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Energy Tomorrow Blog

State of American Energy 2021: Ready to Help Build the Future

state of american energy  economic recovery  oil and natural gas industry 

Mark Green

Mark Green
Posted January 13, 2021

We’re ready, and we’re able.

After a difficult year in which too many were lost, economic hardship was palpable and creeping doubt dogged the national psyche, Americans are right to look to the future. And America’s natural gas and oil industry is ready and able to help build that future.

It takes energy – affordable, reliable energy – to move people and things, to build, heat, manufacture, innovate and grow today and tomorrow. Natural gas and oil are America’s leading energy sources, by far, and our industry is ready to provide the dependable foundation for the country’s next great chapter.

Like every other business sector, ours took some lumps in 2020, but we proved our resilience, our staying power and capacity, despite significant challenges, to power recovery and drive new opportunity on a nationwide scale.

Those are a few of the key themes from today’s API’s annual State of American Energy event. Emerging from the trials of 2020, all of us can be thankful that the state of American energy – the state of the U.S. natural gas and oil industry – is good, very good.

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Oil Market Fundamentals Suggest 2021 May Recoup Much of 2020 Losses

oil markets  economic recovery  investments 

Dean Foreman

Dean Foreman
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.

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Consumer Spending and Investment Could Kickstart New Economic Growth

economic growth  oil and natural gas development  global demand  consumers 

Dean Foreman

Dean Foreman
Posted December 1, 2020

The year has brought extreme and at times contradictory information about the economy and our industry, making it increasingly difficult to determine whether the economic recovery has gained firm footing and ultimately traction, in which natural gas and oil will play a key role.

Importantly, we currently see well-grounded pillars for expected U.S. and global economic growth over the next two years – personal consumption expenditures and investment that generally represent the majority of GDP. These could kickstart new economic growth and prosperity that will not only require but fundamentally be enabled by oil and natural gas.

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Ready for Recovery: The Economic Importance of Natural Gas and Oil

oil and natural gas  economic recovery 

API CEO Mike Sommers

Mike Sommers
Posted November 20, 2020

As the deadly coronavirus pandemic cripples business activity and depresses consumer spending, American energy continues to power the nation’s economy and enable the delivery of essential products and services.

Despite this year’s demand downturn, natural gas and oil are still vital to the world’s energy mix and will remain indispensable for decades to come.

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Data Indicate Continuing U.S. Demand Recovery

monthly-stats-report  oil demand  economic recovery 

Dean Foreman

Dean Foreman
Posted November 19, 2020

While the International Energy Agency and OPEC recently lowered their expectations for global oil demand for this year and the next, the United States has continued to make measured progress, according to API’s latest primary data.

In October, U.S. petroleum markets reflected a U.S. economic recovery in progress. Demand increased broadly among fuels – diesel, jet fuel, other oils and gasoline among urban areas.

While these offer solid indications of domestic activity, international trade – particularly the pull for U.S. refined products – picked up in October. Moreover, the U.S. Energy Information Administration (EIA) projects record high U.S. exports of liquefied natural gas (LNG) in November.  

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Continued Progress Seen in Petroleum Demand

petroleum  demand  oil markets  growth 

Dean Foreman

Dean Foreman
Posted September 11, 2020

While oil markets remain concerned over the outlook for petroleum demand – see John Kemp’s piece arguing there’s lost momentum – a number of important indicators of transportation and industrial activity corroborate API’s primary data suggesting a more nuanced landscape while also supporting the view that genuine progress has recently been achieved.  

Since petroleum demand has remained a solid indicator of economic activity, the information has broad applicability to everyone who is concerned with what’s happening now.  And for those of us in the industry, accurate and timely data are essential to the flow of real activities and investment dollars.

From here it looks like oil markets have been relatively impatient, having anticipated a continued tightening as demand has recovered and supply declined. The challenge is managing expectations for the rate of recovery.

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Ban on New Federal Development Would Risk U.S. Security, Jobs, Environment

federal lands  offshore oil production  policy  jobs  emission reductions 

Mark Green

Mark Green
Posted September 9, 2020

Four questions for proponents of policies that would effectively end new natural gas and oil development on federal lands and waters:

Where will the oil come from that won’t be produced here at home because of such a policy?

Where will nearly 1 million Americans find new work after this policy costs them their jobs?

What will Americans do without because of higher energy costs resulting from the policy?

How will the U.S. continue making environmental progress if increased coal use caused by the policy raises carbon dioxide emissions?

These and other questions are prompted by a new analysis projecting the effects of halting new natural gas and oil on federal lands and waters -- prepared for API by OnLocation with the U.S. Energy Information Administration's National Energy Modeling System, which EIA uses to produce its Annual Energy Outlook.

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Energy and Our Security

us energy security  oil and natural gas production  global markets  hurricanes 

Mark Green

Mark Green
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.

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Global Economic Recovery and Oil Markets in Context

economic recovery  oil markets  oil demand 

Dean Foreman

Dean Foreman
Posted August 26, 2020

The 2020 global economic recession, triggered by the COVID-19 pandemic and government responses to it, is the deepest since World War II. Yet the World Bank, along with the Bloomberg consensus, expect global GDP growth to rebound in 2021.   

It appears $15 trillion of global stimulus is likely to have a positive impact on economic growth – and, with enabling infrastructure, markets and policies, could become a source of optimism for global oil markets.  

Historically, global GDP growth and increased oil demand have gone together – once there’s impetus for growth there must be energy to fuel that growth.

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U.S. Petroleum Markets – July Progress and a Potential Turning Point

monthly-stats-report  economic growth  oil markets 

Dean Foreman

Dean Foreman
Posted August 21, 2020

We’re seeing cautious optimism in the news about oil markets, with crude’s comeback broadly continuing for a third consecutive month in July with the gradual re-opening of state economies. API’s Monthly Statistical Report (MSR) for August presents the latest details. 

U.S. petroleum demand has clearly rebounded, albeit at a slowing growth rate. We see this as good news for staying on a positive track and reflective of progress made to overcome continued challenges with COVID-19.

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