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Energy Tomorrow Blog

Record Oil Output, Yet Dip in Petroleum Exports Suggests Tariffs’ Effect

crude oil exports  oil production  trade 

Mark Green

Mark Green
Posted August 16, 2018

Lots of positive energy data points in API’s newest Monthly Statistical Report – and one that’s potentially concerning.

The good is that the U.S. tied its record for crude oil production in July at 10.7 million barrels per day (b/d) and set a new one for natural gas liquids, 4.4 million b/d. With total liquids production up by more than 2 million b/d compared to July 2017, the U.S. has accounted for almost all of the growth in world oil production so far in 2018 – more than compensating for production losses elsewhere around the world.

Now the potential point of concern. The U.S. petroleum trade balance retreated in July, perhaps the result – at least in part – of trade tensions prompted by new U.S. tariffs. Crude export were down 240,000 b/d last month, and refined products exports decreased 220,000 b/d.


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Think: U.S. Oil, Increased Access to Boost Global Supply

crude oil production  access  us energy security 

Mark Green

Mark Green
Posted July 20, 2018

Big news in the latest API Monthly Statistical Report: U.S. crude oil production rose to an all-time record of 10.7 million barrels per day (mbd) in June – the largest monthly output, ever. According to the MSR, June domestic crude production increased more than 100,000 barrels per day over May, and the total was 1.6 million barrels per day more than June a year ago. But let’s go back to that top-line number – 10.7 million barrels per day – and comprehend what it means:

Economic growth and jobs – but also our country’s energy security, supporting the promise of present and future prosperity and opportunity. That’s the gift of the American energy renaissance that, well, keeps on giving.

All of the above support an argument that – to ensure an adequate global supply of crude oil upon which the U.S. and global economies rely – we should look to sustain and grow domestic natural gas and oil production. 

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Global Energy Market Trends and the Role of U.S. Policies

crude oil prices  global markets  gasoline prices  oil production  access 

Dean Foreman

Dean Foreman
Posted May 10, 2018

The facts that crude oil prices are up 9 percent since the end of March and that crude oil currently accounts for 57 percent of the consumer’s price for gasolinemean that consumers have felt the impact at the pump of relatively large and sudden changes. As domestic crude oil prices recently increased above $70 per barrel for the first time since November 2014, let’s revisit current oil market fundamentals and other factors that have elevated prices. 

By understanding the drivers of prices, American consumers may be more aware of how U.S. policy outcomes – such as more domestic natural gas and oil production, a strong U.S. dollar, low price inflation, avoidance of tariffs, quotas and other protectionist measures that undermine free trade, and peaceful international relations – could help put downward pressure on crude prices that ultimately benefits consumers.

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American energy achieving the impossible – API’s Monthly Statistical Report

Economy  crude oil production 

Dean Foreman

Dean Foreman
Posted April 19, 2018

American consumers take a keen interest in energy prices, for the health of their pocketbooks as well as their livelihoods and security. More than 10.3 million people directly or indirectly support the industry, and tens of millions more people own or work for businesses that depend on having abundant and affordable energy.

What happens in energy markets also is important to our business literacy and understanding of how the United States’ role in global commerce has evolved thanks to the energy renaissance. Not so long ago, many energy-intensive U.S. industries were hollowed out as jobs moved offshore. Thanks to American innovation, today the high availability and low prices of natural gas, natural gas liquids (NGLs) and oil have stimulated demand and investment while also helping to improve efficiency and return energy-related CO2 emissions to near their 25-year lows.

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Energy, Pump Prices and Consumers

consumers  gasoline prices  oil production  crude oil prices 

Mark Green

Mark Green
Posted July 26, 2017

Nationally, the average price of a gallon of gasoline the third week of July was $2.392 – about 42 percent lower than the national average price at the same time in 2008, according to the U.S. Energy Information Administration. Retail gasoline prices haven’t been “sticky,” as Sen. Charles Schumer said on ABC’s “This Week,” suggesting that some sort of anti-Adam Smith force has kept them from decreasing. Yet, as we can see, they have decreased significantly over a time period that coincides with accelerated U.S. crude oil production (thanks, fracking).

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Crude Exports and Consumer Benefits

crude oil exports  gasoline prices  consumers  domestic oil production  eia 

Mark Green

Mark Green
Posted September 9, 2016

Looking back, the weight of scholarship and analysis had predicted that, rather than cause higher pump prices here at home as some claimed, exporting domestic crude would put downward pressure on U.S. gasoline prices. In fact, that’s what we’re seeing – abundant crude oil supply benefiting American consumers. U.S. crude exports are part of that market dynamic – while also helping to support domestic production and strengthening America’s balance of trade.

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Energizing Montana

montana  bakken shale  oil production  vote4energy  states2016 

Mark Green

Mark Green
Posted September 6, 2016

Montana is a leading energy producer in an energy nation – one that leads the world in oil and natural gas output. America’s ongoing energy renaissance is largely due to private energy investment and development – in the Bakken and other energy-rich fields. 

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Let's Build on America's Energy Progress

oil production  oil imports  us energy security  economic growth  president obama 

Mark Green

Mark Green
Posted February 9, 2016

Progress on domestic oil production and oil imports is not something the United States should surrender – or worse, roll back. We should not pursue policies that take the United States back to the energy reality of a decade ago: the prospect of increasing dependency and less opportunity – for American workers, consumers, our economy and our strategic security.

Yet, that’s what the Obama administration is leading – a retreat from the progress that’s been made because of abundant shale energy reserves and the innovation and technology reflected in safe hydraulic fracturing and modern horizontal drilling.

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Lifting Oil Export Ban a Win for Economy, Security

crude oil exports  economic growth  oil production  jobs  us energy security 

Jack Gerard

Jack Gerard
Posted December 22, 2015

Almost exactly 40 years after it was instated, the ban on crude exports has been lifted. A relic of ‘70s-era energy scarcity, the ban makes no sense now that the United States leads the world in oil and natural gas production. Numerous studies have found that lifting the ban will help put downward pressure on gas prices, create jobs, grow our economy and lower our trade deficit.

Lifting the ban is also a security win for the U.S. and our allies. With the administration’s push to allow Iran to export its oil to the global market, it’s time for U.S. producers to have the same opportunity. Our allies around the world are eager to reduce their reliance on energy from less friendly nations.

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Time to Get Policy Right on Oil Exports

crude oil exports  congress  economic growth  oil production  white house 

Mark Green

Mark Green
Posted December 15, 2015

That Congress soon may act to end the United States’ 40-year-old ban on domestic crude oil exports is signaled in the number of reports and posts on exports-related themes.

The Wall Street Journal has a report that talk of lifting the export ban is narrowing the difference between U.S. and global crude prices. The Council on Foreign Relations’ Michael Levi has this post discussing the impact of an exports deal on markets, the recent climate deal and geopolitics. National Journal reports on the legislative horse-trading some think could be part of lifting the exports ban. And there’s more.

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