Energy Tomorrow Blog
Posted May 30, 2019
A new Colorado law handing more control over natural gas and oil operations to municipalities, authority that used to reside with the state, risks another law – the law of unintended consequences – that could deal a serious blow to one of our country’s leading energy-producing states.
This week the city of Broomfield became the seventh Colorado community to impose a ban on new natural gas and oil development since introduction of Senate Bill 181, which became law last month. …
Before SB 181’s passage, industry warned the law could disrupt responsible natural gas and oil development by hatching a patchwork, unpredictable regulatory system across the state – with the unintended consequence of imperiling energy development and jobs and economic growth. Regulatory uncertainty can chill sizeable investments in new operations that often have significant lead times
Unfortunately, that uncertainty appears to be growing in Colorado – with national implications because the state ranks sixth in both natural gas and oil production.
Posted April 30, 2019
Soon the federal government is expected to release its updated offshore well control rule, one that improves on its 2016 predecessor by providing flexibility to meet specific challenges across a variety of offshore conditions while encouraging innovation and technologies that help improve safety.
We expect that opponents of natural gas and oil development anywhere to attack the updated rule when it’s released. Yet, fact and logic will weigh heavily against them.
Posted March 20, 2019
Though Colorado has set the gold standard for state regulation of natural gas and oil, some don’t think that’s enough.
Opponents of oil and natural gas are pushing state legislation to let local governments have regulatory authority over industry – “local control” – which in other states has been a way to curtail energy development. If enacted in a state that ranks top 10 in the country in natural gas and oil production, it could have big negative impacts for the state and nation.
Posted January 30, 2019
Reducing methane emissions from natural gas and oil development is a primary industry mission – underscored at last summer’s World Gas Conference, where speakers from all over the world talked about increased methane capture and reduced emissions.
The reasons are clear. Fundamentally, our industry is in the business of producing and delivering natural gas, of which methane is the main constituent. Capturing as much methane as possible is smart and efficient from a business standpoint.
Equally important, natural gas and oil companies recognize that reducing methane emissions is responsive to the expectations of society, which wants energy to be produced safely and in a way that’s environmentally responsible. Operators are innovating and deploying technologies to achieve those goals. …
All of these points are important to counter a faulty narrative – that more government regulation is the only way to reduce emissions. This view often faults efforts to craft a regulatory approach that strives for greater efficiency, is achievable and fosters innovation.
Posted November 1, 2018
As Coloradans prepare to vote on an anti-energy measure that could severely damage state natural gas and oil production and stagger the state’s economy, it’s no exaggeration to say the whole nation is watching.
Consider: Proposition 112 would make 85 percent of non-federal land in Colorado – the United States’ sixth-leading natural gas and oil producer – off limits for new energy production by increasing required setbacks or buffer zones around certain “occupied structures” and “vulnerable areas” by 400 percent over the existing requirement.
Posted October 30, 2018
There has been a recent flurry of news about whether the Trump administration will succeed in easing the rollout of new international rules to power commercial ships with environmentally cleaner fuels.
The main fear is the change of rules could drive up demand and prices for low-sulfur fuels like diesel fuel – and ultimately the costs to consumers and businesses for their motor fuels, transportation, and everything that depends on them.
Posted September 13, 2018
Let’s push back against a narrative springing up around EPA’s proposed improvements to the 2016 standards on emissions from new natural gas and oil production sources – which the agency says will streamline implementation, reduce duplication with state requirements and decrease unnecessary burdens on domestic energy producers.
First, while API reviews EPA’s proposal, it’s important to note that it appears the rule will continue to protect public health and reduce emissions through standards that are smarter, science-based and that promote greater cost-effectiveness – while industry keeps on delivering the energy Americans use every day.
The narrative is based on a mythology that natural gas and oil companies don’t care about emissions and won’t develop new technologies and innovations to capture more and more emissions unless Washington makes them do it. False and false.
Posted July 6, 2018
Earlier this week we looked at the summer variation in gasoline prices, due mainly to increased driving as well as fuel specifications that have added to the cost of gasoline. As the 2018 summer driving season approaches its midpoint, let’s check the data on gasoline prices and, separately, take a deeper look at why prices in any one state have tended to be higher (or lower) than the national average.
According to the American Automobile Association, the nationwide average price for regular gasoline was $2.85 per gallon on June 28, a decrease of 12 cents per gallon since May 28.
Remember, gasoline and diesel fuel prices tend to track the price of crude oil, because crude oil currently makes up more than half of the cost to make the fuels. The U.S. Energy Information Administration (EIA) reported that crude oil made up 56 percent of the price of gasoline in May, the agency’s most recent analysis.
Posted July 2, 2018
In previous posts (see here and here), we’ve discussed factors that have affected gasoline prices in the past. The cost of crude oil is chief among them, accounting for more than 50 percent of the fuel price. Some other factors are seasonal, and taxes imposed on each gallon of gasoline vary from state to state.
Posted June 6, 2018
For months, ISO New England CEO Gordon van Welie has had a consistent message: insufficient natural gas infrastructure continues to put the region’s customers at risk of service interruptions during periods of peak demand that often coincide with extreme weather conditions.