Energy Tomorrow Blog
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.
Posted October 4, 2019
The latest figures on U.S. crude oil exports show growing U.S. energy leadership, while the continued decline in net oil imports signals strengthened American energy security – with both stemming from the revolution in U.S. production. Charts from the U.S. Energy Information Administration (EIA) help illustrate.
First, EIA reports that U.S. crude oil exports rose to average 2.9 million barrels per day (b/d) in the first half of this year – an increase of 966,000 b/d over the same period in 2018. U.S. crude oil exports set a record in June of 3.2 million b/d, and EIA's graph vividly reflects the sea change in the United States’ oil exporting posture.
Posted February 12, 2019
Recent tweet from the American Enterprise Institute’s Mark Perry includes a chart that vividly illustrates one of the biggest benefits of the U.S. energy revolution. First, it plots soaring U.S. net petroleum imports, which peaked at 60.3 percent in 2005, and then logs the plunge to just 12.1 percent last year. The thing that caught my eye in Perry’s tweet is that the time frame for his graph, 1957-2018, is pretty much the span of this blogger’s life.
Most importantly, in one generation, the United States has gone from steadily growing energy dependency to a nation that’s largely in control of its energy destiny. It’s a turnabout many of Americans never thought possible. Remarkable. Breathtaking. Or, as Perry tweets, amazing.
Posted January 6, 2017
Sometime in the mid-2020s, U.S. energy officials project, two key lines measuring energy imports and exports will cross, and the United States will have achieved something quite special – the advent of an era in which America is a net energy exporter. That’s one of the big projections contained in the U.S. Energy Information Administration’s newly released Annual Energy Outlook for 2017 (AEO2017).
Posted July 1, 2016
Happy Canada Day! Here in the U.S., if you’re not already celebrating with our friends to the North, think about starting. Canada is much more than a good neighbor.
OK, seriously, we celebrate with the Canadians because Canada is vital in terms of trade and energy security.
Posted February 9, 2016
Progress on domestic oil production and oil imports is not something the United States should surrender – or worse, roll back. We should not pursue policies that take the United States back to the energy reality of a decade ago: the prospect of increasing dependency and less opportunity – for American workers, consumers, our economy and our strategic security.
Yet, that’s what the Obama administration is leading – a retreat from the progress that’s been made because of abundant shale energy reserves and the innovation and technology reflected in safe hydraulic fracturing and modern horizontal drilling.
Posted July 10, 2015
Here’s one takeaway from IHS’ new research report on Canadian oil sands: Thank goodness for Canada and its oil sands.
Along with our own domestic energy renaissance, oil sands imports from our northern neighbor and ally are growing America’s energy security. Oil sands crude is critically important now and will be into the future, IHS says – which is why we here in the United States should be ever so grateful for our energy partnership with Canada and attentive to ways that relationship can be strengthened.
Yes, that’s a reference to the long-languishing Keystone XL pipeline. If we’re serious about oil sands development – and IHS’ report strongly suggests Americans should be – then we should quit politicking to death the single biggest infrastructure project at hand that would facilitate oil sands transportation to the U.S.
Posted June 22, 2015
Wall Street Journal (Hamm) -- Amid news of a pending nuclear deal with Iran, some OPEC countries have struck agreements with refineries in Asia to avoid losing market share when Iranian oil comes back on the market. If U.S. policy will allow Iran to export oil, shouldn’t it allow America to do the same? Clearly, our allies would rather get their oil from America than Iran if given the choice. But without the ability to export, the U.S. is not even in the game.
Congress must lift the ban on U.S. crude oil exports. The ban is a terrible relic of the Nixon era that harms the American economy. As Sen. Lisa Murkowski (R., Alaska) has pointed out, restrictions on oil trade effectively amount to domestic sanctions. Combined with a mismatch in refining capacity, the ban on oil exports is creating a significant discount for U.S. light oil at no benefit to anyone except refiners and their foreign ownership. It has cost U.S. states, producers and royalty owners $125 billion in lost revenue in four years, according to industry estimates.
Foreign producers are using their heavy oil—and the U.S. ban on exports—as a weapon against America. Over the past three decades countries such as Venezuela, Mexico, Saudi Arabia and Canada have overtaken U.S. refining capacity to run their heavy crude in American refineries and capture a large portion of the U.S. market. Without firing a shot, they have disadvantaged American oil and interests.
Posted June 18, 2015
Here’s the first of a series of posts sparked by speeches and presentations at this week’s U.S. Energy Information Administration (EIA) energy conference. U.S. Energy Secretary Ernest Moniz set the tone for EIA’s event, noting that the U.S. faces a set of energy challenges, vulnerabilities and opportunities. At the heart of the discussion: America’s energy resurgence. Moniz:
“By almost any simple measure for sure, our energy security position has been enhanced a great deal over the last several years: No. 1 producer of oil and gas, oil imports in terms of a fraction of crude plus products back at 1952 levels. In fact, our production increasing so substantially in the last five years that it has become a critical factor in global pricing dynamics, challenging decades-old assumptions by OPEC, for example. We have mothballed LNG import facilities are being repurposed for exports, likely to begin next year, and, frankly, likely to see us in several years at least become one of the major LNG players on the global scene.”
Moniz credited the energy revolution for rejuvenating U.S. manufacturing, particularly among energy-intensive industries that are capitalizing on affordable natural gas for power and/or as a feedstock for a variety of products. America’s increased use of natural gas also has helped lead U.S. efforts to reduce carbon dioxide emissions, he said.
In all of the above, the secretary certainly makes good point. Thanks to innovative, advanced hydraulic fracturing and horizontal drilling, the U.S. is the world’s energy-producing leader. America is stronger and its citizens are more prosperous because we’re producing more of the energy we use right here at home.
Posted May 5, 2015
Energy Outlook Blog (Geoff Styles): The US Energy Information Administration's latest Annual Energy Outlook features the key finding that the US is on track to reduce its net energy imports to essentially zero by 2030, if not sooner. That might seem surprising, in light of the recent collapse of oil prices and the resulting significant slowdown in drilling. EIA has covered that base, as well, in a side-case in which oil prices remain under $80 per barrel through 2040, and net imports bottom out at around 5% of total energy demand. Either way, this is as close to true US energy independence as I ever expected to see.
It wasn't that many years ago that such an outcome seemed ludicrously unattainable. I recall patiently explaining to various audiences that we simply couldn't drill our way to energy independence. The forecast of self-sufficiency that EIA has assembled depends on a lot more than just drilling, but without the development of previously inaccessible oil and gas resources through advanced drilling technology and hydraulic fracturing, a.k.a. "fracking", it couldn't be made at all. The growing contributions of various renewables are still dwarfed by oil and natural gas, for now.