Energy Tomorrow Blog
Posted February 2, 2015
Taking a look at the president’s new budget request for the Interior Department, we see the administration asking for $13.2 billion, an increase of nearly $1 billion over the enacted funding level for the current fiscal year.
Now take a look at data from Interior’s Office of Natural Resource Revenue, which tabulates federal revenues from energy developed in federal areas onshore and offshore.
It’s a lot of information, but check the bottom line: For fiscal year 2013, revenues from oil and natural gas developed in federal areas totaled about $12.9 billion. For FY2014 the total was about $11.7 billion. Federal revenues from oil and natural gas development in FY2014 were about $1.2 billion less than in FY2013.
Interestingly, the amount of lost revenue is just about equal to Interior’s requested budget increase for FY2016. In other words, Interior lost $1.2 billion in revenue from 2013 to 2014 and basically is looking to taxpayers to fill in the gap in the next budget.
Posted January 29, 2015
Offshore energy is getting lots of attention this week, which is good. Offshore energy is vital to America’s economy and energy security.
This week the Interior Department proposed the first draft of its next five-year program for offshore oil and natural gas leasing, in the 2017-2020 timeframe. While the draft plan doesn’t go far enough, it could include the first Atlantic lease sale in decades, and that would be a positive step. Meanwhile, on Thursday the federal government is scheduled to hold a lease sale for offshore wind in the Atlantic.
All of the above …
That’s more than a rhetorical flourish. America will need energy from all available sources in the future – thus the case for a genuine all-of-the-above strategy. We hope this week’s wind sale is successful.
Energy isn’t a zero-sum game, and neither is energy job creation. Offshore energy development of any kind can generate jobs and raise significant revenue for government. The country benefits and so do individual Americans – you know, folks holding the middle-class jobs everyone wants to support.
oil and natural gas development safe operations leasing plan offshore drilling economic benefits atlantic ocs gulf of mexico alaska pacific outer continental shelf ocs interior department boem federal leases
Posted January 28, 2015
Three maps, two views of America’s offshore energy wealth.
One reflects vast offshore oil and natural gas resource potential – nearly 50 billion barrels of oil and more than 200 trillion cubic feet of natural gas. We say potential because these areas represent the 87 percent of America’s federal offshore acreage that has been closed to exploration and development, dwarfing the areas where development is allowed.
Nonetheless, what’s visible is the profile of an offshore energy giant, an offshore superpower. This is energy muscle waiting to be flexed. These are resources that could benefit Americans in terms of energy security, as more oil and natural gas is safely and responsibly produced right here at home, as well as job creation and economic stimulus.
That’s what energy superpowers do. They develop their resources to increase their security in a world where secure energy is fundamental to overall security. They develop their resources to fuel economic growth and to help ensure the prosperity of their citizens.
access crude crude markets domestic energy e15 economic benefits emissions energy regulation epa fracking gasoline prices global markets horizontal drilling hydraulic fracturing methane emissions offshore access oil and natural gas development ozone regulation renewable fuel standard
Posted December 31, 2014
So long, 2014. From an energy standpoint, you’ll be missed. Let’s count the ways:
Surging domestic oil and natural gas production – largely thanks to safe hydraulic fracturing and horizontal drilling – is driving an American energy revolution that’s creating jobs here at home and greater security for the United States in the world.
It’s a revolution with macro-economic and geopolitical impacts, for sure. But it’s also a revolution that’s benefit virtually every American.
Posted December 4, 2014
One key to sustaining and growing the ongoing U.S. energy revolution is to increase access to America’s oil and natural gas reserves – specifically, gaining more access to reserves under federal control, onshore and offshore.
And a revolution is what we’re seeing. According to the U.S. Energy Information Administration (EIA), domestic crude output topped 9 million barrels per day for the fourth week in a row, a production level not seen since the mid-1980s.
As great as that news is, it could be better because America’s energy production growth – generating new jobs, growing the economy and increasing our energy security – is occurring on state and private lands. More access to reserves in federal areas would help expand the revolution, generating even more benefits.
Posted December 3, 2014
New Orleans Times-Picayune: After more than a decade of work and a $7.5 billion investment, Chevron has started oil and gas production at its Jack and St. Malo fields in the deepwater Gulf of Mexico. The fields are among the largest in the region, expected to produce more than 500 million barrels of oil equivalent over the next three decades.
The Jack and St. Malo fields, discovered in 2003 and 2004 respectively, are located 25 miles apart in the Walker Ridge region of the Gulf about 280 miles south of New Orleans.
Oil and gas from the fields will flow back to a single, floating production platform located between the two fields. The platform has the capacity to produce up to 170,000 barrels of oil and 42 million cubic feet of natural gas per day.
Posted December 1, 2014
There’s a new global energy order – with the United States at the hub. That’s the assessment in a number of articles following last week’s meeting of oil-exporting countries.
The benefits to America are manifold. The U.S. as global energy’s new center of gravity means economic strength here at home through jobs, consumer benefits and greater energy security, and the opportunity to project positive American values abroad – by impacting global markets as discussed above and by helping friends overseas through energy exports. All result from America’s energy revolution, built on safe development of oil and natural gas reserves from shale and other tight-rock with advanced hydraulic fracturing and horizontal drilling.
Posted November 19, 2014
Tapping the energy resources off America’s coasts could improve our economy, our energy security and create thousands of jobs. Two new studies highlight the remarkable boost to job creation, U.S. energy security, domestic investment, and revenue to the government that lies within the Pacific Outer Continental Shelf (OCS) and the Eastern Gulf of Mexico.
API’s Group Director Erik Milito and the National Ocean Industries Association’s Randall Luthi outlined the studies for reporters during a conference call today. Milito:
“The oil and natural gas industry is a rare bright spot in our economy, and the ability to safely develop new offshore resources is critical to America’s continued energy security and job growth.”
Posted November 12, 2014
Newly published API recommended practices for offshore structures supporting oil and natural gas drilling and production operations – reflecting technological advances and updated design applications – can help improve planning, construction and maintenance of important energy infrastructure. They are intended to work together to enhance the approach to offshore structural design.
Posted October 8, 2014
Energy already is generating benefits for North Carolina and its economy, and things could get a lot better with the right oil and natural gas policies in place – an important point as North Carolinians get ready to vote in a U.S. Senate race that has national implications.
Advanced hydraulic fracturing and horizontal drilling could get under way early next year with the finalizing of state rules for safe and responsible development.
This fits with recent polling showing that strong majorities of registered North Carolina voters support increased domestic oil and natural gas production, including 91 percent who say more production could lead to more U.S. jobs and 89 percent who say more oil and gas could help stimulate the economy.