Energy Tomorrow Blog
Posted March 19, 2020
As much as any other sector, global energy has felt the impact of the coronavirus (COVID-19) combined with lowering world demand and Russia and Saudi Arabia raising oil supply. We’ve seen crude oil prices cut in half within three months, which if sustained could rank among the most severe oil price downturns on record. Let’s discuss the most significant points for U.S. consumers, industry and the broader economy.
Details may be found in API’s latest Monthly Statistical Report, based on February U.S. petroleum data. Using weekly surveys of 90% of the natural gas and oil industry, we publish monthly data and analysis two months ahead of the U.S. Energy Information Administration (EIA).
Posted March 6, 2020
It’s been a big week for announcements coming out of the U.S. Energy Information Administration (EIA) and the nation’s natural gas and oil industry.
On Monday, EIA said that annual U.S. oil production broke another big record in 2019, and swiftly followed that with news on Tuesday that U.S. natural gas use has reached new record highs. Both are great news for American energy and national security, the economy and the environment.
Posted February 18, 2020
Another year, another punitive natural gas tax proposal from Pennsylvania Gov. Tom Wolf, his sixth bid for a severance tax in six years.
We say “punitive,” because Wolf’s tax hike would effectively punish an industry that has been good for Pennsylvania, contributing $1.7 billion in impact fees since 2012 while boosting the commonwealth’s economy and supporting hundreds of thousands of jobs.
Posted February 5, 2020
The federal government’s latest energy projections are out, and they portray a U.S. energy future that continues to be driven by natural gas and oil.
It’s a future noteworthy for continued production growth, greater efficiency, the U.S. as a net energy exporter and emissions progress. All are connected in various ways to shale reserves and safe, modern hydraulic fracturing – and at risk if fracking were banned as some have advocated.
Americans understand how far the United States has come in the past decade and a half, thanks to shale and hydraulic fracturing, helping advance the goal voiced by U.S. presidents since Jimmy Carter of seeing this country end its reliance on foreign energy. Indeed, in December the U.S. Energy Information Administration (EIA) confirmed the United States as a net exporter of energy in total for the first time since the 1950s. This is an historic sign of new U.S. global energy leadership, and it shouldn’t be thrown away with foolish policy choices.
Posted January 10, 2020
API’s new State of American Energy report illustrates how abundant U.S. natural gas and oil is empowering economic growth and opportunity across the country – and the potential harm to these benefits if fracking is banned, as some presidential candidates have promised to do.
The Washington Post’s Dino Grandoni has an analysis taking exception to the latter point, that banning hydraulic fracturing – the technology most responsible for launching the U.S. energy revolution – would seriously damage the U.S. economy, raise energy costs for American consumers and could likely trigger a recession at home and harm the global economy.
As an economist I would argue that an economic study isn’t needed to validate API’s point about a fracking ban. History shows what would happen if natural gas and oil production from the world’s leading producer was undercut by a fracking ban. According to independent studies, a sudden and enduring return to oil with triple-digit prices is the likely risk.
Posted December 19, 2019
In this year-end edition of API’s Industry Outlook and Monthly Statistical Report (MSR) for December 2019, we make a toast to the natural gas and oil industry’s year of achievement and look forward to what appears to matter the most to U.S. energy consumers, producers and markets.
Record U.S. natural gas and oil production, demand and exports – coupled with low prices – and regional economic growth have been supported by new resource and infrastructure developments. Real domestic West Texas Intermediate (WTI) oil prices in 2019 have remained at about half of what they were 2011-2014, but with more than double the amount of home-grown oil production in 2019 compared with 2011. This has been an unabashed win for consumers, and it also has rejuvenated investments in resource development, processing, transportation, manufacturing and petrochemicals, as we discussed here.
Posted November 22, 2019
Our newest video reminds everyone how much the United States has gained from the energy revolution – record-breaking, world-leading production of natural gas and oil – with clips of presidents from both political parties over the years, urgently calling for lower oil imports. They knew America’s national security was tied to increasing the nation’s energy security. …
Presidents since Jimmy Carter in the late 1970s recognized that ever-increasing oil imports meant increasing dependency on others for energy. … That changed with the energy revolution. …
The question, as we’ve posed in recent posts (see here and here), is why anyone would erase these gains by banning hydraulic fracturing, as some candidates for president have advocated. Why would America reject its own natural gas and oil abundance and go back to an era of energy scarcity?
Posted October 28, 2019
America’s natural gas and oil industry continues to work for Americans – with revenues from production on federal and Native American-owned lands and offshore areas driving $11.69 billion in federal disbursements back to the states, counties, tribes and reclamation and conservation programs. That’s $2.76 billion more than the previous fiscal year and nearly double the disbursements in FY2016, the Interior Department said.
Recipients included: $2.44 billion to states and counties, $1.76 billion to the reclamation fund, $1.14 billion to Native American tribes and individual mineral owners, $1 billion to the Land and Water Conservation Fund and $4.9 billion to the U.S. treasury.
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.
Posted October 7, 2019
The U.S. energy revolution is at work for New Mexico and the state’s higher education system.
Gov. Michelle Lujan Grisham made national headlines last month by announcing free tuition at public universities for all residents, regardless of family income. That’s all 29 of the state’s two- and four-year institutions beginning next fall, benefiting an estimated 55,000 New Mexico students.
Thanks to the state’s natural gas and oil development.