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Energy Tomorrow Blog

Virginia Business Leaders Bullish on Offshore Energy

virginia  offshore development  economic benefits  business 

Mark Green

Mark Green
Posted March 29, 2018

Recent analysis of the potential economic benefits of offshore natural gas and oil, finding that coastal states and the nation could see billions in annual industry spending, job creation and federal revenue sharing dollars over a 20-year period, has the attention of leaders in one of those key states – Virginia.

A group of 21 Virginia businesses, associations and other organizations have written to federal officials in support of opening more of the U.S. outer continental shelf (OCS) to safe development. The comments were filed with the Bureau of Ocean Energy Management (BOEM), which is putting together a new federal offshore leasing plan that will blueprint development from 2019-2024. 

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Energy is Redrawing U.S. Trade Picture

trade  american energy  fracking  exports  pipelines  small business 

Mary Leshper

Mary Schaper
Posted February 6, 2015

Wall Street Journal: The U.S. oil boom is redrawing America’s trade picture. Petroleum imports accounted for less than 20% of the nation’s trade deficit last year, down from more than 40% only five years earlier, according to figures for 2014 released Thursday. But the overall U.S. appetite for overseas goods didn’t diminish over the period, which started with the global economy’s first full year of expansion after the 2007-09 recession. Imports of just about everything else have surged as Americans substitute other goods for foreign oil, leaving a growing trade deficit. “If we hadn’t had this oil boom I think our deficit would be lot larger than it is right now,” said IHS Global Insight economist Patrick Newport. “It’s a game-changer.”

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Boom! Energy’s Economic Benefits Spread Across U.S.

Economy  jobs  american energy  business  fracking 

Mary Leshper

Mary Schaper
Posted September 23, 2014

FuelFix Blog: From steel pipe manufacturers to companies that produce sand and gravel, the U.S. shale boom is buoying businesses far removed from the oil and gas fields, a new study finds.

These companies are benefiting from the huge investments needed to explore, produce, process and transport oil and gas unlocked from previously inaccessible dense rock formations through advances in hydraulic fracturing and horizontal drilling, according to the findings by Houston-based energy analyst firm IHS.

The boom has been most generous to companies working in states with the most oil and gas activity, but the economic boost has also trickled down to steel-makers and machine tool manufacturers based in regions with no production, the report said.

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Shale Energy Fuels Local Economies, Creates Opportunity

Economy  jobs  fracking  business  supply  american energy 

Mary Leshper

Mary Schaper
Posted September 10, 2014

Reuters: The U.S. government on Tuesday jacked up its forecast for oil production next year by 250,000 barrels per day (bpd) as the boom in shale oil drilling continues to confound expectations of slower growth.

The U.S. Energy Information Administration now expects domestic output to rise to 9.53 million bpd, growing by around 1 million bpd for a third consecutive year, according to its latest monthly short-term energy outlook. A month ago the EIA had predicted output growth would slow in 2015 to 800,000 bpd.

The U.S. shale boom has allowed producers to unlock thousands of barrels of reserves, putting the United States on course to become the largest producer of oil globally, which would dramatically reduce its dependence on imports.

"Rising monthly crude oil production, which will approach 10 million barrels a day in late 2015, will help cut U.S. fuel imports next year to just 21 percent of domestic demand, the lowest level since 1968," EIA Administrator Adam Sieminski said.

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Efficient and Abundant: American Energy Hits New Highs

american energy  Energy Efficiency  Energy Security  business  fracking  keystone xl pipeline 

Mary Leshper

Mary Schaper
Posted March 11, 2014

Liquefied Natural Gas as a Geopolitical Tool

Denver Post Editorial: Speeding up U.S. natural gas exports was a good idea even before the crisis in Crimea, but it's an even better idea now.

It's not as if U.S. exports are going to undermine Vladimir Putin's imperialistic designs in the short term. Ukraine would love to be less dependent on Russia for natural gas, but the export infrastructure in the U.S. for liquefied natural gas (LNG), particularly in terms of ports, isn't ready.

Indeed, the earliest that an export terminal is expected to come on line is in late 2015, with other terminals becoming operational perhaps a couple of years later. For that matter, the government doesn't direct where exports go. If the price in Asia for LNG is higher than in Europe, U.S. exports will tend to wind up there.

Still, the more gas is available worldwide, the less leverage Putin will have in bullying neighbors and in talks with European powers such as Germany, which also depends on Russian gas.

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Big Myths on Oil, Natural Gas and Taxes

taxes  taxes impact on business  oil and natural gas development  economic policy 

Stephen Comstock

Stephen Comstock
Posted January 21, 2014

A new year unfortunately means the same old tired arguments from folks seeking higher punitive taxes on America’s oil and natural gas companies, in this case in the form of a post from the Center for American Progress (CAP), which seeks to simplify the complexity of comprehensive tax reform down to “end special tax breaks for the five biggest oil companies.” So what are these “special” tax breaks they want to end?

Well, the first identified by CAP is the “Section 199 deduction” created in 2004 to spur employment in U.S. manufacturing and is available for all U.S. taxpayers who manufacture in the U.S.  So, not special for oil and natural gas companies, and in fact oil and natural gas companies are already singled out for reduced used of the deduction, compared to other manufacturers. The second is the foreign tax credit deduction, which is designed to minimize double taxation and is available to all U.S. companies with operations overseas. So again, not special for oil and natural gas companies. Lastly, CAP wants to end the intangible drilling costs deduction (IDCs), which is a cost-recovery mechanism for oil and natural gas exploration and production expenses that has existed since 1913.  While drilling costs are unique to drillers, the deduction of costs is similar to cost-recovery provisions provided to every business, so not special, and as a bonus, IDCs are also not a tax break, as drillers pay the full amount of taxes that are owed. 

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Tax Reform Rule 1: Do No Harm

tax code  taxes impact on business  technology  innovation 

Mark Green

Mark Green
Posted August 23, 2013

Good vibrations from California with the Max Baucus-Dave Camp tax reform tour reaching Silicon Valley and a pair of high-tech sector businesses. The chairmen of the Senate’s Finance Committee and the House’s Ways and Means Committee, respectively, have been preaching a simpler, fairer tax code for individuals and job creators

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Energy Today – April 16, 2013

epa  ethanol  greenhouse gases  hydraulic fracturing  keystone xl  taxes impact on business  energy taxes 

Mary Leshper

Mary Schaper
Posted April 16, 2013

LA TimesEPA: U.S. Greenhouse Gases Drop 

The newspaper highlights the latest good news from the EPA: Increased use of natural gas, much of it developed with  hydraulic fracturing, has helped the United States lower its greenhouse gas emissions 1.6 percent from 2010 to 2011 and nearly 7 percent since 2005.

Roll CallRedford: Keystone XL an Environmentally Sound Way to Enhance Energy Security

Alberta  Premier Alison Redford’s  op-ed argues that Canada is “the safest, most secure and responsible energy supplier to the United States and a reliable trading partner.” This comes after her recent visit to the U.S. advocating  approval of the Keystone XL pipeline project.  Approving the pipeline “is the choice of reason,” she writes.

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Protecting U.S. Economic Interests

alternative energy  china  domestic energy  renewable energy  alternative energy technologies  business roundtable  edward markey  trade 

Jane Van Ryan

Jane Van Ryan
Posted November 8, 2010

An international coalition of business groups has asked the Group of 20 leaders to reach consensus encouraging the global trade of rare earth minerals. The minerals are used in cell phones, cars, alternative energy technologies, as well as in military hardware including smart bombs and sonar. (The New York Times) 

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Trade Groups Seek Relief from EPA GHG Rules

business  domestic energy  energy  energy policy  environmental protection agency  epa  ghg  greenhouse gas  greenhouse gas emissions  manufacturing  moratorium  over regulation  senate  democrats  mining  senate appropriations committee 

Jane Van Ryan

Jane Van Ryan
Posted October 1, 2010

A group of 17 trade associations representing mining, chemicals, energy, manufacturing and business are asking key Democrats on the Senate Appropriations Committee as well as Senate Republican Leader Mitch McConnell (R-Ky.) and Senate Appropriations Committee Ranking Member Thad Cochran (R-Miss.) to support an initiative to stop or delay the Environmental Protection Agency's (EPA) proposed greenhouse gas (GHG) emission rules. In two separate letters, the trade groups, which include API, ask the senators "to pursue a moratorium on the stationary source rules...."

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