Energy Tomorrow Blog
Posted April 11, 2019
Cutting bureaucratic red tape and making federal decisions on energy infrastructure more efficient and timely are important steps toward ensuring that Americans in all parts of the country may be connected to the benefits of the U.S. energy revolution.
That’s what we see in the president’s two new executive orders affecting energy infrastructure – greater efficiency and timeliness in federal reviews, without compromising thorough environmental scrutiny.
The United States leads the world in natural gas and oil production, yet not every American, not every manufacturer and not every region of the country is adequately connected to America’s energy abundance – and won’t be without new and/or expanded pipelines and other infrastructure to deliver energy to markets and consumers.
Posted March 29, 2019
The U.S. energy revolution remains a feat to behold. Benefits to the economy, consumers and manufacturing and a boost to America’s stature in the world and our national security. API President and CEO Mike Sommers touched on a number of these points during a conversation at the National Review Institute’s 2019 Ideas Summit. …
Abundant natural gas and oil reserves, technology and innovation created this revolution and, with the right policies, the U.S. can sustain and grow its energy leadership. “For our future energy needs,” Sommers said, “that’s how we’re going to supply the world.”
Posted March 25, 2019
For U.S. natural gas, the fourth quarter of 2018 ended with consumers benefiting from the lowest prices in nearly a year – despite the weakest inventories and coldest winter since 2014.
Indeed, recently we’ve seen natural gas prices as low as $2.56 per million Btu (Feb. 5, Bloomberg) corresponding with record high demand of 96.3 billion cubic feet per day (bcf/d) of marketed production for February 2019 and low inventories – 415 billion cubic feet below the five-year average range as of Feb. 1.
It’s remarkable, because this combination of factors ordinarily would raise natural gas prices. The fact that prices fell illustrates the vigor of domestic production, which has soared during the U.S. energy revolution.
Domestic abundance and affordability have been at the heart a truly amazing U.S. natural gas story – one that has seen U.S. producers meet domestic needs and also increase liquefied natural gas (LNG) exports to friends and allies around the world.
Posted March 21, 2019
Earlier this year we noted federal projections that U.S. liquefied natural gas export capacity would reach almost 9 billion cubic feet per day (Bcf/d) in 2019, with exports averaging 5.1 Bcf/d. Add to that crude oil and other liquids, and the U.S. Energy Information Administration (EIA) projects that the U.S. will export more energy than it imports by 2020 – for the first time since the 1950s.
The numbers take on even more significance as the context for U.S. energy leadership around the world. At the CERAWeek conference earlier this month, U.S. Secretary of State Mike Pompeo talked about the unique opportunity for U.S. energy to transform geopolitical realities and in the process make Americans safer.
Posted March 18, 2019
In light of last week’s comment deadline for the U.S. Bureau of Land Management (BLM) Draft Environmental Impact Statement (DEIS) for Alaska’s Coastal Plain Oil and Gas Leasing Program, it’s important to remember just how critical natural gas and oil development is to the Alaskan economy, the Alaskan people, and the long-term energy security of the United States.
Posted March 5, 2019
The International Energy Agency’s Fatih Birol regularly heralds the positive impacts of the American shale energy revolution (see here, here and here). All good, but U.S. shale’s global impact is just now starting to be felt, IEA’s executive director said last week.
During a global markets update at the U.S. Energy Department with Secretary Rick Perry, Birol said the United States will be responsible for about two-thirds of the growth in the global liquefied natural gas (LNG) export market. Of course, this reflects the abundance of domestic natural gas, largely produced from shale formations. Big-time global impact lies ahead, Birol said. Add to that environmental and climate progress, which we’ll get to in a bit.
Certainly, there’s every reason to believe U.S. natural gas and oil can meet or exceed global expectations. Soaring U.S. crude oil production has increased global supply, supporting the stability of global markets – while reducing weekly U.S. crude imports to their lowest level in 23 years (as of Feb. 22), according to the U.S. Energy Information Administration.
Posted February 26, 2019
When the U.S.-Mexico-Canada Agreement (USMCA) was announced last fall, we pointed out that it would be good for North American energy security and continue flourishing energy trade between the United States and its neighbors by providing market access and zero tariffs for U.S. natural gas and oil and related products.
The agreement would sustain and expand the gains made under its predecessor, NAFTA, which created a North American energy market, helped make the U.S. more energy secure and benefited U.S. consumers.
Congress should approve USMCA as soon as possible to lock in the critically important energy relationship between the U.S., Mexico and Canada – as well as the general flows of goods and services so vital to good economic health in this country.
Posted February 26, 2019
In case you missed it, let’s echo a recent official U.S. Energy Department projection that the United States should “not only maintain its lead spot as top oil producer, but will greatly exceed what it produced last year in both 2019 and 2020.”
The trajectory of U.S. oil production is significant for U.S. economic growth, energy security and global leadership, and – as we recently discussed oil exports in this post – potentially raises the stakes in the market share battle between the United States and OPEC plus Russia (OPEC+).
Posted February 22, 2019
A big win this week for U.S. liquid natural gas exports: The Federal Energy Regulatory Commission’s approval of the Calcasieu Pass liquid natural gas (LNG) export facility in Louisiana – marking an end to a two-year logjam on LNG export approvals while boosting American global energy leadership and signaling opportunity to European allies who’ve been beholden to Russia for natural gas.
The $4.5 billion Calcasieu Pass project near Cameron Parish will be able to export 10 million metric tons per annum of LNG per year. Venture Global first applied for FERC approval for the facility in 2015. About a dozen other proposed facilities await FERC approval. Now, perhaps, the end’s in sight.
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.