Energy Tomorrow Blog
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.
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.
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.
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 June 13, 2019
The administration’s back-and-forth trade policies and near-constant threat of tariffs have left many American businesses and consumers uneasy.
We received some good news last week as President Trump ultimately decided against imposing a new 5 percent tariff on all imported goods from Mexico. But while trade with Mexico might be on even ground for now, the already tense U.S.-China trade relations have shown no sign of letting up. Now, the Administration has threatened a fourth round (subscription publication) of tariffs on Chinese imports, this time on List 4 goods, if a trade deal with China is not reached at the G20 summit later this month.
Let’s take a moment to remember that U.S. consumers are the ones hurt by tariffs, which are a tax on goods that millions of U.S. families and businesses use every day.
Posted May 30, 2019
A new Colorado law handing more control over natural gas and oil operations to municipalities, authority that used to reside with the state, risks another law – the law of unintended consequences – that could deal a serious blow to one of our country’s leading energy-producing states.
This week the city of Broomfield became the seventh Colorado community to impose a ban on new natural gas and oil development since introduction of Senate Bill 181, which became law last month. …
Before SB 181’s passage, industry warned the law could disrupt responsible natural gas and oil development by hatching a patchwork, unpredictable regulatory system across the state – with the unintended consequence of imperiling energy development and jobs and economic growth. Regulatory uncertainty can chill sizeable investments in new operations that often have significant lead times
Unfortunately, that uncertainty appears to be growing in Colorado – with national implications because the state ranks sixth in both natural gas and oil production.
Posted March 20, 2019
Though Colorado has set the gold standard for state regulation of natural gas and oil, some don’t think that’s enough.
Opponents of oil and natural gas are pushing state legislation to let local governments have regulatory authority over industry – “local control” – which in other states has been a way to curtail energy development. If enacted in a state that ranks top 10 in the country in natural gas and oil production, it could have big negative impacts for the state and nation.
Posted February 13, 2019
The Green New Deal is getting quite a bit of attention in Washington right now, and naturally, people want to know what the natural gas and oil industry thinks about the proposal to revolutionize America’s economy and way of life – since it appears the plan aims to eliminate natural gas and oil, the nation’s leading fuels, right when there’s record energy demand by consumers.
My reaction is that any proposal that would fundamentally reorder American energy – and the way of life in this country – should first be measured by its impacts on American consumers, the economy and the country’s opportunity for future prosperity.
Especially this one. There’s little question that GND would significantly alter America as we know it.
Posted August 2, 2018
We’ve spelled out the potential dangers to Colorado energy production and the state economy posed by Initiative 97, a measure backed by environmental extremists that would require an extraordinary, 2,500-foot buffer zone between natural gas and oil development and occupied structures and “vulnerable” areas (see here and here). With backers nearing a deadline to collect just over 98,000 valid signatures to qualify the measure for the November ballot, those negative impacts are even starker.
Posted February 16, 2018
U.S. crude oil production scored a perfect “10” in January – make that 10.2, to be precise, as in 10.2 million barrels per day (mbd). That record production, combined with a new high for refinery throughput and 6.3 mbd of crude oil and refined product exports, narrowed the price difference between U.S. and international crude prices last month and underscored the global impact of U.S. energy. All of this data and more may be found in API’s Monthly Statistical Report for January.
Posted August 9, 2017
Total up industry’s economic contributions to Pennsylvania – helping to support its schools, first-responders, local infrastructure and jobs, lots of them – and it’s a pretty fair amount. But not fair enough for some. Last month a narrow majority in Pennsylvania’s state Senate voted for a $600 million tax increase that would hit natural gas producers and natural gas and electric users while also hiking taxes on communications services – all of which could significantly impact Pennsylvania consumers.