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Energy Tomorrow Blog

Federal Leasing Ban Pledge Hits a Nerve in New Mexico

new mexico  federal lands  federal leases  economic impacts  jobs 

Mark Green

Mark Green
Posted September 16, 2020

As former Vice President Joe Biden continues to clarify his position on fracking – saying he’d allow it with some environmental safeguards – what he’s not talking about is huge: His and the Democratic Party’s pledge to effectively end new natural gas and oil production on federal lands and waters.

In this post we discussed the national impacts of such a policy, detailed in a new analysis, including weakened U.S. security, lost jobs and reduced economic output.

Few states are projected to be hit harder than New Mexico, where more than 30% of the land is controlled by the federal government and accounts for half of the state’s oil production. As of May, New Mexico was producing 885,000 barrels per day, ranking it second in the nation. So, yes, Biden’s promised ban is making folks in New Mexico a little nervous.


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The Administration’s Misstep on Eastern Gulf, South Atlantic Offshore Policy

offshore access  eastern gulf of mexico  atlantic ocs  us energy security 

Mark Green

Mark Green
Posted September 14, 2020

A national policy that puts U.S. energy off-limits to development would have serious negative impacts for our nation’s security, jobs, the economy and household budgets. As argued in this post, proponents of policies that ban new natural gas and oil development on federal lands and waters have a lot of explaining to do.

This includes former Vice President Joe Biden and the Democratic Party Platform, which both pledge to effectively end new federal natural gas and oil development.

Unfortunately, it also includes the White House, which announced this week that there will be no offshore oil and natural gas development in the Eastern Gulf of Mexico and South Atlantic going forward, into the year 2032.

This is wrong for U.S. energy, wrong for American security, wrong for jobs and wrong for economic growth. 

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Let's Focus on Successful USMCA Implementation

trade  mexico  canada  oil and natural gas 

Frank Macchiarola

Frank Macchiarola
Posted July 8, 2020

As President Trump welcomes Mexican President Andrés Manuel López Obrador to the White House for their first face-to-face meeting, they will tout the landmark United States-Mexico-Canada Agreement (USMCA). The updated North American trade pact, signed in January after months of deliberation, modernizes the longstanding trilateral agreement that was a central issue in the 2016 presidential campaign.

The political importance of the agreement aside, the USMCA is a win-win for American workers, businesses and energy consumers, paving the way for sustained U.S. energy leadership and expanded economic growth. Cross-border trade with Mexico and Canada is key to strengthening the domestic energy industry, which has made the United State the world’s leading producer of oil and natural gas. Today, the U.S. counts Mexico as its number one export market for natural gas and refined products, with Canada as its top destination for crude oil. 

By solidifying these critical energy partnerships, the International Trade Commission projects the USMCA could support the creation of between 176,000 and 589,000 American jobs, in addition to the 12 million US jobs and nearly $1.3 trillion in trade already sustained by our partnership with Mexico and Canada. With this record of economic development and job creation among these trading partners, it is clear why Presidents Trump and López Obrador would take a victory lap this week.

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Best-in-Class Standards Improve Global Safety and Environmental Protection

api standards program  mexico  safety standards 

John Siciliano

John D. Siciliano
Posted January 29, 2020

The U.S. natural gas and oil industry’s commitment to safety and environmental protection standards is attracting respect and recognition worldwide, with many countries aiming to make API standards a key part of their future energy plans.

This week API, the International Association of Gas & Oil Producers (IOGP) and Mexico’s Asociación Mexicana de Empresas de Hidrocarburos (AMEXHI) signed a memorandum of understanding for enhanced coordination, joint forums on specific issues, the sharing of best practices and technical workshops. 

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Rising Energy Revenues Boost State Budgets in Texas and New Mexico

energy development  revenues  permian basin  texas  new mexico 

Sam Winstel

Sam Winstel
Posted January 29, 2020

The U.S. shale revolution keeps rolling, and with it strong support for state and public priorities. Texas and New Mexico each achieved record highs for industry contributions to statewide revenues and royalties, according to new reports from the Texas Oil and Gas Association (TXOGA) and the New Mexico Oil and Gas Association (NMOGA).

In 2019, America’s natural gas and oil industry posted a record-setting year in terms of production and exports. And last fiscal year, energy operators paid billions of dollars in state and local taxes that fund education, infrastructure and healthcare facilities for residents across the southwestern U.S.

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SOAE 2020: This is Las Cruces

economic growth  new mexico  oil and natural gas development 

Mark Green

Mark Green
Posted January 17, 2020

API’s State of American Energy report is focused on the growth and empowerment that natural gas and oil provide to communities across the United States. Las Cruces, New Mexico, is one of them. Thanks to abundant, affordable energy, cities and towns like Las Cruces are on the move, with opportunity expanding before them.

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Offshore Energy’s Fair Share

offshore development  royalty payments  gulf of mexico 

Mark Green

Mark Green
Posted October 24, 2019

As the New York Times launches another attack on congressionally mandated support for U.S. offshore development in the Gulf of Mexico, some facts are in order:

The Deep Water Royalty Relief Act enacted by Congress in 1995 was designed to help spur deep water offshore production as the U.S. faced increasing dependence on imported oil – and the courts found that its intent is clear. Background on the act here and here.

The false claim that there is a royalty relief “loophole,” asserted by the Times and others, omits the fact that between 2000 and 2018 natural gas and oil companies paid more than $122 billion to the government in high bids, royalties and rents. Add to that tens of billions the industry spent to develop those leases, creating jobs and boosting local and regional economies – an integral part of industry’s $1.3 trillion overall support for the U.S. economy.

Today, U.S. Gulf production is setting records, averaging 1.8 million barrels per day (b/d) in 2018 and expected by the government to reach 1.9 million b/d this year and 2 million b/d in 2020. This production generates millions in revenue-sharing dollars for coastal states, as well as the Land and Water Conservation Fund, which supports state conservation and outdoor recreation projects all across the country.


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USMCA Approval Essential to Economic Progress, Energy Security

trade  economic growth  consumers  canada  mexico 

API CEO Mike Sommers

Mike Sommers
Posted October 23, 2019

Given bipartisan consensus on the importance of trade to America and our allies, finalization and approval of the U.S.-Mexico-Canada Agreement (USMCA) in Congress is long overdue. Because North American markets are highly interdependent, maintaining the tariff-free, intracontinental flow of natural gas, oil and refined products will help ensure that American families have continued access to affordable and reliable energy, and to our export markets in Canada and Mexico.

When it comes to the U.S. economy, the advantages of the USMCA are clear. Trade with Canada and Mexico supports 12 million American jobs across every state, according to the Business Roundtable, and totaled nearly $1.3 trillion in 2017. A U.S. International Trade Commission report estimates that approving USMCA could raise real GDP by $68.2 billion and create 176,000 jobs, relative to a baseline, six years after the trade deal enters into force.

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But What About New Mexico’s Students?

new mexico  education  oil and natural gas taxes  revenues 

Mark Green

Mark Green
Posted October 16, 2019

Hydraulic fracturing – the technological breakthrough that launched the U.S. energy revolution – has taken a beating during the Democratic presidential derby.

The Washington Post ran a graphic recently, showing that the entire field would ban fracking altogether or restrict it in some capacity. Here’s the portion of the graphic showing the candidates who would ban fracking completely. The group includes some top-tier candidates, U.S. Sens. Elizabeth Warren, Bernie Sanders and Kamala Harris. Sen. Warren tweeted last month that she would ban fracking everywhere, while Sen. Sanders told the Post that safe fracking is a “pure fiction.”

Not fiction are the negative impacts throughout our society that could result from banning hydraulic fracturing: millions of job losses, trillions lost to the economy, significant increases in household spending on energy.

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Producing Energy, Reducing Emissions in New Mexico

new mexico  emission reductions  production  methane 

Mark Green

Mark Green
Posted October 8, 2019

Take a look at a recent interview with API President and CEO Mike Sommers conducted by Albuquerque TV station KOB-4 – a conversation about the dual challenge of providing the energy Americans need every day to work, grow and prosper, while protecting the environment and lowering emissions. There’s no better setting for this discussion than in energy-rich New Mexico.

Indeed, the prolific Permian Basin that covers New Mexico’s southeastern corner before spreading into neighboring Texas is a big reason why the United States continues to lead the world in natural gas and oil production.


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