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Energy Tomorrow Blog

Let’s Modernize ALL Our Nation’s Infrastructure

infrastructure  pipelines  us energy security  safe operations 

Bill Koetzle
Posted April 13, 2021

The Biden Administration’s goal of modernizing the nation’s infrastructure – including roads, bridges, rail and ports – is something that all Americans can support. At API we have long touted the compounding benefits of upgrading our nation’s infrastructure. The positives go well beyond material enhancements to include creating new jobs, helping communities nationwide, improving efficiencies throughout the economy by reducing congestion and delay, and – in the case of pipelines – bolstering safety and environmental performance.

Early outlines of the Administration’s plan include ambitious goals and many strengths. But it’s important to note that it misses an opportunity to take an across-the-board approach to addressing all our country’s current and future infrastructure needs, including modernizing the pipelines that power our modern lives.

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Our Essential Energy Relationship With Canada Underscored by New Study

canada  trade  us energy security  consumers 

Mark Green

Mark Green
Posted April 8, 2021

When President Biden killed the Keystone XL pipeline in January, it was more than just canceling an important piece of energy infrastructure. It was a setback for the U.S.-Canada energy and trade relationship that has benefited both countries economically and in terms of their security in the world.

A new ICF study assessing U.S.-Canada cross-border petroleum trade finds that there is growing integration of North American energy markets, which in turn leads to lower costs for consumers and increased energy security for both countries. Frank Macchiarola, API senior vice president of Policy, Economics and Regulatory Affairs, talked about the study’s findings during a virtual conference hosted by the Canadian Association of Petroleum Producers.

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Administration's Federal Leasing Policy Continues to Raise Flags

federal leases  us energy security  economic growth  interior department 

Olivia Culver

Olivia Culver
Posted April 6, 2021

The Biden administration’s pause in new natural gas and oil leasing on federal lands and waters continues to look like a hard sell, not only in energy-producing states but also with traditional Democratic allies in organized labor.

We’ve talked about potential negative effects of the administration’s policy on leasing and have warned against even greater impacts to the economy and American energy security if the pause becomes a permanent ban on federal leasing and development (see here, here and here). Projected impacts from a full-on ban on leasing and development in an analysis by OnLocation include approximately 1 million jobs could be lost – nearly 120,000 in Texas, more than 62,000 in New Mexico and more than 48,000 in Louisiana – foreign oil imports could increase 2 million barrels per day; and carbon dioxide emissions could increase 5.5%

Similar concerns surfaced as the U.S. Interior Department (DOI) held a forum on the federal oil and gas program. At the public session, Frank Macchiarola, API senior vice president of Policy, Economics and Regulatory Affairs, noted that federal lands and waters account for 22% of U.S. oil and 12% of U.S. natural gas production and urged DOI leaders to recognize the importance of this production to U.S. energy security, economic growth and continued environmental progress.

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Safe Offshore Development is Essential to U.S. Security and Economy

offshore development  safe operations  us energy security  bsee 

John Siciliano

John D. Siciliano
Posted April 2, 2021

Not as noticed in the Biden administration’s halt in new federal natural gas and oil leasing is the possible impact on U.S. offshore production. If the pause were to become a permanent leasing and development ban, nearly 15% of total U.S. oil production could be affected – with significant potential consequences for our country’s energy security and economic growth.

Offshore development not only is critical for our country’s future, it’s safer than ever – underscored by a report issued late last year by the U.S. Bureau of Safety and Environmental Enforcement (BSEE). 

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New Mexico's Leasing Concerns Should Concern Us All

new mexico  federal leases  jobs  us energy security 

Mark Green

Mark Green
Posted March 18, 2021

It’s not surprising that New Mexico’s governor, both U.S. senators and other elected officials are concerned with the Biden administration’s halt in new federal natural gas and oil leasing. In 2020, New Mexico was the nation’s No. 3 crude oil producer and No. 8 natural gas producer, and the administration’s policy could affect billions of dollars in state revenues and thousands of jobs.

Gov. Michelle Lujan Grisham, a Democrat, penned a letter to President Biden earlier this week cautioning that potential lost revenues as a result of the policy could mean significant hardship for her state. New Mexico receives more than 40% of its total revenue – nearly $4 billion annually – from taxes and royalties paid by the natural gas and oil industry. 

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We Can't Take Our Energy Security for Granted

us energy security  saudi arabia  domestic oil production  consumers 

Dean Foreman

Dean Foreman
Posted March 17, 2021

One of the great benefits of increased U.S. oil production over the past decade and a half is strengthened U.S. energy security – decreased reliance on foreign oil suppliers and insulation for American consumers against sudden price increases due to geopolitical events, such as the recent attacks on Persian Gulf oil facilities.

Years ago, an episode like that could’ve caused serious alarm in the United States and globally. Yet, the apparent lack of significant or enduring oil price movement following last weekend’s attack shows the tremendous influence U.S. oil production has had on global markets. The same was true after missile attacks on Saudi facilities in 2019 (see here), which substantially reduced Saudi Arabia’s oil exports for a short period. Both events and their aftermath indicate that U.S. domestic production has largely mitigated the price volatility historically associated with serious geopolitical events.

Still, some cautions are in order. First, U.S. energy security can’t be assumed. It takes long-range planning and investments, safe access to domestic resources, the ability to expand pipeline and export facility infrastructure, and a policy-level approach that anticipates unforeseen events that could affect global energy supply and have dire impacts on U.S. security, economic growth, and consumers.

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Working with Biden Administration, Industry is Poised to Accelerate Progress

us energy security  epa  energy department  interior department 

Lem Smith

Lem Smith
Posted March 16, 2021

The natural gas and oil industry is committed to working with America’s energy stakeholders, including U.S. government regulators, to deliver affordable, reliable fuels and shape a lower-carbon future.

The Biden administration has taken office at a time when the U.S. leads the world in energy production and emissions reductions. The President’s nominees to oversee the Department of Energy, Department of the Interior and Environmental Protection Agency – Secretary Jennifer Granholm, Secretary Debra Haaland and Administrator Michael Regan, respectively – have signaled readiness to tackle the dual challenge of strengthening U.S. energy security and addressing the risks of climate change.

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CERAWeek: Sommers Talks Cooperation, Jobs and Energy Security

jobs  us energy security  climate  cera 

Mark Green

Mark Green
Posted March 2, 2021

The natural gas and oil industry is foundational to the U.S. economy and security today and will be for decades to come. That’s reality – and a welcome one, given U.S. world leadership in natural gas and oil production. Natural gas and oil frame the issues of energy and environmental progress – the priorities of safely producing the affordable reliable energy Americans use every day and boosting the economy, while also reducing emissions and our industry’s environmental footprint. We can do both, together.

API President and CEO Mike Sommers underscored these themes at this week’s CERAWeek energy conference – virtual this year because of the pandemic. Sommers’ key points: The natural gas and oil industry will work with the Biden administration as much as possible to achieve progress on climate goals – including technology and regulation; natural gas and oil are fundamental to U.S. security and world leadership; and natural gas and oil is supporting U.S. and world growth, as well as the high-paying jobs of millions of Americans.

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In U.S. Rep. Haaland, There’s Common Ground for a Working Relationship

interior department  federal leases  infrastructure  us energy security 

Mark Green

Mark Green
Posted February 26, 2021

In introducing U.S. Rep. Debra Haaland – President Biden’s choice to be Interior Department secretary – to the Senate’s Energy and Natural Resources Committee, Congressman Don Young of Alaska, a staunch Republican, predicted this about his House colleague: “You’ll find out that she will listen to you.”

Given the political polarization in Washington, that’s pretty significant – and hugely important in building a bipartisan approach to energy, infrastructure and other issues associated with national economic growth, security and the environment.

The natural gas and oil industry welcomes the opportunity – if Rep. Haaland is confirmed by the full Senate – to work with her as her department manages millions of acres of federal lands and waters that are key to our country’s energy present and future.

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EIA says Natural Gas and Oil Will Remain Integral, But Where Will They Come From?

eia forecast  energy production  us energy security  federal leases 

Jessica  Lutz

Jessica Lutz
Posted February 10, 2021

Natural gas and oil will remain central to meeting our nation’s energy needs well into the future. So says the nonpartisan U.S. Energy Information Administration (EIA) in its 2021 Annual Energy Outlook.

The analysis is critically important given the Biden administration’s apparent shift away from the previous administration’s focus on building American energy dominance through homegrown natural gas and oil – seen in the president’s executive order halting new federal leasing.

EIA’s forecast and the administration’s energy position are incompatible with each other, raising a simple question: If we aren’t allowed access to key federal natural gas and oil reserves, onshore and offshore, where will our energy supply come from?

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