to energy policies and issues. Today, the media is covering energy issues daily if not hourly, but still no plan.

Our national security has long been one of the most important assets we all cherish. Nothing in America moves without energy and the definition of energy security extends to transportation and power generation.

I recently made remarks at President Eisenhower’s Library/Museum in Abilene, Kansas and had opportunity to tour the museum. As part of the exhibits, was President Eisenhower’s contribution of the interstate highway system. If not for President Eisenhower back in the 1950s to construct this massive infrastructure, the road system we so heavily rely on today wouldn’t exist. We need vision and we need to develop a strategic energy “highway” plan.

In Hillary Clinton’s recent book, Hard Choices, she states, “where US leadership is most needed—is energy. Many of the international challenges I dealt with over my four years directly or indirectly sprang from the world’s insatiable hunger for energy and the shifting dynamics created by new sources and supplies coming online” and she goes on to say “natural gas (which isn’t perfect but is cleaner than coal) could help us slow the effects of climate change.”

Dr. Ben Carson in his most recent book, One Nation, states “several administrations have talked about the importance of energy independence…it is estimated that the amount of oil in the Dakotas and Montana is eight times greater than the amount of oil in Saudi Arabia. Yet the EPA has made it difficult for us to take advantage of the enormous amounts of shale oil available in that part of our nation.” He states, “I thoroughly believe that we have a duty to protect our environment not only for ourselves but the next generations. However, we also have the duty to develop our economic potential and free ourselves of unnecessary stress and dependency on volatile foreign sources of energy.”

It is time we come together. The US has the immediate challenge of striving for energy independence. It is extremely important that the US be in a strong position of securing energy reserves within its own boundaries. America Needs America’s Energy!

Please let me know what you think, go to www.peopleseenergyplan.com Facebook: America Needs America’s Energy, with 12000 supporters and counting. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

Several weeks ago, I addressed the issue of US oil exports. I referenced the 1973-74 embargo which sent a shock throughout the world with production being cut along with shipments to the US.

One of the items in force since and because of the Arab embargo is the ban on exporting US crude oil. Keep in mind, during the 1970s, the US consumption began to outstrip production, and America started importing more oil than it produced. Just six years ago, pre-Bakken oil and US oil shale plays, it was projected that oil production in the US would likely continue its downward trend. At that time the US imported over 60 percent of the needed oil for consumption. Thanks to technological advancements, there is a new energy horizon.

Today, US oil production is increasing therefore many energy producers want to see the ban on exports lifted. The Oklahoma Independent Petroleum Association (OIPA) is leading the effort for the “case for crude oil exports”.

Royalty owners alone will greatly benefit from American crude oil exports according to the OIPA, including:

“1) The lifting of artificial trade barriers for domestic crude would encourage American oil and natural gas exploration and production, benefiting the nation’s estimated 12 million mineral owners through additional royalty payments. 2) Across the country, crude oil production is climbing faster than our nation’s refining ability. Allowing crude oil exports would allow American oil production to continue to explore for and produce US oil. 3) Removing export restrictions would encourage crude oil exploration in vast areas of the country where oil and natural gas resources have yet to be developed. 4) America is already a net exporter of refined petroleum products, including gasoline. 5) By allowing crude exports, American oil producers will be able to access additional global refining capacity, increasing the availability of gasoline and diesel fuel in the global market and pushing consumer prices down.”

Adam Sieminski, EIA (Energy Information Administration) administrator voiced his opinion regarding US oil exporting stating “I’m not sure we should just automatically assume that would be bad….it might actually be a way to grow the economy, create jobs, and ultimately help reduce prices.” The EIA states that domestic oil production is expected to increase from 6.5 million barrels per day last year to 8.2 million per day by the end of 2014.

As the OIPA states “limitations in the country’s refining capacity and outdated laws that restrict exports of domestically produced crude will make the energy renaissance unsustainable unless action is taken by the federal government. America must ensure this opportunity for continued growth remains by lifting oil export restrictions.”

It is time we come together. The US has the immediate challenge of striving for energy independence. It is extremely important that the US be in a strong position of securing energy reserves within its own boundaries. America Needs America’s Energy!

Please let me know what you think, go to www.peopleseenergyplan.com Facebook: America Needs America’s Energy, with 12000 supporters and counting. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

Seismicity is defined in the dictionary as the frequency, intensity, and distribution of earthquakes in a given area also referenced as earthquake swarms. Central Oklahoma, where I now reside, is definitely meeting that definition.

As of this writing, there have been 21 earthquakes in Oklahoma in the past seven days. Most of the earthquake activity is located in central Oklahoma. In fact, Oklahoma has had several hundred earthquakes in the past year.

A question that is often addressed, “does hydraulic fracturing cause earthquakes?”

First, the history of hydraulic fracturing: Hydraulic fracturing was first commercially used over sixty years ago primarily for drilling conventional wells. Then in the late 90s the combination of hydraulic fracturing and horizontal drilling were introduced. According to The Horinko Group, “the process of hydraulic fracturing is used today in more than 90% of new oil and natural gas wells in the US. Industry estimates show that hydraulic fracturing has been applied to more than one million wells nationwide in thirty three states where oil and gas production occurs.”

The oil and gas industry has been providing information to the public that is clear and concise about the use of hydraulic fracturing. Two years ago, I stated in my book “America Needs America’s Energy: Creating Together the People’s Energy Plan” that hydraulic fracturing and/or horizontal drilling were probably not the cause of the earthquakes. Today, the focus is on injection wells. There is definitely the need for more research to determine if the earthquakes are by natural causes or may be man-made causes. The US oil and gas industry is taking a lead in supporting these research efforts.

It should also be kept in mind in the research effort that there have been earthquakes in Virginia and South Carolina where there is no oil and gas activity. There is also research being conducted on the comparison of increased activity in Oklahoma that occurred during the 1950s with today’s increased activity.

The public is demanding leadership. The US oil and gas industry is providing the leadership. It is good to see many oil and gas leaders stepping forward on this issue.

Economic development and national energy security are so very important to each of us. If there are indeed direct issues regarding water disposal wells the US oil and gas industry must and will work together to lessen the risks. In the meantime, America Needs America’s Energy and we must and will find ways to keep our young men and young women on American soil instead of protecting energy interests abroad.
I do not believe that moratoriums on drilling are answers. Disposal wells are an important part of the oil and gas industry’s success. The reusing of water is at the forefront. Therefore, limiting the use of fresh water in the hydraulic fracturing is essential.

The US oil and gas industry is using best practices regarding the environment. With the best practices, there are research needs and the sharing of the legal, technical and other areas for proper long term planning.

The Horinko Group states “Given the country’s resources and its technical capabilities for developing them, by 2035 the US shale gas industry is expected to support 1.6 million jobs, contributing more than $231 billion to GDP, and $57 billion in government revenues.”

The US oil and gas industry will work and is working to provide energy efficiency and environmental preservation. The US can’t afford to follow the path of Germany which has proposed to ban fracking until 2021. Our country and “Germany should not be at the mercy of Vladimir Putin, who repeatedly uses Europe’s energy dependence on Russia to the Kremlin’s advantage”, as a Wall Street Journal editorial stated. America must stay the course of achieving energy independence!

Please let me know what you think, go to www.peopleseenergyplan.com Facebook: America Needs America’s Energy, with 12000 supporters and counting. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

PricewaterhouseCoopers with the support of the National Association of Manufacturers released a report titled, “Shale Gas: A Renaissance in U. S. Manufacturing?” The report concluded that a strong national shale play effort could result in 1 million new manufacturing jobs by 2025.

The national shale play effort is already showing strong results for manufacturers. As I stated in one of my previous columns, Nucor, a manufacturer, proposed building a $750 million iron facility in Louisiana and announced a $3 billion joint venture with Encana for 20 years of access to its natural gas production. Mitsubishi proposed plans to build an acrylic-resin processing plant adjacent to one of Dow Chemical’s new ethylene plants. Fertilizer manufacturer CF Industries budgeted $2.1 billion to expand its fertilizer manufacturing operations. Formosa Plastics increased the size of the Texas ethylene plant. (American Oil & Gas Reporter)

It has also been reported that foreign based manufacturers are seeking to build operations in the US: Austrian steel manufacturer Voestalpine AG, South African energy company-Sasol plans to build a $11 billion plus gas-to-liquids plant in Louisiana, and Egyptian fertilizer manufacturer, Orascom plan to build a fertilizer facility in Louisiana.

March of 2013, I had the opportunity of meeting Jeff Immelt, head of GE, in Houston at Rice University’s annual Energy Directors Institute. He stated that GE was committed to strengthening the energy industry. In fact, a week later, it was great to hear about GE’s announcement of committing $110 million plus to an Oklahoma research center with the focus being the oil and gas industry.

GE states that “the energy industry needs technology to work in subsea oil fields, improve hydraulic fracturing techniques and transport oil around the world.”

The shale gas efforts in the US will need to obtain approximately $250 billion in capital expenditures in the natural gas, natural gas liquids, and oil midstream sectors over the next 20 years due to infrastructure needs. America can meet the challenge!

U. S. Energy Independence Means Jobs, Security and Economic Development And America Needs America’s Energy!

Please let me know what you think, go to www.peopleseenergyplan.com

Facebook: America Needs America’s Energy, with 11000 supporters and counting. — America Needs America’s Energy: Creating Together the People’s Energy Plan!