Energy Tomorrow Blog
Posted January 15, 2016
Federal officials followed President Obama’s State of the Union pledge to change Washington’s management of fossil fuel resources by announcing the government will stop issuing new coal leases on federal lands. The president’s keep-it-in-the-ground energy strategy, first voiced when he rejected the Keystone XL pipeline last fall, continues unfolding.
Unfortunately, the president doesn’t seem aware that his administration could blow a generational opportunity for America, one that’s being provided by the ongoing revolution in domestic oil and natural gas production. That he doesn’t see it helps explain the disconnect in his connecting of these thoughts during the State of the Union:
“… we’ve cut our imports of foreign oil by nearly 60 percent, and cut carbon pollution more than any other country on Earth. Gas under two bucks a gallon ain’t bad, either. Now we’ve got to accelerate the transition away from old, dirtier energy sources.”
Respectfully, Mr. President, falling oil imports, reduced U.S. carbon emissions and $2 gasoline are reasons to sustain and grow America’s energy revolution – not reasons to kneecap it.
Posted September 25, 2015
The Washington Post reports that a coalition of environmental activists wants the Obama administration to stop new federal leasing for oil and natural gas development. Notwithstanding the broad energy, economic and security benefits produced by America’s energy revolution, the opportunity to secure America’s future and significant air quality progress, their position is simple: Keep it in the ground.
The position also is extreme, anti-progress and anti-modern – though hardly surprising. There’s a small but loud element that has little interest in safe and responsible energy development or in constant improvement of operational and environmental safety. Rather, it opposes development altogether. Their recent push is the latest sign of an agenda that would put America in retreat economically and in the world.
What’s surprising is that these activists actually concede that Americans want oil and natural gas. They acknowledge consumer demand for oil and gas – affordable, reliable and portable fuels that make life less harsh, healthier and more prosperous – but they want government to choke off that demand by cutting supply.
Posted May 21, 2015
Consumers have felt some of the fruits of America’s energy revolution, API Chief Economist John Felmy told reporters in a pre-Memorial Day conference call.
Felmy noted that drivers are paying about $1 less per gallon of gasoline on average nationwide than they did at this time a year ago, according to AAA. He said that thanks to advanced hydraulic fracturing and horizontal drilling, the U.S. energy resurgence has offset production declines in other parts of the world, which has resulted in a more stable global market for crude oil – and relief at the gas pump. He added that the U.S. energy picture currently is characterized by strong domestic supply, moderate demand, increasingly efficient production and a refining sector that’s turning out record amounts of gasoline.
Felmy said the right energy choices by our country’s leaders can help continue the energy revolution.
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Posted January 28, 2015
Three maps, two views of America’s offshore energy wealth.
One reflects vast offshore oil and natural gas resource potential – nearly 50 billion barrels of oil and more than 200 trillion cubic feet of natural gas. We say potential because these areas represent the 87 percent of America’s federal offshore acreage that has been closed to exploration and development, dwarfing the areas where development is allowed.
Nonetheless, what’s visible is the profile of an offshore energy giant, an offshore superpower. This is energy muscle waiting to be flexed. These are resources that could benefit Americans in terms of energy security, as more oil and natural gas is safely and responsibly produced right here at home, as well as job creation and economic stimulus.
That’s what energy superpowers do. They develop their resources to increase their security in a world where secure energy is fundamental to overall security. They develop their resources to fuel economic growth and to help ensure the prosperity of their citizens.
Posted July 22, 2014
AEI Carpe Diem Blog:
The chart above helps to illustrate the significance of America’s shale oil and gas boom by showing the combined domestic output of US oil and gas (in quadrillion BTUs, EIA data here). After production of conventional oil and gas peaked around 1970 at almost 45 quadrillion BTUs, there was a gradual, steady decline that continued until about 2005, when combined production had dropped to a 43-year low of 31.85 quadrillion BTUs, the lowest level since 1962. If that trend had continued, the US would now be producing only about 30 quadrillion BTUs of oil and gas (or less), which would have put us back to the production level of the late 1950s.
Posted May 15, 2012
Posted January 24, 2012
One of the most important things to know about producing oil on federal lands is that it takes time. Lots of it. As this chart developed by API illustrates, it’s up to a decade from the time a lease is won at auction to the first actual production of oil. If you include pre-lease sale studies and evaluation, which have to be done before companies bid on federal leases, that’s a couple more years.
Posted April 1, 2011