Energy Tomorrow Blog
Posted June 16, 2016
When it comes to making actual progress on climate through the reduction of carbon emissions, basically there are two groups: talkers and doers.
Talkers spend much of their time filibustering on the need to reduce emissions through central government planning – bureaucratic programs, new layers of regulation, onerous pricing mechanisms and more – while criticizing those who don’t rush to embrace Washington climate think.
As for the doers, they’re already reducing emissions. Our industry is part of this second group.
Posted May 24, 2016
Compelling video interview earlier this month with Chevron Chairman and CEO John S. Watson by the Wall Street Journal – headlined the “Morality of Oil.”
This is especially timely, given the claims of some industry opponents that affordable, reliable, portable energy somehow isn’t a public good, despite some important facts to the contrary.
Posted March 14, 2016
When BOEM releases its final program, perhaps this week, watch the Atlantic. A decision to keep the Atlantic lease sale in the five-year plan will say volumes about the administration’s view of offshore energy development. Erik Milito, API director of upstream and industry operations, joined representatives of two other organizations on a conference call with reporters to discuss the next leasing program:
“The possible benefits for developing oil and natural gas off of the Atlantic coast are numerous. The most promising areas for development run all the way from the coasts of Maine to Florida. Official government figures project the possibility of nearly 5 billion barrels of oil and over 37 trillion cubic feet of gas contained by this section of the Atlantic Shelf. This is American energy security, American jobs, U.S. government revenue and American GDP tied up by political red tape. This is a once-in-a-generation opportunity, stuck, off limits to future generations as it waits for forward-looking energy policy.”
Posted March 9, 2016
Offshore oil production in the Gulf of Mexico is set to reach a record high next year, according to new projections from the U.S. Energy Information Administration (EIA). By the end of 2017, production is projected to reach 1.9 million barrels per day, accounting for 21 percent of total U.S. crude oil production.
That represents a crucial contribution to America’s energy security, economy and global energy leadership. Imagine if we doubled it. Opening areas in the Atlantic, Pacific and Eastern Gulf of Mexico could lead to production of more than 3.5 million barrels of oil equivalent per day – almost twice the amount EIA projects we’ll hit next year in the western Gulf alone.
Posted March 4, 2016
Just recently saw this article on National Geographic.com, suggesting the United States made a significant shift in its energy economy in 2015:
Consider what happened last year alone. The amount of electricity from coal-fired power plants hit a record low while that from natural gas generators hit a record high. Also, renewable energy added the most new power to the electric grid, and annual carbon emissions reached a 20-year low.
First, a reminder that new power capacity added to the grid doesn’t translate directly to new power. Below, U.S. Energy Information Administration (EIA) data shows that in terms of electricity generation change (from 2014 to 2015) at utility-scale facilities and including distributed solar, natural gas led in net generation:
That’s not knocking renewables, just an illustration of today’s energy reality and a reminder of the oft-overlooked energy, economic and climate benefits accruing to the United States from increasing natural gas use.
Posted February 12, 2016
What if we had a market-based approach for reducing carbon dioxide emissions – gifted to the United States because of its unique combination of abundant energy resources, technological advances and know-how – that not only would yield CO2 reductions at world-leading levels but also would strengthen our economy and security? And all at potentially less cost than the mandates under the CPP?
OK, it wasn’t an altogether serious question, because that approach and the progress it has generated actually exist. Progress on emissions and energy has come from America’s ongoing energy revolution, a renaissance fueled by vast shale reserves and driven by safe hydraulic fracturing and advanced horizontal drilling.
Posted February 10, 2016
Yesterday, we took a look at the effects of the U.S. energy revolution on domestic oil production and the impact of that production on U.S. oil imports – and the resulting progress for America in terms of increased economic and consumer benefits and energy security. We argued that Obama administration policies risk retreating from progress that’s the result of the historic, game-changing shift in the U.S. energy outlook, thanks to America’s energy revolution.
Today, a look at natural gas, where the impacts of the energy revolution are no less significant.
Posted February 9, 2016
Progress on domestic oil production and oil imports is not something the United States should surrender – or worse, roll back. We should not pursue policies that take the United States back to the energy reality of a decade ago: the prospect of increasing dependency and less opportunity – for American workers, consumers, our economy and our strategic security.
Yet, that’s what the Obama administration is leading – a retreat from the progress that’s been made because of abundant shale energy reserves and the innovation and technology reflected in safe hydraulic fracturing and modern horizontal drilling.
Posted February 8, 2016
It has been clear for months that the Obama administration has lost interest in a true “all-of-the-above” approach to the nation’s energy – one that is being led by surging oil and natural gas production right here at home. Consider:Despite multiple State Department reviews filled with science showing that rejection of the Keystone XL pipeline would result in higher emissions, the president killed the project and the 42,000 jobs it would support during its construction phase. Despite the fact U.S. carbon dioxide emissions are near 20-year lows, the administration is pushing ahead with its Clean Power Plan that favors only certain kinds of renewable energy instead of letting states to freely choose lower-emissions sources while ensuring affordable and reliable energy for consumers. Although methane emissions from natural gas production are dropping, EPA and the Bureau of Land Management are moving forward with additional layers of regulation that could raise the cost of natural gas production and chill investments needed to bring cleaner-burning gas to market. Despite bipartisan agreement that the Renewable Fuel Standard is a failure – that mandates for increasing ethanol use actually increases greenhouse gas emissions – EPA continues to push for more ethanol in the nation’s fuel supply.
The administration’s latest anti-energy revolution proposal is an ill-conceived plan to slap a $10-per-barrel fee or tax on crude oil that could increase the cost of a barrel of crude by 30 percent and add 25 cents to the price of a gallon of gasoline.
Posted February 5, 2016
Our industry is committed to helping America’s veterans who’re looking for civilian jobs after finishing their military service. This week API and Vets4Energy unveiled a new web toolthat should help veterans match their skill sets with those needed in the energy industry. Likewise, the site will help employers looking for military occupations that could factor into their hiring needs.
The new web tool is timely, with more than 1 million military service members expected to transition to civilian life over the next four years, according to the new site. More than 8.4 million military veterans are under the age of 60.