Category: Blog (Page 1 of 10)

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!

Many thanks to all the readers of my column for your continued support and encouragement!!

I especially want to thank Western Oklahoma and Elk City, Ok. followers of the Facebook Page: America Needs America’s Energy. Of the over 11,000 followers as of this writing, Western Oklahoma/Elk City stand at number 3 in most supporters. The top ten cities by the number of followers are: 1. Oklahoma City, 2. Edmond, 3. Western Oklahoma/Elk City, 4. Chicago, 5. Atlanta, 6. New York City, 7. Los Angeles, 8. Memphis, 9. Miami, Fl., 10. Phoenix.

As Elk City and Western Oklahoma citizens are very aware of, the oil and gas industry is boosting the economy by providing jobs. The energy industry is an important economic driver for this Nation and that message needs to be told across the country as we “Create Together the People’s Energy Plan”.

For the upstream sector of the oil and gas industry, i.e. oil and gas extraction/drilling development, employment increased by over 60 percent or nearly 194,000 jobs during 2001 to 2011. The upstream energy sector makes up approximately one-fourth of the total oil and gas related employment.

What has contributed to the increase in employment? Hydraulic fracturing and horizontal drilling have served in great measure to the increase in employment.

Employment in 2012 nationwide, for example, showed a differing trend between the upstream and the US economy. Upstream employment continued to increase, averaging 24 percent higher compared with the 2008 US economic impact.

Upstream employment has increased over two times in many states with the largest increase in North Dakota and Pennsylvania. With the activity in the Bakkan trend, North Dakota went from 1,500 jobs in 2001 to close to 10,000 jobs in 2011. In Pennsylvania, upstream employment jumped from 3,500 jobs in 2001 to over 17,500 jobs in 2011.

During the 2001 to 2011 timeframe, upstream employment results were: Oklahoma adding 22,600 jobs, Colorado adding 14,900 jobs, Wyoming adding 6,400 jobs and New Mexico adding 5,400 jobs.

The overall oil and gas onshore industry sector efforts resulted in US GDP of $321 billion in 2010. It is estimated that federal, state taxes, royalty payments, leases bonuses and other payments totaled $69 billion in 2010. The Oklahoma energy industry has accounted for over 50 billion dollars of Oklahoma’s State Product.

The Oklahoma energy workforce has provided over the last several years, nearly $1 billion in annual gross production taxes alone.
By 2015, IHS CERA forecasts that shale and other unconventional resources will be responsible for 2.5 million jobs, increasing to 3 million by 2020.

Bottom-line, U. S. Energy Independence Means Jobs, Security and Economic Development.
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!

The pressure is mounting for US oil and gas companies. The oil and gas industry is creating jobs, and boosting the economy but is being faced with outside forces willing to shut-down the entire oil and gas sector.

As I have stated time and again, America Needs America’s Energy and the US must have the goal of energy efficiency and environmental preservation. There must be a balance between energy development and environmental preservation.

General Electric has committed $125 million to the building of GE’S Global Research Oil and Gas Technology Center. This center will commit to introducing innovations, improving the environment through research and enhancing oil and gas development through technological advancement.

The oil and gas industry with the support of companies like GE are providing a more secure energy future. Both are leading the efforts for energy and environmental stability and strong economic development.

General Electric sees the importance of the oil and gas industry to America’s Energy Future! GE will be working closely with oil and gas companies and universities.

Another challenge facing the US energy industry is the present Administration’s efforts to slow down the US coal industry. OG&E, for example, has announced that it plans to convert two of its three plants from coal to natural gas.

It doesn’t look like the US coal industry is going away any time soon even though the Environmental Protection Agency recently introduced the plan of cutting emissions from coal/power plants 30% by 2030. The coal industry continues to raise money for investments in the US and abroad.

Unnecessary regulations and legislation will only slow down a much needed energy sector. Coal seems to be the main target. However, natural gas will also be targeted.

This past January, a warning went out that it was important that reduction of electric usage was needed in Texas. The risk of power outages was strongly possible. According to an article by award-winning journalist Loren Steffy, “in January, power plants unexpectedly went offline when the State of Texas needed them most. This time blackouts were averted, but barely”. He goes on to state, “as the threat of rolling blackouts in winter and summer demonstrates, Texas isn’t producing enough electricity to meet our needs”.

A strong energy industry means more jobs, and a more secure economy. A balance between energy and the environment is needed. The US energy industry is leading that effort in a positive way.

The US needs to become less dependent on foreign oil, protect the environment, and strive for energy efficiency.

It is time we come together. It is very important that the US be in a strong position of securing energy reserves within its own boundaries.

Please let me know what you think, go to www.peoplesenergyplan.com
Facebook: America Needs America’s Energy, with 11,000 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

Today, July 4th, we celebrate America’s Independence! The oil and gas industry is working toward being less dependent on foreign oil.

As Chairman of People to People International (PTPI), www.ptpi.org, from 2009 to 2013 and as Acting CEO last summer, I had the honor of working with Mary Eisenhower, granddaughter of former US President Dwight Eisenhower and CEO/President of PTPI. Mary shared her views and vision about US energy in a letter addressed to the 20th Annual International Energy Policy Conference in 2012:

“Energy is more than an ‘American issue.’ Energy is a global issue, as we are all interconnected. It is the topic at hand, whether we are discussing the future of America’s energy needs, or following the United Nations Human Development Index, which many of you know relates quality of life with access to energy. As James Conca shared in Forbes, ‘The world will not be rid of poverty, war, or terrorism until almost everyone on Earth is in the middle class. And that requires energy.’ We are all in this together!

Conca further stated, ‘That energy use is one of the most accurate indicators of what is considered prosperity and happiness is a powerful concept. Even more important to national security is that energy use trends with life span, peace, and democracy.’ Conca’s view is that it is ‘unethical and unjust, as well not in our national security interests, not to ensure that the rest of humanity achieves prosperity and long life.’

As we explore the future of energy, I hope that you will remember that point: we are all interconnected. When my grandfather, US President Dwight D. Eisenhower, gave his famous, ‘Atoms for Peace’ speech in 1953, the topic was atomic warfare. He said, ‘Occasional pages of history do record the faces of the ‘great destroyers’, but the whole book of history reveals mankind’s never-ending quest for peace and mankind’s God-given capacity to build. It is with the book of history, and not with isolated pages, that the United States will ever wish to be identified. My country wants to be constructive, not destructive. It wants agreements, not wars, among nations. It wants itself to live in freedom and in the confidence that the peoples of every other nation enjoy equally the right of choosing their own way of life.’ So whether we are facing the specter of atomic warfare in the 1950s or the future of natural gas today, it is you, the innovators and the visionaries, who will ensure a brighter future for all.

In my role as People to People International’s President and Chief Executive Officer, I have the great pleasure of working to connect people of all countries and cultures. Granddad believed that ‘peaceful relations between nations require understanding and mutual respect between individuals.’ It takes each of us, working together, to combat misperceptions, and it will take each of us, working together, to address the issues of energy in America and beyond. We owe it to ourselves and to each other to address these needs in terms beyond today. The future won’t wait!”

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

Facebook: America Needs America’s Energy, with 11,000 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

I recently entered the Oklahoma Department of Commerce building to attend a Governor’s International Team meeting and noticed a poster that was in the entry. The first words at the top of the poster grabbed my attention: oil, natural gas, wind, and unconventional resources. I stopped to read further.

There was a lot of information on the poster. Most of the statistics I was aware of but the poster properly highlighted Oklahoma as an American leader:

Oklahoma is the 4th-largest producer of natural gas in the US, it has the largest number of CNG filling stations in the US per capita, natural gas accounts for more than 80% of the energy produced in the State.

The State is the 5th-largest producer of crude oil in the US, it has five refineries, producing 3% of the total US refined oil capacity (500,000 barrels per day), it is eighth in the US in terms of total energy production, and it has the largest oil storage facility in the world.

Oklahoma’s geothermal industry employs 4200 Oklahomans. The State is home to the International Ground Heat Pump Association.

Oklahoma is fifth for total new capacity, 8th for existing capacity, and 7th in net electricity generation from wind.

I went through my files at the office and found other information about Oklahoma’s impact on the economy.

In an Oklahoma Energy Resources Board report, as an example, in 2011 alone “nearly $1 billion in direct gross production tax payments, including $504 million in oil gross production taxes and another $459 million in natural gas gross tax payments, $2.35 billion in federal personal income tax payments, $700 million in state personal income tax payments, $563 million in state sales tax payments, and $503 million in local sales tax payments”.

“Direct output from the industry is estimated to be just more than $35 billion ($30 billion from the production side and $5 billion in drilling). In order to generate $35 billion in output, the industry purchases inputs from supporting industries, employs more than 83,000 workers and pays more the $9.4 billion in labor income.”

America, and for that matter, Oklahoma, is and needs to take the lead in energy leadership for us to achieve energy security. Throughout the speeches I make around the country, I state my belief that America should be the center for energy excellence because the world needs our expertise. We cannot afford to continue to rely on foreign nations that don’t consider us friends to fulfill our energy needs or miss the opportunity to create a forward-thinking infrastructure that will support the American way of life.

Go to www.peoplesenergyplan.com to join the effort.

Facebook: America Needs America’s Energy with over 10,700 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!

On the front cover of the May 22, 2014 Wall Street Journal the caption reads “Leaders of China and Russia Drink to Momentous Gas Deal” with a picture of Chinese President Xi Jinping and Russian President Vladimir Putin toasting.

As I mentioned in a column a few weeks ago, Russia has an abundance of oil and natural gas reserves. China needs those reserves.

Russia is flexing its muscles. It appears that it is working towards world dominance in energy.

However, it should not be ignored as to where the final deal was signed. It was signed in Shanghai, China. Through this deal, China is sending a message to the West that it is the real power in its view.

Even with the sanctions in place from the US against Russia, Russia continues to team up with China, marching onward with their Plan(s).

In the meantime, what is Our Plan? More legislation, more regulation?

As I have stated, “future generations are depending on us to keep the American dream alive.”

“For too long we in America have been wasting time blaming the energy industry or the government for failure to adopt a national energy strategy when we should be responsible for creating the plan. As consumers of energy, we must drive the process, evaluating how we can best leverage our natural resources here at home to ensure long-term energy sustainability and security. “

“American citizens must take individual responsibility for the state of this great nation, striving to protect the land we call home. Our national security has long been one of the assets we cherish, and we cannot afford to continue relying on foreign nations to fulfill our energy needs or miss this opportunity to create a forward-thinking infrastructure that will support the American way of life.”

Therefore, the US has the immediate challenge of striving for the creation of the People’s Energy Plan! The message is clear: America Needs America’s Energy! Together we can create the People’s Energy Plan!

Men and women serving in the US military have greatly sacrificed over the years so that we could have energy to drive our cars, watch television, listen to the radio, and provide us energy security. Today, men and women serving our country are sacrificing for our energy needs, even though we have not had a strategic energy plan in place for sixty years.

It is extremely important that the US be in a strong position of securing energy reserves within it own boundaries. The US must build stronger relationships with its neighbors and its allies as well. We need an aggressive plan. Russia and China definitely have plans in action. The US needs energy security. America Needs America’s Energy! It’s Time to Act!

Go to www.peoplesenergyplan.com to join the effort.

Facebook: America Needs America’s Energy with over 10,600 supporters plus and growing. — America Needs America’s Energy: Creating Together the People’s Energy Plan!