Energy Tomorrow Blog
Posted February 3, 2021
This past year saw Oklahoma officials pursue a unique experiment – reducing how much natural gas production would be permitted from a well, called “natural gas production prorationing.”
This may be about to change. The intervention has been costly for the state and suggests that governments should exercise more caution when considering actions that could affect markets.
Regulations to prevent wasting resources have been on the books for decades, and Texas has something similar. However, through its Corporation Commission, Oklahoma was the only state that imposed more stringent natural gas production limits last year. The state also increased its efforts to enforce those rules in response to market conditions associated with the COVID-19 recession – that is, strong supply, weak demand and low prices for natural gas.
It’s looking like a mistake.
Posted August 28, 2020
Americans’ safety and security are critically linked to energy.
Whether it’s energy to power a growing economy or energy that keeps America free and strong in the world – and even reliable energy in the wake of a Category 4 hurricane – abundant domestic natural gas and oil are essential for our security. ...
Abundant and reliable natural gas and oil from America make the country safer and more secure in a number of ways.
Posted June 30, 2020
Good technical standards and industry practices are important to safe, sustainable energy infrastructure that is critical to unleashing the benefits of domestic energy – including clean, affordable natural gas.
Major energy players have pointed to new midstream infrastructure investments in the massive Permian region that will allow them to produce more while also improving environmental performance. In addition, this infrastructure will benefit consumers globally through the export of U.S. natural gas – produced right here at home under stringent regulations, many of which point to API’s world-class safety standards that improve environmental performance and sustainability.
Posted April 23, 2020
While the current decline in crude oil demand and market uncertainty present significant challenges, America’s natural gas and oil producers – especially those using hydraulic fracturing and horizontal drilling – are resilient and remain financially viable, supported by the world’s need for energy.
Contrary to some narratives, our industry is poised to fuel renewed growth once the U.S. and other nations get past the COVID-19 crisis. Natural gas and oil have and will again power modern economic expansion.
Posted April 21, 2020
Experienced industry hands say they’ve never seen anything like Monday’s trading on May futures contracts for West Texas Intermediate crude oil (WTI), which closed in negative territory.
While the natural gas and oil industry certainly isn’t alone in weathering the COVID-19 crisis, our impacts probably are more visible than most other sectors, underscored by Monday’s negative trading on oil futures. Three things to know ...
Posted April 6, 2020
OPEC+ members continue to discuss a meeting, reportedly Thursday, to address the price war between leading members Russia and Saudi Arabia, whose production increases amid a significant decrease in demand are deepening the crisis for the global oil industry.
There’s speculation the United States will be asked to participate in a deal with additional production cuts beyond what U.S. producers have already implemented in response to the marketplace, which we addressed in this post. In a new interview with CNN, API President and CEO Mike Sommers reiterated that markets should dictate production decisions, not government interventions, and that Russia and Saudi Arabia should change their production policies.
Posted April 5, 2020
Although OPEC+ has delayed a planned meeting Monday to address differences between leading members Russia and Saudi Arabia, there were encouraging signals from the White House after the president’s meeting with a number of natural gas and oil industry leaders, including API President and CEO Mike Sommers.
The continuing oil price war between Russia and Saudi Arabia, which has the two nations increasing production amid a slump in world oil demand, is broadly concerning. The administration is correct to focus strong diplomacy on finding a resolution, the urgency of which is underscored by the postponement of Monday’s OPEC+ meeting.
The best message from the White House is what’s not on the table: additional U.S. production cuts. As the president said, the global oversupply problem has been worsened by the Russian and Saudi production increases, and those countries bear the responsibility of changing their policies.
Posted April 3, 2020
The natural gas and oil industry’s commitment to accelerate the reduction of methane emissions is being advanced on a number of fronts. The Environmental Partnership, whose 75 members include 33 of the top 40 U.S. producers of natural gas, is in its third year of sharing of knowledge and technologies to further reduce emissions. This week, the Texas Methane & Flaring Coalition, whose members represent nearly 80% of oil production in the state, was launched to work on flaring.
The coalition’s key initiatives include: developing best practices and opportunities to minimize methane emissions and flaring, improving accuracy and consistency in the reporting of vented and flared volumes and increasing public understanding of the safety and environmental reasons for flaring.
Posted March 19, 2020
As much as any other sector, global energy has felt the impact of the coronavirus (COVID-19) combined with lowering world demand and Russia and Saudi Arabia raising oil supply. We’ve seen crude oil prices cut in half within three months, which if sustained could rank among the most severe oil price downturns on record. Let’s discuss the most significant points for U.S. consumers, industry and the broader economy.
Details may be found in API’s latest Monthly Statistical Report, based on February U.S. petroleum data. Using weekly surveys of 90% of the natural gas and oil industry, we publish monthly data and analysis two months ahead of the U.S. Energy Information Administration (EIA).
Posted March 6, 2020
It’s been a big week for announcements coming out of the U.S. Energy Information Administration (EIA) and the nation’s natural gas and oil industry.
On Monday, EIA said that annual U.S. oil production broke another big record in 2019, and swiftly followed that with news on Tuesday that U.S. natural gas use has reached new record highs. Both are great news for American energy and national security, the economy and the environment.