Energy Tomorrow Blog
Posted April 21, 2016
U.S. Senate passage of energy legislation is an important step forward in the effort to sustain and grow a U.S. energy revolution that’s making America more energy secure, benefiting consumers and helping the environment.
For the first time since the energy renaissance materialized, both houses of Congress have passed bipartisan, comprehensive energy-assisting legislation. The initiatives signal a commitment to matching energy policy with the new U.S. energy reality, one in which the United States is the world’s leading producer of oil and natural gas. They also suggest lawmakers recognize that, on a bipartisan basis, voting Americans support more domestic energy development – as well as candidates who do the same.
Louis Finkel, API executive vice president, talked about the advancing legislation and the opportunities that are being provided by American energy during a conference call with reporters.
Posted April 13, 2016
There’s a candidate in the 2016 campaign that’s a true unifier, a candidate reflecting the views of an overwhelming number of Americans and one that’s capable of being a sturdy bridge between Washington’s partisan interests:
As the 2016 general election campaign season approaches, API this week unveiled its energy policy recommendations for the platform-writing committees of the Democratic and Republican parties. More on these below.
First, let’s focus on the United States’ current energy reality and the once-in-a-generation opportunity the U.S. energy revolution is providing for security and prosperity, which API President and CEO Jack Gerard described as the context for industry’s platform report during a briefing and discussion event in Washington.
Posted April 12, 2016
In terms of energy policy, the United States is at an important crossroads. The ongoing American energy renaissance – which has seen domestic crude oil production surge 88 percent between 2008 and 2015, and natural gas output increase 48 percent since 2005 – has changed the U.S. energy story from one of scarcity and limitations to one of abundance and opportunity. With that opportunity comes responsibility to make policy choices to sustain and grow the country’s new energy momentum.
That’s the backdrop for an important Vote4Energy event on Wednesday in Washington, D.C., where API will present its energy policy recommendations to the platform-writing committees of the Democratic and Republican parties. The event will be livestreamed here beginning at 8:30 a.m. API President and CEO Jack Gerard:
“The United States is the world’s leading producer of oil and natural gas, and as a result of greater use of clean-burning natural gas and cleaner, more efficient fuels, we are also a world leader in reducing carbon emissions and other air pollutants. We have a proven model for achieving environmental progress without sacrificing jobs, economic growth, energy security or consumer affordability. Our political leadership has the opportunity to continue, and expand upon, the American energy revolution.”
Seizing the opportunity we have because of our new energy abundance is critically important. Details from API’s platform report will be released Wednesday, but they surely will include policies to advance safe and responsible domestic energy production, the need for a fair regulatory approach that avoids unnecessary duplication and recognizing that the country’s energy and environmental goals are best met through private innovation and investment in cooperation with government. Gerard:
“The goal of a national energy policy must be to ensure a secure supply of abundant, affordable and available energy for the American people in an environmentally responsible manner.”Tune in for the event on Wednesday morning and join the conversation on Twitter by using the #Vote4Energy hashtag.
Posted April 11, 2016
Two questions posed by the Times: How to explain a departure from the historical linkage between economic growth and increased carbon emissions? And, can the decoupling of economic growth and rising emissions be a model for the rest of the world?
The explanation isn’t all that complicated. We’ve talked about it for a number of months (see here and here). It’s natural gas. The increased use of clean-burning, domestically produced natural gas is the main reason the United States leading the world in reducing carbon emissions during a period of economic growth.
Posted March 23, 2016
The Obama administration’s decision last week to eliminate the Atlantic from the next federal offshore leasing plan is a step backward for American energy policy. Despite bipartisan support in Congress and from voters in coastal states, the administration is doubling down on a shortsighted policy that keeps 87 percent of federally controlled offshore acreage off limits to energy exploration.
Expanding access to America’s energy resources – both offshore and onshore – is vital to our future energy security and economic growth.
Posted March 22, 2016
We’ve read the articles about how affordable natural gas – much of it from the Marcellus Shale in next-door Pennsylvania – has benefitted New York and specifically New York City. So it’s puzzling to hear about a recent effort in New York to block expansion of an Upstate natural gas storage plant in the name of a “climate emergency,” as one activist put it – puzzling because natural gas is doing more to reduce U.S. emissions than any other fuel. The New York Times reports:
“The irony is this,” said Phil West, a spokesman for Spectra Energy, whose pipeline projects, including those in New York State, have come under attack. “The shift to additional natural gas use is a key contributor to helping the U.S. reduce energy-related emissions and improve air quality.”
Unfortunately, this is an example of out-of-the-mainstream activism at work, threatening to roll back important American progress on emissions that has occurred during a period of economic growth and rising domestic energy output. We say this is out of the mainstream because we reckon the real alarm would sound among New Yorkers if access to affordable natural gas got harder for lack of infrastructure – pipelines, pumping stations, storage installations and the like.
Posted March 21, 2016
Interesting weekend remarks from the Energy Department’s deputy secretary on U.S. oil and natural gas exports to Europe – especially so because DOE is the key federal agency in allowing domestic liquefied natural gas (LNG) export projects to proceed.
Energy Deputy Secretary Elizabeth Sherwood-Randall was speaking at a forum hosted by the German Marshall Fund in Brussels, Belgium, when she discussed the dramatic change in energy markets caused by the U.S. shale revolution. Sherwood-Randall:
“What’s really changed in the global energy landscape is American abundance of supply of both oil and gas. … We are now poised to become significant exporters of both oil and natural gas. We began the export of natural gas just last month, and we are also beginning to export oil.”
Posted March 15, 2016
With the Obama administration’s decision not to include the Atlantic in the next federal offshore leasing program, let’s connect some dots that put this unfortunate decision in a fuller context – one where the administration is choosing retreat instead of progress with its energy strategy.
First, America’s energy revolution is a once-in-a-generation opportunity that has put this country on a path toward economic growth, consumer benefits, environmental progress and a more secure energy future. Yet, omitting the Atlantic from the five-year leasing program that will largely guide offshore development from 2017 to 2022 is retreat, not progress, in efforts to produce more energy right here at home.
It’s the wrong path for America – a path also defined by administration policies that have resulted in declining oil and natural gas production on federal lands, an onslaught ofunnecessary regulation and continuation of the harmful Renewable Fuel Standard (RFS). It’s a path that has made energy infrastructure development more problematic, a path that will negatively impact American households and one that could see the U.S. become less secure and less competitive in the world.
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.