Energy Tomorrow Blog
Posted July 12, 2016
The sound approach to energy regulation in the U.S. – one that provides appropriate oversight to oil and natural gas development without unnecessarily impeding progress – continues to be a major theme at the U.S. Energy Information Administration’s (EIA) annual conference in Washington.
Tesoro President and CEO Gregory J. Goff raised the point with his Day 1 keynote speech, calling for transparency, fairness and accountability in federal regulation:
“Consumers, companies and the economy all benefit when government policies are well-reasoned and balanced. America is blessed with an abundance of affordable, reliable energy. It must not be squandered. Allowing the forces of the free market to operate will continue to benefit society. Government should be a facilitating partner in this positive economic force, not a roadblock to it.”
Posted July 11, 2016
The U.S. Energy Information Administration’s (EIA) annual energy conference is under way in Washington, D.C. Here are a few highlights from the first slate of speakers, which included John Holdren, assistant to the president for science and technology, and Gregory Goff, Tesoro Corporation president and CEO.
Holdren went first, saying that the driver of technology in the future will be finding solutions to what he called the energy/climate challenge:
“Without energy there is no economy, without climate there is no environment and without economy and environment there’s no well-being, there’s no civil society, there’s no personal or national security, there’s no economic growth."
Posted April 19, 2016
Some important context before a discussion of a flawed emissions report from EPA, which follows below.
The United States is the world’s No. 1 producer of oil and natural gas – largely thanks to safe and responsible hydraulic fracturing and advanced horizontal drilling. Natural gas production reached a record high level of 79 billion cubic feet per day in 2015, according to the U.S. Energy Information Administration (chart), while total U.S. energy output increased for the sixth consecutive year.
The increased natural gas production and use is critically important, as it is the key factor in reduced carbon emissions during a period of U.S. economic expansion – a break with historic precedent noted by the New York Times. Indeed, the United States is leading the world in carbon emissions reductions, largely thanks to its energy revolution.
Posted December 1, 2015
This week’s climate summit in Paris will be filled with talk of ways to reduce global greenhouse gas emissions. That’s an important discussion for sure, but it’s one that should focus on achievable, real-world initiatives. A couple of starting points for an action agenda:
The first is an acknowledgement – that the availability of safe, reliable energy is fundamental to lifting people – and entire nations – from poverty. United Nations Secretary-General Ban Ki-moon has called energy the “the golden thread that connects economic growth, social equity, and environmental sustainability.” With the International Energy Agency telling us that more than a billion people around the world don’t have electricity, it would be a mistake for the Paris summit to do anything that impedes or blocks access to energy. The world needs more energy, not less.
The second point a realization by the summiteers that private markets, not command-and-control government interventions, offer the best avenue to advance climate objectives while growing energy supplies – progress without hamstringing economies and hindering individual opportunity.
Posted September 22, 2015
Today, API released a new report on investments in greenhouse gas-mitigating measures that illustrates the oil and natural gas industry’s leadership in innovating the technologies and efficiencies to keep improving air quality. We conclude a series of posts on the intersection of energy development and climate/environmental goals (here, here and here) with a look at the new report.
Key numbers from T2 and Associates’ new report on investments in mitigating greenhouse gases (GHG) by industry include $90 billion in zero and low-carbon emitting technologies from 2000 through 2014.
Posted September 21, 2015
The third in a series of posts on the intersection of energy development and policy and the pursuit of climate goals. Last week: The Clean Power Plan’s flawed approach in the energy sector and the role of increased natural gas use in improving air quality. Today: The impacts of the Renewable Fuel Standard and federal ethanol policy.
A decade ago Congress passed legislation creating the federal Renewable Fuel Standard (RFS) – requiring escalating volumes of ethanol in the U.S. fuel supply – that was intended in part to help reduce crude oil imports while capitalizing the supposed environmental advantages of ethanol.
Crude oil imports indeed have been falling since 2008. But, as we’ve detailed before, virtually all of the decrease is due to rising domestic crude oil production, not the RFS. Thanks to vast domestic shale reserves and safe hydraulic fracturing, the U.S. is the world’s leading producer of oil and natural gas – which by far has had the most to do with reducing U.S. net crude imports.
Posted April 22, 2015
Today, the United States leads in petroleum products, refining and natural gas production, and we’re on track to lead in the production of crude oil; facts reinforced by last week’s EIA Annual Energy Outlook.
The report confirmed that our nation is more energy secure than ever before. And it said in part that domestic production of natural gas is projected to grow through 2040 eventually reaching 35.45 tcf; and domestic oil production is projected to exceed 10 mbd in a few years and remain at that level through 2030. Keeping pace with our nation’s increased development of our energy resources are the 139 operating refineries that produce more fuel than ever before and support roughly 540,000 good paying jobs and 1.9 percent of our nation’s economy.
Posted April 16, 2015
For months we’ve argued that new federal regulation targeting methane emissions from energy development is unnecessary and could undermine the success industry initiatives already are achieving. Howard Feldman, API’s senior director of regulatory and scientific affairs, from earlier this year:
“Methane is the product we bring to market. We sell methane – that is natural gas. That’s what we want to sell. … We don’t need regulation to tell us to do that because we are incentivized to do that. It’s not a byproduct or something. It is the product we’re selling. … We’re developing these technologies because we want to more and more capture natural gas.”
This is exactly what’s happening, as new data from EPA shows.
Posted March 9, 2015
Apparently not content with the four Pinocchios he recently earned from the Washington Post for statements on the Keystone XL pipeline, President Obama last week put in a bid for five with remarks aimed at the project’s environmental impact.
At an appearance in South Carolina, the president termed “extraordinarily dirty” the methods used to develop Canadian oil sands:
“The reason that a lot of environmentalists are concerned about it is the way that you get the oil out in Canada is an extraordinarily dirty way of extracting oil, and obviously there are always risks in piping a lot of oil through Nebraska farmland and other parts of the country.”
First, after more than six years of review by his administration, the president really should take the time to read the U.S. State Department’s environmental review of Keystone XL – the latest of five that all have cleared the pipeline on environmental grounds. As well, energy consulting firm IHS found that Keystone XL and the oil sands it would deliver would have “no material impact” on U.S. greenhouse gas emissions.
Posted March 7, 2015
The politics of the Renewable Fuel Standard (RFS) and its mandates for ever-increasing ethanol use are on display this weekend in Iowa, a key presidential primary state. Nothing against Iowa – or ethanol, for that matter – but the RFS illustrates that when you mix energy policy and politics bad public policy can result.
Certainly, the RFS shows the difficulty of trying to apply central planning to the marketplace, of trying to mandate consumer behavior. The RFS is a relic of the era of energy scarcity in the U.S. whose best intentions have been superseded by surging domestic oil and natural gas production.
Still, the RFS remains and along with it potential risks to the economy, vehicle engines and more. It also risks unintended consequences, including a moral/ethical dilemma over whether food should be turned into fuels, as well as concern for the environmental impact of corn ethanol production.