Energy Tomorrow Blog
Here’s How to Devastate U.S. Energy and the World Economy: Ban Fracking
hydraulic fracturing fracking democrats consumers economic growth
Mark Green
Posted November 14, 2019
Calls for a ban on hydraulic fracturing by some of the Democratic presidential candidates continue to make for discussion on the campaign trail – and boy, that is a discussion everyone should be paying attention to. The stakes are sky-high.
Recently, we highlighted this Michael Lynch analysis warning that a fracking ban could devastate the U.S. economy. Now the Manhattan Institute’s Mark P. Mills has a piece on Real Clear Energy asserting that in the most serious scenarios, banning U.S. fracking could put the global economy in recession – entirely plausible, given that the United States is the leading producer of natural gas and oil, the two energy sources that supply 54% of the globe’s fuel. In all, Mills notes in this report, fossil fuels supply 84% of the world’s energy.
Those are the stakes when candidates kick around the notion of banning hydraulic fracturing, which is used for 95% of new U.S. wells today. Ban fracking and you pull the rug out from under U.S. production – and with it, energy security, global energy leadership and, yes, environmental progress – considering increased U.S. use of natural gas has lowered energy-related carbon dioxide emissions to their lowest levels in a generation.
Senate Bipartisan Climate Caucus a Promising Addition to U.S. Conversation
senate climate emission reductions
Mark Green
Posted November 13, 2019
Our industry is committed to creating climate solutions now and for the future. As energy producers, natural gas and oil companies are essential to a credible, national climate conversation – since this often is focused on energy production and use.
It’s also real and practical. We’re innovating new technologies and procedures for real-world results – to continue reducing emissions while also supplying the natural gas and oil our nation needs to be growing, prosperous and secure.
That’s why initiatives such as the U.S. Senate’s new bipartisan climate caucus are needed to help spur a solutions-centered discussion at the highest levels in Washington, so we can pragmatically and effectively see progress – both on climate and our country’s fundamental energy needs.
Offshore Energy Funds Conservation, Strengthens U.S. Economy
offshore energy revenues conservation economic growth
Mike Sommers
Posted November 7, 2019
Safe and responsible energy development drives economic growth and environmental progress, and by expanding exploration on federal lands and along the Outer Continental Shelf, the U.S. stands to generate billions of dollars in funding for infrastructure, education and conservation.
Celebrating STEM Education, Empowering Solution Seekers
stem education workforce energy industry
Sam Winstel
Posted November 6, 2019
To mark National STEM Day this Friday, API and a group of partners are launching the STEM Careers Coalition that focuses on science, technology, engineering and mathematics (STEM) in the K-12 grades, with an emphasis on equity and access.
API, Discovery Education, Chevron, Boeing, Best Buy, The Manufacturing Institute, and Microsoft are committed to advancing the future of education through 2025 and beyond. The goal is to improve the learning experience for 10 million students in 5,000 schools nationwide – through direct investments in classrooms, connecting industry employees and students and creating an easily accessible career portal. Ultimately, the coalition will work to bridge the STEM workforce skills gap – which may leave 2.4 million positions unfilled between 2018-2028, according to the Manufacturing Institute.
Natural Gas Exports Ban Makes Little Sense for Environment
natural gas lng exports carbon dioxide emissions climate
Mark Green
Posted November 1, 2019
The U.S. as a global leader in natural gas exports is underlined by a new government report showing that through the first six months of this year, U.S. net natural gas exports averaged 4.1 billion cubic feet per day (Bcf/d) – more than doubling 2018’s average net exports. This follows analysis that the U.S. became a net exporter of natural gas on an annual basis for the first time in 60 years in 2017.
These figures are significant for a number of reasons:
First, they attest to the strength of domestic natural gas production, which continues to set records – largely thanks to shale production enabled by safe hydraulic fracturing. … Second, expanding markets for U.S. natural gas helps support more domestic production – which means jobs, investments and other economic growth.
Third, growing exports of clean natural gas means other nations may realize the environmental benefits from increased use of natural gas.Natural Gas, Oil and Reinvestment in America
royalties revenues oil and natural gas production interior department
Mark Green
Posted October 28, 2019
America’s natural gas and oil industry continues to work for Americans – with revenues from production on federal and Native American-owned lands and offshore areas driving $11.69 billion in federal disbursements back to the states, counties, tribes and reclamation and conservation programs. That’s $2.76 billion more than the previous fiscal year and nearly double the disbursements in FY2016, the Interior Department said.
Recipients included: $2.44 billion to states and counties, $1.76 billion to the reclamation fund, $1.14 billion to Native American tribes and individual mineral owners, $1 billion to the Land and Water Conservation Fund and $4.9 billion to the U.S. treasury.
Here’s How to Devastate U.S. Energy, Economy: Ban Fracking
hydraulic fracturing fracking economic impacts natural gas
Mark Green
Posted October 25, 2019
Energy analyst Michael Lynch has a couple of charts in his recent article for Forbes that do a good job of showing the stark repercussions of banning hydraulic fracturing – as a number of Democrats have advocated on the campaign trail.
First, understand that modern, technologically advanced fracking is used for 95% of new wells today. Shale and tight sandstone formations, which need hydraulic fracturing to be economically feasible, accounted for about 69% of total U.S. dry natural gas production in 2018 and 59% of total U.S. crude oil production, according to the U.S. Energy Information Administration. So, yes, a fracking ban or something approaching it would put a major dent in U.S. production.
Offshore Energy’s Fair Share
offshore development royalty payments gulf of mexico
Mark Green
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.
USMCA Approval Essential to Economic Progress, Energy Security
trade economic growth consumers canada mexico
Mike Sommers
Posted October 23, 2019
Given bipartisan consensus on the importance of trade to America and our allies, finalization and approval of the U.S.-Mexico-Canada Agreement (USMCA) in Congress is long overdue. Because North American markets are highly interdependent, maintaining the tariff-free, intracontinental flow of natural gas, oil and refined products will help ensure that American families have continued access to affordable and reliable energy, and to our export markets in Canada and Mexico.
When it comes to the U.S. economy, the advantages of the USMCA are clear. Trade with Canada and Mexico supports 12 million American jobs across every state, according to the Business Roundtable, and totaled nearly $1.3 trillion in 2017. A U.S. International Trade Commission report estimates that approving USMCA could raise real GDP by $68.2 billion and create 176,000 jobs, relative to a baseline, six years after the trade deal enters into force.
Safety, Environmental Protection Key in New API-Saudi Technical Partnership
api standards program safe operations saudi arabia
Debra Phillips
Posted October 22, 2019
Safety, security, environmental protection and sustainability in global oil and natural gas operations are the broad objectives of a first-ever partnership between API and the Saudi Standards, Metrology and Quality Organization (SASO) – outlined in a recently signed Technical Collaboration Program.
The new collaboration with the Kingdom of Saudi Arabia on standards development underscores API’s ongoing commitment to help promote these shared goals worldwide through our industry standards programs.