Energy Secretary: Confident U.S. Will Achieve Energy Independence

Outgoing Energy Secretary Ernest Moniz says the U.S. is in an “extraordinarily well-placed position” to achieve energy independence. In a wide-ranging interview with NPR’s Rachel Martin, Moniz highlighted that America is now the world’s leading producer of oil and natural gas and continues to make significant gains in renewable energy development.

“I do want to caution – we are not at the point where we produce as much energy as we use, so we still do have some oil imports,” Moniz said. “But we may reach that point in the next decade some time.”

The U.S. has made tremendous advances in domestic energy production that allow for the safe, efficient recovery of oil and gas resources. This modern day energy renaissance has also resulted in the need for critical upgrades to the infrastructure that transports these resources around the country. That is why projects like the Dakota Access Pipeline are so critical to establishing and maintaining energy independence.


Dakota Access Ensures Costs Remain Low For North Dakota Producers

In an article published in Bloomberg Businessweek, recently reviewed energy and economic analyses point to a significantly reduced cost to ship petroleum by pipeline rather than by railroad or truck. This is important because those few dollars difference in cost to energy companies directly relates to the opportunities for companies to expand operations and hire individuals from engineers to craft trades to develop the infrastructure necessary to develop North Dakota resources.

According to the article, “[u]nlike Texas, which has pumped oil for more than a century and is home to thousands of miles of pipelines, North Dakota never had a reason to build much energy infrastructure. As oil gushed out of remote areas miles from any town or pipeline, wildcatters, middlemen, and traders raced to get it out by truck, train, and barge. By 2015, 800,000 barrels of crude a day was being railed out of North Dakota. Moving oil by train costs a lot more than pumping it through a pipeline, but when world crude prices hovered around $100 a barrel—as they did for several years—there was enough profit to go around. Now that prices have fallen, those transportation costs have become critical. Refineries on the East Coast, once among the biggest buyers of Bakken crude, have reverted to importing foreign oil rather than paying to ship it halfway across the country.”

Despite the massive production available in North Dakota, the high cost of transportation has actually led some American refiners to import foreign oil, rather than use domestic supplies, because of the economic realities.

The key to closing that cost gap and reducing dependence is to construct the infrastructure necessary to make North Dakota oil economically viable for the long-term future. An important part of that infrastructure investment is the Dakota Access Pipeline.

According to data compiled from Valero and Bloomberg Intelligence, current costs to ship Bakken oil to refineries across the United States by rail can range as high as $10 per barrel – at roughly $50 per barrel, that’s 10% of the total price. The estimated cost of delivery of a barrel moved by the Dakota Access pipeline would fall to about $5 per barrel, creating long-term stability for producers, refiners, and ultimately, consumers.

With the development of the Dakota Access Pipeline, transportation costs would essentially be reduced by half. Imagine if you could shave 5% off the cost of a gallon of gas, and ensure that the gallon of gas wasn’t supporting a foreign government. Not only that, but by reducing the cost of transportation, opportunities for production increase allowing more North Dakotans the opportunity to work. Right now North Dakota’s major oil producing counties support on average approximately 10% of the state workforce, and that’s with only 38 oil and gas rigs operating in November of this year. Compare that to more than 200 rigs back in 2014.

Lean operation has made production more efficient, but reducing costs for producers allows for greater development and greater economic opportunity.


The Dakota Access Debate Has Grown Out of Proportion

The Washington Post recently published a supportive opinion editorial from former Senator J. Bennett Johnston (D-LA) and Daryl Owen of Owen Associates which examined how the protest and activity over the Dakota Access pipeline has grown of proportion.

From violent protest activity to millions of dollars of damage to equipment and even disturbing death threats to employees – the tactics being deployed against the project are unseemly and unnecessary.

In the column, Johnston and Owen highlight efforts of sabotage against operational pipelines across the country and the danger that such actions can create. They write that the protests are no longer about opposition to the project, but rather a new tool in the effort to stop the development and use of fossil fuels.

In addition to examining the true nature of the protest and the violence ensuing, Johnston and Owen highlight that, “[t]his is, after all, a pipeline project,” and not simply the first of which would cross the Missouri River – it would be one of dozens that do so carrying American energy products. The final piece of the puzzle, is as they say, “part and parcel of a river-crossing permit the pipeline has already received. It is a simple ministerial action authorizing the pipeline to cross beneath federal lands and, for want of a simple signature by an Army Corps bureaucrat, would finalize the process. By arbitrarily refusing to follow the law, the Justice Department has placed a lawfully permitted, vital $4 billion infrastructure project into suspended animation.”

The authors also note that the tribe who has sought to stall the project “largely refused to engage in [the] consultations” after much inquiry – a fact echoed by a federal court judge who reviewed the Army Corps findings and determinations. Johnston and Owen write that “there is much to be discussed and much to be regretted about the past 150 years of U.S.-tribal relations. But a real estate document for a pipeline river crossing seems hardly the pretext to do so.”

The Administration and Federal Government’s decision to withhold the final piece of multi-billion dollar project, in Owen and Johnston’s own words, it sends “a chilling message to the private sector about the rule of law as it relates to infrastructure development.”

It is simply unacceptable that the Federal Government has continued to delay the completion of this project – after all, their approval was already granted in July of this year. The fact remains, a single 1,000 foot section of an 1100 mile project, is currently held up by opponents who have already stated their mission is far greater than the Dakota Access Pipeline – but simply to withhold the development of America’s energy future.

 

 

 


Statements from Members of Congress on Corps Indecision and Further Delay of DAPL

North Dakota Senator Hoeven issued a strong rebuke yesterday evening on the Corps decision to further delay the Dakota Access Pipeline and acknowledged the careful examination of the project by the agency and need to approve the project immediately. In addition, House Natural Resources Chairman Rob Bishop indicated the facts surrounding the project have not changed and that it is time to approve the project.

Hoeven: Corps Should Issue The Dapl Easement And Resolve The Pipeline Situation In N.D.
U.S. John Hoeven, November 14, 2016

WASHINGTON – Senator John Hoeven today issued the following statement in response to the Army Corps of Engineers’ announcement that it will further delay issuing a final easement that would allow construction of the Dakota Access Pipeline to be completed:

“The Corps today announced it will further delay issuing an easement for the Dakota Access Pipeline. That will only prolong the disruption in the region caused by protests and make life difficult for everyone who lives and works in the area.

“U.S. District Judge James Boasberg ruled in September that the Corps has done its due diligence, and he allowed the project to proceed. Furthermore, the pipeline is sited in an existing right-of-way that already includes a natural gas pipeline and a high-voltage transmission line. The route has been altered 141 times to address sites of archaeological significance.

“The solution now is for the Corps to grant an easement for the project so that life can return to normal for our farmers, ranchers, tribal members and law enforcement officers, who have worked very hard to protect the lives and property of all. Further, I will continue to call on the Obama administration to provide federal resources and funding to help ensure public safety.”

The senator has been working to support state and local law enforcement efforts, which include bringing in additional law enforcement resources through EMAC, the Emergency Management Assistance Compact, so that people living in the region feel safe and private property rights are protected. Hoeven and the congressional delegation have also been working to bring federal resources to assist local law enforcement in their efforts to keep the peace and deal with the protests.

Bishop: Dakota Access Delays Jeopardize Future Infrastructure Investment and Development
House Natural Resources Committee, November 15, 2016

WASHINGTON, D.C., November 15, 2016 – Yesterday, the U.S. Army Corps of Engineers (USACE) announced they will begin another round of discussions and analysis on the Dakota Access pipeline (DAPL) project with the Standing Rock Sioux Tribe, Energy Transfer Partners and Dakota Access, LLC. Chairman Rob Bishop (R-UT) issued the following statement:

“From the beginning of this controversy, the Obama administration exploited Native Americans to advance an obstructionist and radical environmental agenda.

“The facts haven’t changed. The route was approved the first time around after an exhaustive permitting process under the established regulatory framework, including the Mineral Leasing Act. The president’s increasingly autocratic interventions create massive uncertainty that jeopardizes future infrastructure investment and development. This is a mockery of our constitutional system and beyond the pale for any administration. Americans are counting down the days until we can return a semblance of certainty and professionalism to the federal government’s permitting process.”


Statements from Associations and Unions on Corps Further Delay of DAPL

A chorus of voices continue to decry and demand the approval the Dakota Access Pipeline following the Corps decision to further delay a project that has already been extensively reviewed and approved by four state agencies and the federal government. Statements from the NAM, API, IUOE, and AOPL are included below.

Americans Have Demanded Change: Manufacturers Respond to President’s Decision on DAPL
National Association of Manufacturers, November 14, 2016

National Association of Manufacturers (NAM) President and CEO Jay Timmons issued the following statement on President Obama’s decision to continue to delay approval of a key portion of the Dakota Access Pipeline project:

“Americans demanded change last week. Disregard for the rule of law and bad decisions from Washington, like the one today, are why so many have been frustrated and sought change.

“Manufacturers in Florida, Louisiana, Texas, Missouri, Mississippi, Illinois, Oklahoma, Minnesota, Arkansas and many other states who signed on to supply this project are now left hanging in continuing regulatory limbo and must come to grips with today’s wrongheaded decision.

“We look forward to working with the next administration on access to our energy to fix this mess, as the president-elect has indicated that he values the importance of energy infrastructure.”

Learn more about the importance of investing in our nation’s infrastructure, including ways to advance energy infrastructure, by reading the NAM’s Building to Win initiative.

API questions Obama administration action to delay the Dakota Access Pipeline
WASHINGTON, November 14, 2016 – API Midstream Group Director Robin Rorick questioned actions by the Obama administration to unilaterally delay construction of the Dakota Access Pipeline.

“It defies logic that the Obama administration would ignore the rule of law by unilaterally delaying this critical infrastructure that would create American jobs and benefit American consumers,” said API Midstream Group Director Robin Rorick. “This project went through an established, open and transparent permitting process where comments from numerous stakeholders were considered. The administration’s actions to further delay this project with no legal justification contradict multiple court rulings; set a dangerous precedent for other infrastructure projects including roads, bridges and electricity transmission lines; and ignore calls to uphold the rule of law by the governors of North Dakota, South Dakota, and Iowa.

“Modernizing our infrastructure helps move energy our nation demands more efficiently, helps save consumers money, and provides tens of thousands of well-paying jobs. It’s unfortunate that the Obama administration would turn its back on its own citizens and put politics over sound public policy. I hope the administration reconsiders today’s action for the good of our nation’s energy future.”

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 30 million Americans.

IUOE Calls for Immediate Issuance of Easement for Dakota Access

WASHINGTON, DC – James T. Callahan, General President of the International Union of Operating Engineers (IUOE), issued the following statement regarding the Dakota Access pipeline:

“The Administration’s announcement today raises more questions than it answers. The United States cannot afford to further delay the Dakota Access pipeline and throw workers off a job at the tail end of the construction season in the High Plains. The project has jumped through every regulatory hoop and cleared every hurdle in a rigorous, years-long permitting process and is nearly built.

The Administration has failed to identify what could realistically be achieved by more review. Despite years of study and hundreds of meetings that the Army Corps has conducted with tribes, farmers and communities along the route, the Administration insists on more meetings. The uncertainty looming over this project for construction workers, law enforcement and other companies looking to invest in energy infrastructure has gone on long enough.

As we near the end of this construction season, employment in the oil and gas pipeline industry continues its downward spiral, down by over 20% in the last two years. It is high time to finish this vital domestic energy project.”

AOPL: Pipeline Operators Decry Continued Administration Interference in Pipeline Approval Process

WASHINGTON, DC – The Association of Oil Pipe Lines (AOPL) decried the current administration’s continued refusal today to grant final approval for the Dakota Access Pipeline project even while admitting previous project decisions met legal requirements.

“This administration continues to astonish after admitting previous Dakota Access pipeline decisions were legal, which include the environmental and cultural finding of no significant impact, they are still refusing to provide final approval for the project,” said Andrew Black, AOPL President and CEO.

In July, the Army Corps of Engineers (Corps) issued a formal Finding of No Significant Impact after conducting an environmental review of the Dakota Access Pipeline project. Required by the National Environmental Policy Act (NEPA), the NEPA review represents the federal government’s official assessment of the environmental and cultural impacts of the project.

Dakota Access’s federal NEPA review found the proposed route for the pipeline is the preferred alternative and would have less of an impact on the environment than all other alternatives, including a different route of the pipeline or no pipeline at all.

A federal district court judge in September found the 250 interactions between the Corps, Dakota Access representatives and consulting tribal, cultural and historic representatives met or exceed the Corps’ legal obligations.

The administration after announcing in September an unprecedented halt to the approval process to conduct a review of previous agency actions has now “concluded that [the Corps’] previous decisions comported with legal requirements.” And yet, the administration in its November 14, 2016, letter to stakeholders still questions whether it will grant the final easement for the project.

The administration’s refusal to approve Dakota Access after finding the project meets its environmental and cultural obligations and admitting these findings were legal denies American workers the good-paying jobs this project will create. Refusing to approve Dakota Access denies American consumers the potential to benefit from lower prices additional supplies of energy transported by pipeline will bring.

AOPL urges the administration to respect the legal environmental and consultation approvals Dakota Access has already obtained and grant final approval to this project.


MAIN Coalition Members Speak Out on USACE Indecision

In light of yesterday’s announcement from the U.S. Army Corps of Engineers, MAIN Coalition Members and Advisors spoke out on the decision to further delay the state-of-the-art Dakota Access Pipeline:

James “Spider” Marks, Major General (US Army retired), President of The Marks Collective
“The announcement today will lead to weeks of increasingly dangerous confrontations between police officers and professional agitators. The safety of local police and security forces, the citizens of North Dakota, workers on the ground, Tribal members, and the protestors themselves are now at further risk. Moreover, the continuing delay will push into the North Dakota winter, endangering the children and elderly who have chosen to camp out near Cannonball.”

“The “interests of individuals living in the general area of the right-of-way” that the U.S. Army Corps cites in their statement would best be served by rapid conclusion of this extended process and allowing the project to proceed. Since the Obama Administration intervened in September, more than 400 people have been arrested, hundreds of law enforcement pulled off other jobs to address the violent nature of some protests, and cattle and local livestock slaughtered. The 90-120 days of activity to finish this legally permitted project is critical to putting this community back together and restoring peace. This effort is motivated by a strategic imperative of enhancing and furthering national energy independence. This project has been as thoroughly vetted as any in history. Additional delays seem wasteful and solely politically motivated.”

Ron Ness, President, North Dakota Petroleum Council
“We are troubled by the decision from the U.S. Army Corps of Engineers, which directly contradicts the will of four separate state governments, an original, thorough assessment of the project by the federal government, as well as two federal court rulings in favor of completing construction.

The risk of a potential spill has been thoroughly studied and extensive safety measures have been implemented to ensure the safe operation of the pipeline. By further delaying the Dakota Access Pipeline, the Corps of Engineers will only bring more instability to North Dakota, as protesters continue to threaten private property and workers along the pipeline route.”

Andy Peterson, President, North Dakota Chamber
“The Obama Administration’s decision to unnecessarily further halt the Dakota Access pipeline, in the name of additional consultation, runs counter to the thorough and careful process undertaken by the men and women of the United States Army Corps of Engineers and North Dakota’s Public Service Commission. Two federal courts have upheld the process and agreed that the consultative process was thorough and complete. In addition, careful consideration was taken to the routing location of the pipeline and extensive safety mechanisms were included in its design to ensure the safe operation of the Dakota Access Pipeline.

Our state deserves the opportunity to build and operate this project – to delay the project because of a 1,000 feet crossing – is unfair to North Dakotans who rely on our state’s energy resources to fuel and drive our economy. The Administration should strongly reconsider their decision.”

Mike Ralston, President, Iowa Association of Business and Industry
“I am disappointed by the decision to further delay this important national energy infrastructure project. Dakota Access has undergone extensive review and consultation at both the state and federal levels. The delay to a project that is already 84% complete is unfair to our state, the men and women building the project and all those involved from the top to the bottom of the supply chain. We have already seen the extent to which additional delay can have – violence, destruction of equipment, and threats against the individuals building or supporting the project. Enough is enough – the project should not be delayed any further.”

Bill Gerhard, President, Iowa State Building and Construction Trades Council
“The Obama administration’s decision to continue delaying the completion of the Dakota Access Pipeline threatens the safety and jobs of thousands of Americans and jeopardizes billions of dollars in future development. Dakota Access has lawfully sought and received all of the necessary state and federal approvals, but now, after the project is over 84 percent complete, the White House wants to change the rules. This unprecedented action is harmful to American workers, businesses, and all those who depend on reliable infrastructure.”

Ed Wiederstein, Chairman, MAIN Coalition
“The decision by the U.S. Army Corps of Engineers to further delay the Dakota Access Pipeline and not grant the final easement today is extremely disheartening. This pipeline was thoroughly reviewed for nearly two years by the federal and four state governments, including by the Corps of Engineers.
This political decision to postpone construction jeopardizes the safety of all those who live and work near the project. The MAIN Coalition continues to stand for the approval of the Dakota Access Pipeline in accordance with the will of the states, the original assessment by the Corps of Engineers, and the rulings of two United States Federal Courts.”

Chad Carter, IUOE Local 234
“The announcement today by the U.S. Army Corps of Engineers only threatens further instability and continued protests on the Dakota Access Pipeline job sites, where hard working Americans are being threatened with violence just for showing up to work.”
“This decision will only further enflame protesters who have no regard for the rule of law, and will continue to intimidate workers, threaten acts of violence, and resist lawful removal by police. This decision undermining of the regulatory review process represents a threat to the future of infrastructure projects, and the future of American jobs for years to come.”

Dawna Leitzke, Executive Director, South Dakota Petroleum and Propane Marketers Association
“Today’s decision to again delay the completion of the Dakota Access Pipeline represents an unprecedented step in the wrong direction for the future of American energy independence. This fully approved and permitted project is over 80 percent built, yet Washington has now decided to upend existing law at the peril of American workers and businesses.”


Dakota Access Pipeline Part Of Transportation Solution, American Energy Independence

In a recent article from the Dickinson Press, North Dakota oil production has surpassed last year’s record and is now nearing half a million barrels per day according to a report from the Associated Press and confirmed by North Dakota state officials and industry officials. In fact, the current production in the state has already surpassed 113 million barrels produced in 2010.

A record 204 drilling rigs were operating in the western region of North Dakota this past week, nearly all are drilling on the Bakken and Three Forks formations, precisely the same region of production where the Dakota Access Pipeline will originate.

Right now in eastern Montana and North Dakota the daily capacity to move oil out of the region is 773,000 barrels, including 438,000 barrels by pipeline and 335,000 barrels by rail. Added pipeline capacity, through the construction of the Dakota Access Pipeline which will transport  470,000 barrels per day, will more than double the current take away, help free up rail capacity, and grow our country’s ability to extract our own energy resources while on the path to full energy independence.


Three Ways American Energy Is Saving You Money This Summer

Surging domestic oil and gas production has greatly reshaped the global energy market both at home and aboard. Here are three ways American energy independence helping to save you money this summer.

Gas Prices: Gas prices in the U.S. are at their lowest point in more than a decade, down 20 percent in just the past year and in stark contrast to the near $4 average experienced during the 2011 crisis in Libya. According to AAA, the national average retail price for a gallon of regular unleaded gasoline fell to just $2.22 last week. Furthermore, the national motor group said that about a quarter of gas stations are posting prices below the $2 mark. Drivers across the country are saving big thanks to these low prices with CNN Money reporting earlier this year that low the typical American household upwards of $1,000 in 2016.

Groceries: Food prices are still rising over all, but low energy costs are leading them to climb at rates well below the historical average. A report by the U.S. Department of Agriculture found that prices for food at home increased by 1.2 percent in 2015, less than half the 20-year average of 2.5 percent. Delivering food to supermarket shelves requires a vest transportation network across land, air, and sea. Whether it be an airplane, 18 wheeler, ocean-going freighter, they all benefit from cheap oil.

Airfare: Fuel is the single greatest expense facing the airline industry, but thanks in part to American energy production, those costs have been greatly reduced. Cheaper operating costs for airlines translates into increased savings for consumers at the ticket counter. A recent analysis by Hopper, an award-winning mobile flight-booking app, found that the fall in oil prices is “contributing to noticeably lower travel costs.”


Celebrate American Energy Independence This 4th of July

 

This 4th of July we have added reason to celebrate America with the landmark achievement of energy independence. After decades of working towards this important goal our nation is now reaping the benefits of domestic energy production.

In the past few years, the United States has surpassed countries like Russia and Saudi Arabia to become the world’s leading oil and natural gas producer. This historic milestone means our country no longer has to rely on foreign, and often hostile, sources to meet its energy needs.

The surge in domestic production has reinvigorated the American economy with an abundant and reliable supply of affordable energy. This energy independence has revived our manufacturing industry, drastically reduced energy costs for homes and small businesses, and reduced our trade deficits.

The American dream is alive and well today thanks to this defining accomplishment and the opportunities it has created.


Interior Secretary Highlights Fallacy of “Keep It In The Ground Approach”

Even members of the Obama Administration have some harsh words for those involved in the “keep it in the ground” approach to America’s energy production.

While speaking at the Whitewater Preserve in California to commemorate three new national monuments: Sand to Snow, Mojave Trails and Castle Mountains, Secretary of the Interior Sally Jewell said that while the United States is “waking up as a nation to the impact of climate change, and the impact of carbon on our environment” the nation remains dependent on fossil fuels to drive our economy.

“It’s going to take a very long time before we can wean ourselves from fossil fuels, so I think that to keep it in the ground is naïve, to say we could shift to 100 percent renewables is naïve.”

Eliminating the production of all fossil fuels simply isn’t feasible like some advocates have called for. In the United States our safety and emissions standards are much stricter than in production areas elsewhere throughout the world.

Faced with the choice between importing oil from the Middle East or utilizing American supply, the choice should be fairly simple for most Americans. The option to not produce whatsoever is no option at all. We must continue to craft our own energy future utilizing a strategy that pursues sensible American energy infrastructure.