The Clock is Ticking for Energy Independence

ENERGY!

I posted this back in May but wanted to re-post it, as it is probably more important today in light of the world events surrounding Russia's power play in Georgia. Russia gets it - we get it but are impotent to act: We must begin securing our energy future by tapping our American natural resources, reducing our reliance on foreign sources of energy! Will we be able to "drill our way out of this crisis?" - No. But it is a big part of the Solution - utilize American natural resources, more nuclear energy for electricity production (which, by the way frees up a ton of natural gas and reduces reliance on coal for electricity), continued support for research into alternative fuels for transportation, continued investment in renewable sources such as wind & solar, energy conservation and conservation education.

Here is a re-post:

Energy

In the 1967 movie "The Graduate," Dustin Hoffman's character, Ben, is given the following career advice:

Mr. McGuire: I just want to say one word to you - just one word.
Ben: Yes sir.
Mr. McGuire: Are you listening?
Ben: Yes I am.
Mr. McGuire: 'Plastics.'
Ben: Exactly how do you mean?
Mr. McGuire: There's a great future in plastics. Think about it. Will you think about it?
Ben: Yes I will.
Mr. McGuire: Shh! Enough said. That's a deal.

If the movie were filmed today - or if the book were written today, the "WORD" would not be plastics - it would be "ENERGY." The demand for energy in the future, this issues surrounding how we will acquire sources of energy and how we balance our impact on the environment will be crucial. Energy.............Energy.........

FAQ's About OCS 5-year Plan

FAQ: (MMS is the Sub-Agency under the Dept. of Interior - Mineral and Mining Servicces)

Q: Why is MMS doing another 5-year program now?

A: In light of the current energy situation and President Bush’s lifting of the Presidential Withdrawal, the Secretary of the Interior directed MMS to begin the initial steps for developing a new five-year program. We are, in effect, getting a two-year jumpstart on that process. It is still a multi-step, and multi-year process to develop a five-year program.

The current five-year program took effect on July 1, 2007 at a time when oil was only $64 a barrel and does not contain many of the areas that were under Withdrawal and remain under Congressional ban. Should the Congressional ban be lifted, a new program would have to be developed to make those areas available.

Q: With this new program, will you be able to lease new areas that were under Presidential Withdrawal?

A: This action begins a process that will open discussions about expanding our domestic energy production. If Congress acts by removing their ban, then new areas could become available, but only after a lengthy process involving active public input and strong safety and environmental protections.

Q: Did Congress lift their ban?

A: They have not. Current moratoria for the Atlantic, Pacific coasts and a small portion of the Eastern Gulf of Mexico are established through the annual appropriations process. However, most of the Eastern Gulf of Mexico was placed under a different statutory ban that is set to remain until 2022. Congress would have to either delete or modify language in upcoming appropriations bills or enact specific legislation to make those areas available.

Q: What happens if the new administration doesn’t want the new 5-year program? Will they have an opportunity to change it?

A: The next administration will have every opportunity to take advantage of today's action. Decisions to continue or stop this process will be theirs.

Q1: Are you going to open up the entire OCS or just certain sections?

A: This action is designed to encourage discussions about the OCS areas of greatest interest, with the greatest potential. New areas will not be available for leasing until the Five Year Program is complete, having incorporated multiple rounds of public comment and Congressional approval.

Q: How much oil do you really think is out there?

A: The Minerals Management Service estimates about 17.84 billion barrels of oil and 76.47 trillion cubic feet of natural gas to be technically recoverable in the areas currently off limits. Those numbers are very conservative as little exploration has been conducted in most of those areas during the past 20-30 years. Our estimates are based on the available data. We have seen, though, that the numbers tend to increase dramatically as technology improves and exploration activities occur.

Q: Which areas are considered to be under the congressional ban?

A: The congressional ban currently encompasses all of the Outer Continental Shelf located along the west coast, east coast, most of the Eastern Gulf of Mexico Planning Area, and a portion of the Central Gulf of Mexico Planning Area.

Q: How much energy does the Outer Continental Shelf provide our nation?

A: The Outer Continental Shelf currently provides about 27% of domestic oil production and about 15% of domestic natural gas production.

Q: What is MMS doing to make companies produce on the leases they already have?

A: MMS encourages due diligence by establishing primary terms of leases that allow only the minimum length of time a company should need to explore a lease. At the end of the primary term, the lease must produce in paying quantities or the operator must conduct continuous operations in order to keep the lease in effect unless MMS grants an extension. If an extension is granted, the MMS monitors activity closely and ensures that approved milestones are met in a timely fashion.

Helping to Solve America's Energy Crisis

This is a map of areas currently off limits to oil and natural gas exploration.

In March, 2008, I was appointed to a US Department of the Interior sub-committee which deals with oil and natural gas leases on America's outer continental shelf (see earlier posts).

I am excited about playing a small role in helping the Nation solve it's energy crisis by utilizing our own natural resources. Our first action will be a conference call of the committee on August 26th.

Here is a copy of the Dept. of Interior Press Release about this initiative:

Interior Department Initiates New Five Year

Oil and Gas Leasing Program for Outer Continental Shelf

Seeks Public Comment to Address Changed Energy Situation

WASHINGTON, D.C. -- Saying the nation’s energy situation has dramatically changed in the past year, Secretary of the Interior Dirk Kempthorne today jumpstarted the development of a new oil and natural gas leasing program for the U.S. Outer Continental Shelf. The action could give the next administration a two-year head start in expanding energy production from federal offshore jurisdictions, including some areas where a congressional ban had prevented oil and gas development.

“When our current five-year program for Outer Continental Shelf oil and gas leasing was launched in July 2007, oil was selling for $64 a barrel,” Kempthorne said. “Today a barrel of oil costs more than $120, almost double the price a year ago. Clearly, today’s escalating energy prices and the widening gap between U.S. energy consumption and supply have changed the fundamental assumptions on which many of our decisions were based.”

“Areas that were considered too expensive to develop a year ago are no longer necessarily out of reach based on improvements to technology and safety,” Kempthorne noted. “The American people and the President want action and this initiative can accelerate an offshore exploration and development program that can increase production from additional domestic energy resources.”

President Bush lifted the Executive Withdrawal on oil and gas leasing operations on the Outer Continental Shelf on July 14, calling on Congress to lift its ban that has been in place since 1982. He also urged Congress to enact legislation that would allow states to have a say regarding operations off their shores and to share in the resulting revenues.

“The President believes coastal states should have a voice in how Outer Continental Shelf resources are developed off their shores while ensuring those environments are protected and that Congress should provide a way for the federal government and states to share new leasing revenues,” Kempthorne said.

Because of the current energy situation and the President’s action, Secretary Kempthorne has directed the Minerals Management Service to begin the initial steps for developing a new five-year program that accurately reflects the nation’s needs. The multi-year process starts with a call for information from all parties on what a new five-year program should consider. MMS is also requesting comment to ensure that all interests and concerns are considered regarding oil and gas leasing and exploration and development resulting from a new five-year program. The governors of all 50 states will be specifically asked for their comments, particularly on issues unique to each state.

“This initiative could provide a significant advantage for the incoming administration, offering options it would not otherwise have had until at least 2010,” Kempthorne said. “Today’s action would provide a 2-year head start for the next administration on developing a new five-year program.”

The current program runs from 2007-2012 and includes 21 lease sales in eight of the 26 Outer Continental Shelf planning areas in the Gulf of Mexico, Alaska and the Atlantic. It does not include areas under a congressional ban, with the exception of Virginia. The new program, depending on public comment, can consider any area although any leasing in a banned area would need congressional action.

The Outer Continental Shelf currently provides 27 percent of U.S. domestic oil production and 15 percent of domestic natural gas production -- most of that from the Gulf of Mexico. The areas under a congressional ban contain an additional 18 billion barrels of oil and 76 trillion cubic feet of natural gas in yet-to-be-discovered fields.

Those numbers are considered conservative estimates because little exploration has been conducted in most of those areas during the past 20-30 years because of the congressional ban. Interior’s estimates are based on available data. Estimates tend to increase dramatically as technology improves and exploration activities occur.

This initiative uses the process mandated by the Outer Continental Shelf Lands Act Amendments of 1978, which give the Secretary of the Interior authority to develop “out-of-cycle” leasing programs and requires various procedural steps, including several rounds of public comment and multiple environmental reviews.

Funding Education

Alright - I know it has been a while since I posted anything. I wanted to post about the Education Funding Study Committee meetings.

First off, I want to thank those committee members who have participated and are trying to help us "Untangle the Knot of Education Funding Mechanisms." This is an almost daunting task.

But I am encouraged by today's meeting and what I see as similar solutions from two unlikely sources: The Dept. of Education Task Force and The South Carolina Policy Council. It looks as if more and more people are embracing the idea of funding students versus funding programs.

Rep. Clemmons provided the beginnings of a bill for us to chew on. I compare it to a jar of clay that we can now begin molding and shaping. Thanks, Alan!

I like the Policy Council's study on Weighted Pupil Funding or "Backpacking." In the next meeting we will take a comprehensive look at Dr. Rex's Task Force's report. The meeting after that we will talk with Dr. Brian Hassell, the author of the Policy Council's study.

Democracy in Our Time

The stuff below comes from an email that has been circulating the internet. I have been saying since 2000 that the Democrats (Al Gore) won the population centers where more people are reliant on big government and it's supportive programs, while the Republicans (George W. Bush) won the other states where there are hardworking Americans paying taxes. (There was simiar patterns in the 2004 Presidential Election) I have to say THANK GOD for the WISDOM of our FOUNDING FATHERS in the design of the ELECTORAL COLLEGE.

From the Email:

About the time our original thirteen states adopted their new constitution in 1787, Alexander Tyler, a Scottish history professor at the University of Edinburgh , had this to say about the fall of the Athenian Republic some 2,000 years earlier:

"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government."

"A democracy will continue to exist up until the time that voters discover they can vote themselves generous gifts from the public treasury."

"From that moment on, the majority always vote for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship."

"The average age of the world's greatest civilizations from the beginning of history, has been about 200 years"

"During those 200 years, those nations always progressed through the following sequence:

1. from bondage to spiritual faith;
2. from spiritual faith to great courage;
3. from courage to liberty;
4. from liberty to abundance;
5. from abundance to complacency;
6. from complacency to apathy;
7. from apathy to dependence;
8. from dependence back into bondage"

Professor Joseph Olson of Hemline University School of Law, St. Paul, Minnesota, points out some interesting facts concerning the 2000 Presidential election:

Number of States won by: Democrats: 19 Republicans: 29
Square miles of land won by: Democrats: 580,000 Republicans: 2,427,000
Population of counties won by: Democrats: 127 million Republicans: 143 million
Murder rate per 100,000 residents in counties won by: Democrats: 13.2 Republicans: 2.1

Professor Olson adds: "In aggregate, the map of the territory Republican won was mostly the land owned by the taxpaying citizens of this great country. Democrat territory mostly encompassed those citizens living in government-owned tenements and living off various forms of government welfare..."

Olson believes the United States is now somewhere between the "complacency and apathy" phase of Professor Tyler's definition of democracy, with some forty percent of the nation's population already having reached the "governmental dependency" phase.

If Congress grants amnesty and citizenship to twenty million criminal invaders called illegal's and they vote, then we can say goodbye to the USA in fewer than five years.

No Apologies for Being Conservative

We stand at a crossroads in South Carolina as we debate the Governor's Veto of the Cigarette Tax. There are some things that the proponents of a cigarette tax are not telling you. While I firmly agree that reducing smoking is a good idea for the citizens of this state, I think a government using its power of taxation to change behaviors is a slippery slope to it using taxation to punish unpopular activities.

The argument that it will be a deterrence to underage smoking is a ruse used to gain support. If we want to be serious about underage smoking, then let us adopt policies in this state that really penalize youthful offenders.

In addition, the Bill as written is not revenue neutral. We are expanding a program that we cannot afford and we are at risk of (in subsequent years due to historical revenue reductions from this tax) 1) not being able to provide the services to those who are currently receiving them; 2) cutting programs at other agencies to pay for them; or 3) further raising taxes to pay the cost of the expanded Medicaid rolls and new welfare voucher programs.

We should be empowering the individual healthcare consumer by way of health savings accounts or, better yet, simply providing a tax refund so that citizens might make their own decisions with their own money.

This bill sets up a trap for future taxpayers. The legislation adds people to the Medicaid rolls which means, of course, that the cost of Medicaid will rise. The proposed increased cigarette tax promises, hopefully, to decrease the purchase of cigarettes in South Carolina. This means that the revenue from this new tax will decrease over time. Over a short time the revenue from the cigarette tax will fall behind the cost of the new Medicaid recipients. The only place to make up the difference will be the General Fund of the State. That reality means that this legislation actually represents a tax increase on everyone in future years and I cannot support that.

Rep. Doug Jennings stated it well: this vote is about raising the cigarette tax from our 7 cents per pack to 57 cents. Ok, I am fine with that. But let's be smarter about spending the money. Period.