Grassroots Effort
During the MMS 2007-2012
5-Year OCS Program
What it Means for New U.S. Energy Supplies
David E. Holt
Executive Director
American Gas Association’s 2007 Public Affairs and Marketing
Communications Forum
Sawgrass Marriott Resort & Spa
Ponte Vedra Beach, FL
April 12 – 14, 2007
David E. Holt, CEA
American Gas Association, 1
Presentation Overview



Ongoing Energy Implications
Oil & Natural Gas in the OCS
OCS 5YP Grassroots Campaign


Unprecedented Support
Consumer Energy Alliance


Building Relationship/Dialogue with Consumers &
End-Users
Improving Communications
David E. Holt, CEA
American Gas Association, 2
Energy Implications

U.S. Consumers paid billions more in 2005 for
increased transportation fuel costs

Higher fuel prices cost U.S. commercial air
carriers $9.6 billion in fiscal year 2005


During 2003/2004 seasons, U.S. farmers paid $6
billion for energy-related expenses – 41%
increase from previous years
High energy prices (particularly natural gas)
have cost the economy 2.8 million U.S. jobs since
2000

Since 2004, high energy prices have slowed U.S.
economic growth by 0.5 to 1.0 percent
David E. Holt, CEA
American Gas Association, 3
Policies Adverse to O&G
Companies Has
Global Impact




Most NOCs use their
national oil wealth to
develop state authority
Real Giants – XOM barely
cracks top 15
Dominant suppliers risk
weakening their
leverage if over-used
National Oil Politics
increasingly focused on
Energy Security

Venezuela, Russia
David E. Holt, CEA
American Gas Association, 4
David E. Holt, CEA
American Gas Association, 5
David E. Holt, CEA
American Gas Association, 6
OCS Access Provides Universal
Benefits for All Sectors

Conservative estimates from MMS indicate 288 trillion cubic
feet of natural gas and 52 billion barrels of oil in the OCS off
the lower 48 states





This is enough oil to maintain current oil production for 105
years and current natural gas production for 71 years
That is enough oil to produce gasoline for 132 million cars and
heating oil for 54 million homes for 15 years
It is enough oil to replace current imports from the Persian Gulf
for 59 years
That is enough natural gas to heat 72 million homes for 60
years, OR to supply current industrial and commercial needs for
28 years OR to supply current electricity generating needs for 53
years
And, that is before the Alaska OCS is considered with
additional resources of 132 trillion cubic feet of natural gas
and over 26 billion barrels of oil
David E. Holt, CEA
American Gas Association, 7
OCS 5YP Grassroots Objectives




To maximize offshore access
To build a strong record of support in favor of a
robust 5-Year Plan
To enhance dialogue with
government and community
stakeholders
To balance the record for U.S.
access
David E. Holt, CEA
American Gas Association, 8
OCS 5YP Strategic Priorities

Business & Consumer Groups
(Local Chambers & Business
Associations)

Military/Veterans Groups

Transportation, Tourism &
Travel

Targeted Local Citizenry from
Specific States

Academia & Think Tanks

Federal & State
Representatives

Organize State-Specific
Campaigns

Ensure Comments & Repeat
Comments

Energy Consumers


Coordination with Targeted
Stakeholder/Community
Outreach
Editorial Boards/Letters to the
Editor
David E. Holt, CEA
American Gas Association, 9
Aggregate of all Comment Periods
Shows Great Support
IN FAVOR
90,855
(73%)
AGAINST
32,854
(27%)
IN FAVOR
AGAINST



90,855 total positive comments (73%)
32,854 total negative comments (27%)
123,709 total comments, in all
David E. Holt, CEA
American Gas Association, 10
Increased Participation at
Every Stage of Process
AGAINST
18,365
(25%)
FOR,
54,891
(75%)
AGAINST
12,267
(31%)
AGAINST
2,276
(20%)
FOR,
26,966
(69%)
FOR
AGAINST
FOR
FOR,
8,998
AGAINST
(80%)
FOR
AGAINST
• Oct: 11,274 (80% positive = 8,998)
• Apr: 39,223 (69% positive = 26,966)
• Nov: 73,256 (75% positive = 54,891)
David E. Holt, CEA
American Gas Association, 11
Improved Participation by Key States
16,000
14,000
12,000
10,000
Oct. 05
Apr. 06
Nov. 06
8,000
6,000
4,000
2,000
AK


FL
LA
TX
NC
VA
Significant improvement in each of 5 selected priority states
Exception: Virginia
David E. Holt, CEA
American Gas Association, 12
Aggregate Comments
Aggregate Comments: Est of Positive Comment Source
Total Positive Comments: 91,000
40000
35000
30000
25000
20000
15000
10000
5000
0
Industry:
60 Plus:
 Industry:
 60 Plus:
 Consumer Energy Alliance:
 Other:
11,000
CEA:
Other:
38,000
22,000
21,000
David E. Holt, CEA
American Gas Association, 13
Significant Grassroots Supporters

Trade Associations







U.S. Oil & Gas Assn
NAM
Shell
Devon
Anadarko
Marathon
BP
ChevronTexaco
Murphy
Exxon Mobil
Affiliated Groups




AGA
ACC
Forest & Paper
DPC
Companies


API
NOIA
IPAA
IECA
60 Plus
BIPAC
Freedom Works
Frontiers for Freedom
American Conservative Union
Partnership for America
Consumers/End-Users



Consumer Energy Alliance Farm Bureaus (NC, CO, VA)
Ag-Energy Alliance
Affiliated Industries of Florida
U.S. Chamber of Commerce Alaska Support Industry Alliance
David E. Holt, CEA
American Gas Association, 14
Grassroots Priorities for 2007

Capture Momentum of 5YP & Gulf Bill

Federal Legislation

State Initiatives (SC, GA, resolutions)

Onshore Access Issues

Adequately Fund Federal Agencies
David E. Holt, CEA
American Gas Association, 15
Consumer Energy Alliance

Examining the Ups & Downs of Our
Industry’s Communication Strategies


Customers
Federal/State Officials
David E. Holt, CEA
American Gas Association, 16
Mission
Consumer Energy Alliance supports thoughtful utilization of all
domestic energy resources to help ensure domestic energy
security and reduce prices for consumers
Our mission:


improve consumer understanding of energy security and the
thoughtful development and utilization of energy resources
help create sound energy policy and maintain stable energy prices
for consumers
Our goal:

to motivate and provide a voice for consumers interested in vital
public issues, including:
 responsible access to available natural resources;
 power generation;
 impact of energy prices on business, agriculture and consumers;
 development of a robust, domestic renewable energy industry;
 and utilization of new technologies that allow for higher levels of
energy efficiency and conservation
David E. Holt, CEA
American Gas Association, 17
Formation

Non-Profit 501(c)(6), created because:




Long history of haphazard dialogue with
general public and public policy officials
Decade-long failure to enact substantive
U.S. Energy Policy
Volatile energy prices = inconsistent
media response
Need to improve dialogue on near- and
long-term domestic energy solutions
David E. Holt, CEA
American Gas Association, 18
Background





Officially formed in early 2006
Successful efforts to build support
for expanded U.S. production
Website dedicated to providing
non-partisan information on all
energy resources
Energy/Consumer Seminars
Educational & Outreach Efforts



Conservation Groups
End-Users
Small Business & Consumers
David E. Holt, CEA
American Gas Association, 19
Board of Advisors
• Energy Industry (Upstream & Downstream) • Alternative Energy •
• Small Business • Retirees • Military • Travel & Tourism • Highway Users •
• Trucking & Food Distribution • Home Builders • Restaurants •
• Geology • Publishing • Academia • Elected Officials
•
•
•
•
•
•
•
Cathy Barnette
Executive Director
Alabama Coastal Foundation
•
Jack Belcher
Government Affairs &
Communications Manager
Shell Exploration & Production
George Bialecki, Jr.
President and Founder
Alternative Energy Builders, Inc.
Alternative Energy Living Foundation
Mary Davis
•
Tommy Foltz
•
Dr. Michelle Michot Foss
Director, Government Relations
Methanex
President
American Highway Users Alliance
•
Bill Connors
Executive Director & COO
National Business Travel Association
•
Milton R. Copulos (USA Ret.)
President
National Defense Council Foundation
Director
International Foodservice Distributors
Association
•
Andrew C. Browning
Greg Cohen
Heather McTavish Doucet
•
Chief Operating Officer, retired
Time-Life, Inc.
Vice President, Earth BioFuels, Inc.
Chief Energy Economist
Bureau of Economic Geology
Center for Energy Economics
University of Texas
•
Don Juckett
Director, Geoscience and Energy
Office, American Association of
Petroleum Geologists
Glenn Kramer
Regulatory Affairs Manager, Hess Corp
David E. Holt, CEA
President
60 Plus Association
•
Todd McCracken
•
Arthur Mears
•
Thomas Moskitis
•
Jan-Oddvar Sørnes, Ph.D.
•
Todd Thorner
•
The Honorable Frank W. Wagner
•
Thomas E. Williams
Christine A. Hansen
Executive Director
Interstate Oil & Gas Compact
Commission
Jim Martin
Executive Director
National Small Business Association
Executive Director
Coast Guardians
Director, External Affairs
American Gas Association
Associate Professor
Bodø Graduate School of Business,
Norway
Vice President, Business Development
Foresight Wind Energy, LLC
Virginia State Senate
Vice President, Technology Division,
Noble Corporation
American Gas Association, 20
Affiliates & Supporters
…and growing rapidly
Southeast
Energy
Alliance
David E. Holt, CEA
American Gas Association, 21
Questions?
Contact Information
David Holt
Consumer Energy Alliance
2211 Norfolk Street
Suite 614
Houston, Texas 77098
PH: 713-524-2388
dholt@consumerenergyalliance.org
David E. Holt, CEA
American Gas Association, 22