Leading up to the State of the Union address…

• USA Today, “Obama’s theme tonight: Jobs“
• Reuters, “US Govt pushes any drilling off Virginia past 2011“

David Holt, president of the Consumer Energy Alliance, issued a statement reacting to the news that the Interior Department will continue to delay the long-scheduled offshore energy lease sale in areas 50 miles off the Virginia coast:

When the governor of the commonwealth of Virginia asks the federal government to partner with his administration in an effort to convert the abundant reserves of energy off his shores into jobs, revenue and energy security for Virginians, you’d hope to see a sensible process move forward. If news today out of MMS is any indication, the federal government appears ready to delay that critical work for at least another year, meaning additional delays in creating jobs, reducing energy costs and getting the U.S. economy moving again.

The Administration should do more to show that it recognizes the tremendous economic opportunity that safe and responsible offshore energy exploration presents to the citizens of Virginia, and the nation at large.

We’re talking about thousands of high-wage jobs here, and billions in annual revenue that can be raised without imposing a single new tax. When it comes to promoting alternative energy resources offshore, the Administration has compiled an impressive record – and we applaud those efforts. This announcement signals that the Administration may not be looking to maximize our nation’s enormous oil and gas potential offshore with the same enthusiasm.  Those who support a balanced, commonsense national energy strategy look forward to continuing to work with the Administration to create jobs, improve our national and energy security and responsibly allow access to our abundant resources.

It’s been three decades since a brand new oil refinery has been built in the United States due to regulatory restrictions, the power of NIMBY-inspired litigation, and already low margins for the refinery business. New domestic capacity has been added to existing refineries through upgrades and expansions, but it’s more common for companies to build new refineries outside the United States.

The brightest prospect for a new refinery has been in South Dakota, where the Dallas-based Hyperion Energy Company plans to build a $10 billion facility in Union County between Sioux Falls, S.D., and Sioux City, Iowa. That’s a lot of investment and jobs. As the PrairieBiz magazine reports, “During construction alone, Hyperion would employ approximately 4,500 workers in the four years that it will take to build. At full production, 1,800 full-time jobs would be available at the plant.”

But all for naught if Congress enacts a low-carbon fuels standard. As we wrote earlier in the week, supporters of the standard claim an environmental imperative, but the proposal would make the U.S. even more dependent on Middle Eastern or Venezuelan oil. And as for the Hyperion project (earlier posts here), the Sioux City Journal reports, “Industry group: Low carbon proposal threatens Hyperion refinery“:

New environmental regulations for transportation fuels being considered in Congress would deal a “devastating” blow to U.S. projects like the proposed Hyperion Energy Center in Union County, according to a coalition of business groups.

Some majority Democrats back legislation that would lower carbon emissions in U.S. vehicles. The so-called Low-Carbon Fuel Standards, or LCFS, would unfairly penalize heavier, dirtier oil such as the crude from the Alberta, Canadian oil sands that Hyperion plans to process.

Last month, Hyperion secured a state air quality permit for its $10 billion refinery, which would process of 400,000 barrels per day.

“No permit in the world is going to save this project if LCFS is put in place,” said Chris Tucker, a spokesman for the Consumer Energy Alliance, a 125-member group that includes oil companies, retailers, trucking and transportation groups and business organizations like the U.S. Chamber of Commerce.

The Consumer Energy Alliance (which the NAM is a member of) has launched a new website on the low-carbon standards at SecureOurFuels.com, which includes a blog.

Good site. Good jobs.