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Energy Tomorrow Blog

Here’s How to Devastate U.S. Energy and the World Economy: Ban Fracking

hydraulic fracturing  fracking  democrats  consumers  economic growth 

Mark Green

Mark Green
Posted November 14, 2019

Calls for a ban on hydraulic fracturing by some of the Democratic presidential candidates continue to make for discussion on the campaign trail – and boy, that is a discussion everyone should be paying attention to. The stakes are sky-high.

Recently, we highlighted this Michael Lynch analysis warning that a fracking ban could devastate the U.S. economy. Now the Manhattan Institute’s Mark P. Mills has a piece on Real Clear Energy asserting that in the most serious scenarios, banning U.S. fracking could put the global economy in recession – entirely plausible, given that the United States is the leading producer of natural gas and oil, the two energy sources that supply 54% of the globe’s fuel. In all, Mills notes in this report, fossil fuels supply 84% of the world’s energy.

Those are the stakes when candidates kick around the notion of banning hydraulic fracturing, which is used for 95% of new U.S. wells today. Ban fracking and you pull the rug out from under U.S. production – and with it, energy security, global energy leadership and, yes, environmental progress – considering increased U.S. use of natural gas has lowered energy-related carbon dioxide emissions to their lowest levels in a generation.

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USMCA Approval Essential to Economic Progress, Energy Security

trade  economic growth  consumers  canada  mexico 

API CEO Mike Sommers

Mike Sommers
Posted October 23, 2019

Given bipartisan consensus on the importance of trade to America and our allies, finalization and approval of the U.S.-Mexico-Canada Agreement (USMCA) in Congress is long overdue. Because North American markets are highly interdependent, maintaining the tariff-free, intracontinental flow of natural gas, oil and refined products will help ensure that American families have continued access to affordable and reliable energy, and to our export markets in Canada and Mexico.

When it comes to the U.S. economy, the advantages of the USMCA are clear. Trade with Canada and Mexico supports 12 million American jobs across every state, according to the Business Roundtable, and totaled nearly $1.3 trillion in 2017. A U.S. International Trade Commission report estimates that approving USMCA could raise real GDP by $68.2 billion and create 176,000 jobs, relative to a baseline, six years after the trade deal enters into force.

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U.S. Production is Protecting Domestic Markets, Consumers

monthly-stats-report  oil and natural gas production  us energy security  consumers 

Dean Foreman

Dean Foreman
Posted September 19, 2019

At a time of energy uncertainty in the world, the U.S. natural gas and oil industry is producing at levels that have helped cushion domestic markets and American consumers against global supply disruptions that once would have put severe pressure on our economy here at home.

Each final month of the quarter marks the simultaneous release of API’s Monthly Statistical Report (MSR) and quarterly Industry Outlook, and this quarter has offered some remarkable milestones and insights – at a critical time for the world.

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Additional Energy Tariffs Could Harm U.S., Consumers

trade  consumers  policy 

Mark Green

Mark Green
Posted September 10, 2019

Natural gas and oil, the bellwether of the U.S. economy, continue to be the collateral damage in the administration’s trade war with China – frustratingly ironic given the White House’s stated goal of bolstering American energy.

Important parts for offshore natural gas and oil drilling and production, as well as critical parts and accessories for energy projects are among products imported from China that will be subject to a 30% tariff as of Oct. 1 – an increase from the current 25% tariff.

Higher costs for these needed components could increase the cost of production and, ultimately, energy costs to U.S. consumers.

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Natural Gas: Foundational to U.S. Electricity Generation

natural gas  electricity  wind energy  solar energy  consumers 

Dean Foreman

Dean Foreman
Posted September 9, 2019

One of the things I do often on behalf of API is to speak publicly across the United States, emphasizing how the energy revolution has continued to benefit consumers. On the topic of natural gas and electricity generation, a common thread has emerged: Natural gas has generally led to lower energy-related carbon dioxide emissions and lower electricity prices across the nation.

To those who follow the industry, this may be no surprise given that clean natural gas has supplanted coal as the leading energy source for generating electricity in the U.S.  Part of this is natural gas’ competitiveness in the marketplace. Thanks in part to the shale revolution, real natural gas prices at Henry Hub decreased 37% between 2010 and 2018 – and as of August 2019 were down by another 15.6% y/y. 


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Expected RFS Tweaks Likely Will Make Flawed Program Worse

renewable fuel standard  ethanol  consumers  refineries  blend wall 

Mark Green

Mark Green
Posted September 3, 2019

The story of the federal Renewable Fuel Standard (RFS) is long and unfortunate – a program that is now  largely obsolete thanks to surging domestic energy, whose mandates continue to loom over American consumers without many of the benefits it was supposed to provide. It lives on, protected by ethanol producers and corn state/presidential politics.

That’s the context for RFS policy tweaks expected soon from the White House – more fiddling with a flawed program that will attempt to force higher content of ethanol-blended fuel into the U.S. supply, potentially impacting consumers, while creating an uneven playing field in the refining sector.

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What’s at Stake for Real Americans with These 'Green New Deals?'

consumers  climate change  economic impacts  energy 

Sam Winstel

Sam Winstel
Posted August 13, 2019

Now’s a good time to revisit the potential impacts of the “Green New Deal” and other anti-natural gas and oil ideas that have gained so much traction with the Democratic presidential contenders.

As we said a few months ago, fundamentally reordering American energy and Americans’ way of life should be measured by impacts on U.S. consumers, the economy and the country’s energy future.

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Nuclear Gets Its Bailout, Ohio Ratepayers Get the Bill

ohio  nuclear  subsidy  consumers 

Mark Green

Mark Green
Posted July 25, 2019

With Ohio’s passage of a corporate bailout for nuclear and coal-burning power plants – a consumer-funded subsidy that could amount to more than $1 billion through 2027 – Columbus Dispatch metro columnist Ted Decker lamented: Why are ratepayers paying the price for one company’s ineptitude?

A great question that apparently didn’t register with a majority in the state legislature or Gov. Mike DeWine. Then again, they weren’t persuaded to back off the subsidy plan when confronted by Ohio public opinion, which overwhelmingly opposed docking the state’s ratepayers on a monthly basis to bail out two nuclear power plants.

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Energy Malpractice

new york  natural gas pipelines  consumers  electricity 

Mark Green

Mark Green
Posted July 24, 2019

An important test of energy leadership is whether elected officials will act to enhance and protect strategic energy interests – a point we made in a post last week about smart, forward-looking policies that foster safe and responsible offshore energy.

A leadership corollary: First, do no harm.

We say that because, in a nation that’s the No. 1 producer of natural gas and oil in the world, leaders shouldn’t be making energy decisions that hurt those they’re supposed to serve. Unfortunately, in New York, there has been quite a bit of pain inflicted on New Yorkers by the Cuomo administration’s energy agenda.

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America’s Home-Grown Energy ‘Cushion’

monthly-stats-report  production  economic growth  consumers 

Dean Foreman

Dean Foreman
Posted July 18, 2019

Domestic oil production continues to benefit the U.S. – increasing energy security and driving economic growth – and cushion the economy as well as American consumers against global events that in the past impacted energy supplies, costs and prices.

Strength stemming from the U.S. energy revolution is seen in API’s latest Monthly Statistical Report (MSR), with U.S. crude oil exports setting a new record in June at 3.3 million barrels per day (mb/d), which represents growth of 1.1 mb/d over June 2018. Moreover, U.S. petroleum net imports fell to 1.3 mb/d in June from 2.9 mb/d in June 2018 – a major step closer to the U.S. becoming a net exporter of oil.

In other words, the U.S. has continued to supply virtually all of the world’s growing oil needs for transportation and industry, which has increased the stability of the global supply while generally lessening energy-related tensions.


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