Energy Tomorrow Blog
Posted July 17, 2019
Legislation in Congress that could cripple future U.S. offshore energy development needs to be seen for the longer-term damage it could do to America’s strategic energy and national security.
One House bill would permanently extend a moratorium on development in the Eastern Gulf of Mexico; another would permanently bar leasing in the Atlantic and Pacific oceans.
Given projected growth in America’s energy needs, such shortsighted legislation fails the test of leadership in setting energy policy that will enhance and protect our nation’s strategic interests.
Posted July 8, 2019
The U.S. natural gas and oil industry is driving the American economy, delivering affordable, reliable and abundant energy to manufacturers, businesses and American families. Around the world, pipeline infrastructure remains the safest, cleanest way to transport energy to consumers. Attempts to block important infrastructure projects could inadvertently harm energy consumers and undermine American energy leadership.
The recently completed Sur de Texas natural gas pipeline, which will bring much-needed clean, affordable and reliable natural gas from the U.S. Permian Basin to Mexican customers, perfectly embodies the important trading relationship between Mexico and the United States. The project will deepen U.S.-Mexico energy trade, benefit Mexico’s consumers whose demand for reliable energy continues to grow and work toward the U.S. administration’s goal of energy leadership. However, there continue to be attempts to arbitrarily block the use of this critical energy lifeline, which if not brought online could harm Mexican consumers and Mexico’s economy.
Posted May 14, 2019
Winning on trade looks like this: 12 million U.S. jobs supported in all 50 states; commerce with neighbors Mexico and Canada was nearly $1.3 trillion in 2017 – four times what it was 25 years ago; in the energy space, trade helps the U.S. natural gas and oil industry, which supports 10.3 million jobs – many of which exist thanks to free North American trade
For these reasons and more, Congress should approve the U.S.-Mexico-Canada Agreement (USMCA), the successor to the North American Free Trade Agreement (NAFTA). From an energy standpoint, the case for USMCA approval is strong.
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 February 26, 2019
When the U.S.-Mexico-Canada Agreement (USMCA) was announced last fall, we pointed out that it would be good for North American energy security and continue flourishing energy trade between the United States and its neighbors by providing market access and zero tariffs for U.S. natural gas and oil and related products.
The agreement would sustain and expand the gains made under its predecessor, NAFTA, which created a North American energy market, helped make the U.S. more energy secure and benefited U.S. consumers.
Congress should approve USMCA as soon as possible to lock in the critically important energy relationship between the U.S., Mexico and Canada – as well as the general flows of goods and services so vital to good economic health in this country.
Posted October 3, 2018
Announcement of the United States, Mexico and Canada Agreement (USMCA) – locking in Canada and Mexico as our nation’s closest trading partners – is good news for the U.S. energy renaissance. Attention now turns to Congress, which should ratify the deal....
Because zero or reduced tariffs, market access between the three countries and trade liberalization all worked to the benefit of U.S. energy under NAFTA, our industry’s chief goal was an updated agreement was to keep in place features that have supported U.S. energy. USMCA does that – and Americans will be the beneficiaries.
Posted July 10, 2018
Offshore energy development works for the states – all of them.
The U.S. Interior Department recently announced that $61.6 million in revenues from offshore oil and natural gas will be distributed to all 50 states, U.S. territories and the District of Columbia – via grants that support state conservation and outdoor recreation projects.Ponder that: You don’t have to be a coastal state; you don’t have to be a producing state. Under the Gulf of Mexico Energy Security Act (GOMESA), everyone benefits from offshore natural gas and oil revenues that are earmarked for Land and Water Conservation Fund (LWCF) grants.
Posted May 16, 2018
For some time we’ve stressed that offshore oil and natural gas production is compatible with a variety of other ocean uses such as fishing and tourism – and most significantly, with the U.S. military’s need for open-water areas to conduct training exercises, advanced weapons testing and the like. Industry has a long track record of developing offshore energy in a manner that successfully coexists with the military’s needs in the Gulf of Mexico and other areas.
The same would be true in the Eastern Gulf of Mexico if a moratorium on offshore development there, in place since 2006, is allowed to expire in 2022 – creating access to key new areas for safe exploration and development of strategically important oil and natural gas. A new analysis by the Defense Department agrees.
Posted May 11, 2018
Protecting the environment is a core industry value. The environment belongs to everyone, and our companies and their employees are committed to producing natural gas and oil as safely as possible. This commitment includes preserving habitat and looking out for wildlife.
In this 2016 post and this post earlier this year, API colleague Kate Wallace detailed how companies have monitored elk populations in Wyoming and polar bears in Alaska, created artificial reefs off the Gulf Coast, developed pollinator gardens and bee sanctuaries and more. Companies also worked across five western states to create conservation areas for the lesser prairie chicken and preserve habitat for the sage-grouse. Our commitment is backed up by action.That’s why we’re optimistic a constructive and comprehensive plan can be crafted to take care of the dunes sagebrush lizard in West Texas and southeastern New Mexico while also maintaining critically important natural gas and oil production in the region – which would be unlikely if a new effort to list the lizard as endangered under federal law succeeds.
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.