National Economic Research Associates

Wed, 2014-03-26 04:38Steve Horn
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Follow the Money: Three Energy Export Congressional Hearings, No Climate Change Discussion

In light of ongoing geopolitical tensions in Russia, Ukraine and hotly contested Crimea, three (yes, three!) U.S. Congressional Committees held hearings this week on the U.S. using its newfangled oil and gas bounty as a blunt tool to fend off Russian dominance of the global gas market.

Though 14 combined witnesses testified in front of the U.S. Senate Committee on Energy and Natural Resources, the U.S. House Energy and Commerce Committee's Subcommittee on Energy and Power and U.S. House Committee on Foreign Relations, not a single environmental voice received an invitation. Climate change and environmental concerns were only voiced by two witnesses. 

Using the ongoing regional tumult as a rationale to discuss exports of U.S. oil and gas obtained mainly via hydraulic fracturing (“fracking”), the lack of discussion on climate change doesn't mean the issue isn't important to national security types.

Indeed, the Pentagon's recently published Quadrennial Defense Review coins climate change a “threat force multiplier” that could lead to resource scarcity and resource wars. Though directly related to rampant resource extraction and global oil and gas marketing, with fracking's accompanying climate change and ecological impacts, “threat force multiplication” impacts of climate change went undiscussed. 

With another LNG (liquefied natural gas) export terminal approved by the U.S. Department of Energy (DOE) in Coos Bay, Ore., to non-Free Trade Agreement countries on March 24 (the seventh so far, with two dozen still pending), the heat is on to export U.S. fracked oil and gas to the global market.   

So, why wasn't the LNG climate trump card discussed in a loud and clear way? Well, just consider the source: 11 of the witnesses had ties in one way or another to the oil and gas industry.

Thu, 2013-07-18 10:23Steve Horn
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Revealed: Gen. David Petraeus' Course Syllabus Features "Frackademia" Readings

Records obtained by DeSmogBlog pertaining to City University of New York (CUNY) Macaulay Honors College's hiring of former head of the Central Intelligence Agency (CIA) David Petraeus to teach a seminar this coming fall reveal that his syllabus features two of the most well-known “frackademia” studies. 

“Frackademia” is shorthand for oil and gas industry-funded research costumed as independent economics or science covering the topic of hydraulic fracturing (“fracking”), the controversial horizontal drilling process via which oil and gas is obtained deep within shale rock basins.

According to the syllabus, Petraeus will devote two weeks to energy alone, naming those weeks “The Energy Revolution I” and “The Energy Revolution II.” The two “frackademia” studies Petraeus will have his students read for his course titled “The Coming North American Decade(s)? are both seminal industry-funded works.

One of them is a study written by industry-funded National Economic Research Associates (NERA) concluding liquified natural gas (LNG) exports are beneficial to the U.S. economy, despite the fact that exporting fracked gas will raise domestic home-heating and manufacturing prices. NERA was founded by “father of deregulation” Alfred E. Kahn. The study Petraeus will have his students read was contracted out by the U.S. Department of Energy (DOE) to NERA.

The other, a study written by then-Massachusetts Institute of Technology (MIT) research professor Ernest Moniz - now the head of the DOE - is titled “The Future of Natural Gas” and also covers LNG exports. DOE oversees the permitting process for LNG exports. That study was funded by the Clean Skies Foundation, a front group for Chesapeake Energy and covered in-depth in the Public Accountability Initiative's report titled, “Industry Partner or Industry Puppet?

Noticeably absent from the reading list: studies tackling the climate impacts, air quality impacts, over-arching ecological impacts such as water contamination, wastewater impacts and supply issues (aka diminishing supply)

Together, the two crucial studies on the syllabus reading list - and the lack of critical readings on the topic of fracking - offers a gimpse into the stamp of legitimacy industry-funded studies get when they have the logo of elite research universities on them. It's also another portrayal of the ascendancy of the corporate university.  

Tue, 2013-04-09 05:00Steve Horn
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Ties That Bind: Ernest Moniz, Keystone XL Contractor, American Petroleum Institute and Fracked Gas Exports

Congress will review the Obama Administration's nomination of Ernest Moniz for Secretary of the Department of Energy (DOE) in hearings that start today, April 9.

Moniz has come under fire for his outspoken support of nuclear power, hydraulic fracturing (“fracking”) for shale gas and the overarching “all-of-the-above” energy policy advocated by both President Barack Obama and his Republican opponent in the last election, Mitt Romney

Watchdogs have also discovered that Moniz has worked as a long-time corporate consultant for BP. He has also received the “frackademic” label for his time spent at Massachusetts Institute of Technology (MIT). At his MIT job, Moniz regularly accepted millions of dollars from the oil and gas industry to sponsor studies under the auspices of The MIT Energy Initiative, which has received over $145 million over its seven-year history from the oil and gas industry. 

MIT's “The Future of Natural Gas” report, covered by many mainstream media outlets without any effort to question who bankrolled it, was funded chiefly by the American Clean Skies Foundation, a front group for the shale gas industry's number two domestic producer, Chesapeake Energy. That report concluded that gas is a “bridge fuel” for a renewable energy future and said that shale gas exports were in the best economic interests of the United States, which should “not erect barriers to natural gas imports and exports.” 

As first revealed on DeSmogBlog, Moniz is also on the Board of Directors of ICF International, one of the three corporate consulting firms tasked to perform the Supplemental Environmental Impact Study (SEIS) for TransCanada's Keystone XL (KXL) tar sands pipeline. KXL is slated to bring tar sands - also known as “diluted bitumen,” or “dilbit” - from Alberta to Port Arthur, TX, where it will be sold to the highest bidder on the global export market

Moniz earned over $300,000 in financial compensation in his two years sitting on the Board at ICF, plus whatever money his 10,000+ shares of ICF stock have earned him. 

Tue, 2013-01-29 05:00Steve Horn
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Congressmen Supporting LNG Exports Received $11.5 Million From Big Oil, Electric Utilities

On Jan. 25, 110 members of the U.S. House of Representatives - 94 Republicans and 16 Democrats - signed a letter urging Energy Secretary Steven Chu to approve expanded exports of liquified natural gas (LNG).

It was an overt sign of solidarity with the Obama Administration Department of Energy's (DOE) LNG exports study, produced by a corporate consulting firm with long ties to Big Tobacco named NERA Economic Consulting (NERA is short for National Economic Research Associates), co-founded in 1961 by the “Father of Deregulation,” Alfred E. Kahn. That study concluded exporting gas obtained from the controversial hydraulic fracturing (“fracking”) process - sent via pipelines to coastal LNG terminals and then onto tankers - is in the best economic interests of the United States.  

A DeSmogBlog investigation shows that these 110 signatories accepted $11.5 million in campaign contributions from Big Oil and electric utilities in the run-up to the November 2012 election, according to Center for Responsive Politics data.

Big Oil pumped $7.9 million into the signatories' coffers, while the remaining $3.6 million came from the electric utilities industry, two industries whose pocketbooks would widen with the mass exportation of the U.S. shale gas bounty. Further, 108 of the 110 signers represent states in which fracking is occuring.  

Thu, 2013-01-24 10:26Steve Horn
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Smoke and Mirrors: Obama DOE Fracked Gas Export Study Contractor's Tobacco Industry Roots

At first, it was kept secret for months, cryptically referred to only as an “unidentified third-party contractor.”

Finally, in November 2012, Reuters revealed the name of the corporate consulting firm the U.S. Department of Energy (DOE) hired to produce a study on the prospective economic impacts of liquefied natural gas (LNG) exports.

LNG is the super-chilled final product of gas obtained - predominatly in today's context - via the controversial hydraulic fracturing (“fracking”) process taking place within shale deposits located throughout the U.S. This “prize” is shipped from the multitude of domestic shale basins in pipelines to various coastal LNG terminals, and then sent on LNG tankers to the global market

The firm: National Economic Research Associates (NERA) Economic Consulting, has a long history of pushing for deregulation. Its claim to fame: the deregulation “studies” it publishes on behalf of the nuclear, coal, and oil/gas industry - and as it turns out, Big Tobacco, too.

Mon, 2012-11-19 17:43Steve Horn
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Revealed: NERA Economic Consulting is Third Party Contractor for DOE LNG Export Study

Reuters has revealed the identity of the mysterious third party contractor tasked to publish the economic impact study on LNG (liquefied natural gas) exports on behalf of the Department of Energy (DOE). Its name: NERA Economic Consulting.

NERA” is shorthand for National Economic Research Associates, an economic consulting firm SourceWatch identifies as the entity that published a June 2011 report on behalf of coal industry front group American Coalition for Clean Coal Electricity (ACCCE). ACCCE's report concluded, “clean-air rules proposed by the Obama administration would cost utilities $17.8 billion annually and raise electricity rates 11.5 percent on average in 2016.”

That report went so far to say that Environmental Protection Agency (EPA) regulations of the coal-generated electrcity sector would amount to some 1.5 million lost jobs over the next four years.

NERA was founded by Irwin Stelzer, senior fellow and director of the right-wing Hudson Institute’s Center for Economic Policy. In Oct. 2004, The Guardian described Stelzer as the “right-hand man of Rupert Murdoch,” the CEO of News Corp., which owns Fox News. 

According to NERA's website, the late Alfred E. Kahn, the “father of deregulation,” advised NERA's 1961 foundation

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