Energy Tomorrow Blog
Posted May 12, 2021
During a period of transition and change in our country, the natural gas and oil industry remains a foundation for progress, supplying the energy to run a modern economy – and doing so in ways that protect the environment and reduce emissions.
API President and CEO Mike Sommers emphasized those and related points in a speech to some of the nation’s leading energy producers at the Williston Basin Petroleum Conference in Bismarck, North Dakota.
Sommers described the natural gas and oil industry as one that is focused on producing for the American people as well as one that’s developing technologies and innovating to address the risks of climate change. Sommers said the most important environmental movement in the world is the U.S. natural gas and oil industry.
Posted May 11, 2021
Every three years the International Oil Spill Conference (IOSC) brings together professionals from the private sector, government and non-governmental response community to discuss the science and advanced technologies of preventing incidences, responding in the rare event of a spill and restoring affected areas. IOSC 2021 is occurring virtually this week, again focused on four pillar themes: prevent, prepare, respond, restore. Below, conference remarks by API President and CEO Mike Sommers.
Online or otherwise, this particular gathering is more than just a typical industry event that pops up on our calendars every few years. Instead, this conference provides a special and unique opportunity for our industry to meet with fellow collaborators in government and non-governmental organizations alike.
What brings us together is a common purpose: preventing oil spills and “getting to zero.” To accomplish that, API is proud to help convene an event dedicated to exchanging ideas and sharing lessons learned from around the world as we collectively work toward a safer, cleaner, better future.
Posted May 5, 2021
The United States’ energy relationship with Canada is vital to our economy (as well as Canada’s) and energy security – which makes the administration’s Day 1 cancellation of the Keystone XL pipeline and its omission of pipelines in its new infrastructure initiative look short-sighted.
A new U.S. Energy Information Administration (EIA) brief on U.S. crude oil imports underscores the importance of imported Canadian crude oil – in reducing U.S. reliance on imports from other suppliers and in filling the needs of U.S. refineries that are configured to process heavier crudes, including those from Western Canada.
Posted April 21, 2021
Soon after the 2020 election we noted that results showed U.S. voters are mostly moderate and practical and want sensible solutions to key issues facing the nation, which Democratic pollster Mark Penn wrote is driven by common sense over ideology. Americans’ views on energy certainly fit that construct.
New polling by Morning Consult on behalf of API underscores the point and provides important context for Washington policymakers as they debate the twin issues of energy and climate.
John D. Siciliano
Posted April 5, 2021
API took an important step to extending its safety and environmental protection programs to the continent of Africa, signing a new collaborative agreement with the business group African Energy Chamber (AEC), to expand use of API world-class standards, certifications and training programs.
The memorandum of understanding (MOU) with the AEC – API’s first agreement with an African partner – is the latest in a series of similar agreements in the past year between API and organizations in nearly every region of the world. Such agreements arise from the global recognition API standards have earned for enhancing safety, efficiency and environmental protection across the natural gas and oil industry.
Posted March 18, 2021
API’s latest industry outlook affirms the extent of recoveries in the U.S. and global economies, as well as rising demand for oil and natural gas.
For the past two quarters, API’s data and analysis have indicated these comebacks were underway, and this is visible in the March Monthly Statistical Report (MSR™), based on February data, and API’s quarterly Industry Outlook.
The recoveries come on the tailwind provided by nearly $20 trillion of economic stimulus around the world. We could be poised for the largest two-year oil demand increase (9.2 million barrels per day, mb/d) on record since 1950 and new record highs of demand (102.4 mb/d) by the fourth quarter of 2022.
Posted March 17, 2021
One of the great benefits of increased U.S. oil production over the past decade and a half is strengthened U.S. energy security – decreased reliance on foreign oil suppliers and insulation for American consumers against sudden price increases due to geopolitical events, such as the recent attacks on Persian Gulf oil facilities.
Years ago, an episode like that could’ve caused serious alarm in the United States and globally. Yet, the apparent lack of significant or enduring oil price movement following last weekend’s attack shows the tremendous influence U.S. oil production has had on global markets. The same was true after missile attacks on Saudi facilities in 2019 (see here), which substantially reduced Saudi Arabia’s oil exports for a short period. Both events and their aftermath indicate that U.S. domestic production has largely mitigated the price volatility historically associated with serious geopolitical events.
Still, some cautions are in order. First, U.S. energy security can’t be assumed. It takes long-range planning and investments, safe access to domestic resources, the ability to expand pipeline and export facility infrastructure, and a policy-level approach that anticipates unforeseen events that could affect global energy supply and have dire impacts on U.S. security, economic growth, and consumers.
Posted February 24, 2021
It’s possible we could be headed for a shortfall in global oil supply as soon as next year – pretty remarkable considering where oil demand was last spring, with economies slowing under the weight of the pandemic.
Based on projected rising demand, the natural production decline from existing wells and decreases in drilling activity and industry investment – especially in the U.S. – the world’s oil needs could outpace production in 2022. An undersupply potentially could put upward pressure on costs, impacting consumers, manufacturers and, generally, any process that utilizes oil.
Posted February 18, 2021
As oil prices rallied this past week, headlines suggested that oil demand recovery is expected to pick up speed (subscription required) later this year. However, API’s latest Monthly Statistical Report, based on January data, suggests that U.S. oil markets already kicked off 2021 with a remarkable month:
Total U.S. petroleum demand returned to within 1.2% of its level from January 2020 despite the pandemic; refining and petrochemical demand for other oils – naphtha, gasoil, propane/propylene reached a record-high level (6.5 million barrels per day, mb/d) and 33.1% share of total U.S. petroleum demand; and the lowest U.S. crude oil imports for January since 1992 propelled U.S. petroleum net exports.
Consider this: For all of the economic pain and dislocation caused by the 2020 COVID-19 recession, U.S. petroleum demand returned to within a hair of its pre-COVID levels and well within the five-year range.
Posted January 28, 2021
Remarks at the United States Energy Association’s 17th annual State of the Energy Industry Forum:
A month into 2021, a divided America faces more challenges than anytime in modern history. But after a year of crisis, everyone can agree on something – we are ready for recovery.
So, we at API were encouraged to hear President Biden’s Inauguration Day call for unity. Even better, he issued that call at a time when Democrats and Republicans alike can rally around U.S. energy leadership. After all, the new president assumes power when America leads the world both in energy production and environmental performance. ...
Poised to build on this energy progress, API congratulated President Biden. Moments after he took the Oath of Office, we pledged to work with his administration when we can and oppose when we must. So, only eight days into his term, it is disappointing to report that we find ourselves in a posture of strong opposition. But we have no choice.
President Biden’s energy policy actions have completely undercut his message of unity and his mandate for economic recovery. Today I’m going to illustrate why.