Energy Tomorrow Blog
Posted July 26, 2019
Historically, tensions in the Strait of Hormuz – like those currently between the U.S. and Iran – would portend serious price impacts for American consumers. But not anymore, thanks to the U.S. energy revolution. As it turns out, America’s strongest defense against crude oil supply disruptions is our homegrown energy offense.
Posted July 17, 2019
Legislation in Congress that could cripple future U.S. offshore energy development needs to be seen for the longer-term damage it could do to America’s strategic energy and national security.
One House bill would permanently extend a moratorium on development in the Eastern Gulf of Mexico; another would permanently bar leasing in the Atlantic and Pacific oceans.
Given projected growth in America’s energy needs, such shortsighted legislation fails the test of leadership in setting energy policy that will enhance and protect our nation’s strategic interests.
Posted July 12, 2019
An interesting read in the Wall Street Journal underscores what we’ve been saying about the nation’s need for more energy infrastructure: Basically, that despite record natural gas production, Americans in some parts of the country aren’t benefiting from it as much as they should. The Journal:
U.S. gas production rose to a record of more than 37 trillion cubic feet last year, up 44% from a decade earlier. Yet the infrastructure needed to move gas around the country hasn’t kept up. … The result, despite natural-gas prices that look low on commodities exchanges, is energy feast and famine.
Posted June 13, 2019
John Watson, then the chairman and CEO of Chevron, once was asked how the natural gas and oil industry is perceived since so much of the climate discussion is aimed solely at producing fossil fuels.
Unflinchingly, Watson countered that his industry is a noble one – delivering light, heat, transportation, food, clothing and other benefits to people every day – and that natural gas and oil are foundational for almost everything that we use and do. Simply put, Watson asserted that natural gas and oil are forces for good in human development and far from a deterrent (and instead an enabler) of climate progress.
It was an argument for the societal value of natural gas and oil and the opportunities they create, thanks to U.S. energy abundance.
Posted June 10, 2019
From the Permian Basin in Texas and New Mexico to Alaska’s Prudhoe Bay, the U.S. has not just the resources but an industry with the technology and skill to develop them safely.
Take for example the North Slope of Alaska, an area poised to re-emerge as a “super basin” following discoveries like Willow, Pikka and Liberty. The resurgence has been great news for the Trans-Alaska Pipeline System, or TAPS — backbone of Alaska energy and critical pillar of U.S. energy security. TAPS throughput is ticking up, and new finds in National Petroleum Reserve Alaska, or NPR-A, could singlehandedly increase its volume by 18 percent. ...
On so many levels, U.S. energy security, and our national security, is tied to keeping Alaska energy strong.
Posted March 18, 2019
In light of last week’s comment deadline for the U.S. Bureau of Land Management (BLM) Draft Environmental Impact Statement (DEIS) for Alaska’s Coastal Plain Oil and Gas Leasing Program, it’s important to remember just how critical natural gas and oil development is to the Alaskan economy, the Alaskan people, and the long-term energy security of the United States.
Posted August 15, 2018
Increased access to America’s offshore natural gas and oil would bring far-reaching benefits to coastal states, and the entire country. This is precisely why the diverse, bipartisan “Explore Offshore” coalition gathered today in Florida: because the strategic interests of Florida and our nation are tied to responsible development of offshore natural gas and oil..
Posted July 20, 2018
Big news in the latest API Monthly Statistical Report: U.S. crude oil production rose to an all-time record of 10.7 million barrels per day (mbd) in June – the largest monthly output, ever. According to the MSR, June domestic crude production increased more than 100,000 barrels per day over May, and the total was 1.6 million barrels per day more than June a year ago. But let’s go back to that top-line number – 10.7 million barrels per day – and comprehend what it means:
Economic growth and jobs – but also our country’s energy security, supporting the promise of present and future prosperity and opportunity. That’s the gift of the American energy renaissance that, well, keeps on giving.
All of the above support an argument that – to ensure an adequate global supply of crude oil upon which the U.S. and global economies rely – we should look to sustain and grow domestic natural gas and oil production.
Posted May 16, 2018
For some time we’ve stressed that offshore oil and natural gas production is compatible with a variety of other ocean uses such as fishing and tourism – and most significantly, with the U.S. military’s need for open-water areas to conduct training exercises, advanced weapons testing and the like. Industry has a long track record of developing offshore energy in a manner that successfully coexists with the military’s needs in the Gulf of Mexico and other areas.
The same would be true in the Eastern Gulf of Mexico if a moratorium on offshore development there, in place since 2006, is allowed to expire in 2022 – creating access to key new areas for safe exploration and development of strategically important oil and natural gas. A new analysis by the Defense Department agrees.
Posted May 10, 2018
The facts that crude oil prices are up 9 percent since the end of March and that crude oil currently accounts for 57 percent of the consumer’s price for gasolinemean that consumers have felt the impact at the pump of relatively large and sudden changes. As domestic crude oil prices recently increased above $70 per barrel for the first time since November 2014, let’s revisit current oil market fundamentals and other factors that have elevated prices.
By understanding the drivers of prices, American consumers may be more aware of how U.S. policy outcomes – such as more domestic natural gas and oil production, a strong U.S. dollar, low price inflation, avoidance of tariffs, quotas and other protectionist measures that undermine free trade, and peaceful international relations – could help put downward pressure on crude prices that ultimately benefits consumers.