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Energy Tomorrow Blog

Price Spikes in New England Limited by Natural Gas – Just Not Ours

consumers  natural gas  liquefied natural gas  imports  marcellus  utica shale 

Jessica  Lutz

Jessica Lutz
Posted May 17, 2019

It seems like each winter we see consumers in New England suffering not just from freezing temperatures but also the highest energy prices in the country (see here and here) – largely because there’s not enough natural gas infrastructure to serve the region during periods of peak winter demand. This past winter, the news was a little bit better.

Natural gas prices generally follow seasonal patterns and tend to rise in the winter. For example, the U.S. Energy Information Administration (EIA) has suggested

that liquefied natural gas (LNG) imports  helped to moderate energy price spikes in the region this year. ...

Still, domestic infrastructure constraints in New York and New England mean that residents remain faced with relatively high and uncertain energy prices plus the possibility of winter shortages – not to mention the unnecessary stress those conditions put on the region’s power grid. 

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Connecticut Officials Should Advance Natural Gas-Fueled Power Plant

natural gas  consumers  connecticut  electricity 

Mark Green

Mark Green
Posted May 14, 2019

Next month the Connecticut Siting Council is scheduled to hold an important vote on a proposed natural gas-fueled power plant near Killingly, the Killingly Energy Center. The plant should get the council’s go-ahead, as it would help meet growing consumer demand while supporting badly needed stability in the regional power grid.

The plant would produce enough electricity for 500,000 homes. In addition to generating electricity, the facility would generate $110 million in local tax revenue over the next two decades while helping the state advance its climate goals (more on that below).

Most importantly, consumers would get needed help. 

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Revised Well Control Rule Critical to Meet Offshore Challenges

offshore drilling safety  oil and natural gas  regulation  technology 

Mark Green

Mark Green
Posted April 30, 2019

Soon the federal government is expected to release its updated offshore well control rule, one that improves on its 2016 predecessor by providing flexibility to meet specific challenges across a variety of offshore conditions while encouraging innovation and technologies that help improve safety.

We expect that opponents of natural gas and oil development anywhere to attack the updated rule when it’s released. Yet, fact and logic will weigh heavily against them.

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U.S. LNG Accelerates Shifts in the Global Marketplace

liquefied natural gas  lng exports  consumers  global markets 

Dustin Meyer

Dustin Meyer
Posted April 26, 2019

Over the past few weeks, we’ve published a series of posts on the United States’ emergence as a major global natural gas exporter, including discussion of the benefits both at home and abroad (see here and here).

In this post, we’ll look at how the business of liquefied natural gas (LNG) is changing in exciting ways—ways that give customers around the world unprecedented flexibility and access to clean and reliable natural gas.

We’ll see that while some of these trends have been in motion for years, it’s been the introduction of U.S. LNG into the market that has really accelerated this shift. With multiple project developers pursuing a wide range of structures and technologies, it’s clear that the U.S. is once again at the forefront of innovation in this critical part of the world’s energy sector.


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Targeting Energy Infrastructure Red Tape

infrastructure  pipelines  oil and natural gas  consumers  us energy security 

Mark Green

Mark Green
Posted April 11, 2019

Cutting bureaucratic red tape and making federal decisions on energy infrastructure more efficient and timely are important steps toward ensuring that Americans in all parts of the country may be connected to the benefits of the U.S. energy revolution.

That’s what we see in the president’s two new executive orders affecting energy infrastructure – greater efficiency and timeliness in federal reviews, without compromising thorough environmental scrutiny.

The United States leads the world in natural gas and oil production, yet not every American, not every manufacturer and not every region of the country is adequately connected to America’s energy abundance – and won’t be without new and/or expanded pipelines and other infrastructure to deliver energy to markets and consumers. 

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Talking Turkey, Barbeques and Abundant U.S. Propane

consumers  natural gas  petroleum products  liquid fuels 

Dean Foreman

Dean Foreman
Posted April 10, 2019

Connecting the renaissance in U.S. energy exports and chemical production with barbeques and turkey might not seem automatic, but hear me out. Thanks to the U.S. energy revolution, propane that’s widely used as a fuel for vital heating and cooking has never been more abundant and affordable.

Certainly, the need for affordable energy – available on-demand when and where you need it – is universal and something people I met recently during travels from Washington, D.C. to Minnesota and the Gulf Coast are talking about.   


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The Pro-Consumer U.S. Energy Revolution

consumers  energy costs  oil and natural gas production 

Mark Green

Mark Green
Posted April 9, 2019

America’s energy revolution is decidedly pro-consumer. Indeed, surging U.S. natural gas and oil production has significantly helped individual Americans and their families with their budgets, plan travel and more.

We’ll go mostly visual to absorb this – in a handful of charts from API’s Quarterly Industry Outlook, prepared by Chief Economist Dean Foreman. …

America’s natural gas and oil resurgence has played a major role in that when you think about the average family’s needs for driving, home heating and keeping the lights on (remembering that natural gas is the leading U.S. fuel for power generation). It follows, then, that families spending less on energy had more of their disposable income available for other needs.


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Exported U.S. LNG, Key Global Growth Markets and Environmental Benefits

lng exports  natural gas benefits  climate  china 

Dustin Meyer

Dustin Meyer
Posted April 5, 2019

In this third post on the benefits of the United States’ emergence as a major global natural gas exporter (see parts one and two), we continue looking abroad to evaluate the key liquefied natural gas (LNG) importing markets that are driving global demand growth.

We’ll see that in all of these markets, U.S. LNG can deliver a plethora of economic and environmental benefits, including better local air quality and enhanced access to reliable and affordable energy. The challenge is immense – globally, nearly 1 billion people still don’t have access to electricity, while an additional 1.2 billion have only intermittent access – but LNG, including from the U.S., has emerged as a critical part of the solution. 

In other words, LNG is now delivering globally many of the same benefits the U.S. has enjoyed for decades.  


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The $670 Million Question for New York, New England Consumers

consumers  natural gas  infrastructure  liquefied natural gas  imports 

Mark Green

Mark Green
Posted April 4, 2019

A pair of graphics prepared by API Chief Economist Dean Foreman help underscore the impacts of bad, consumer-impacting policies blocking needed natural gas infrastructure in New York and New England.

First, because New York and New England don’t have enough natural gas pipeline capacity to meet the needs of consumers, especially during peak-demand months in the winter, the two have had to import liquefied natural gas (LNG) to help fill in the gaps.

As Dean’s graphic shows, 90 percent of the $1.2 billion in LNG the U.S. has imported since 2016 went to NY/NE. The bad news for consumers is that they paid about $670 million more for the imported LNG than they would have paid for domestic natural gas – that should have been available from the nearby Marcellus shale play with sufficient infrastructure to deliver it.


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Serve Consumers; Build Natural Gas Pipelines

natural gas pipelines  consumers  heat  natural gas benefits 

Mark Green

Mark Green
Posted April 1, 2019

We get it: Folks with some environmental groups don’t like plentiful, affordable natural gas. It doesn’t fit their definition of “clean energy” – which is odd, given the fact that clean natural gas is the main reason U.S. carbon dioxide emissions from the power sector are at their lowest level in a generation. And natural gas is winning in the marketplace because it’s plentiful and affordable, which consumers like.

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