Energy Tomorrow Blog
MSR: June Petroleum Demand Outpaces Supply, Imports Rise
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Dean Foreman
Posted July 21, 2021
It’s great for the U.S. economy that, with urban re-openings and the onset of the summer driving season, petroleum demand returned to over 20 million barrels per day (mb/d) in June, according to API’s primary data presented in our latest Monthly Statistical Report (MSR).
However, domestic oil supplies have not been able keep pace, and consequently U.S. crude oil imports and consumer prices have suddenly risen, which ultimately could contribute to the list of expenses stressing household budgets, such as higher costs for housing, vehicles and many other goods and services.
Study: Industry’s Broad Shoulders Support U.S. Economic Recovery
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Mark Green
Posted July 20, 2021
Natural gas and oil are the energy foundation for U.S. economic growth, job creation and the opportunity for Americans to prosper all across the country. This is seen in a new analysis of our industry’s economywide and countrywide impacts: 11.3 million jobs supported in 2019 across all 50 states and the District of Columbia – generating 3.5 additional jobs elsewhere in the economy for each direct industry job, accounting for 5.6% of total U.S. employment; supported nearly $1.7 trillion to U.S. gross domestic product, or nearly 8% of the national total; supported nearly $900 billion in labor income or 6.8% of U.S. national labor income.
The analysis by PwC commissioned by API is based on the latest available government data (2019). Like other industry and business sectors, our industry was hard hit by the economic effects of the 2020 pandemic, but the 2019 data – generated during a period of robust U.S. growth, indicates the importance of the natural gas and oil industry post-pandemic, as the U.S. and global economies and petroleum demand ramp up. The U.S. Energy Information Administration projects (EIA) that 2022 global oil and liquid fuels demand will eclipse 2019 levels.
Given EIA’s forecast, it’s critically important that national policy supports – and doesn’t hinder – domestic natural gas and oil production.
America’s Energy ‘Inflection Point’
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Mark Green
Posted June 29, 2021
During a speech to the Houston Economics Club last week, API President and CEO Mike Sommers talked about the United States reaching an “inflection point” in terms of its energy and economic future. Choices made today could have impact far into the future.
As the world’s leading producer of the world’s leading energy – natural gas and oil – the U.S. can choose the market-based approach that over the past decade led to abundant domestic energy, supporting economic growth, reducing reliance on foreign oil and building greater security.
The other choice is the apparent approach of the Biden administration to curtail domestic production of natural gas and oil, swapping their reliability and affordability for aspirational fuels that could take the U.S. back to a period of energy uncertainty.
Poll: U.S. Voters Recognize Future Role of Natural Gas and Oil
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Mark Green
Posted April 21, 2021
Soon after the 2020 election we noted that results showed U.S. voters are mostly moderate and practical and want sensible solutions to key issues facing the nation, which Democratic pollster Mark Penn wrote is driven by common sense over ideology. Americans’ views on energy certainly fit that construct.
New polling by Morning Consult on behalf of API underscores the point and provides important context for Washington policymakers as they debate the twin issues of energy and climate.
MSR: U.S. Petroleum Markets, Economy Continue to Recover
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Dean Foreman
Posted April 15, 2021
API’s primary data for March 2021 suggest that petroleum markets demonstrated a measured recovery following the winter emergency disruptions that affected oil supply, trade and inventories beginning in mid-February.
Notably, total U.S. petroleum demand of 19.1 million barrels per day (mb/d) decreased seasonally but showed resounding strength in rural gasoline demand that increased by 632,000 barrels per day over February.
Administration's Federal Leasing Policy Continues to Raise Flags
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Olivia Culver
Posted April 6, 2021
The Biden administration’s pause in new natural gas and oil leasing on federal lands and waters continues to look like a hard sell, not only in energy-producing states but also with traditional Democratic allies in organized labor.
We’ve talked about potential negative effects of the administration’s policy on leasing and have warned against even greater impacts to the economy and American energy security if the pause becomes a permanent ban on federal leasing and development (see here, here and here). Projected impacts from a full-on ban on leasing and development in an analysis by OnLocation include approximately 1 million jobs could be lost – nearly 120,000 in Texas, more than 62,000 in New Mexico and more than 48,000 in Louisiana – foreign oil imports could increase 2 million barrels per day; and carbon dioxide emissions could increase 5.5%
Similar concerns surfaced as the U.S. Interior Department (DOI) held a forum on the federal oil and gas program. At the public session, Frank Macchiarola, API senior vice president of Policy, Economics and Regulatory Affairs, noted that federal lands and waters account for 22% of U.S. oil and 12% of U.S. natural gas production and urged DOI leaders to recognize the importance of this production to U.S. energy security, economic growth and continued environmental progress.
Why Energy Infrastructure Is an Opportunity for Bipartisanship
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Lem Smith
Posted February 25, 2021
The natural gas and oil industry shares the ambition of President Biden and Congress to accelerate economic recovery for all Americans. As policymakers consider the nation’s energy security and opportunities for future job creation, it is important not to overlook our critical energy infrastructure.
That reality came into stark focus last week, when winter storms and surging energy demand caused power outages across Texas and other parts of the U.S. Millions of residents were without electricity, water and heat amid frigid temperatures. The treacherous conditions served as a reminder that an all-of-the-above approach to energy along with durable infrastructure are essential to powering life in America without interruption.
When it comes to heating homes, fueling cars or simply keeping the lights on, America’s extensive pipeline network ensures widespread access to affordable, reliable fuels. But we cannot stop there.
Early Missteps on Energy are Blows to Economy, Security
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Mark Green
Posted January 25, 2021
It’s unfortunate that the Biden administration’s first couple of energy decisions – effectively canceling the Keystone XL pipeline and signaling it will halt new federal natural gas and oil leasing – work against economic growth and could undermine the nation’s energy security.
With the U.S. economy struggling to recover from the pandemic, there could hardly be a worse time for actions that kill jobs, potentially increase energy costs and cause the U.S. to import more oil.
Sure, the president promised these things during the campaign. Yet, it’s disappointing nonetheless that thousands of U.S. workers associated with building the Keystone XL are now without jobs and that a federal leasing ban could start a new era of increasing U.S. energy dependence. Coincidentally, the administration just unveiled its “Buy American” initiative. What about energy? How about “Buy American Energy”?
Spotlight on Progress – Industry-wide Resilience and Opportunities for Growth
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Amanda Eversole
Posted December 18, 2020
Last week, I was honored to participate in the Women’s Business Enterprise National Council’s (WBENC) Energy Week and present at the State of Energy Industry Webinar, alongside a distinguished group of panelists representing every segment of the natural gas and oil industry to discuss the challenges facing the sector, as well as the opportunities for natural gas and oil operators in the year ahead.
This industry, like many others, has navigated the coronavirus pandemic, the nation’s racial reckoning, the election season and the ongoing economic fallout from widespread shutdowns. Across the board, API members have demonstrated unwavering resilience, finding ways to deliver essential energy products while protecting the health and safety of our workers, communities and the environment.
Americans are Big Winners With Natural Gas and Oil Development
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Mark Green
Posted December 9, 2020
Let’s discuss the value of natural gas and oil to all Americans – the fundamental worth of abundant, affordable and reliable energy to modern, daily life, the economy and our nation’s security – which gets lost in two U.S. senators’ proposal to make producing energy on federal lands more costly.
U.S. Sens. Chuck Grassley of Iowa and Tom Udall of New Mexico want to increase the royalty rate for production on federal lands, which would discourage that critical production. We’ll get to that point down below. First, let’s zero in on the issue of fundamental value.
In a New York Times op-ed, Grassley and Udall call the American public “the big loser” under the current royalty arrangement. In doing so, the senators are so preoccupied with percentages they inadvertently make an afterthought of what current natural gas and oil production on federal lands means for U.S. economic growth, global leadership, strengthened security at home and significant environmental progress.