Energy Tomorrow Blog
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.
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 August 19, 2020
If Democratic policymakers want to ‘build back better’ while also keeping the lights on, they’ll want to support the continued development of America’s vast natural gas and oil resources, which provides reliable, affordable, and cleaner energy.
Democratic leaders like former President Barack Obama – who received a 97% favorability rating in 2018 among self-identified Democrats – and several other keynote speakers at this year’s Democratic National Convention have advocated for U.S. natural gas and oil, with some encouraging its growth to help lower household energy bills, reduce emissions, and create new American jobs.
Posted July 21, 2020
Through the recent COVID-19 pandemic and resulting shocks to energy markets around the world, U.S. natural gas has remained a relatively bright spot.
Record low prices have benefitted consumers, and at the same time many producers dedicated to natural gas in Pennsylvania, Ohio, West Virginia, Louisiana and East Texas have remained viable as cutbacks in oil and associated natural gas from other regions have taken effect. And now about 90% of U.S. drilling for natural gas is concentrated in these regions, that is Appalachia and the Haynesville areas.
The drilling activity has reflected two fundamental observations. The first is that, according to BTU Analytics, the recent breakeven price – that is, the Henry Hub wholesale market price needed to at least break even in drilling a new well – on average has remained near market prices despite COVID-19, a relatively warm winter and broad financial market concerns. The second observation is that natural gas well productivity, as reported by the U.S. Energy Information Administration, were resilient after some unexplained variation at the beginning of the year.
Posted July 16, 2020
Although we have a long way to go for U.S. petroleum markets to recover to pre-pandemic levels, the comeback broadly continued in June as state economies re-opened despite ongoing challenges with COVID-19. This is seen in API’s Monthly Statistical Report (MSR) for July.
With the daily news flow about COVID-19 – from America Shuts Down Again to More Than Half of States Trending Poorly – it has been challenging for oil markets to discern what’s actually happening. The MSR provides the most timely and comprehensive snapshot of U.S. markets for crude oil and major refined products, based on weekly surveys of up to 90% of the industry.
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.
John D. Siciliano
Posted May 20, 2020
Capt. Russell Holmes is the Center for Offshore Safety’s (COS) new director after serving for nearly three decades with the U.S. Coast Guard.
Holmes, who retired from the Coast Guard in 2020, takes over for Charlie Williams, who had led the center since 2012 after a long industry career. Holmes will be taking the center’s mission of offshore safety and environmental protection into its second decade of existence.
The center was created soon after the 2010 Deepwater Horizon incident in the Gulf of Mexico. Since then, the COS has enhanced the safety culture in offshore operations, while supporting federal regulations that mandate Safety and Environmental Management Systems (SEMS) at all operations on the Outer Continental Shelf.
Just prior to joining the center, Holmes served as the Coast Guard’s senior point of contact for offshore safety in the Gulf, overseeing marine inspection and investigation programs that ultimately support SEMS. As he explains in the Q&A below, Holmes says the industry’s professionalism and safety commitment matched his while he was serving as one of industry’s lead regulators.
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 16, 2020
Amid talk in Texas of production quotas (“proration”) and other extreme policies that have been suggested to address the oil demand downturn, API’s Monthly Statistical Report (MSR) shows that supply is responding in real time and that U.S. crude and refined storage capacities have some flexibility to adjust to the COVID-19 driven demand decrease – helping to alleviate the need for blanket policies or government interventions.
Notably, recent federal actions may help provide additional flexibility to the entire energy value chain. For example, the U.S. Department of Energy’s opening of crude oil storage capacity within the Strategic Petroleum Reserve (SPR) to individual companies provides much-needed flexibility. Separately, Federal Reserve measures to either purchase corporate bonds or provide loans may perform additional triage for the energy industry and across the broader economy.