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During the EIA Energy Conference last week, July 14 to July 15, Michigan’s Representative Fred Upton (R) gave a speech about his ideal energy future. He called his plan the “Architecture of Abundance.” It is  a plan with five pillars:

  1. By Energy and Commerce Committee Chairman Fred Upton (R-MI)

    By Energy and Commerce Committee Chairman Fred Upton (R-MI)

    Modernizing infrastructure

  2. Maintaining diverse electricity generation
  3. Permitting a manufacturing renaissance
  4. Harnessing energy efficiency and innovation, and
  5. Unleashing energy diplomacy.

Upton reported that several pro-oil and gas industry bills have been approved by the House, but none of those bills have passed through the Senate. Several are from 2013, and the prospects of the bills gaining approval from the Senate are slim. Included is:

  • H.R. 3, a bill that would approve the nearly 6-year delayed Keystone XL pipeline, was passed by the House on May 22, 2013. Its likelihood of enactment: 25%.
  • H.R. 1900 would set a time limit on natural gas pipeline project review and approval, and was passed by the House on November 21, 2013. Its likelihood of enactment: 14%.
  • H.R. 2218, approved by the House on July 25, 2013, would give states more control over coal plant ash recycling. Its likelihood of enactment: 14%.
  • H.R. 3826, approved by the House on March 6, 2014, would curb the EPA’s new power plant rules. Its likelihood of enactment: 20%.
  • H.R. 2126, approved by the House on March 6, 2014, would promote energy efficiency. Its likelihood of enactment: 20%.
  • H.R. 6, approved by the House on June 25, 2014, would set a 30 day time limit on approving LNG exports. Its likelihood of enactment: 20%.
  • H.R. 3301, approved by the House on June 26, would set a 120 day deadline for the State Department to approve pipelines to Canada or Mexico, unless such projects were not found to be in the “public interest.” Its likelihood of enactment: 40%.

These bills would help energy companies and power generators in the conduct of their businesses, but the majority faces strong opposition. For example, on June 24, 2014, President Obama threatened to veto H.R. 3301, since it removes the President’s power to review cross-border pipelines. In a statement the White House said, “H.R. 3301 would impose an unreasonable deadline that would curtail the thorough consideration of the issues involved, which could result in serious security, safety, foreign policy, environmental, economic, and other ramifications.”

There is no assurance that Upton’s energy plans will be accepted or adopted by Congress.

For a full record of Upton’s prepared speech on the “Architecture of Abundance” program, click here.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.