June 2010 Archives

Group Says Blowout Prevention Act is "Good Start to Safeguarding High-Risk Wells"

"Safety systems should be designed to protect workers and the environment first, not exploration and production budgets," according to congressional testimony today by a conservation group that has worked on Gulf Coast restoration for more than three decades.

"The loss of 11 lives on the Deepwater Horizon was the tragic beginning of a series of losses that continue to mount, including the accelerated loss of wildlife and wetlands, the impacts on sport and commercial fishermen and their associated industries, and the loss of tourism," testified Elgie Holstein, oil spill response coordinator for Environmental Defense Fund during a hearing on draft legislation, the "Blowout Prevent Act," before the House Energy and Environment Subcommittee.

"Yet wells in far deeper water have been drilled and will become commonplace in years to come," added Holstein, formerly Chief of Staff at the U.S. Department of Energy and Assistant Secretary of the National Oceanic and Atmospheric Administration.  "Even wells that are not drilled in deep water may, depending on the geologic, geographic and environmental setting, present a risk to public and worker safety, the environment, and the economy.  This draft legislation is a good start to safe-guarding high-risk wells that are an increasing part of our domestic energy development."

The draft legislation, the "Blowout Prevent Act," would require regulations for "high-risk wells," which are defined as "all offshore oil and gas wells and the subset of onshore wells that, under criteria established by the appropriate federal official, could lead to substantial harm to public health and safety and the environment in the event of a blowout."  Among other things, the bill's regulations would include:

• No Drilling Without Demonstrated Ability to Prevent and Contain Leaks
• Blowout Preventer Requirements
• Ensuring Safe Wells and Cementing
• Independent Technical Advice and Certification
• Well Control and Blowout Prevention Inspectors
  

"We don't oppose offshore drilling," concluded Holstein. "But America must accelerate its movement toward a clean energy future by enacting a clean energy and climate bill into law.  Meanwhile, the industry must act now to rebuild public trust and confidence in its ability to conduct its activities safely and responsibly, and the government must demonstrate a renewed commitment to safeguarding the public's natural resources and our economy."

Environmental Defense Fund, a leading national nonprofit organization, represents more than 700,000 members. Since 1967, Environmental Defense Fund has linked science, economics, law and innovative private-sector partnerships to create breakthrough solutions to the most serious environmental problems. For more information, visit www.edf.org.

In America's efforts to go green, our Achilles' heel is transportation; cars, trucks, and buses represent 29 percent of U.S. energy use, according to Gary Dirks, director of LightWorks at Arizona State University and a renewable energy expert.

Whenever U.S. officials talk about finding ways to end our reliance on oil, like now as a reaction to the massive Gulf of Mexico oil spill, we need to take a realistic look at how we use oil and what are our available alternatives, Dirks said.

For example, in our energy future "nuclear, solar, hydro and wind energy all will have growing roles in electricity generation, whereas the importance of coal and oil will decline," explained Dirks. "But when we want to move a car, a truck or an airplane, there's really only one way to do it - get the stuff out of the ground. Oil remains a relatively cheap source of energy that is so convenient its use overrides its considerable drawbacks in terms of air pollution, environmental concerns and national security."

So what can the U.S. do to end its messy addiction to oil but remain a mobile society?

"In addition to a long-term transportation energy plan that does not include fossil fuels, we need a nearer term solution that can take us from the traditional internal combustion vehicles to tomorrow's advanced fleet," said Dirks. "That future should include the Sun."

"There are techniques and nascent technologies in the works that will take carbon dioxide, water and sunlight and combine them in such a way to generate fuels for our cars, but today they are too expensive," Dirks said. "More research and development is needed to make these fuels a reality.  That is why the U.S. Department of Energy (DOE) is sponsoring an energy innovation Hub to make 'drop in' fuels from sunlight."

"The beauty of these fuels is that they don't require production of any fossil fuel, which in itself requires energy and generates pollution, but are made from completely renewable, existing and abundant components - water, carbon dioxide and sunlight."

The process is similar to photosynthesis, by which concentrated solar energy is used in conjunction with carbon dioxide and water to create hydrocarbons. In addition to creating combustible fuels like methanol and ethanol, additional processing can yield more traditional fuels like gasoline, diesel and jet fuel.

"The fuels that result from these processes will look, feel and perform just like what we pump into our cars today. They will use existing refineries to prepare fuel blends and existing gas stations to deliver the fuel to today's cars," he added.

But the new fuels will be carbon neutral and will not add to the build up of greenhouses gases blanketing the planet. They also will help the U.S. move from an unstable source of energy produced far off shore, to a form of energy generated on our soil. Drilling will not be needed with these fuels. Increased security, cleaner air and new jobs will result.

The DOE Hub, along with several other ambitious initiatives involving both the near-term and long-term future of fuels, specifically looks at processes for making solar liquid fuels and bringing them to market in a developmentally rapid, 15-year time span.

"We need investments in the R&D phases of this technology to come not only from the government, but from industry too," Dirks explained. "And the new fuels will cost a lot more than the old fossil fuels they replace, at least initially.  

"Even with subsidies, the cost difference could be dramatic," Dirks added. "Five dollars for a gallon of solar liquid fuel is a realistic short term target, but it could be more. So, we need to ask ourselves, do we want to continue with what is convenient and economical today or do we want to focus our efforts on what is the logical next step in our long-term energy future?" - SOURCE Arizona State University

Recent news stories have been erroneously reporting that foreign skimming vessels are not able to work on the BP oil spill cleanup because of the Jones Act.  These reports are incorrect. The Jones Act does not apply and therefore does not prevent foreign vessels from working on oil skimming operations in waters beyond the state's three-mile limit.  In fact, a number of foreign vessels have been working at the scene for some time. 

For skimming activities within any state's three-mile limit, longstanding and established law says that any such work, including the skimming activity, must be performed by a U.S. vessel, if one is available.  If a U.S. vessel is not available, there is a waiver process that can be used to bring in foreign vessels.  We are not yet aware of any waiver request being made because a U.S. vessel is not available.  The important distinction is that under the Jones Act, foreign vessels may be used only if U.S. vessels are not available.  

"Once again, it appears that critics of the Jones Act are distorting the facts by claiming that the Jones Act applies in an instance when it simply doesn't, or where it does, not being forthcoming with the law and the facts.  Worse, they are taking advantage of this disastrous situation to undermine American workers for the benefit of foreign companies and foreign workers," said Ken Wells, President of the Offshore Marine Service Association (OMSA).  "But even in instances where the law does not require the use of a U.S. vessel, BP should make every attempt to hire U.S. vessels and their workers.  The entire Gulf Coast and surrounding areas have been hurt by the BP spill.  The seafood and tourism industries have suffered.  And it doesn't make sense now to put the Gulf Coast maritime industry out of work just to give jobs to a few foreign boats," he continued

OMSA, on behalf of the owners and operators of U.S. flag vessels that work in the offshore energy sector, is working diligently to make sure that the spill is brought under control and cleaned up as quickly as possible.  OMSA is also making sure that available American vessels are put to work and, if a waiver is necessary, that this is accomplished quickly and effectively.  

"We want to make crystal clear that in no way, shape or form are we taking any action that hampers the spill cleanup effort.  However, this should not become an excuse for foreign companies to take advantage of this tragic accident for their own gain or for opponents of the law to try to undercut it," Wells said.

The Jones Act is the common name for the U.S. cabotage laws, which say that only U.S. flag vessels with coastwise endorsements may transport merchandise or passengers between points in the United States.  The original cabotage laws trace back to the founding of our nation and have served to maintain a domestic shipbuilding and maritime industry throughout our history.

www.offshoremarine.org - SOURCE Offshore Marine Service Association

A late-night vote Thursday by the Ohio House demonstrates Ohio's bipartisan commitment to bringing clean energy, job creation and greater investment in local communities vying for renewable energy projects.

Sub Senate Bill 232 passed the House by a vote of 91-7 and the Senate concurred shortly after passage by a vote of 27-5 with a final reconciled bill headed to Gov. Ted Strickland's desk before summer recess, according to the grassroots coalition Wind and Solar Jobs for Ohio.

"With this vote, Ohio public officials have positioned the State to create and protect thousands of local Ohio manufacturing, construction, operations and maintenance jobs in the wind industry," said Brad Lystra, manager, economic development partnerships for the American Wind Energy Association.

The bipartisan effort and passage of Sub Senate Bill 232 was critical to bringing Ohio's tax structure for wind development sites in line with surrounding states as developers finalize decisions on which projects to prioritize to leverage expiring federal stimulus funding.

Lystra applauded the bipartisan spirit and the leadership of Sen. Chris Widener (R-Springfield) who championed Senate Bill 232, Gov. Ted Strickland, and Chairman of the House Ways and Means Committee Rep. Tom Leston (D-Warren) for working together to advance Ohio's clean energy future.

"By eliminating this tax disadvantage, Ohio lawmakers have strengthened the renewable market and secured millions in new tax revenue for local communities," Lystra said. "Additionally, Ohio's struggling manufacturing industry will get a significant boost from wind turbine component part orders and position itself to see even greater investments from wind and solar manufacturers looking to expand into new markets and supply chains."

Wind and Solar Jobs for Ohio is a coalition of businesses and organizations that support the adoption of a competitive tax structure for wind and solar projects in Ohio. For more information on the coalition and the specifics of the seven proposed wind farms for Ohio, visit www.windandsolarjobsforohio.com.