Energy Tomorrow Blog
Posted September 10, 2013
Fracking, the Poor and Adding to Americans’ Disposable Income
Wall Street Journal (editorial): Last week we reported on a study showing that the U.S. oil and natural gas revolution may be the country's best antipoverty program, and the evidence keeps coming. A new report from IHS Global Insight estimates that fracking added the equivalent of a cool $1,200 to real household disposable income on average in 2012.
Lower costs for raw materials were passed on to consumers via lower home heating and electricity bills and lower prices for other goods and services. Wages also increased from a surge in industrial activity. On present trend, IHS predicts that unconventional oil and gas will contribute more than $2,000 a year by 2015 and $3,500 by 2025.
Overall the industry lifted economic growth by $283 billion last year.
Read more (subscription publication): http://on.wsj.com/13GJtDS
Posted September 6, 2013
U.S. Oil Production Reaches Highest Level in 24 Years
Fuel Fix Blog: U.S. oil production last week hit its highest level in nearly a quarter century, as companies seek to capitalize on high oil prices, according to federal data.
Domestic oil production hit 7.621 million barrels per day in the week ending Aug. 30, the U.S. Energy Information Administration said in its latest weekly update.
That surpassed the 7.609 million barrels per day production mark set the week prior and was the highest production total since October 1989, when production averaged 7.644 million barrels per day.
Read more: http://bit.ly/1ad7bcL
Posted August 30, 2013
Benefits of Fracking Will Be Tested in Syria Attacks
Forbes: Oil prices are surging on concerns that a U.S.-led attack on Syria could disrupt global oil supplies. West Texas Intermediate crude traded at $110.45 a barrel on the New York Mercantile Exchange this morning, after rising more than $3 a barrel on Tuesday. Less than two months ago, oil sold for less than $100.Gasoline prices have risen the most in six weeks at a time when forecasts had indicated they would be falling because of seasonal decline in demand.
It’s a pretty typical market response to geopolitical unrest in the Middle East. The concern, of course, is that any escalation of the Syrian conflict will expand to include other oil-producing nations, particularly Iran. Iran has the power to control the all-important Strait of Hormuz, through which about 17 million barrels of oil pass each day — roughly one fifth of the world supply.
But this time things are different, at least from the U.S. perspective. The implications of a supply disruption are muted because domestic production is at a 20-year high, driven by the hydraulic fracturing boom. U.S. inventories are flush.
Read more: http://onforb.es/15jNSjt
Posted August 23, 2013
High-volume hydraulic fracturing natural gas development has made increased production of shale gas and oil economically attractive. With increased production of natural gas, the price according to BCG has declined 51% since 2005. And, technology is projected to result in further lowering production costs. This is a big advantage over our competitors that have natural gas prices that are 2.6 to 3.8 times greater than our domestic prices in America.
Posted August 21, 2013
Posted August 7, 2013
The U.S. Energy Information Administration’s newest short-term outlook report finds that oil output increased to an average of 7.5 million barrels per day in July – the highest monthly level of production since 1991. EIA says total U.S. output will average 7.4 million barrels per day in 2013 and 8.2 mbd in 2014. Both of those estimates are increases over EIA’s previous short-term outlook.
Posted August 2, 2013
In a guest editorial, Southern Methodist University’s Bernard Weinstein argues for U.S. natural gas exports. Weinstein notes a study that found that "boosting exports would decrease the U.S. trade deficit by between $11 billion and $27 billion each year… and that continued development of domestic shale gas resources could create 1.7 million jobs in the United States by 2020."
Centre Daily News – Illinois College Offering Courses on Oil and Natural Gas
Southeastern Illinois College will begin offering two new oil and natural gas programs in January 2014. This comes after Gov. Pat Quinn signed legislation allowing hydraulic fracturing in the state last month.
Posted July 25, 2013
Senate Energy and Natural Resources Committee Chairman Ron Wyden, with some on-target remarks to a forum this week on surging U.S. shale natural gas production hosted by the Bipartisan Policy Center:
“We are in what I’ve come to describe as an economic Olympics, and winning is all about creating the most high-skill and high-wage jobs you can. … In this economic Olympics the American economy gets out of the blocks with a very strong lead because of natural gas. So what we want to do is put in place bipartisan policies that help us extend that lead in the natural gas field.”
Posted July 25, 2013
Des Moines Register – Iowa Will Have to Import Corn
With increased ethanol obligations and growing livestock operations needing more feed, Iowa – the nation’s “king of corn production” – will have to import kernels to keep up with demand, an analyst tells the newspaper.
Master Resource - Frac Bounty: All Should Participate
Blogger Paul Driessen highlights the benefits of U.S. shale development – game-changing technologies that have led to job creation and economic boosts across the country. Driessen got a first-hand look at hydraulic fracturing drilling in northern Pennsylvania noting the “signs of pride and prosperity were evident all over Williamsport.” Driessen: We need to frack for a better, cleaner, happier world!”
Posted July 8, 2013
Reason - The Top Five Lies About Fracking
Science writer Ronald Bailey highlights five falsehoods about hydraulic fracturing, from flaming faucets to water contamination. “Over 500,000 gas wells are currently operating in the United States,” Bailey writes. “Most of them manage to avoid blowing up houses, poisoning drinking water, making it hard to breathe, causing cancer...”
Fuel Fix Blog – Oil to Flow Through Keystone XL’s Southern Leg This Year
While the northern leg of the pipeline is going on five years waiting on approval from the Obama administration, the southern portion of the project is nearing completion. By the end of the year, the pipeline is expected to carry up to 700,000 barrels of oil per day from Cushing, Okla., to the coast of Texas.