Energy Tomorrow Blog
Posted May 14, 2020
API’s latest Monthly Statistical Report (MSR) has positive news; it just takes a close look to find it.
One example: Weekly petroleum demand data (MSR and U.S. Energy Information Administration), as measured by total domestic petroleum deliveries, indicates that the worst impacts on our industry from COVID-19 and measures to contain it may be behind us, occurring in mid-April.
We won’t know for sure until we see data for May in next month’s MSR. But EIA’s Weekly Petroleum Status Report (WPSR), shows that demand rebounded by 3.0 million barrels per day (mb/d) as of May 8, from the low point in the week of April 10 (lowest demand for April since 1970). With more than 30 states in various stages of re-opening, demand could be expected to increase along with rising economic activity.
Posted May 4, 2020
As everyone in government and the private sector works to contain the coronavirus, there’s no shortage of inspiring stories from the front lines of generosity and selflessness as Americans band together to meet the needs of their communities.
We’ve all heard about courageous medical professionals, first responders and essential workers – including grocery store employees, food service workers and delivery drivers – who are leading efforts to safeguard public health and meet priority needs. In this historic pandemic, they’re true American heroes.
Posted April 23, 2020
While the current decline in crude oil demand and market uncertainty present significant challenges, America’s natural gas and oil producers – especially those using hydraulic fracturing and horizontal drilling – are resilient and remain financially viable, supported by the world’s need for energy.
Contrary to some narratives, our industry is poised to fuel renewed growth once the U.S. and other nations get past the COVID-19 crisis. Natural gas and oil have and will again power modern economic expansion.
Posted April 5, 2020
Although OPEC+ has delayed a planned meeting Monday to address differences between leading members Russia and Saudi Arabia, there were encouraging signals from the White House after the president’s meeting with a number of natural gas and oil industry leaders, including API President and CEO Mike Sommers.
The continuing oil price war between Russia and Saudi Arabia, which has the two nations increasing production amid a slump in world oil demand, is broadly concerning. The administration is correct to focus strong diplomacy on finding a resolution, the urgency of which is underscored by the postponement of Monday’s OPEC+ meeting.
The best message from the White House is what’s not on the table: additional U.S. production cuts. As the president said, the global oversupply problem has been worsened by the Russian and Saudi production increases, and those countries bear the responsibility of changing their policies.
Posted April 2, 2020
TC Energy’s announcement that it will proceed with building the Keystone XL crude oil pipeline is a big deal in terms of vital energy for America, jobs, economic growth and North American security. The 1,210-mile pipeline – able to safely deliver 830,000 barrels per day from Canada’s oil sands region in Alberta to the U.S. heartland – figures to be a significant, long-awaited progress toward helping secure this country’s future energy needs.
I say “long-awaited” because my first API writing assignment was about the KXL – nearly nine years ago!
Over that time the pipeline became a political football – a debate in which the basic facts were mostly incontestable: thousands of good jobs during KXL’s construction, tens of millions of dollars in property and income tax revenues to different levels of government and no significant effect on the climate or environment, according to the U.S. State Department, which conducted six comprehensive scientific reviews.
Posted March 31, 2020
Despite challenging public health, geopolitical and economic circumstances, the U.S. energy industry remains positioned at the leading edge of technology and innovation. Historically, America’s natural gas and oil companies have overcome unexpected and uncertain events with safe, reliable and resilient operations – and gone on to play an important role in rebuilding the domestic economy and strengthening national security.
And there’s evidence this will happen again. That’s why we’ve said, don’t bet against this industry.Mark Mills, a senior fellow at the Manhattan Institute, wrote recently that today’s industrial digital technologies could help us weather this market downturn and eventually access more of our abundant energy resources.
Posted March 25, 2020
There seems to be no shortage of flawed ideas in response to ongoing crude oil market instability.
Last week, a U.S. senator asked the Commerce Department to impose tariffs on imported crude oil, and a Texas state energy regulator called for statewide oil production quotas – isolating measures that don’t serve the interests of American consumers and don’t help our industry do its job of supplying the country with needed energy.
Posted March 23, 2020
As the world grapples with the ongoing spread of the coronavirus, the decision by Russia and the OPEC nations to increase energy supplies while demand is dropping has contributed to ongoing market instability and delivered a shock to America’s evolving energy picture.
Since the late 2000s, the U.S. has emerged as the world’s leading producer of natural gas and oil—last month producing at estimated record levels of 13 million barrels of oil and 96.5 billion cubic feet of natural gas to meet consumer demand. Innovative technologies like hydraulic fracturing have enabled producers to reach abundant U.S. shale reserves, and thus changed America’s trajectory from energy scarcity to abundance and from importing energy to exporting it.
It is not surprising, then, that some global energy players are threatened by American energy leadership and have actively tried to prevent its progress. Russia and other nations’ push to increase global energy supply despite lower demand in the short term is a reaction to America’s new paradigm as a global energy superpower. This is a challenging situation, compounded by the impact of the coronavirus, but interventions like protectionist trade measures are not the answer.
Posted March 17, 2020
Much of the news surrounding the U.S. natural gas and oil industry is fairly challenging right now: some of the lowest global crude oil prices in years; world energy demand, which already was slowing, has been further affected by the coronavirus; Russia and Saudi Arabia, the world’s No. 2 and No. 3 oil producers, plan to increase output, launching a price war that also might be aimed at clawing back market share lost to U.S. shale producers in recent years.
Even so, don’t bet against the U.S. natural gas and oil industry. Ours is an industry of innovation and technological expertise that historically has risen to overcome serious circumstances, playing a key role in building U.S. economic strength and increasing the nation’s global security.
Posted March 12, 2020
Global oil markets have shifted dramatically in recent days and weeks, and the stakes are high for the United States energy revolution, retirement savings and the broader economy.
Let’s start with crude oil prices. Per Bloomberg, the per-barrel price of West Texas Intermediate (WTI) on March 9 was about half of what it was on Dec. 31, falling to $31.13 from $61.06.