Energy Tomorrow Blog
Posted March 13, 2014
With SPR Test, Obama Administration Warms Up to Flex U.S. Energy Muscle
Reuters (analysis): A rare U.S. test of its strategic oil reserves may be just coincidentally timed with the most serious stand-off with Russia in decades, but the underlying message of the move announced on Wednesday left little doubt: Prepare for the rise of a new global energy superpower.
The Energy Department said it would offer up to 5 million barrels of sour crude from the Strategic Petroleum Reserve (SPR), with bids due in two days. Officials said the sale would ensure the reserves can still quickly deliver oil to refiners despite changing pipeline networks.
Posted February 28, 2014
The scope of shale energy’s benefits and their impact on the United States – jobs, economic stimulus and increased energy security – seems ever-expanding. Speakers at Bloomberg’s “Energy 2020” event described energy reserves large enough and technologies so advanced that Americans can contemplate a far friendlier future than would have been possible just a few years ago.
GE Chairman and CEO Jeffrey Immelt:
“A lot is taking place in natural gas. People historically have viewed this as a transition fuel. Now it’s becoming more of a baseload fuel. There’s more supply diversity, it’s viewed incrementally as cleaner and an interim solution to environmental issues. We see that taking place.”
Posted February 25, 2014
The energy industry is working for America. A new Manhattan Institute report finds that in the slowly recovering U.S. economy the oil and natural gas industry is creating jobs and generating broad economic stimulus. Top findings:
- While overall U.S. employment has yet to return levels predating the 2008 recession, the number of oil and natural gas jobs has grown 40 percent since then.
- The U.S. energy revolution is almost entirely the result of development by more than 20,000 small and midsize businesses. The typical oil and natural gas firm has fewer than 15 employees.
- Industry jobs are geographically dispersed. Sixteen states have more than 150,000 jobs in the oil and natural gas sector.
Posted January 30, 2014
President Obama, during his State of the Union address to Congress this week:
“… one of the biggest factors in bringing more jobs back is our commitment to American energy. The ‘all the above’ energy strategy I announced a few years ago is working … “
Yes, “all of the above” is working. It refers to embracing all energy sources – oil, natural gas, coal, nuclear, wind, solar, hydro, renewables and others. That the approach is working is seen in the United States’ increasing energy self-sufficiency. And America is more energy self-sufficient because we’re less reliant on others – chiefly thanks to surging domestic oil and natural gas production.
Posted January 30, 2014
Report: Keystone XL Review by U.S. Expected to be Positive
The Canadian Press: Canadian officials say they're encouraged by what they're hearing about a long-awaited report on the environmental impact of the Keystone XL pipeline that could be released imminently by the U.S. State Department.
Those sources in Washington and Ottawa say they've been told the report could be ready for release within a few days — and that it will bolster the case for the controversial energy project.
"What we're hearing is that it's going to be positive for the project — and therefore positive for Canada," said one diplomat in Washington, who spoke on condition of anonymity because he hadn't seen the report himself, although he had discussed its contents with American contacts.
"The rumours certainly are that it's very thorough and that the analysis will support the project."
Posted January 29, 2014
Energy issue positives from President Obama’s State of the Union address Tuesday night:
Crediting surging domestic oil and natural gas production for adding jobs, creating economic growth and revitalizing the manufacturing sector.
Recognizing that because of domestic output the U.S. “is closer to energy independence than we have been in decades.”
Posted January 21, 2014
A new year unfortunately means the same old tired arguments from folks seeking higher punitive taxes on America’s oil and natural gas companies, in this case in the form of a post from the Center for American Progress (CAP), which seeks to simplify the complexity of comprehensive tax reform down to “end special tax breaks for the five biggest oil companies.” So what are these “special” tax breaks they want to end?
Well, the first identified by CAP is the “Section 199 deduction” created in 2004 to spur employment in U.S. manufacturing and is available for all U.S. taxpayers who manufacture in the U.S. So, not special for oil and natural gas companies, and in fact oil and natural gas companies are already singled out for reduced used of the deduction, compared to other manufacturers. The second is the foreign tax credit deduction, which is designed to minimize double taxation and is available to all U.S. companies with operations overseas. So again, not special for oil and natural gas companies. Lastly, CAP wants to end the intangible drilling costs deduction (IDCs), which is a cost-recovery mechanism for oil and natural gas exploration and production expenses that has existed since 1913. While drilling costs are unique to drillers, the deduction of costs is similar to cost-recovery provisions provided to every business, so not special, and as a bonus, IDCs are also not a tax break, as drillers pay the full amount of taxes that are owed.
Posted January 21, 2014
In the interview clip below, Paula Jackson of the American Association of Blacks in Energy talks about the importance of the United States making the right choices on energy policy.
Posted January 8, 2014
Below is a video clip from API President and CEO Jack Gerard’s State of American Energy speech this week, detailing strong support from Americans for increased production of U.S. oil and natural gas – because this development translates into millions of good jobs.
Posted January 7, 2014
API President and CEO Jack Gerard’s annual State of American Energy address put surging U.S. oil and natural gas production into context, saying that it has created a generational opportunity to secure this country’s energy future – an opportunity that would have been unimaginable just a few years ago. Gerard:
“Our future is ultimately of our own design. … We will decide if America continues its march toward global energy leadership – a once-in-a-generation choice – or remains content to play a supporting role in the global energy market. We can erase what for decades has been America’s greatest economic vulnerability – our dependence on energy sources from other continents, particularly from less stable and friendly nations – and fundamentally alter the geopolitical landscape for decades to come, all while providing a much needed boost to our economy. But only if we get our energy policy right.”