Energy Tomorrow Blog
Posted November 13, 2020
Some initial thoughts on energy policy as we look ahead to a new administration and Congress.
First, as API President and CEO Mike Sommers said over the weekend, natural gas and oil will continue to play an important role in the United States’ continued economic recovery – recognizing that, as the leading energy sources for the U.S. economy, the two are essential for growth. ...
Our country needs Washington focused on economic recovery and forward-thinking about energy and climate change, factoring in how much energy will be needed when the U.S. and global economies ramp up (see API Chief Economist Dean Foreman’s post, here), while building on reductions in emissions to date and fostering innovation that will enable a safe, secure and cleaner future. To that point, our industry supports continued development and wider deployment of carbon capture, utilization and storage as a tool to further reduce emissions, which the president-elect also supports.
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).
Posted June 2, 2020
Whenever someone talks about banning offshore oil and natural gas development, as some in Congress have proposed, they miss the fact that offshore oil and gas pays for the country’s most important conservation program, the Land and Water Conservation Fund (LWCF).
Everyone who cares about coastal restoration, wetlands protection, park upkeep, building hiking paths and other recreational areas should be aware that since 1965 the LWCF has supplied billions of dollars for conservation and environmental projects across the 50 states, from Grand Canyon National Park to the Cape Hatteras National Seashore – almost entirely funded by safe and responsible offshore oil and natural gas development.
The Wilderness Society puts it this way: “The Land and Water Conservation Fund (LWCF) has been America’s most important conservation funding tool for nearly 50 years.”
Posted October 24, 2019
As the New York Times launches another attack on congressionally mandated support for U.S. offshore development in the Gulf of Mexico, some facts are in order:
The Deep Water Royalty Relief Act enacted by Congress in 1995 was designed to help spur deep water offshore production as the U.S. faced increasing dependence on imported oil – and the courts found that its intent is clear. Background on the act here and here.
The false claim that there is a royalty relief “loophole,” asserted by the Times and others, omits the fact that between 2000 and 2018 natural gas and oil companies paid more than $122 billion to the government in high bids, royalties and rents. Add to that tens of billions the industry spent to develop those leases, creating jobs and boosting local and regional economies – an integral part of industry’s $1.3 trillion overall support for the U.S. economy.
Today, U.S. Gulf production is setting records, averaging 1.8 million barrels per day (b/d) in 2018 and expected by the government to reach 1.9 million b/d this year and 2 million b/d in 2020. This production generates millions in revenue-sharing dollars for coastal states, as well as the Land and Water Conservation Fund, which supports state conservation and outdoor recreation projects all across the country.
Posted August 15, 2018
Increased access to America’s offshore natural gas and oil would bring far-reaching benefits to coastal states, and the entire country. This is precisely why the diverse, bipartisan “Explore Offshore” coalition gathered today in Florida: because the strategic interests of Florida and our nation are tied to responsible development of offshore natural gas and oil..
Posted March 29, 2018
Recent analysis of the potential economic benefits of offshore natural gas and oil, finding that coastal states and the nation could see billions in annual industry spending, job creation and federal revenue sharing dollars over a 20-year period, has the attention of leaders in one of those key states – Virginia.
A group of 21 Virginia businesses, associations and other organizations have written to federal officials in support of opening more of the U.S. outer continental shelf (OCS) to safe development. The comments were filed with the Bureau of Ocean Energy Management (BOEM), which is putting together a new federal offshore leasing plan that will blueprint development from 2019-2024.
Posted July 6, 2017
Sanctions are a valuable tool of American foreign policy, but U.S. Senate legislation intended to increase sanctions against Russia could harm the competitiveness of a range of U.S. energy companies working around the world, posing risks to U.S. jobs, the economy and individual Americans – and possibly benefiting Russian interests. The House of Representatives should make critical modifications to avoid these unintended consequences while strengthening the package to advance U.S. interests.
Posted May 16, 2017
Last month’s presidential executive order aimed at increasing access to U.S. offshore natural gas and oil reserves is starting to bear fruit with two important developments from the Interior Department, which oversees access to federal offshore and onshore resources. … Both are welcome developments. America’s future energy security largely depends on safe development of offshore energy. Increasing access to offshore natural gas is critically important with 94 percent of federal offshore acreage currently off limits.
Posted April 7, 2017
Earlier this year Customs and Border Protection Agency proposed modifications and revocations to approximately 30 identified rulings under the Jones Act. An economic study by energy consulting firm Calash says these changes likely would lead to decreased offshore oil and natural gas development, resulting in a number of significant negative impacts.
Posted September 8, 2016
Keeping offshore energy under wraps hinders U.S. security and blocks states like North Carolina from realizing the job and economic benefits that could come with safe development. North Carolinians recognize the potential benefits for their state as well as the nation, 64 percent of registered state voters saying they support offshore development.