Energy Tomorrow Blog
The Global, Positive Impacts of the U.S. Energy Renaissance
oil and natural gas exports lng exports domestic energy production fracking shale energy
Mark Green
Posted December 7, 2016
It’s hard to overstate the importance of America’s fracking-led energy renaissance – to our economy, individual households, energy security, the environment and to America’s ability to shape global events for the good. That last point is being underscored right now.
U.S. Energy Exports and Market Engagement
crude oil exports energy markets domestic energy production economic growth jobs trade lng exports
Mark Green
Posted November 18, 2015
Interesting analysis on energy independence in the Wall Street Journal by Columbia University’s Jason Bordoff, a former energy adviser to President Obama. It’s a good thing the United States isn’t energy independent, Bordoff writes. That’ll get your attention, right?
As Bordoff explains, “energy independence” is a dusty concept from the 1970s and 80s, after policymakers made it a goal to end U.S. reliance on global crude suppliers after the 1973 oil embargo. It didn’t happen. To the contrary, U.S. imports steadily climbed in the 1990s and 2000s before the significant increases in domestic production, thanks to abundant American shale energy reserves and advanced hydraulic fracturing.
Now, with U.S. energy output surging, the inclination among some is to keep that energy here at home by maintaining the 1970s-era ban on crude oil exports, believing that it lessens others’ ability to disrupt our oil supplies. But Bordoff writes that an “isolationist” approach on energy misunderstands the reality that today’s global energy market is highly integrated and that the interconnectedness of the market has helped the U.S. compensate for supply disruptions here at home and overseas. “Free trade in a highly integrated global energy market made us more secure,” he writes.
ConocoPhillips’ Lance: Crude Exports Would Boost Economy
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Mark Green
Posted April 27, 2015
ConocoPhillips Chairman and CEO Ryan Lance talks with Energy Tomorrow about key industry challenges ahead and details the case for ending the United States’ 1970s-era ban on the export of domestic crude oil. Lance is a petroleum engineer with 28 years of oil and natural gas industry experience in senior management and technical positions with ConocoPhillips, predecessor Phillips Petroleum and various divisions of ARCO. His past executive assignments with ConocoPhillips have included responsibility for international exploration and production, regional responsibility at various times for Asia, Africa, the Middle East and North America, and responsibility for technology, major projects, downstream strategy, integration and specialty functions. He is a member of the Society of Petroleum Engineers, and earned a Bachelor of Science degree in petroleum engineering from Montana Tech in 1984.
Q: Given the current downturn in oil prices, talk about the key decisions ahead for the industry over the next 10 years.
Lance: We foresee several key decisions ahead for companies in our industry. First they have to determine their strategic direction. Industry has transitioned from an era of limited resource access to one that, due to the productivity of North American shale and the potential for shale development elsewhere, offers a new abundance of resources. Although many of the best conventional resource areas remain off limits in traditional exporting countries, shale and other unconventional resources offer immense potential in many areas that are accessible. So companies now have an unprecedented range of options – pursuing North American shale, international shale, deepwater development, LNG, oil sands, international exploration, and so on. Companies must determine where they have or can build competitive advantages and leverage relationships with host nations, potential partners and suppliers, and identify the long-term opportunities best for them.
Growing U.S. Energy Self-Sufficiency
oil and natural gas production domestic energy access eia offshore energy onshore development shale energy hydraulic fracturing horizontal drilling
Mark Green
Posted April 6, 2015
Statistics in the U.S. Energy Information Administration’s Monthly Energy Review for March show U.S. domestic energy production meeting about 89 percent of the country’s total energy demand. That’s up from 84 percent in 2013 and 2012 and reflects a key result of the domestic energy revolution: growing U.S. self-sufficiency.
EIA data shows U.S. energy production as a percentage of total demand. Total energy production (fossil fuels, nuclear electric power and renewables – again, as a percentage of total U.S. energy demand -- was about 69 percent in 2005, and it grew to about 89 percent last year. The share of fossil fuels (oil, natural gas and coal) accounted for approximately 55 percent in 2005, growing to about 70 percent last year.
Fracking, the U.S. Energy Revolution and Energy Security
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Mark Green
Posted April 3, 2015
A couple of data points and some observations on energy security.
First data point: The U.S. Energy Information Administration (EIA) reports that last year the United States enjoyed the largest volume increase in crude oil production since record keeping began in 1900. That’s right, the largest increase in 115 years!
Production of crude (including lease condensate) increased during 2014 by 1.2 million barrels per day to 8.7 million barrels/day. EIA says that on a percentage basis 2014’s output increased 16.2 percent, the highest growth rate since 1940.
You can thank shale and fracking.
2014 in Energy Charts
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Mark Green
Posted December 31, 2014
So long, 2014. From an energy standpoint, you’ll be missed. Let’s count the ways:
Surging domestic oil and natural gas production – largely thanks to safe hydraulic fracturing and horizontal drilling – is driving an American energy revolution that’s creating jobs here at home and greater security for the United States in the world.
It’s a revolution with macro-economic and geopolitical impacts, for sure. But it’s also a revolution that’s benefit virtually every American.
Shale Energy, Economic Growth, Declining Imports
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Mark Green
Posted December 10, 2014
Two U.S. energy production updates and a new Congressional Budget Office (CBO) report showing the economic impacts of America’s shale energy revolution – which is driving overall U.S. production.
A chart from energy/economics blogger Mark J. Perry shows the impact of U.S. energy production on energy imports – measuring net petroleum imports as a share of products supplied. The chart shows steady increases in imports from the mid-1980s to an apex of more than 60 percent in 2005. Today, we’re looking at a percentage share that’s as low as it has been in four decades.
Private Infrastructure and POTUS
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Mark Green
Posted December 5, 2014
Speaking to business executives earlier this week, President Obama lamented how long it takes to make infrastructure improvements in the U.S.:
“The challenge for infrastructure has been that … it’s hard to pay for things if you don’t have some sort of revenue stream. And I’ve been exploring … to see how we can do more in attracting private investment into infrastructure construction – which is done fairly effectively in a lot of other countries …”
Later, he praised the Chinese for how quickly they tackle infrastructure needs:
“… the one thing I will say is that if they need to build some stuff, they can build it. And over time, that wears away our advantage competitively. It’s embarrassing – you drive down the roads, and you look at what they’re able to do.”
For more than six years one of the largest infrastructure projects to come along in some time has been staring back at President Obama, waiting for him to say “go”: the Keystone XL pipeline.
By now many Americans – who favor Keystone XL’s construction by more than a 3-to-1 margin – probably can tick off the points arguing for the project’s approval.
Energy – For Security, Greater Prosperity
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Mark Green
Posted December 2, 2014
U.S. News (Lamont Colucci): OPEC met on Nov. 27, and openly recognized that the United States' oil technological revolution – driven by enhanced oil recovery methods including hydraulic fracturing (known as fracking) and horizontal drilling – has undermined the cartel's economic and political power. This constitutes one of the major geopolitical and economic shifts of the 21st century in America’s favor. This meeting has been characterized as OPEC abandoning its role as a “swing producer” or simply the arbiter of oil supply and demand. Some are now suggesting that the new swing producer will be the United States.
Enhanced oil recovery technology was consistently denigrated as unworkable and unprofitable, and there will be many more articles restating this as the old wine in a new bottle. These technologies have made the U.S. the world's number one oil producer, surpassing Saudi Arabia and Russia. OPEC’s strategy of allowing the market to decide oil prices is designed to hurt American enhanced oil recovery activities, with the assumption that American producers need a higher profit margin per barrel than it does. This may be a horrible miscalculation on OPEC's part due to continual advances in technology and innovation.
According to a 2013 report, hydraulic fracking and horizontal drilling have the potential to increase the global reserve of oil from 1.6 billion barrels to 10.2 billion barrels. Domestically, we are already witnessing the 21st century oil boom generate prosperity for states like Colorado, Oklahoma, North Dakota, Texas, West Virginia and Wyoming. Current estimates indicate that by 2020 the United States will be the dominant worldwide producer of both natural gas and oil and achieve energy independence.
However, this energy issue has been dominated by the wrong people: economists, businessmen, engineers and environmentalists. They all have their required expertise, but all of this is really an issue of foreign policy and national security. There are four ways that this new situation can be welcomed by conservatives, liberals, realists and environmentalists.
A Sea Change in American Energy
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Mark Green
Posted October 10, 2014
The U.S. Energy Information Administration (EIA) has another report on oil imports that underscores the incredible sea change in America’s energy picture – due to increased domestic production of oil and natural gas. EIA says net imports of energy as a share of energy consumption fell their lowest level in 29 years for the first six months of 2014.
This is a snapshot of America’s energy revolution – the fundamental shift from energy scarcity to abundance that would have been unthinkable less than a decade ago. The shift is the result of surging oil and natural gas production using advanced hydraulic fracturing and horizontal drilling, harnessing oil and gas reserves in shale and other tight-rock formations. Safe, responsible energy development has made the United States the world’s No. 1 natural gas producer, and the U.S. could become the world’s top producer of crude oil related liquids before the year is out, the International Energy Agency reports (h/t Financial Times.com).