Energy Tomorrow Blog
Posted October 1, 2021
Natural gas prices have entered rarified territory due to demand outpacing production and supply, creating headwinds for the Biden administration’s emissions reduction goals and potentially impacting the energy cost savings consumers have enjoyed since the U.S. energy revolution launched more than a decade ago.
Prices in Asia Pacific (Japan-Korea) settled at $29.20 per million Btu (mmBtu) on Sept. 27 – their highest on record since 2012. Meanwhile, U.S. natural gas prices of nearly $5.50 per mmBtu at Henry Hub were relatively inexpensive compared with international ones but rose to their highest for the month since 2008. Natural gas prices like these are unusual for the fall, before there’s reason to believe the approaching winter could be particularly cold.
Posted September 23, 2021
This week I addressed the Economic Club of Pittsburgh – in the heart of Pennsylvania’s natural gas and oil region – and I talked about the state’s critical importance to the larger U.S. energy picture and the key role our industry plays in meeting the challenge of supplying the energy that powers our nation and also in reducing emissions, toward a lower-carbon future.
Energy has transformed Pennsylvania and continues to do so. Pennsylvania’s natural gas and oil industry directly and indirectly supported nearly a half million jobs across the commonwealth’s economy in 2019. Our industry’s total economic contribution to Pennsylvania ranked among the highest in the nation, with more than $78 billion directed to the state’s GDP – including nearly $41 billion in labor income.
Posted September 22, 2021
Three things to keep in mind as we mark Climate Week:
First, industry-led initiatives continue reducing greenhouse gas emissions; second, natural gas helps cut carbon dioxide emissions and address energy poverty; and third, the natural gas and oil industry continues to think strategically while acting tactically.
Posted September 14, 2021
It’s pretty easy to get lost in the trees of The Environmental Partnership’s newest results data, contained in its new annual report – including the new flare management program’s reported 50% decrease in flare volumes from 2019 to 2020, plus hundreds of thousands of surveys and hundreds of millions of component inspections. Those numbers are important, but there’s another big story behind them.
It’s a story of progress – tangible, beneficial, significant progress by the natural gas and oil industry toward a lower-carbon future and a smaller environmental footprint. The numbers show industry’s steady progress in lowering emissions even as it continues to produce the affordable, reliable energy Americans use every single day.
Thoughtful analysis supports the case we’ve been making, that the U.S. and the world need both.
Posted September 10, 2021
This week, API detailed the latest on three important ways the natural gas and oil industry is reducing its emissions. The information can be found in The Environmental Partnership’s new annual report, which outlines more than 90 companies’ recent work to cut significant sources of natural gas and oil emissions.
Some highlights and key actions from the annual report include reduced flare volumes, detecting and repairing leaks and replacing pneumatic controllers at facilities.
Posted September 9, 2021
Levying a fee on the methane emissions of the U.S. natural gas and oil industry, under consideration as part of the reconciliation package in Congress, is the wrong way to address emissions and could hinder the U.S. economy, national security and environmental progress.
This week API and dozens of organizations representing producers, distributors and users of natural gas, oil and natural gas liquids opposed the “Methane Emissions Reduction Act of 2021” in a letter to Senate Environment and Public Works Committee Chair Tom Carper (D-DE) and Ranking Member Shelley Moore Capito (R-WV).
Here are three reasons why a methane fee should be rejected by lawmakers on both sides of the aisle.
Posted August 12, 2021
Expanding carbon capture, utilization and storage (CCUS) has backing from the Biden administration, reflected in a new report to Congress from the White House’s Council on Environmental Quality (CEQ).
The report pledges the administration’s commitment to “accelerating the responsible development and deployment of carbon capture, utilization, and permanent sequestration as needed to decarbonize the U.S. economy by mid-century.”
We agree, because CCUS expansion will help industries across the economy – not just natural gas and oil – reduce emissions. Industries that rely on high heat or have process emissions, including cement and steel manufacturing, can benefit from CCUS. Check API’s Climate Action Framework to learn more about our industry’s support for CCUS.
Posted July 12, 2021
There’s a good deal of discussion in Washington about a national clean electricity standard, which would use government mandates to set targets for reducing carbon emissions from the power sector.
Such an approach is one way to go, but there’s another – one that already has achieved significant greenhouse gas emissions by using the power of the marketplace to effect change: U.S. natural gas.
The increased use of natural gas is the leading reason for reduced U.S. emissions in recent years, including carbon dioxide. At the same time, technologies and industry innovation have helped reduce methane emissions associated with natural gas and oil production, and new advances are on the horizon. This pathway leads to a lower-carbon future and the ability to meet growing world demand for energy.
Posted July 2, 2021
Carbon capture, utilization and storage (CCUS) is a rarity in Washington: a technology that apparently is liked by just about everyone – Democrats, Republicans and Independents alike. It certainly looks like the future for CCUS – identified in API’s Climate Action Framework as key in addressing the risks of climate change while also developing the energy America needs to grow and be safe – is bright.
That’s the big takeaway from this week’s webinar by Our Energy Policy, a non-profit facilitator of civil dialogue on energy policy issues. Event panelists agreed that CCUS generally and specifically, the 45Q tax credit to spur CCUS projects, has lawmakers on Capitol Hill practically locking arms in support.
Fast-tracking the commercial scale-up of CCUS is a major industry priority, because it allows continued robust natural gas and oil development while simultaneously reducing carbon dioxide associated with that development.
Posted June 25, 2021
America’s natural gas and oil industry is committed to delivering access to affordable, reliable energy to power modern life and empower emerging economies around the world. At the same time, API supports the ambitions of the Paris climate agreement – our member companies are building a lower-carbon future with cleaner energy options for businesses and consumers.
Over the past decade, our abundant natural gas resources have contributed to meaningful emissions reductions in the U.S. power sector, which has been the primary source of demand growth for the fuel. The availability of low-cost natural gas – and our growing capacity to export liquefied natural gas (LNG) – presents the unique opportunity for America to help nations around the world achieve ambitious Nationally Determined Contributions (NDCs) and carbon-neutral commitments by reducing greenhouse gas emissions while also supporting economic development.