Energy Tomorrow Blog
Posted June 19, 2019
Another big indication of the global impact of the U.S. energy revolution comes in the International Energy Agency’s (IEA) oil market report and its outlook for 2020, which says the United States will be responsible for virtually all of this year’s increase in oil supply. …
The fact that the U.S. is projected to fill this role is significant in terms of global market stability and the world’s security – that is, the United States as this growth supplier, versus less stable and/or less friendly regimes.
Posted June 13, 2019
John Watson, then the chairman and CEO of Chevron, once was asked how the natural gas and oil industry is perceived since so much of the climate discussion is aimed solely at producing fossil fuels.
Unflinchingly, Watson countered that his industry is a noble one – delivering light, heat, transportation, food, clothing and other benefits to people every day – and that natural gas and oil are foundational for almost everything that we use and do. Simply put, Watson asserted that natural gas and oil are forces for good in human development and far from a deterrent (and instead an enabler) of climate progress.
It was an argument for the societal value of natural gas and oil and the opportunities they create, thanks to U.S. energy abundance.
Posted March 26, 2019
Natural gas is playing a lead role in meeting rapidly increasing global energy demand, and its growing use in electricity generation has resulted in significant savings in carbon dioxide emissions worldwide. These points were echoed by the International Energy Agency (IEA) in its Global Energy and CO2 Status Report released this week.
Posted January 18, 2019
The new Short-Term Energy Outlook from the U.S. Energy Information Administration (EIA) details the vigor of American crude oil production and strengthening U.S. energy security. This is good news for the economy, consumers and America's place in the world.
Consider that EIA estimates U.S. crude oil production averaged 10.9 million barrels per day (b/d) in 2018, an increase of 1.6 million b/d over 2017. EIA says production reached its highest level and had its largest volume growth on record.
EIA estimates crude oil and petroleum products net imports fell to an average of 2.4 million b/d in 2018, from 3.8 million b/d in 2017 – and 12.5 million b/d in 2005. And EIA forecasts that net imports will keep declining this year, to an average of 1.1 million b/d and to less than 0.1 million b/d in 2020. EIA forecasts that in the fourth quarter of 2020, the United States will be a net exporter of crude oil and petroleum products by about 0.9 million b/d.
Posted December 22, 2014
Posted June 26, 2014
Washington Post: Even Democrats who prefer to develop alternate energy sources before expanding the use of fossil fuels say they want the Keystone XL pipeline built.
The new Pew "Political Typology" report shows huge majorities of all four Democratic-leaning groups support the development of wind, solar and hydrogen alternatives to oil, coal and natural gas. But of those same four groups, the Keystone XL pipeline is still overwhelmingly popular in three of them.
Among "hard-pressed skeptics," "next generation left" and "faith and family left," support for Keystone is two-to-one. So even as a group like the "next generation left" group supports alternate energy over fossil fuels 83-11, it still backs Keystone 62-28.
Posted June 13, 2014
Business Insider: Brent oil futures briefly began approaching $115 this morning, the highest level in nine months, as fears that Iraq is disintegrating spooked markets.
Crude is now up about 4% on the week. When prices stay at this level for this long, U.S. gas prices start creeping up.
But what about all the oil the U.S. has been producing the last few years? Shouldn't we be insulated from whatever oil is doing?
Unfortunately, the answer is no. Gasoline prices are set on the global market, and refiners everywhere ship product to wherever they can get the best quote. So for better or worse, raw gasoline prices mostly move in lockstep around the world. The primary contract for gasoline is called RBOB.
Posted June 9, 2014
Wall Street Journal (Joseph Nye): HOUSTON — The United States produced enough energy to satisfy 84 percent of its needs in 2013, a rapid climb from its historic low in 2005, according to a report from the U.S. Energy Information Administration.
The nation produced 81.7 quadrillion British thermal units of energy last year and consumed 97.5 quadrillion, the highest ratio since 1987. The nation’s energy output rose 18 percent from 2005 to 2013, as a surge in oil and gas production offset declines in coal. Meanwhile, its total energy used fell 2.7 percent during that period.
The nation’s ability to meet its own energy needs hit an all-time low in 2005, when the amount of energy produced domestically met just 69 percent of demand. The last time the United States’ energy production exceeded its energy use was in the 1950s, according to the Energy Information Administration, an agency of the Energy Department.
Posted March 27, 2014
Associated Press: WASHINGTON -- America's cities are still growing, with the population boom fueled by people picking up and moving to find jobs in energy production across the oil- and gas-rich areas west of the Mississippi River.
New 2013 census information released Thursday shows that cities are the fastest-growing parts of the United States, and a majority of the metro areas showing that growth are located in or near the oil- and gas-rich fields of the Great Plains and Mountain West.
Neighboring cities Odessa and Midland, Texas, show up as the second and third fastest-growing metro areas in the country. Sara Higgins, the Midland public information officer, has a simple explanation: oil. "They're coming here to work," Higgins said.
Energy production is one of the fastest-growing industries in the United States, the Census Bureau said. The boom in the U.S. follows the use of new technologies, such as hydraulic fracturing and horizontal drilling, to tap oil and gas reserves.
Posted March 10, 2014
Fracking Uses Lots of Water? Hardly
Real Clear Energy: For some reason, hydraulic fracking has gotten a reputation for using a lot of water. Not so, says Economic Policies for the 21st Century at the Manhattan Institute. When you look at the actual amount of water used in the process, hydraulic fracking comes out at the bottom of the list. As the report observes, "It takes twice as much water to maintain a golf course for a month than to frack a natural gas well."
Don't forget, all other energy resources use a lot of water, too. Biofuels is the biggest offender, since huge amounts of water are required to process and dilute the organic material. When the irrigation water needed to grow the crops is included, biofuels consume in excess of 2500 gallons of water per million BTU. (That may be cheating a bit since some advanced biofuel crops may not require irrigation, but the current corn crop, the source of all our ethanol, is heavily irrigated.) All forms of oil drilling require lots of water since water usually has to be added once a well passes maturity.