IECA In the News

Gas Exports: Feedback on DOE Rule Change Reveals Continued Uncertainty (Subscription Required)
Pamela King, E&E (July 23, 2014)
“Comments on the proposal, which were due Monday, came from groups like the Industrial Energy Consumers of America (IECA), which found DOE would be giving projects momentum to potentially bypass public interest requirements, and the American Petroleum Institute (API), which wrote that DOE’s suggested regulatory framework would likely add months of delays to mature liquefied natural gas export projects.”

Advanced Energy Management Alliance: States, Consumers and Industry Rally for Demand Response Appeal
Digital Journal (July 8, 2014)
“In a rare show of unity in response to a U.S. Circuit Court decision (USCA Case #11-1486) to vacate Order 745–the landmark order from the Federal Energy Regulatory Commission (FERC) –state utility regulators, electric grid operators, demand response providers, industrial consumers, and consumer advocates all filed to request a rehearing en banc in the court, expressing strong support for all types of demand response as a valuable resource to the nation’s electric grid.

“In addition to AEMA, parties publicly supporting rehearing include: Delaware Public Service Commission, New York Public Service Commission, New England Conference of Public Utility Commissioners, Delaware Division of the Public Advocate, Indiana Office of Utility Consumer Counselor, Maryland Office of People’s Counsel, New Jersey Division of Rate Counsel, Pennsylvania Office of Consumer Advocate, Office of the People’s Counsel for the District of Columbia, Public Service Commission of West Virginia Consumer Advocate Division, Advanced Energy Economy, Electric Consumers Resource Council, Industrial Energy Consumers of America, National Electrical Manufacturers Association, New England Clean Energy Council, Massachusetts Attorney General, Northeast Utilities and National Grid.”

LNG: Obama Admin Mum as Export Bill Sails Through House (Subscription Required)
Nick Juliano, E&E (June 26, 2014)
“‘H.R. 6 is anti-consumer and puts the interests of natural gas producing states over every constituent and consumer of natural gas and electricity in the country,’ Paul Cicio, president of Industrial Energy Consumers of America, said in a statement, warning that gas prices already are projected to rise even without new exports.”

Advocates See US Gas Exports Spurring Major Job Growth
Jon Hurdle, MNI (June 24, 2014)
“The Industrial Energy Consumers of America, a nonprofit that represents manufacturers, argued that rising natural gas prices will result in declining manufacturing employment. It said 40,000 U.S. manufacturing facilities closed when natural gas prices rose by more than 200% from 2000 to 2008.

“IECA President Paul Cicio predicted that Henry Hub gas prices will rise by 89% from current levels by 2025 – faster than the 76% predicted by the U.S. Energy Information Administration – after the EPA’s new greenhouse gas regulations and coal-plant shutdowns are taken into consideration.

“Cicio told MNI that DOE should continue its current procedure, which he said will show that allowing LNG exports is not in the public interest – the standard by which the department evaluates projects that would export to countries that do not have a free-trade agreement with the United States.

“In Australia, domestic natural gas prices have tripled since the country began exporting LNG in 1989, and are expected to rise further next year when more export terminals come on line, according to the IECA.

“Cicio declined to say how many jobs might be lost if the government continues to approve applications but argued that there is a negative correlation between natural gas prices and manufacturing jobs.

“‘When natural gas prices rise, manufacturing jobs fall,’ he said.”

Aid Ukraine? It’ll Hurt the U.S. Economy
Paul N. Cicio, Op-Ed, San Antonio Express-News (May 2, 2014)
“The Ukraine-Russia crisis has Congress rushing to consider legislation to accelerate exports of natural gas, which will increase U.S. natural gas and electricity prices.”

Bill to Accelerate LNG Exports Clears House Committee
Joe Fisher, Natural Gas Intel (May 1, 2014)
“Large domestic consumers of natural gas have opposed measures that would expedite its export. While proponents of speeding up exports say it would send a ‘market signal’ to Russia, trade association Industrial Energy Consumers of America (IECA) has said that’s not so, as proposed export capacity already exceeds global market demand.”

My View: Liquid Natural Gas Exports Threaten US Jobs
Paul N. Cicio, Op-Ed, Deseret News (April 30, 2014)
“Natural gas prices have already increased almost 20 percent in 2014, and the U.S. Energy Information Administration (EIA) is forecasting a 42 percent rise by 2019. The concern is that high energy prices could stop the manufacturing renaissance that has created so many new jobs.”

Cicio: Gas Exports Threaten Virginia Manufacturing Jobs
Paul N. Cicio, Op-Ed, Roanoke Times (April 25, 2014)
“The U.S. should aid our Ukrainian and NATO allies by helping them drill for natural gas, and U.S. companies are in a prime position to do so.”

LNG Exports Would Hurt Manufacturing Job Growth
Paul N. Cicio, Op-Ed, Star-Telegram (April 23, 2014)
“The Ukraine-Russia crisis has Congress rushing to consider legislation to accelerate exports of natural gas, which will increase U.S. natural gas and electricity prices.”

The Path to High Natural Gas Prices
Paul N. Cicio, Op-Ed, The Dallas Morning News (April 23, 2014)
“The Ukraine-Russia crisis has Congress rushing to consider legislation to accelerate exports of natural gas despite the fact that the U.S. will not have any liquefied natural gas export terminals ready to ship until 2015 and that Ukraine does not have an import facility. The U.S. Energy Department has already approved shipments of LNG equal to those of Qatar, the largest LNG exporter in the world. Congress is pushing ahead to export volumes over three times that size.”

Guest Opinion: Congress Must Withstand Pressure to Export LNG
Paul N. Cicio, Op-Ed, Billings Gazette (April 1, 2014)
“The old adage of “give a person a fish and feed him for a day or teach him to fish and feed him for a lifetime” still applies. Drilling in the Ukraine would create needed jobs, economic growth, and energy independence. Exporting U.S. natural gas simply makes them dependent upon us rather than Russia.”

Cicio: Obama Plan to Export Natural Gas to Europe Won’t Work
Paul N. Cicio, Op-Ed, Houston Chronicle (April 1, 2014)
“Exporting U.S. natural gas to help our Ukraine and NATO allies is not a viable option for years to come. There are no export facilities that are ready to ship.

“Helping them to drill for natural gas is a solution, which Houston and Texas companies are in prime position to do better than anyone in the world.”

DOE Approves Ore. Export Project Amid Calls for Faster Action (Subscription Required)
Hannah Northey, E&E (March 24, 2014)
“Not everyone was pleased. Paul Cicio, president of the Industrial Energy Consumers of America (IECA), warned the Obama administration’s decision links domestic gas prices to foreign volatility. Cicio also said LNG exports from the United States should not be linked to the Ukraine crisis, noting that the country is awash in proven reserves of gas but does not have the technology — which could be imported from the United States — to develop that energy.”

Industry Group Says Fracking Could Help Ukraine
Randy Leonard, Roll Call (March 11, 2014)
“Instead of exporting natural gas, the Industrial Energy Consumers of America says the U.S. should export the hydraulic fracturing expertise that will let Ukraine — and other European countries — develop their own gas reserves.

“Utilizing hydraulic fracturing technology spurs economic growth and jobs from within Ukraine,” the industry group said last week in a letter to House Energy and Commerce Chairman Fred Upton, R-Mich.”

IECA Claims EPA Overreach on Regional Haze
Jo Isenberg-O’Loughlin, American Metal Market (March 6, 2014)
“In a 31-page amicus curiae (friend of the court) brief filed March 5, the Washington-based trade association (AISI) joined the Industrial Energy Consumers of America, the National Association of Manufacturers, the National Mining Association and the Portland Cement Association in asking the Supreme Court to review the EPA’s replacement of some states’ clean air implementation plans.”

Ukraine Crisis Accelerates Capitol Hill Push for More Exports, Sparks Jockeying in Key Senate Race (Subscription required)
Hannah Northey and Nick Juliano, E&E (March 6, 2014)
“The Industrial Energy Consumers of America agreed. The group in a letter to Upton yesterday suggested that the United States export its hydraulic fracturing technology — as opposed to gas exports — to help Ukraine tap into more than 40 trillion cubic feet of technically recoverable natural gas.

“Teaching a man to fish is always better than giving him a fish,” Paul Cicio, the group’s president, said in a statement.”

LNG: Foreign Officials Tell House Panel They’re Eager for U.S. Imports (Subscription required)
Hannah Northey, E&E (October 11, 2013)
“The trade group Industrial Energy Consumers of America (IECA) issued a statement yesterday criticizing the forum and noting that most of the countries that were represented — excluding South Korea and Singapore — do not have free-trade agreements with the United States.

“‘Shipping LNG to countries that do not have a free trade agreement, the subject of the hearing, undermines our ability as a country to negotiate free trade agreements,’ the group said. ‘We urge Congress to support U.S. manufacturing.’”

Natural Gas ‘Fracking’ has Flipped US Energy Map, Study Says
Mark Clayton, The Christian Science Monitor (October 9, 2013)
“Paul Cicio, president of the Industrial Energy Consumers of America, in a statement Monday: ‘Because DOE approval of an LNG export application can be for 20-30 years, and because a lot can happen to either domestic consumption or production during that time frame, it is very important that great caution is used when considering an application to export LNG.’”

EPA’s New Carbon Rule Sparks Battle over CCS, with Legal Challenges Likely (Subscription required)
Jean Chemnick, E&E (September 20, 2013)
“Paul Cicio, president of the Industrial Energy Consumers of America, said EPA is attempting to ‘dictate; energy policy with the rule.

“‘EPA’s action raises very serious national policy issues,’ he said. ‘What is to prevent the EPA from deciding to reduce or eliminate natural gas from the power generation mix in the future? This rule is precedent-setting.’

“Manufacturers are a major consumer of electricity, which Cicio says would become much costlier under the rule. It is also a sector that could eventually be covered by its own Clean Air Act rule for CO2.”

Emissions Rules Unleash Furry of Indignation, Cheers
Keith Johnson, WSJ (September 20, 2013)
“‘What is to prevent the EPA from deciding to reduce or eliminate natural gas from the power generation mix in the future?,’ asked Paul N. Cicio, President of the Industrial Energy Consumers of America, a trade group representing energy-intensive manufacturers.”

DOE Approves Lake Charles LLC’s LNG Exports to Non-FTA Countries
Nick Snow, Oil & Gas Journal (August 8, 2013)
“Paul N. Cicio, president of the Industrial Energy Consumers of America, said DOE continued to ignore many other consultants’ high domestic gas demand growth projections when it relied on a National Economic Research Associates’ forecast to justify approving the Lake Charles project’s LNG exports request to non-FTA countries.

“‘Literally, every major natural gas consulting company we know is projecting domestic demand that is 35-45% higher by 2020 than the NERA study,’ he said. ‘This means that when the three approved LNG export terminals come on line, it will be at the same time as the booming domestic demand by the industrial and power sectors and pipeline exports to Mexico.’”

Approval of Export Project Draws Mixed Responses, Talk of Greater Scrutiny (Subscription required)
Hannah Northey, E&E Publishing (August 7, 2013)
“The Industrial Energy Consumers of America is accusing DOE of basing its approval on a flawed study that ignored analysts’ projections for domestic gas demand to increase by up to 45 percent by 2020. DOE relied on a report by NERA Economic Consulting released in December that concluded LNG exports would come with broad economic benefits that grow along with export volumes.

“‘Literally, every major natural gas consulting company we know is projecting domestic demand that is 35 to 45 percent higher by 2020, than the NERA study used by DOE to justify approval,’ Paul Cicio, the group’s president, said in a statement. ‘This means that when the three approved LNG export terminals come on line, it will be at the same time as the booming domestic demand by the industrial and power sectors and pipeline exports to Mexico.’

“DOE’s decision, he said, also fails to consider the looming effects of U.S. EPA’s capping of greenhouse gas emissions for the power sector. Cicio said that the group is not opposed to exports but that there is a ‘right way and wrong way of addressing each application’ and the agency has a ‘fiduciary responsibility to protect the interest of the public.’”

The Case for Coal
Jim McTague, Barron’s (July 6, 2013)
“A recent study that didn’t anticipate Obama’s fiat predicts that 65% of that region’s pipelines will run short of capacity in the next five years, says Paul Cicio, president of Industrial Energy Consumers of America.”

Bill Would Force EPA to Report Costs of Regulations
Michael Bastasch, The Daily Caller (April 18, 2013)
“According to congressional testimony by Paul Cicio, president Industrial  Energy Consumers of America, the EPA imposes 972 regulations on the  manufacturing sector alone and imposes regulatory costs totaling $117 billion.”

LNG Approval Process Has Lots of Consequences, More Questions
Brian Scheid, Platts (April 2, 2013)
“Paul Cicio of Industrial Energy Consumers of America, a group that believes that approving LNG exports without limits will cause US gas prices to skyrocket, called on DOE to make its LNG application process more transparent. He also urged the department to stagger the approval of any export applications in order to prevent domestic gas prices from spiking. Cicio warned that if DOE approves all of the 16 or so pending export applications at once, the impact on the overall US economy could be devastating.

‘If export terminals are approved over a longer period of time, the domestic market place may have time to adjust, so as to avoid a price spike for domestic consumers,’ Cicio said in his testimony at the hearing. ‘On the other hand, approval of several terminals and shipments starting all at the same time could shock the domestic market, and prices could spike for all US consumers. Under this scenario, prices would increase right away in anticipation of the future demand.’”

LNG: Republicans Fume as DOE Official Deflects Questions About Timeline for Export Decision (Subscription required)
Hannah Northey, E&E Publishing (March 20, 2013)
“Paul Cicio, president of the trade group Industrial Energy Consumers of America (IECA), said he is not opposed to LNG exports but called on DOE to ‘do a better job’ on reviewing the economic effects of exports and said the current studies underestimate the effects on utility ratepayers and manufacturers. Cicio urged DOE to conduct a rulemaking on public interest criteria for each LNG export application, and he urged the agency to update assumptions in its reviews. A rush of new gas has already triggered $95 billion worth of investments among chemical, steel, glass and fertilizer companies, and that is slated to grow but could be jeopardized by large-scale exports that aren’t appropriately overseen, he said. ‘The U.S. is at an important crossroads,’ Cicio said. ‘So much is at stake.’”

Manufacturers to Push DOE for Staggered LNG Approvals, Decision Transparency
Brian Scheid, Platts (March 19, 2013)
“Paul Cicio, president of Industrial Energy Consumers of America, told a House Oversight and Government Reform subcommittee that expanded LNG exports ‘have the potential to slow or stop the manufacturing renaissance,’ according to his prepared testimony. ‘If export terminals are approved over a longer period of time, the domestic market place may have time to adjust, so as to avoid a price spike for domestic consumers,’ Cicio said in his testimony. ‘On the other hand, approval of several terminals and shipments starting all at the same time could shock the domestic market and prices could spike for all US consumers. Under this scenario, prices would increase right away in anticipation of the future demand.’”

Industrial Energy Consumers Call on US FERC to Study Gas Pipeline Capacity
Chris Newkumet, Platts (December 20, 2012)
“In a December 20 letter to Chairman Jon Wellinghoff, the Industrial Energy Consumers of America pointed to ‘growing evidence of potential electric reliability and natural gas deliverability issues that stem from coal-fired electric generation unit retirements and natural gas pipeline capacity sufficiency at peak demand.’”

Nod to Gas Exports in U.S. Study Seen Downplaying Consumer Cost
Jim Snyder and Bradley Olson, Bloomberg Businessweek (December 5, 2012)
“Once export applications are approved, there is no putting the genie back in the bottle. said Paul Cicio, president of Industrial Energy Consumers of America, a Washington-based manufacturing group.”

Federal Report says Natural Gas Exports Would Benefit Economy
Timothy Puko, Pittsburgh Tribune-Review (December 5, 2012)
“The best solution to our abundant supply is greater use domestically and  Congress should carefully look at the barriers to that end,” the Industrial  Energy Consumers of America said. “… Short-term impacts to price are (also)  understated. For sure, there will be extraordinary new demand by the industrial  sector” through 2020, increasing prices.”

Manufacturing is NOT Ready for Carbon Tax
Paul N. Cicio, National Journal (November 20, 2012)
“One thing for sure, manufacturing companies that compete globally are NOT ready for a carbon tax. And, policy makers who are supportive of building a thriving manufacturing sector must insist that a carbon tax and the higher energy costs that come with it – are off the table. A carbon tax would substantially increase the price of natural gas, electricity and transportation fuels.”

Energy Companies Win New Ally In Fight Over Tax Breaks
Tennille Tracy, First Enercast Financial (October 24, 2012)
“Energy companies have won a new set of allies in their politically charged effort to maintain billions of dollars of tax breaks that could be on the chopping block in coming months.”

“Manufacturers using natural gas as a feedstock or fuel–such as plastics, fertilizer or steel companies–say tax breaks for the energy industry trickle down to them in the form of cheaper natural gas prices, leading to a manufacturing revival in the U.S.”

“These projects would not exist, and may not continue to proceed, unless there is sustained confidence in the long-term supply of natural gas at globally advantaged prices,” the Industrial Energy Consumers of America said in a letter to several prominent lawmakers Wednesday.

What is Being Said About Coal Production Under President Obama?
Power Engineering (October 19, 2012)
“U.S. Rep. Ed Whitfield, (KY-01), Chairman of the House Subcommittee on Energy and Power, disputes President Obama’s claims regarding coal production in America and the impact his regulations are having on coal.”

“Paul N. Cicio, President of the Industrial Energy Consumers of America, said “In 2008, US manufacturing produced only 17.6 percent of the world’s manufacturing goods, down from 27 percent in 2000. Meanwhile, China increased their share from 8 percent to 17.3 percent in the same time period. In 2011, experts forecast that China now controls nearly 30 percent of the worlds market while the US is stuck in a jobless economic recovery and is struggling to reduce unemployment, increase exports and economic growth. This is not the time to implement untried [greenhouse gas] regulations with unknown, but potentially significant costs.”

Group Pushes U.S. House Republicans to Get Position Limits in Place
Platts (October 18, 2012)
“A financial reform group is pressing key US House Republicans to enact position limits in commodity markets, despite a court ruling which essentially overturned them. The coalition is a group of commodity end users which includes the American Public Gas Association, Industrial Energy Consumers of America and the Petroleum Marketers Association of America.”

“Putting aside the court’s ruling, we believe there is more than adequate evidence of excessive speculation, and more than adequate evidence that market opacity and excessive speculation have been disruptive to commodity markets and diminished confidence in these markets.”

The 10% 10% in 2016 Gas Export Problem
Paul N. Cicio, National Journal (September 27, 2012)
“The shale gas boom is the greatest opportunity for economic expansion that we will ever see in our lifetimes. There is a brewing problem however, that no one is talking about, that could squander this once in a lifetime economic opportunity. I call it the “10% 10% in 2016 Export Problem.”

NAT GAS Act Hurts Manufacturing Sector
Ashe Schow, Heritage Action for America (July 27, 2012)
“In addition to taxpayers, the manufacturing industry will also be a ‘loser’ in the government’s eyes, as the industry will suffer due to a rapid and market-distorted increase in demand, as the president of the Industrial Energy Consumers of America (IECA), Paul Cicio, explains in testimony.”

Manufacturers ‘Alarmed’ About Surging Natural Gas Demand
Jennifer A. Dlouhy, Fuel Fix (July 24, 2012)
“Paul Cicio, president of the Industrial Energy Consumers of America, said the group ‘is becoming very alarmed at the ever-increasing potential demand and over reliance on natural gas.’”

Proposed BLM Fracking Rule Has No Scientific Basis: IECA
Jim Magill, Platts (June 18, 2012)
“The federal Interior Department’s proposal to regulate hydraulic fracturing on federal lands has no scientific basis, the president of the Industrial Energy Consumers of America said Monday.”

Oil and Natural Gas Part Ways
Ken Silverstein, Forbes (May 14, 2012)
“The White House says that speculators are distorting those market fundamentals by buying up oil and creating the false perception that shortages exist. Prices then rise and the traders sell those “futures contracts” for quick profits. That’s a view generally supported by the Industrial Energy Consumers of America.”

Presidential Candidates Accelerate Oil and Gas Flames
Ken Silverstein, Energy Biz (April 25, 2012)
“Speculators are buying up oil and creating the false perception that shortages exist. Prices then rise and the traders sell those ‘futures contracts’ for quick profits, hurting American families. That’s a view generally supported by the Industrial Energy Consumers of America.”

Senate Republicans Try to Reverse Obama’s Pipeline Rejection
Environment News Service (February 1, 2012)
“Construction of the pipeline is supported by the American Petroleum Institute, the Association of Oil Pipe Lines, the Consumer Energy Alliance, the Independent Petroleum Association of America, the Industrial Energy Consumers of America, and the National Petrochemical and Refiners Association.”

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