Energy Tomorrow Blog
Posted September 19, 2019
At a time of energy uncertainty in the world, the U.S. natural gas and oil industry is producing at levels that have helped cushion domestic markets and American consumers against global supply disruptions that once would have put severe pressure on our economy here at home.
Each final month of the quarter marks the simultaneous release of API’s Monthly Statistical Report (MSR) and quarterly Industry Outlook, and this quarter has offered some remarkable milestones and insights – at a critical time for the world.
Posted September 10, 2019
Natural gas and oil, the bellwether of the U.S. economy, continue to be the collateral damage in the administration’s trade war with China – frustratingly ironic given the White House’s stated goal of bolstering American energy.
Important parts for offshore natural gas and oil drilling and production, as well as critical parts and accessories for energy projects are among products imported from China that will be subject to a 30% tariff as of Oct. 1 – an increase from the current 25% tariff.
Higher costs for these needed components could increase the cost of production and, ultimately, energy costs to U.S. consumers.
Posted September 9, 2019
One of the things I do often on behalf of API is to speak publicly across the United States, emphasizing how the energy revolution has continued to benefit consumers. On the topic of natural gas and electricity generation, a common thread has emerged: Natural gas has generally led to lower energy-related carbon dioxide emissions and lower electricity prices across the nation.
To those who follow the industry, this may be no surprise given that clean natural gas has supplanted coal as the leading energy source for generating electricity in the U.S. Part of this is natural gas’ competitiveness in the marketplace. Thanks in part to the shale revolution, real natural gas prices at Henry Hub decreased 37% between 2010 and 2018 – and as of August 2019 were down by another 15.6% y/y.
Posted September 3, 2019
The story of the federal Renewable Fuel Standard (RFS) is long and unfortunate – a program that is now largely obsolete thanks to surging domestic energy, whose mandates continue to loom over American consumers without many of the benefits it was supposed to provide. It lives on, protected by ethanol producers and corn state/presidential politics.
That’s the context for RFS policy tweaks expected soon from the White House – more fiddling with a flawed program that will attempt to force higher content of ethanol-blended fuel into the U.S. supply, potentially impacting consumers, while creating an uneven playing field in the refining sector.
Posted August 13, 2019
Now’s a good time to revisit the potential impacts of the “Green New Deal” and other anti-natural gas and oil ideas that have gained so much traction with the Democratic presidential contenders.
As we said a few months ago, fundamentally reordering American energy and Americans’ way of life should be measured by impacts on U.S. consumers, the economy and the country’s energy future.
Posted July 25, 2019
With Ohio’s passage of a corporate bailout for nuclear and coal-burning power plants – a consumer-funded subsidy that could amount to more than $1 billion through 2027 – Columbus Dispatch metro columnist Ted Decker lamented: Why are ratepayers paying the price for one company’s ineptitude?
A great question that apparently didn’t register with a majority in the state legislature or Gov. Mike DeWine. Then again, they weren’t persuaded to back off the subsidy plan when confronted by Ohio public opinion, which overwhelmingly opposed docking the state’s ratepayers on a monthly basis to bail out two nuclear power plants.
Posted July 24, 2019
An important test of energy leadership is whether elected officials will act to enhance and protect strategic energy interests – a point we made in a post last week about smart, forward-looking policies that foster safe and responsible offshore energy.
A leadership corollary: First, do no harm.
We say that because, in a nation that’s the No. 1 producer of natural gas and oil in the world, leaders shouldn’t be making energy decisions that hurt those they’re supposed to serve. Unfortunately, in New York, there has been quite a bit of pain inflicted on New Yorkers by the Cuomo administration’s energy agenda.
Posted July 18, 2019
Domestic oil production continues to benefit the U.S. – increasing energy security and driving economic growth – and cushion the economy as well as American consumers against global events that in the past impacted energy supplies, costs and prices.
Strength stemming from the U.S. energy revolution is seen in API’s latest Monthly Statistical Report (MSR), with U.S. crude oil exports setting a new record in June at 3.3 million barrels per day (mb/d), which represents growth of 1.1 mb/d over June 2018. Moreover, U.S. petroleum net imports fell to 1.3 mb/d in June from 2.9 mb/d in June 2018 – a major step closer to the U.S. becoming a net exporter of oil.
In other words, the U.S. has continued to supply virtually all of the world’s growing oil needs for transportation and industry, which has increased the stability of the global supply while generally lessening energy-related tensions.
Posted July 8, 2019
The U.S. natural gas and oil industry is driving the American economy, delivering affordable, reliable and abundant energy to manufacturers, businesses and American families. Around the world, pipeline infrastructure remains the safest, cleanest way to transport energy to consumers. Attempts to block important infrastructure projects could inadvertently harm energy consumers and undermine American energy leadership.
The recently completed Sur de Texas natural gas pipeline, which will bring much-needed clean, affordable and reliable natural gas from the U.S. Permian Basin to Mexican customers, perfectly embodies the important trading relationship between Mexico and the United States. The project will deepen U.S.-Mexico energy trade, benefit Mexico’s consumers whose demand for reliable energy continues to grow and work toward the U.S. administration’s goal of energy leadership. However, there continue to be attempts to arbitrarily block the use of this critical energy lifeline, which if not brought online could harm Mexican consumers and Mexico’s economy.
Posted June 27, 2019
The U.S.-China trade dispute is hurting the United States economy, consumers and the American energy revolution.
In a nutshell, that was industry’s message to the U.S. Trade Representative and Section 301 Committee during a public hearing this week in Washington. U.S. tariffs on more than 100 products – and China’s retaliation – are leaving a mark on the U.S. natural gas and oil industry, one that could have ripple effects throughout the economy.