Energy Tomorrow Blog
Posted March 26, 2014
Study Projects Major Job Losses From Banning Fracking in Colorado
Denver Business Journal: Fracking draws the ire of environmental activists, many of whom envision a world without the controversial process.
But economists from the University of Colorado (CU) predict job losses of 93,000, and $12 billion in lost gross domestic product (GDP), if proposed bans on hydraulic fracturing in Colorado become law, according to a study released Wednesday.
In just the first five years of a ban on fracking, the loss in GDP would be $8 billion and 68,000 fewer jobs, according to the study.
Posted March 25, 2014
Because Lithuania has a front-row seat to the current Ukraine-Russia crisis, the appearance of the country’s energy minister at a Senate hearing on U.S. liquefied natural gas (LNG) exports was especially timely. Jaroslav Neverovič had a pretty simple message to the United States: We need U.S. natural gas.
Neverovič probably was the most anticipated of the witnesses at the Energy and Natural Resources Committee’s hearing, the first led by Sen. Mary Landrieu, the panel’s new chairman. Neverovič:
“At present, we are completely – 100 percent – dependent upon single supplier of natural gas and, as a result, are forced to pay a political price for this vital energy resource. Lithuanian families and businesses pay 30 percent more for natural gas than citizens in other European countries. This is not just unfair. This is abuse of monopolist position.”
The minister said while Lithuania is taking steps to achieve energy independence, it needs help.
Posted March 25, 2014
U.S. to Become Top LNG Exporter, Experts Say
Fuel Fix.com: HOUSTON — The U.S. is poised to become the top exporter of liquefied petroleum gas — more commonly known as propane or butane — within just a few years, officials with research analyst IHS said Monday.
By the 2020s, the U.S. likely will displace top LPG exporters including Qatar and the United Arab Emirates, said IHS Senior Director Walt Hart, during the IHS International LPG Seminar in Houston. The domestic supply of propane and butane is on the rise, produced along with the booming output of U.S. shale gas. But the domestic market for propane and butane is relatively flat, several experts said.
That’s not the case abroad. While most U.S. LPG exports go to Latin America today, a growing portion likely will go to Asia as demand there rises, in part due to its use as a fuel source for heating and cooking but also because of its role as a feedstock for the manufacture of petrochemicals.
Posted March 24, 2014
U.S. Energy Boom May Signal New Export Era
Los Angeles Times: In a Louisiana swamp several miles upriver from the Gulf of Mexico, about 3,000 construction workers are building a massive industrial facility to liquefy natural gas, preparing for a new era when the U.S. will begin exporting energy around the globe.
The $12-billion project is one of the largest single industrial investments in the nation, part of a massive transformation of the energy sector that has led to a boom in drilling, transportation and refining from coast to coast.
Five years ago, the idea of exporting U.S. gas and oil was not only unheard of, but, in the case of most U.S. crude oil, illegal. At that time, the United States was facing a future of dwindling domestic supplies and vulnerability to foreign producers. It was anxiously building facilities to import natural gas, worried about ever-higher prices and building much of its foreign policy on the need to secure energy supplies.
But U.S. energy production has boomed with the technological revolution of hydraulic fracturing, known as fracking, and the ability to tap newly accessible massive reserves. The nation surpassed Russia in 2009 as the largest producer of natural gas and is expected to zip past Saudi Arabia next year to become the largest oil producer in the world.
Now, the U.S. energy industry is pushing for a new era of exports.
Posted March 21, 2014
The Huntsman Corporation’s Peter Huntsman has this op-ed in USA Today that invokes a poll in which people were asked to respond to these statements:
Some say that exporting American natural gas to other countries will increase economic growth, keep thousands employed, and help increase domestic production of natural gas. Others say that American natural gas should be used here at home, where it can lead to thousands of new manufacturing jobs, grow the entire American economy, and keep prices of natural gas affordable. Which comes closest to your view?
Actually, it’s a false choice, a little bit of opinion polling flim-flammery. We can have both – as careful, scholarly research (see here and here) has shown. We have ample natural gas reserves to supply the needs here at home as well as those of friendly overseas buyers.
Posted March 5, 2014
Politico reports (sub req'd) that the Energy Department plans to stick with its “case-by-case” approach to approving natural gas export projects – even as some policymakers say speeding up the process would send a strong signal that the United States is a leader in global energy markets, expanding its ability to broaden supply options and defuse energy-related standoffs like the one playing out between Russia and Ukraine.
Posted February 21, 2014
Well-Being in America: Shale Gas Buys You Happiness
The Economist: Based on interviews with more than 178,000 people from all 50 states, the Well-Being Index offers an interesting glimpse of the physical and mental health of the nation. It also spotlights the country's winners and losers. The results divide regionally, with Midwestern and Western states earning nine of the ten best scores in 2013, while Southern states have eight of the ten lowest. Massachusetts has the highest rate of residents with health insurance (which may bode well for Obamacare). Colorado, meanwhile, nearly always has the lowest obesity rate.
Sitting pretty in first place now is North Dakota, which has displaced Hawaii as the state where people are most likely to be healthy and feel good about their life and work. North Dakota’s speedy climb to first place from 19 last year seems to have a lot to do with the shale-gas boom, which has buoyed the state with lots of new jobs and money. This bonanza has apparently trickled into South Dakota, which has elbowed aside Colorado to secure second place.
Posted February 19, 2014
The outlook for U.S. energy from shale and other tight-rock formations just keeps improving. Two new assessments underscore this.
First, a panel hosted this week by CSIS revisited the National Petroleum Council (NPC) report on U.S. unconventional natural gas issued in 2011 and concluded that new discoveries and technologies paint an even brighter picture than NPC did nearly three years ago.
Posted January 6, 2014
API hosts its annual State of American Energy event on Tuesday at the Newseum in Washington, D.C., and the discussion will focus on choices our country can make to increase energy development, grow jobs and the economy and make us more secure in the world. The event will be streamed live beginning at noon. Join in the conversation on Twitter by using the #SOAE14 hashtag.
The event comes at a time when policymakers are considering important energy issues, some of them framed in recent posts by the National Journal and Politico. At the top of our list of key energy issues:
Keystone XL pipeline
Federal consideration of TransCanada’s application for a cross-border permit passed the five-year mark last fall – which means the Keystone XL could have been built twice in the time the pipeline has been held up by Washington.
Posted December 26, 2013
Though there are compelling, Economics 101-type reasons the U.S. should lift its dated ban on crude oil exports and help clear the way for the export of U.S. liquefied natural gas (LNG), opponents of both continue to misunderstand the way global energy markets work – as well as the significant benefits accruing to the United States from free trade.
You’ve probably heard the rhetoric: Keep American oil and natural gas locked up here at home for U.S. consumers.
This misses the essential fact that crude oil is traded (and priced) globally, and that limiting LNG exports will only limit U.S. participation in an important, developing market – while effectively denying our country the infusion of overseas wealth in exchange for valuable American commodities.