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Energy Tomorrow Blog

Shale Energy, Imports and Global Markets

oil imports  refineries  eia  energy exports  hydraulic fracturing  fracking  infrastructure  pipeline construction 

Mary Leshper

Mary Schaper
Posted February 10, 2015

EIA Today in Energy: The increase in U.S. shale and tight crude oil production has resulted in a decrease of crude oil imports to the U.S. Gulf Coast area, particularly for light-sweet and light-sour crude oils. These trends are visualized in EIA's crude import tracking tool, which allows for time-series analysis of crude oil imported to the United States.

Historically, Gulf Coast refineries have imported as much as 1.3 million barrels per day (bbl/d) of light-sweet crude oil, more than any other region of the country. Beginning in 2010, improvements to the crude distribution system and sustained increases in production in the region (in the Permian and Eagle Ford basins) have significantly reduced light crude imports. Since September 2012, imports of light-sweet crude oil to the Gulf Coast have regularly been less than 200,000 bbl/d. Similarly, Gulf Coast imports of light crude with higher sulfur content (described as light-sour) have declined and have been less than 200,000 bbl/d since July 2013.

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American Energy Leads

american energy  Economy  jobs  growth  infrastructure  texas  exports  fracking  keystone xl pipeline 

Mary Leshper

Mary Schaper
Posted February 9, 2015

CNN Money: In October 2011, my colleague Blake Ellis and I traveled to western North Dakota to report on the accelerating oil boom. A lot has changed since then.

In oil towns like Williston and Watford City, massive amounts of infrastructure have been built in just the last three years. Here's a look at some of the bigger projects:

 

People: Populations in once-small towns soared as people from around the country (and the world) migrated to the area for jobs. Williston Mayor Howard Klug says that the city of under 15,000 in the 2010 census now has a "serviceable population of 60,000 to 70,000."

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Energy Infrastructure, for Energy, Jobs, Security

american energy  infrastructure  innovation  fracking  Economy  revenue  keystone xl 

Mary Leshper

Mary Schaper
Posted February 2, 2015

Philadelphia Inquirer (Kevin Colosimo): Gov. Wolf has fulfilled a campaign promise to ban natural-gas drilling on state parklands, but he should ignore suggestions that he go further by instituting a statewide fracking ban. Simply put, a ban would kill the goose that has delivered a lot of golden eggs to the commonwealth. Consider: The natural-gas industry has contributed $34.7 billion to our economy, accounting for 5.8 percent of Pennsylvania's economic activity, according to an American Petroleum Institute study. The same study determined that the oil and natural-gas industry supports 339,000 jobs, or roughly 4.7 percent of the state's total employment. Shale development has generated more than $2 billion in state taxes, according to the state Department of Revenue.

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Yes, Keystone XL is in the National Interest

keystone xl pipeline  economic benefits  jobs creation  president obama  canadian oil sands  bakken shale  trade  infrastructure  senate  congress 

Mark Green

Mark Green
Posted January 31, 2015

The long trail of “process” excuses for not approving the Keystone XL pipeline is coming to an end.

Five U.S. State Department reviews – all of them basically saying Keystone XL won’t significantly affect the environment – done.

Public hearings – done.

A new pipeline route through Nebraska – done.

By Monday, federal agencies must weigh in on whether Keystone XL is in the national interest. It is, as we’ll get into below.

The point is, after more than six years of process and review by the White House, we’ve come to the end of the processing and the reviewing. The administration stretched to 76 months a pipeline approval process that typically takes 18 to 24 months. It turned Keystone XL into a political football, punted here and there for reasons that clearly weren’t in the national interest.

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Video: Time to Build Keystone XL

keystone xl pipeline  economic benefits  president obama  infrastructure 

Mark Green

Mark Green
Posted January 28, 2015

A new video captures quite well the game of political football involving the Keystone XL pipeline, a game of overtime that’s making Americans wait for jobs, economic benefits and greater energy security. Some might call it deflating.

Points underscored by the video: The White House is responsible for delaying a shovel-ready infrastructure project that would support more than 42,000 jobs during construction, according to the U.S. State DepartmentKeystone XL would put $2 billion in workers’ pockets and add $3.4 billion to U.S. GDP – again, according to the State Department. Keystone XL has cleared five separate environmental reviews – with the conclusion that the project wouldn’t significantly affect the environment, climate or otherwise. The project would strengthen America’s energy security, bringing oil from Canada and the U.S. Bakken region to the Gulf Coast for processing by U.S. refineries.

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Keystone XL and Trade

keystone xl pipeline  economic growth  canadian oil sands  trade  exports  imports  infrastructure  president obama  state department 

Mark Green

Mark Green
Posted January 22, 2015

During his State of the Union speech President Obama talked about expanding trade and building up the middle class. Both good objectives. And, while a president’s annual message to Congress usually is full of goals that are mostly aspirational, both of these are attainable – through energy.

First, the president could work to end the ban on the export of domestic crude oil, a relic of the 1970s and an era of U.S. energy scarcity. A supply of light sweet crude, mismatched for a refinery sector largely configured to handle heavier crudes, would be able to reach overseas markets. This would help support domestic production and jobs – many of them well-paying middle-class jobs – while benefitting our trade balance.

Likewise, the administration could stop slow-walking approvals for planned U.S. liquefied natural gas (LNG) facilities to export LNG to non-free trade agreement nations – again, spurring domestic production and jobs and improving America’s trade bottom line.

Both would increase the U.S. presence in global energy markets – expanding world supply, helping allies and strengthening American foreign policy – all consistent with our country’s status as an energy superpower.

Second and more specifically, the president could approve the Keystone XL pipeline. It’s needed energy infrastructure that would bring more than 800,000 barrels of oil a day from Canada and the U.S. Midwest, support tens of thousands of U.S. jobs – good middle-class jobs – and help strengthen the U.S. energy/trading relationship with Canada, our No. 1 source of imported oil.

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Seizing Our Energy Moment

crude oil  exports  infrastructure  permit delays  regulation  education  hydraulic fracturing  fracking  pipelines  new york natural gas 

Mary Leshper

Mary Schaper
Posted January 22, 2015

The Bakken Magazine: “Do not pass Go. Do not collect $200.”

This is the dreaded phrase on the “Go to Jail Card” that you’ve likely drawn, or at least heard of, when playing the game of Monopoly. Drawing this card is an all-around bummer. You lose a chance at scooping up valuable property before others do, you don’t get to collect $200 that you might need to purchase property, and it increases the chance that you lose the game. But at least it’s just a game. Right?

Wrong. What many people probably don’t realize is that we’re in a real-life game similar to Monopoly, but this one is focused on the global oil market, not property. And, it just so happens that we’re stuck holding the “Do not pass Go” card.

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Time to Stop Talking – Time To Build

keystone xl pipeline  infrastructure  economic growth  state department  president obama  environmental review  canadian oil sands 

Mark Green

Mark Green
Posted January 13, 2015

The federal approval process for cross-border pipelines (and there are many) historically has taken 18 to 24 months, yet the White House says that more than six years isn't enough time to determine whether the Keystone XL pipeline is in the national interest.

Perhaps the State Department can help them out with analysis that argues that infrastructure of this nature is in the national interest – a point grasped by a strong majority of Americans in the Keystone XL debate – which seems to elude the White House. Now, if the White House doesn’t want to listen to what its own State Department says about infrastructure, maybe another voice will be more persuasive.

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The Last Obstacle

keystone xl pipeline  president obama  infrastructure  investment  economic benefits  job creation  nebraska  state department  canada  congress  refinieries 

Mark Green

Mark Green
Posted January 10, 2015

Throughout the Keystone XL pipeline’s long wait for federal approval, President Obama has used one excuse after another to deflect responsibility for blocking a project that polls in the 70s with the American people, one that would support thousands of U.S. jobs and help move the country closer to North American energy security. All along the way the president could have exercised his authority to say yes to all of the above but deferred instead.

The president said environmental questions needed answers, and they were provided by his own State Department, which cleared Keystone XL in five separate environmental reviews.

The president said the cross-border approval process – required because Keystone XL would cross the U.S.-Canadian border – needed to run its course. It did and then some, stretching now to more than six years when historically, cross-border approvals are granted in 18 to 24 months.

The president said Nebraska needed to work out the pipeline’s route through that state, which it did. Then the president said the state’s Supreme Court would have to settle a legal challenge over the re-routing process.

On Friday, Nebraska’s high court rejected that challenge, confirming the assessment of the state Department of Environmental Quality and the governor’s recommendation to the State Department – leaving the project with only one remaining obstacle: President Obama.

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The Facts About the Keystone XL

keystone xl pipeline  canada  economic benefits  infrastructure  state department  president obama 

Mark Green

Mark Green
Posted January 8, 2015

With legislation to advance the long-delayed Keystone XL pipeline moving ahead in the Senate, potentially attracting a misguided veto from President Obama, some important numbers:

76 – The number of months Keystone XL has been blocked by the Obama administration. Historically, approvals for cross-border pipeline projects take 18 to 24 months. Keystone XL’s history is something quite different – the story of how a shovel-ready infrastructure project was needlessly hijacked by politics.

830,000 – The number of barrels of North American oil per day that would flow through Keystone XL to U.S. refineries on the Gulf Coast, the vast majority of which would be turned into valuable fuel products.

42,100 – The number of U.S. jobs that would be supported during Keystone XL’s construction. That’s not industry’s number. That’s the number coming from President Obama’s own State Department. When he and others dismiss the project’s jobs impact, it reveals a serious lack of understanding of the way large infrastructure construction creates a positive ripple across the economy in terms of direct jobs, indirect jobs and induced jobs – all of which the White House fully appreciated when it was making the case for its federal stimulus package in 2009.   

5 – The number of Keystone XL environmental reviews conducted by President Obama’s own Department of State.

5 – The number of State Department environmental reviews that have concluded Keystone XL would have no significant climate impact.

2 – The number of Pinocchios just awarded by the Washington Post’s Fact Checker to claims that Keystone XL will negatively impact the environment and that it would only be only a conduit for oil to be shipped overseas. (This follows the Three Pinocchios given to President Obama last fall for saying oil transported by Keystone XL would go “everywhere else” but the U.S. Bottom line, that’s a lot of Pinocchios.)

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