Energy Tomorrow Blog
Posted April 6, 2020
OPEC+ members continue to discuss a meeting, reportedly Thursday, to address the price war between leading members Russia and Saudi Arabia, whose production increases amid a significant decrease in demand are deepening the crisis for the global oil industry.
There’s speculation the United States will be asked to participate in a deal with additional production cuts beyond what U.S. producers have already implemented in response to the marketplace, which we addressed in this post. In a new interview with CNN, API President and CEO Mike Sommers reiterated that markets should dictate production decisions, not government interventions, and that Russia and Saudi Arabia should change their production policies.
Posted April 5, 2020
Although OPEC+ has delayed a planned meeting Monday to address differences between leading members Russia and Saudi Arabia, there were encouraging signals from the White House after the president’s meeting with a number of natural gas and oil industry leaders, including API President and CEO Mike Sommers.
The continuing oil price war between Russia and Saudi Arabia, which has the two nations increasing production amid a slump in world oil demand, is broadly concerning. The administration is correct to focus strong diplomacy on finding a resolution, the urgency of which is underscored by the postponement of Monday’s OPEC+ meeting.
The best message from the White House is what’s not on the table: additional U.S. production cuts. As the president said, the global oversupply problem has been worsened by the Russian and Saudi production increases, and those countries bear the responsibility of changing their policies.
Posted May 3, 2019
Europe should be a growth market for U.S. natural gas. We share economic and security goals, and it’s important to the U.S. and European Union (EU) that Russia’s use of energy as a political weapon be neutralized.
All of these should foster significant growth in U.S.-EU liquefied natural gas (LNG) trade – much, much more than current levels, which are really just a sliver of the EU’s natural gas needs. There has been progress, but there is potential for the U.S. to supply even more natural gas to the EU.
Posted July 7, 2017
An important factor in sustaining and growing the United States’ position as an energy superpower is the continued ability of U.S. natural gas and oil companies to operate competitively the world over, to continue developing the energy needed here at home while also supporting energy exports to aid friends overseas. Legislation crafted by the U.S. Senate to increase sanctions on Russia could work against this.
Posted July 6, 2017
Sanctions are a valuable tool of American foreign policy, but U.S. Senate legislation intended to increase sanctions against Russia could harm the competitiveness of a range of U.S. energy companies working around the world, posing risks to U.S. jobs, the economy and individual Americans – and possibly benefiting Russian interests. The House of Representatives should make critical modifications to avoid these unintended consequences while strengthening the package to advance U.S. interests.
Posted November 16, 2016
With legislation to streamline and expedite approvals for U.S. LNG export projects pending in Congress, the U.S. ambassadors of Lithuania, the Czech Republic, Estonia, Hungary, Latvia, Poland and Slovakia wrote to congressional leaders this week, urging action. From their letter to House Speaker Paul Ryan (letters also were sent to Senate Majority Leader Mitch McConnell, Senate Minority Leader Harry Reid and House Minority Leader Nancy Pelosi):
Posted February 24, 2016
Two separate but related news items last week demonstrate the economic promise and geopolitical significance of America’s natural gas export opportunity.
The first headline, “U.S. LNG Set to Hit Global Market,” signifies a landmark moment in America’s trajectory from energy scarcity to abundance. The export facility covered in the article – Cheniere Energy’s Sabine Pass in Cameron Parish, La. – actually opened as a liquefied natural gas (LNG) import terminal in 2008. Just two years later in September 2010, it became the first U.S. facility to apply for a Department of Energy permit to export LNG. After a decade that saw U.S. natural gas production jump 45 percent – and following an extensive review process – Sabine Pass is set to ship its first cargo to Europe.
Posted July 7, 2015
Roll Call (Reps. Joe L. Barton and Henry Cuellar) – The advantages of lifting the ban on crude oil exports are not just theoretical talking points discussed in the halls of Congress, but rather supported by a large and growing body of research by government agencies, academic institutions and think tanks across the political spectrum. The latest is a study released by the Harvard Business School and the Boston Consulting Group. It highlights the obvious benefits lifting the ban will have on American families and businesses, our economy and global allies.
The study discusses the changing U.S. energy landscape and the opportunities made possible by America’s new energy abundance. The fear of a crippling dependence on foreign oil that existed in the 1970s, when the export ban was put in place, is no longer applicable today. In fact, the U.S. is now the world’s top petroleum producer largely due to our recent ability to produce oil and natural gas from shale formations. The world has changed drastically in the past 40 years and it is time for our policies to accurately reflect the current conditions in which we now live. We must embrace the United States’ new leading role on the world energy stage and recognize the value it would create in our everyday lives.
Posted April 7, 2015
Following on yesterday’s post on increased domestic energy production that is backing out imports, we see that the U.S. remained No. 1 in the world in the production of petroleum and natural gas hydrocarbons last year, according to the U.S. Energy Information Administration (EIA).
The government agency responsible for quantifying all things energy says that U.S. oil and natural gas production has been trending higher than the output of Russia and Saudi Arabia, the second- and third-largest producers:
Since 2008, U.S. petroleum production has increased by more than 11 quadrillion British thermal units (Btu), with dramatic growth in Texas and North Dakota. Despite the 50% decline in crude oil prices that occurred in the second half of last year, U.S. petroleum production still increased by 3 quadrillion Btu (1.6 million barrels per day) in 2014. Natural gas production—largely from the eastern United States—increased by 5 quadrillion Btu (13.9 billion cubic feet per day) over the past five years. Combined hydrocarbon output in Russia increased by 3 quadrillion Btu and in Saudi Arabia by 4 quadrillion Btu over the past five years.
Posted July 30, 2014
The quest to encourage better behavior from Russia continues. President Obama and the European Union this week announced new sanctions to protest Russia’s involvement in Ukraine, measures that focus on Russia’s energy, arms and finance sectors. The president:
“Today … the United States is imposing new sanctions in key sectors of the Russian economy: energy, arms, and finance. We’re blocking the exports of specific goods and technologies to the Russian energy sector. We’re expanding our sanctions to more Russian banks and defense companies. And we’re formally suspending credit that encourages exports to Russia and financing for economic development projects in Russia. At the same time, the European Union is joining us in imposing major sanctions on Russia – its most significant and wide-ranging sanctions to date.”
Meanwhile, former Secretary of State Hillary Clinton says Europe needs to stand up to Russia, which will be easier to do if Europe diversifies its energy supplies:
“They need to understand they must stand up to [Russian President] Vladimir Putin. The reluctance has to do with European dependence on energy from Russia.”
Laudable sentiments and goals, but America can do more than impose targeted and inherently limited sanctions. The U.S. can do more than talk. America can do more to provide effective help for her friends and to diminish the influence of adversaries. Through energy, American energy.