Energy Tomorrow Blog
Posted January 5, 2021
As we begin the new year, it’s worth recognizing that the challenges facing our lawmakers are immense. But with consensus-driven approaches, we believe the public and private sectors can partner to deliver post-pandemic recovery and long-term economic growth for America.
Of course, rebuilding the nation’s economy will require realistic and workable energy solutions – ones that prioritize resource development and infrastructure expansion. Here’s why investing in modern energy infrastructure can build pathways for economic and environmental progress.
Posted December 8, 2020
Although many uncertainties remain, oil market fundamentals have recently improved along with economic recovery from the 2020 COVID-19 recession, as we discussed here. If estimates from the U.S. Energy Information Administration (EIA) and others prove to be correct, 2021 could recoup much of the growth, spending, investment and energy demand that was forgone this year.
While 2020 has been an especially challenging year and business climate, what we’re seeing is that the U.S. natural gas and oil industry has resiliently increased its productivity to record levels, lowered its costs and expanded critical infrastructure to reposition for growth in a potential recovery.
A critical question for the United States — its economic growth, energy security and trade balance – concerns who will supply the market if it recovers as expected.
Posted August 28, 2019
U.S. exports of liquefied natural gas (LNG) – growing to a record 4.8 billion cubic feet per day (bcf/d) in the third quarter of 2019 – have been a catalyst for new natural gas resource development, U.S. pipeline and natural gas processing investments and the U.S. economy. ...
The U.S. Energy Information Administration (EIA) expects U.S. LNG exports to more than double again by 2025, which holds the potential for even greater domestic economic benefits, plus a central, emerging role for U.S. energy leadership in global markets.Realizing these benefits is critically dependent on the United States’ ability to build and deliver an unprecedented number of multi-billion-dollar U.S. mega-projects over the next several years. When ”demographics are destiny” and the average age of a welder in the U.S. already is over 57 years, we should remain optimistic about the potential to build these projects but also pragmatic about the policies and business environment needed to achieve the goals.
Posted May 10, 2019
Headlines announcing big oil discoveries in the U.S. Gulf of Mexico (GOM) – such as the Blacktip deepwater find last month – are something we’ve come to expect. Gulf production long has been strategically important to the United States, accounting for 17 percent of total U.S. crude oil production, and it’s easy to take for granted that the basin will just keep producing and producing.
Yet, two recent analyses, IHS Markit’s report for the U.S. Bureau of Ocean Energy Management and a Crystol Energy report, caution that the Central and Western Gulf, currently open to oil and natural gas development, are maturing, having been developed for several decades, and production could begin to decline before long. GOM development must compete globally with other offshore and onshore prospects or face declining interest in exploration, falling investment and decommissioning of critical infrastructure.
Posted November 16, 2018
With the midterms behind us, we can anticipate the spate of political analysis bemoaning the onset “divided government” with this observation: Expanding and upgrading U.S. energy infrastructure offers a terrific opportunity for substantive, bipartisan action that will benefit the American people.
First, consider that America’s energy resurgence – spurred by technologies and innovations tapping vast natural gas and oil reserves in shale and other tight-rock formations – is growing the economy, strengthening U.S. security and providing consumer benefits. Abundant energy helps everyone – hence the chance for the new Congress to find common ground in bolstering the infrastructure that delivers it.API President Mike Sommers and Sean McGarvey, president of North America’s Building Trades Unions (NABTU), built on these themes earlier this week in an op-ed in The Hill.
Posted November 15, 2018
Earlier this year we pointed out that a roller coaster of emerging economic factors could affect oil markets and, ultimately, consumers – and we were correct.
Rising interest rates, trade and tariff disputes, near decade-high U.S. dollar appreciation and potential financial market uncertainties have become pronounced over the past few months, affecting global crude oil markets and producing the strongest correlation between financial markets and oil prices in years.
Posted May 15, 2018
Posted May 8, 2018
There’s no denying that North American Free Trade Agreement (NAFTA) has been very good for U.S. energy over the years. Yet, whether we will be able to say the same about NAFTA 2.0 years down the road is an open question.
That’s because the Trump administration has signaled a key NAFTA provision safeguarding U.S. energy investments in Canada and Mexico shouldn’t be included in a revised agreement. It’s an outcome that would be a significant setback for our energy and security interests.
Posted October 10, 2017
With talks between the U.S., Canada and Mexico on modernizing NAFTA heading for a fourth round this week, our negotiators can help ensure the global competitiveness of U.S. energy companies by working to retain strong protections for U.S. investments abroad through the agreement’s investment protections and investor-state dispute settlement (ISDS) provision.ISDS sounds a little wonky, but its basic mission is pretty straightforward: It helps protect U.S. investors from being treated unfairly by host nation governments. Conversely, there’s potential jeopardy if the U.S. allows ISDS to be weakened or removed in the current talks. It could undermine ISDS provisions globally in other treaties and agreements.
Posted May 16, 2017
Energy is opportunity. Energy infrastructure allows opportunity to become reality by bringing the benefits of natural gas, oil and refined products to consumers – individuals, businesses and industrial users. Last week API released a new study detailing the extent of the many positives resulting from developing needed U.S. natural gas and oil infrastructure, out to the year 2035. These are measured in more than a trillion dollars in investments and economic growth, potentially generating more than 1 million jobs. This supports a vision of growth and prosperity that can touch every state in the union, not just those that are big energy producers.