Energy Tomorrow Blog
Posted December 18, 2020
Last week, I was honored to participate in the Women’s Business Enterprise National Council’s (WBENC) Energy Week and present at the State of Energy Industry Webinar, alongside a distinguished group of panelists representing every segment of the natural gas and oil industry to discuss the challenges facing the sector, as well as the opportunities for natural gas and oil operators in the year ahead.
This industry, like many others, has navigated the coronavirus pandemic, the nation’s racial reckoning, the election season and the ongoing economic fallout from widespread shutdowns. Across the board, API members have demonstrated unwavering resilience, finding ways to deliver essential energy products while protecting the health and safety of our workers, communities and the environment.
Posted December 9, 2020
Let’s discuss the value of natural gas and oil to all Americans – the fundamental worth of abundant, affordable and reliable energy to modern, daily life, the economy and our nation’s security – which gets lost in two U.S. senators’ proposal to make producing energy on federal lands more costly.
U.S. Sens. Chuck Grassley of Iowa and Tom Udall of New Mexico want to increase the royalty rate for production on federal lands, which would discourage that critical production. We’ll get to that point down below. First, let’s zero in on the issue of fundamental value.
In a New York Times op-ed, Grassley and Udall call the American public “the big loser” under the current royalty arrangement. In doing so, the senators are so preoccupied with percentages they inadvertently make an afterthought of what current natural gas and oil production on federal lands means for U.S. economic growth, global leadership, strengthened security at home and significant environmental progress.
Posted December 1, 2020
The year has brought extreme and at times contradictory information about the economy and our industry, making it increasingly difficult to determine whether the economic recovery has gained firm footing and ultimately traction, in which natural gas and oil will play a key role.
Importantly, we currently see well-grounded pillars for expected U.S. and global economic growth over the next two years – personal consumption expenditures and investment that generally represent the majority of GDP. These could kickstart new economic growth and prosperity that will not only require but fundamentally be enabled by oil and natural gas.
Posted October 27, 2020
Three points about Vice President Joe Biden’s pledge, if elected, to deny the natural gas and oil industry the use of growth and investment provisions in the tax code that are available to virtually the entire U.S. manufacturing sector – basically, singling out our industry for higher taxes.
1. Our industry is strongly invested in the U.S. economy, its infrastructure and workforce through spending today and in the future.
2. The ability through tax deductions to recover costs associated with job creation and other operational investments is critically important to seed energy development in the future, to create new jobs and help drive economic growth.
3. The U.S. natural gas and oil industry pays its fair share in taxes – and then some – while delivering safe, affordable and reliable energy that Americans count on every day.
Posted October 26, 2020
Vice President Joe Biden’s statements on fracking and energy during the final presidential debate raise questions about the former vice president’s overall understanding of issues that are so critical to the U.S. economy, security and the environment.
We’ve previously noted Biden’s various comments on fracking – he has said he would ban the technology that made the U.S. the world No. 1 in natural gas and oil production (see here and here), before vowing he wouldn’t ban it. He repeated the no-ban pledge in Nashville (after asserting he never said he opposed fracking).More problematic is another promise Biden repeated during the final presidential debate – that he’ll ban new federal natural gas and oil leasing, effectively halting new production on federal lands and waters.
Posted October 16, 2020
We’ve discussed the significant national impacts of policies touted by some (see here and here) that would effectively stop new natural gas and oil leasing and development on federal lands and waters, potentially weakening U.S. security, killing jobs, raising household energy costs and more.
The national numbers could be big and alarming. Still, most Americans probably can relate more easily to potential impacts where they live, work and raise their families. This post zeroes in on New Mexico. Another state where the potential is large for job losses, reduced economic activity and decreased revenues – for education and other state and local priorities – is Louisiana.
A new ICF analysis shows much is at stake in banning new federal leasing and development for Louisiana, which ranked third in the nation in 2019 natural gas production and ninth in oil production as of June 2020, according to the U.S. Energy Information Administration (EIA).
Posted October 8, 2020
The stakes in bad energy policy proposals – to ban new natural gas and oil leasing on federal lands and waters and/or fracking – are underscored in a new U.S. Department of Energy report that details the economic and security benefits of robust domestic energy development. ...
Much of the DOE report reinforces what we’ve been saying, that misguided proposals to effectively end new natural gas and oil production in areas under federal control – including in the Gulf of Mexico – and/or to ban fracking, responsible for about 95% of new wells in the U.S. today, put the benefits outlined in the DOE report at risk. Weakened security, lost jobs, reduced economic output.
Posted August 25, 2020
Former Vice President Joe Biden, talking about the benefits of U.S. natural gas and oil in the years leading up to his 2020 presidential campaign:
… Clearly, there was a time when the former vice president was quite bullish on U.S. natural gas and oil. He recognized the strategic benefit of falling U.S. oil imports and the advantages of affordable, reliable energy to American manufacturing. … Unfortunately, things have changed.
Posted August 21, 2020
We’re seeing cautious optimism in the news about oil markets, with crude’s comeback broadly continuing for a third consecutive month in July with the gradual re-opening of state economies. API’s Monthly Statistical Report (MSR) for August presents the latest details.
U.S. petroleum demand has clearly rebounded, albeit at a slowing growth rate. We see this as good news for staying on a positive track and reflective of progress made to overcome continued challenges with COVID-19.
Posted August 7, 2020
News item from Bloomberg: TC Energy Corp. has reached agreements with four labor unions to build the controversial Keystone XL oil pipeline – a move that could amplify political pressure on Joe Biden, who has threatened to rip up permits for the project even as he courts blue-collar workers.
Details in the announcement from TC Energy, Keystone XL’s builder: The project labor agreement (PLA) is with the Laborers International Union of North America (LiUNA), the International Brotherhood of Teamsters, the International Union of Operating Engineers, and the United Association of Union Plumbers and Pipefitters (UA); Keystone XL will have 10,000 high-paying construction jobs, primarily filled by union workers; 2,000 unionized workers will start building some of the project’s 28 planned U.S. pump stations this fall, according to Bloomberg.
Overall, Keystone XL is projected to support 42,000 U.S. jobs and generate $2 billion in earnings for U.S. workers during pipeline construction, according to the U.S. State Department, which also found that the project won’t significantly impact climate or the environment.