Energy Tomorrow Blog
5 Ways We’re Leading on Climate
climate change emission reductions innovation natural gas
Sam Winstel
Posted September 21, 2020
America’s natural gas and oil industry is committed to reducing the risks of climate change by producing ever-cleaner fuels and continuously improving environmental performance. As a nation, we’ve made significant progress over the years, with national greenhouse gas emissions down 10% since 2005.
Tackling the challenge of climate change will require a collaborative, cross-sector effort, and API is prepared – with climate policy principles – to constructively engage to identify workable policy solutions that deliver economic and environmental progress.
This Climate Week, let’s recognize the ongoing role that energy operators will continue to play in safely developing resources in the U.S. and decreasing greenhouse gas emissions worldwide.
MSR: Markets are Rebalancing, Though Uncertain Road Lies Ahead
Dean Foreman
Posted September 17, 2020
Sometimes, through the headlines, it can be hard to see that the economy and oil markets recently have made noteworthy progress toward rebalancing and normalizing – which is encouraging news for the industry, the country and consumers.
While petroleum demand remains below where it was this time a year ago and is likely to stay below 2019 levels until the latter half of 2019, according to the U.S. Energy Information Administration (EIA), signs are visible of a recovery from lows earlier this year.
Federal Leasing Ban Pledge Hits a Nerve in New Mexico
new mexico federal lands federal leases economic impacts jobs
Mark Green
Posted September 16, 2020
As former Vice President Joe Biden continues to clarify his position on fracking – saying he’d allow it with some environmental safeguards – what he’s not talking about is huge: His and the Democratic Party’s pledge to effectively end new natural gas and oil production on federal lands and waters.
In this post we discussed the national impacts of such a policy, detailed in a new analysis, including weakened U.S. security, lost jobs and reduced economic output.
Few states are projected to be hit harder than New Mexico, where more than 30% of the land is controlled by the federal government and accounts for half of the state’s oil production. As of May, New Mexico was producing 885,000 barrels per day, ranking it second in the nation. So, yes, Biden’s promised ban is making folks in New Mexico a little nervous.
The Administration’s Misstep on Eastern Gulf, South Atlantic Offshore Policy
offshore access eastern gulf of mexico atlantic ocs us energy security
Mark Green
Posted September 14, 2020
A national policy that puts U.S. energy off-limits to development would have serious negative impacts for our nation’s security, jobs, the economy and household budgets. As argued in this post, proponents of policies that ban new natural gas and oil development on federal lands and waters have a lot of explaining to do.
This includes former Vice President Joe Biden and the Democratic Party Platform, which both pledge to effectively end new federal natural gas and oil development.
Unfortunately, it also includes the White House, which announced this week that there will be no offshore oil and natural gas development in the Eastern Gulf of Mexico and South Atlantic going forward, into the year 2032.
This is wrong for U.S. energy, wrong for American security, wrong for jobs and wrong for economic growth.
Tech Breakthroughs on the Horizon for Natural Gas and Oil
innovation technology emission reductions
John D. Siciliano
Posted September 11, 2020
New groundbreaking technologies to keep carbon dioxide out of the atmosphere provide a glimpse of what could very well be the next big breakthrough for the natural gas and oil industry.
New technologies have the power to change the impossible to possible. We’ve long argued that industry’s ability to innovate and develop new technologies – including game-changers such as fracking – are key to our energy future. But such technological breakthroughs have been underestimated in the past, and aren’t always reflected in formal projections that are based on what is currently known and available.
Just imagine a natural gas power plant that emits zero CO2 emissions. The first preliminary tests on just such a power plant were conducted two years ago by a collaboration led by the company Net Power. The tests were so promising that the plant made it into the MIT Technology Review’s list of the top 10 breakthrough technologies.
Continued Progress Seen in Petroleum Demand
petroleum demand oil markets growth
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.
Ban on New Federal Development Would Risk U.S. Security, Jobs, Environment
federal lands offshore oil production policy jobs emission reductions
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.
Biden’s Pledge to Pennsylvania Energy Workers Not All It’s Cracked Up to Be
pennsylvania federal lands president politics fracking
Mark Green
Posted September 3, 2020
Former Vice President Joe Biden hit the campaign trail this week in southwestern Pennsylvania, home to the energy-rich Marcellus Shale – a good backdrop for discussing how Biden’s energy and jobs policies could affect Pennsylvania and other big production states, including New Mexico and Colorado, as well as Gulf Coast states.
Start with Biden’s remarks from Pittsburgh that, if elected, he will not ban fracking – clearly, to calm voters in shale country, where hydraulic fracturing has revitalized state and local economies, and necessitated by what he said in March and July, which sounded an awful lot like he would ban fracking.
So, case closed, right? Well, not exactly.
Jobs, Tax Revenues Could Be Lost if Dakota Access Pipeline is Shut Down – Study
pipelines jobs tax revenues north dakota montana
Mark Green
Posted September 2, 2020
While the U.S. Army Corps of Engineers completes a new environmental report on the Dakota Access pipeline (DAPL) in North Dakota, there’s new research showing that shuttering the pipeline would cut oil production from the prolific Bakken shale region, kill thousands of jobs and cost state and local governments millions in tax revenues generated by energy production.
The environmental effects of Dakota Access’ crossing under Lake Oahe are being studied anew after the corps was ordered to do so by a federal court. The review is expected to take 13 months. Although legal challenges surrounding DAPL are pending, an appeals court overturned the lower court’s order to halt operations and empty the pipeline while the environmental review is ongoing.
While we all wait for the review, an ICF analysis commissioned by API shows what halting Dakota Access operations would mean to production and economies.
U.S. LNG Exports Fuel Natural Gas Consumption in South Asia
liquefied natural gas lng exports natural gas benefits
Sam Winstel
Posted August 31, 2020
Liquefied natural gas (LNG) is redefining the world’s modern energy mix. Even as the coronavirus and government responses to the pandemic have cut into natural gas demand, analysts project a progressive recovery and long-term growth for U.S. LNG – particularly in emerging markets – due to its enduring economic competitiveness and environmental benefits.
In South Asia, the affordability of American LNG is expected to increase consumption, displacing demand for coal, as countries such as India and Bangladesh seek out reliable, lower-carbon energy resources.