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Energy Tomorrow Blog

Singling Out Natural Gas and Oil for Higher Taxes is Bad Policy

taxes  investment  economic growth  subsidies 

Mark Green

Mark Green
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.

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U.S. Has Come Too Far For a Retreat on Natural Gas and Oil

fracking  federal leases  us energy security  economic growth 

Mark Green

Mark Green
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. 

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Banning Energy Development Would Devastate Louisiana

lousiana  economic growth  federal leases  offshore development 

Mark Green

Mark Green
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).

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DOE Report Shows There's Much to Lose With Bad Energy Policies

Environment  economic growth  federal leases  fracking  energy department 

Mark Green

Mark Green
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.



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Continued Progress Seen in Petroleum Demand

petroleum  demand  oil markets  growth 

Dean Foreman

Dean Foreman
Posted September 11, 2020

While oil markets remain concerned over the outlook for petroleum demand – see John Kemp’s piece arguing there’s lost momentum – a number of important indicators of transportation and industrial activity corroborate API’s primary data suggesting a more nuanced landscape while also supporting the view that genuine progress has recently been achieved.  

Since petroleum demand has remained a solid indicator of economic activity, the information has broad applicability to everyone who is concerned with what’s happening now.  And for those of us in the industry, accurate and timely data are essential to the flow of real activities and investment dollars.

From here it looks like oil markets have been relatively impatient, having anticipated a continued tightening as demand has recovered and supply declined. The challenge is managing expectations for the rate of recovery.

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Video: No Malarkey, Natural Gas and Oil Critical to U.S. Security, Growth

us energy security  economic growth  manufacturing  president 

Mark Green

Mark Green
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:

“North American energy makes us independent.”

“We now have over a hundred years’ supply of natural gas that would enable us to meet every single need we have in America.”

“We’re positioned to own the 21st century. … North America will remain the epicenter of energy.”

… 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.


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U.S. Petroleum Markets – July Progress and a Potential Turning Point

monthly-stats-report  economic growth  oil markets 

Dean Foreman

Dean Foreman
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.

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Keystone XL's New Labor Agreement and the Politics of Pipelines

keystone xl pipeline  safe operations  jobs  labor unions  economic growth 

Mark Green

Mark Green
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.


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API Standards Support LNG Exports, Future Economic Recovery

api standards program  lng exports  economic growth 

Debra Phillips

Debra Phillips
Posted June 15, 2020

During this moment of public health and economic uncertainty, the natural gas and oil industry has taken steps to ensure the integrity of our products and develop new standards that add value for our customers, while bolstering efficiency and sustainability throughout the supply chain.

API has focused squarely on the thriving U.S. liquefied natural gas (LNG) market through our voluntary standards program, and we believe that our best practices and engineering standards are essential to the future of the U.S. LNG export market.

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Early Signs of Recovery for American Energy and Economy

economic growth  energy demand  travel  driving 

Sam Winstel

Sam Winstel
Posted June 9, 2020

As businesses reopen across the country, the U.S. economy is beginning to emerge from the widespread shutdowns caused by the ongoing coronavirus pandemic. America’s energy operators are poised to safely and responsibly power our economic recovery, and the latest market data shows that the initial phases are well underway.

While the short-term outlook remains unclear, energy analysts have consistently backed the strength of this industry’s fundamentals, and long-term forecasts signal demand growth for natural gas and oil through the next several decades.

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