Energy Tomorrow Blog
Posted February 20, 2019
Earlier this month we talked about the unforced error of the administration’s tariff and quota policies that hamstring the economy, detailing the findings of recent report from the nonpartisan Congressional Budget Office. Now, new modeling has reviewed those suspicions in the context of the energy trade, and the indications are clear: The escalating trade wars could significantly limit the U.S. energy revolution and the benefits to Americans that it would otherwise bring.
The recent report, part of BP’s annual “Outlook,” a macro-look at the global energy system over the next 30 years, models a number of different scenarios including one in which global trade disputes persist and worsen. The results of this “less globalization” scenario indicate that the continuation of these policies would slow global GDP growth by 6 percent and energy demand growth by 4 percent in 2040. To make matters worse, the effect could be intensified in countries and regions most exposed to foreign trade – like the U.S.
Posted February 12, 2019
Recent tweet from the American Enterprise Institute’s Mark Perry includes a chart that vividly illustrates one of the biggest benefits of the U.S. energy revolution. First, it plots soaring U.S. net petroleum imports, which peaked at 60.3 percent in 2005, and then logs the plunge to just 12.1 percent last year. The thing that caught my eye in Perry’s tweet is that the time frame for his graph, 1957-2018, is pretty much the span of this blogger’s life.
Most importantly, in one generation, the United States has gone from steadily growing energy dependency to a nation that’s largely in control of its energy destiny. It’s a turnabout many of Americans never thought possible. Remarkable. Breathtaking. Or, as Perry tweets, amazing.
Posted February 6, 2019
Tuesday night’s State of the Union message was aimed at Washington finding common ground to work for the American people. President Trump said policymakers should embrace the “boundless potential of cooperation, compromise and the common good.” It struck a chord; more than seven in 10 Americans said they liked the speech’s approach and tone.
The challenge now is to move beyond rhetorical flourishes to action. Think: energy. In the quest for the common ground to do the common good, lawmakers can start with energy.Energy is America’s strong suit.
Posted January 24, 2019
On a day when the U.S. Energy Information Administration (EIA) published its new Annual Energy Outlook – forecasting that the U.S. will become a net energy exporter next year through 2050, growing natural gas share in fueling electricity and rising liquid natural gas exports – API President and CEO Mike Sommers talked about sustaining and growing the engine of all these trends and more: the U.S. energy revolution.
The reason is simple: Where U.S. energy is and where it could go hinge on extending that revolution – to support economic growth, increase U.S. security in the world and help advance environmental and climate goals.
Sommers’ remarks at the U.S. Energy Association’s State of the Energy Industry Forum outlined the key goals for the American energy sector.
Posted January 10, 2019
Coastal states that have hosted offshore natural gas and oil development for decades illustrate how advanced industry technologies and an emphasis on safety – protecting people and the environment – make offshore energy a great opportunity for other states.
A diverse group of business and industry leaders from Virginia – which could be included in the administration’s soon-to-be-unveiled offshore leasing program – recently visited Louisiana, which has had a long, successful experience with offshore development.
The visiting delegation wanted to see first-hand how offshore operations affect coastal areas, individual communities, the state and regional economy, other water activities and more – all feeding enthusiasm for what safe and responsible offshore energy could mean for Virginia.
Posted January 9, 2019
“Say hello to the future!” It’s one of the big takeaways from this week’s State of American Energy event, captured in the early frames of API’s new video, “America’s Generation Energy.”
The people of natural gas and oil indeed are looking ahead. As a nation, Americans can greet the future with optimism because our country has secure and abundant energy – the foundation for economic growth, an array of consumer benefits, increased security and environmental progress.These points are underscored in API’s just-released annual report. It notes that our industry has made history with record-breaking natural gas and oil production, which is making lives better and playing a big role in shaping the future.
Posted January 2, 2019
Trade talks at the recent G-20 might have produced a ceasefire for one front in the trade war, but collateral damage continues to mount.
Before the holidays, retailers warned that the Trump administration’s tariff policies could raise prices on everything “from cribs to Christmas lights.” They were right. The Tariffs Hurt the Heartland coalition recently announced that Americans would pay more to light the tree this year. The vast majority of our holiday lights come from China, which means they were subject to a new 10 percent tariff this year – another casualty in the ongoing, multi-front trade war. …
Likewise, tariff and quota policies are hitting America’s natural gas and oil industry from multiple directions. We can’t operate without steel to drill wells that produce energy; operate refineries that turn it into gasoline and a variety of other essentials; and build pipelines, liquefied natural gas (LNG) export terminals and petrochemicals plants.
Posted December 28, 2018
Thinking about the year in energy in 2018, a couple of recent news items focus attention on the sea change for our country launched by the U.S. natural gas and oil revolution.
These energy riches and the technical ability to harness them mean that increasingly, the U.S. is in control of its future. Energy security means a nation that isn’t constrained by energy concerns the way it was less than two decades ago.
As Americans looking ahead to 2019, let’s pause to consider the impacts of America’s new energy reality. We should be impressed and thankful for the opportunities that go with being the globe’s leading energy producer.
Posted December 20, 2018
Remarkable production figures in API’s latest Monthly Statistical Report illustrate the breadth and depth of the U.S. energy revolution and translate into economic growth and increased U.S. security in the world. In the past, U.S. production data sometimes included an asterisk – leading in some scenarios but not others. The figures above pretty much eliminate the “ifs,” “ands” or “buts” associated with any discussion of U.S. energy muscularity.
Consider this: U.S. production of NGLs – liquid fuels produced with natural gas such as ethane, propane, butane and others – makes the U.S. natural gas industry the world’s No. 4 oil producer (behind the U.S., Russia and Saudi Arabia).
Posted November 20, 2018