Energy Tomorrow Blog
Posted March 29, 2018
Recent analysis of the potential economic benefits of offshore natural gas and oil, finding that coastal states and the nation could see billions in annual industry spending, job creation and federal revenue sharing dollars over a 20-year period, has the attention of leaders in one of those key states – Virginia.
A group of 21 Virginia businesses, associations and other organizations have written to federal officials in support of opening more of the U.S. outer continental shelf (OCS) to safe development. The comments were filed with the Bureau of Ocean Energy Management (BOEM), which is putting together a new federal offshore leasing plan that will blueprint development from 2019-2024.
Posted February 6, 2015
Posted September 23, 2014
FuelFix Blog: From steel pipe manufacturers to companies that produce sand and gravel, the U.S. shale boom is buoying businesses far removed from the oil and gas fields, a new study finds.
These companies are benefiting from the huge investments needed to explore, produce, process and transport oil and gas unlocked from previously inaccessible dense rock formations through advances in hydraulic fracturing and horizontal drilling, according to the findings by Houston-based energy analyst firm IHS.
The boom has been most generous to companies working in states with the most oil and gas activity, but the economic boost has also trickled down to steel-makers and machine tool manufacturers based in regions with no production, the report said.
Posted September 10, 2014
Reuters: The U.S. government on Tuesday jacked up its forecast for oil production next year by 250,000 barrels per day (bpd) as the boom in shale oil drilling continues to confound expectations of slower growth.
The U.S. Energy Information Administration now expects domestic output to rise to 9.53 million bpd, growing by around 1 million bpd for a third consecutive year, according to its latest monthly short-term energy outlook. A month ago the EIA had predicted output growth would slow in 2015 to 800,000 bpd.
The U.S. shale boom has allowed producers to unlock thousands of barrels of reserves, putting the United States on course to become the largest producer of oil globally, which would dramatically reduce its dependence on imports.
"Rising monthly crude oil production, which will approach 10 million barrels a day in late 2015, will help cut U.S. fuel imports next year to just 21 percent of domestic demand, the lowest level since 1968," EIA Administrator Adam Sieminski said.
Posted March 11, 2014
Denver Post Editorial: Speeding up U.S. natural gas exports was a good idea even before the crisis in Crimea, but it's an even better idea now.
It's not as if U.S. exports are going to undermine Vladimir Putin's imperialistic designs in the short term. Ukraine would love to be less dependent on Russia for natural gas, but the export infrastructure in the U.S. for liquefied natural gas (LNG), particularly in terms of ports, isn't ready.
Indeed, the earliest that an export terminal is expected to come on line is in late 2015, with other terminals becoming operational perhaps a couple of years later. For that matter, the government doesn't direct where exports go. If the price in Asia for LNG is higher than in Europe, U.S. exports will tend to wind up there.
Still, the more gas is available worldwide, the less leverage Putin will have in bullying neighbors and in talks with European powers such as Germany, which also depends on Russian gas.
Posted January 21, 2014
A new year unfortunately means the same old tired arguments from folks seeking higher punitive taxes on America’s oil and natural gas companies, in this case in the form of a post from the Center for American Progress (CAP), which seeks to simplify the complexity of comprehensive tax reform down to “end special tax breaks for the five biggest oil companies.” So what are these “special” tax breaks they want to end?
Well, the first identified by CAP is the “Section 199 deduction” created in 2004 to spur employment in U.S. manufacturing and is available for all U.S. taxpayers who manufacture in the U.S. So, not special for oil and natural gas companies, and in fact oil and natural gas companies are already singled out for reduced used of the deduction, compared to other manufacturers. The second is the foreign tax credit deduction, which is designed to minimize double taxation and is available to all U.S. companies with operations overseas. So again, not special for oil and natural gas companies. Lastly, CAP wants to end the intangible drilling costs deduction (IDCs), which is a cost-recovery mechanism for oil and natural gas exploration and production expenses that has existed since 1913. While drilling costs are unique to drillers, the deduction of costs is similar to cost-recovery provisions provided to every business, so not special, and as a bonus, IDCs are also not a tax break, as drillers pay the full amount of taxes that are owed.
Posted August 23, 2013
Posted April 16, 2013
LA Times – EPA: U.S. Greenhouse Gases Drop
The newspaper highlights the latest good news from the EPA: Increased use of natural gas, much of it developed with hydraulic fracturing, has helped the United States lower its greenhouse gas emissions 1.6 percent from 2010 to 2011 and nearly 7 percent since 2005.
Alberta Premier Alison Redford’s op-ed argues that Canada is “the safest, most secure and responsible energy supplier to the United States and a reliable trading partner.” This comes after her recent visit to the U.S. advocating approval of the Keystone XL pipeline project. Approving the pipeline “is the choice of reason,” she writes.
Jane Van Ryan
Posted November 8, 2010
business domestic energy energy energy policy environmental protection agency epa ghg greenhouse gas greenhouse gas emissions manufacturing moratorium over regulation senate democrats mining senate appropriations committee
Jane Van Ryan
Posted October 1, 2010