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Energy Tomorrow Blog

Good News: Permitting … Uncertain News: Leasing

permitting  federal leases  oil and natural gas production  us energy security 

Mark Green

Mark Green
Posted July 15, 2021

As we await the Biden administration’s report on the federal natural gas and oil leasing program, let’s note the welcome news that oil and gas permitting approvals this year are on track to reach their highest levels since George W. Bush was president.

Permitting at that pace is good for near-term U.S. production, no question. In January, when the administration suspended new oil and gas leasing on federal lands and waters, it said permitting would continue, and it has. The country benefits from safe, responsible and robust domestic natural gas and oil production.

Americans shouldn’t conflate permitting and leasing. Drilling permits are issued when companies are ready to develop from acreages, onshore and offshore, previously leased from the federal government. Put another way, leases typically are secured years before development occurs. We’re seeing permits go through at a significant rate because investment and planning have been completed and acreages are ready to go into production. Permitting is about production that’s imminent; leases represent energy in the future.

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Q&A: The Demand/Supply Dilemma, Consumer Impacts and the Need for Sound Policy

demand  supply  us energy security  production  consumers  gasoline prices 

Mark Green

Mark Green
Posted July 1, 2021

In recent weeks API Chief Economist Dean Foreman has noted the return of petroleum demand, as economies strengthen in the U.S. and globally, to a level that’s outpacing supply (see here). In the Q&A that follows, Dr. Foreman discusses the impacts of the supply-demand mismatch on American consumers and markets, as well as the consequences of the Biden administration’s energy policy signals.

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America’s Energy ‘Inflection Point’

oil and natural gas production  texas  policy  us energy security  economic growth 

Mark Green

Mark Green
Posted June 29, 2021

During a speech to the Houston Economics Club last week, API President and CEO Mike Sommers talked about the United States reaching an “inflection point” in terms of its energy and economic future. Choices made today could have impact far into the future.

As the world’s leading producer of the world’s leading energy – natural gas and oil – the U.S. can choose the market-based approach that over the past decade led to abundant domestic energy, supporting economic growth, reducing reliance on foreign oil and building greater security.

The other choice is the apparent approach of the Biden administration to curtail domestic production of natural gas and oil, swapping their reliability and affordability for aspirational fuels that could take the U.S. back to a period of energy uncertainty.

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End the Federal Leasing Pause – Unleash American Energy

federal leases  president  us energy security  imports 

Lem Smith

Lem Smith
Posted June 21, 2021

Last week, the U.S. District Court for the Western District of Louisiana issued a preliminary injunction blocking President Biden’s policy pausing new natural gas and oil leases on federal lands and waters. The decision identified major limits on the federal government’s ability to restrict energy access and concluded that the Department of the Interior must resume lease sales, both onshore and offshore.

On behalf of U.S. natural gas and oil operators, API urges the administration to move quickly to comply with the court order and end the federal leasing pause.

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American Energy and the Biden-Putin Summit

russia  president  us energy security  oil and natural gas production  infrastructure 

Frank Macchiarola

Frank Macchiarola
Posted June 16, 2021

Here are three things to consider as President Biden and Russian President Vladimir Putin have their first in-person meeting today in Geneva, Switzerland: Energy is at the heart of Russia's influence and power; new U.S. policies put American energy leadership at risk; and U.S. oil and natural gas should be strengthened, not weakened. ...

There is no question the U.S. relationship with Russia is complicated and will be difficult for years to come. The last thing the U.S. needs is to try to deal with Russia while it is at the same time actively weakening its own energy position. It is an unforced error, an opening that cannot be handed over to formidable adversaries such as Mr. Putin.

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Nation's Need for Secure, Accessible Energy at Stake in Policy Debate

us energy security  domestic production  pipelines  policy 

Dean Foreman

Dean Foreman
Posted June 10, 2021

Throughout the 2021 economic recovery, API’s data have demonstrated the intertwined relationship between the nation’s recovering economy and affordable, reliable energy. Leading economic indicators have continued to rise, and along with them so has oil demand – even as domestic oil drilling and supply have fallen.

According to the current Bloomberg consensus of economic forecasters, U.S. real GDP growth could average 6.6% in 2021 compared with 2020 -- its strongest expansion since 1984, when the real price of West Texas Intermediate crude oil was just over $70 per barrel.  Coincidentally, recent oil prices have been at similar levels, and the key question now is whether we have the energy supply to support such a torrid pace of growth.

In that context, actions by the Biden administration that negatively impact or could impact domestic oil and natural gas production appear detached from the nation’s critical need for secure, accessible energy.

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Mr. Putin’s Energy Bet

natural gas fracking  russia  infrastructure  us energy security 

Mark Green

Mark Green
Posted June 9, 2021

Russian President Vladimir Putin’s negative comments last week about fracking – “truly a catastrophic type of production” – and U.S. natural gas are hardly surprising.

Putin has disparaged U.S. hydraulic fracturing before, and we get it: Few heads of state are as threatened by U.S. global energy leadership, built by the fracking/horizontal drilling revolution. Putin’s newest remarks come as Russia nears completion of a new natural gas pipeline, Nord Stream 2, to Germany that will vie with exported U.S. natural gas. It’s all in the marketing, right?

More seriously, the Russian leader’s comments are one among many reminders that energy markets are global, that there’s rigorous competition between energy-producing nations to meet global demand and that domestic natural gas and oil production and the infrastructure to transport it are critically important to our economy, security and way of life.

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The Energy Infrastructure Opportunity

infrastructure  pipelines  consumers  jobs  us energy security 

Mark Green

Mark Green
Posted June 1, 2021

U.S. Energy Secretary Jennifer Granholm continues voicing support for our nation’s pipeline network, which is critically important to Americans’ everyday lives, the economy, national security and environmental progress.

Granholm last month said pipelines are “the best way to go” to deliver fuels after a cyberattack disrupted service on the Colonial fuels pipeline. Last week she said her department wants to build more pipes, particularly to transport low-carbon fuels. 

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Summer Driving Season – Questions and Answers

gasoline prices  us energy security  oil production  consumers 

Mark Green

Mark Green
Posted May 27, 2021

As Americans flock to the roads this Memorial Day weekend, let’s consider the key factors that impact fuel costs, what it means for U.S. consumers and the best paths to ensure affordable, reliable energy going forward. Four questions and answers: Where are fuel prices today, what's driving fuel prices higher, what can be done to help U.S. consumers, and is the U.S. on the right energy policy course?

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Colonial Pipeline Attack Emphasizes Energy Infrastructure Needs

colonial pipeline  infrastructure  us energy security  consumers 

Mark Green

Mark Green
Posted May 14, 2021

You can read the latest here on Colonial Pipeline’s restoring service on its 5,500-mile line that delivers million of gallons of fuel products every day from the Gulf Coast to New York. The company says the entire pipeline system has been safely restarted and was delivering product to all served markets.

U.S. Energy Secretary Jennifer Granholm said most areas should return to normal this weekend. On its website, Colonial said some markets may experience, or continue to experience, intermittent service interruptions and that “Colonial will move as much gasoline, diesel, and jet fuel as is safely possible and will continue to do so until markets return to normal.” The service station tracker on GasBuddy.com provides updates to specific locations.

While the cyber attack on the pipeline interrupted supplies at numerous retail outlets along the East Coast this week, the incident and response by our industry and associated sectors showed the multifaceted fuel supply system is resilient and works quickly to restore supplies during difficult circumstances – as it has following hurricanes and other unusual events.

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