Energy Tomorrow Blog
Posted December 1, 2015
This week’s climate summit in Paris will be filled with talk of ways to reduce global greenhouse gas emissions. That’s an important discussion for sure, but it’s one that should focus on achievable, real-world initiatives. A couple of starting points for an action agenda:
The first is an acknowledgement – that the availability of safe, reliable energy is fundamental to lifting people – and entire nations – from poverty. United Nations Secretary-General Ban Ki-moon has called energy the “the golden thread that connects economic growth, social equity, and environmental sustainability.” With the International Energy Agency telling us that more than a billion people around the world don’t have electricity, it would be a mistake for the Paris summit to do anything that impedes or blocks access to energy. The world needs more energy, not less.
The second point a realization by the summiteers that private markets, not command-and-control government interventions, offer the best avenue to advance climate objectives while growing energy supplies – progress without hamstringing economies and hindering individual opportunity.
Posted November 25, 2015
Posted November 3, 2015
API assembled a great panel of election/campaign experts to discuss how Election 2016 is shaping up and which issues will be salient when Americans vote a year from now. As for predicting the key issues 12 months into the future, the experts said what honest experts say: Who knows for sure? Yet, Public Opinion Strategies’ Glen Bolger no doubt was in the ballpark:
“I don’t think any one issue is going to dominate the election. … You’re going to have a number of different issues debated: foreign policy and national security being up there, the economy and jobs … Energy certainly can play a role in that, just given that it is a component of jobs and the economy. It’s a component of our national security, it’s a component of our foreign policy. I think energy will be an issue, but the question is how big.”
Great point. Energy and advancing the right policies for American energy certainly run through a number of the things Americans say they care about most: jobs, a thriving economy and safety for themselves and their families. That’s what comes through the results of a new Harris Poll of 2,800 registered voters: energy, energy, energy.
Posted October 29, 2015
Lacking factual, substantial reasons for keeping the United States’ antiquated ban on crude oil exports, those who oppose letting U.S. crude reach the global marketplace are left to make a non-factual, unsubstantial case instead.
In a letter to the editor in the New York Times, the Sierra Club’s Michael Brune offers up a couple of scary fictions – in time for Halloween – to distract Americans from the stark, “off oil” agenda that Brune and many others advocate: a harsher, less healthy, less hospitable world minus the reliable, affordable fuels that are fundamental to modern living.
API President and CEO Jack Gerard recently called them out for the false choice that’s central to their advocacy:
“There is a vocal minority who believe that instead of growing our economy to lift people out of poverty we should reduce our current standard of living and cap our potential. We reject this notion and encourage policy makers to continue down the path we have shown to work, supplying abundant, affordable, and reliable energy to consumers while lowering our impact on the environment.”
Posted October 26, 2015
A couple of reactions to last week’s Bureau of Land Management (BLM) approval of drilling in the National Petroleum Reserve-Alaska (NPR-A) – which we’ll link to a larger conversation about the Obama administration’s oil and natural gas policies.
First, it’s good that BLM has cleared the way for ConocoPhillips to move forward with a $900 million project that includes construction of an 11.8-acre drilling pad in the 23 million-acre NPR-A. The Greater Mooses Tooth Unit (GMT1) project could host up to 33 wells and could reach a monthly production peak of 30,000 barrels per day. America needs the energy, and producing oil from the vast reserve that was originally set aside for energy development almost a century ago is a welcome step. ConocoPhillips’ Natalie Lowman:
“It’s good news. We’re pleased they issued the permit and the right-of-way and now we’re seeking a funding decision.”
BLM approving this one drilling permit prompts another set of reactions, starting with: It’s about time. And: What about energy development in the rest of the oil reserve?
Posted October 14, 2015
Highlights from API President and CEO Jack Gerard’s conference call with reporters in which he discussed efforts to lift America’s 1970s-era ban on crude oil exports and the positive climate impacts of the U.S. energy revolution in advance of next month’s COP21 conference in Paris.
Last week the U.S. House of Representatives sent a clear message that it stands for a brighter energy and economic future for our nation when it approved with a strong bipartisan majority lifting the 1970s era ban on crude oil exports. We now call on the Senate to do the same. We urge them to unleash our nation’s energy potential by ending this vestige of our nation’s era of energy scarcity, dependence and insecurity.
According to [studies by Columbia University and Brookings/NERA], putting this additional U.S. oil on the world market could reduce the price of a gallon of gasoline by as much as 12 cents a gallon, a significant savings for consumers. American consumers could save about $5.8 billion per year by 2020, [according to an ICF study]. The study also found that by lifting the ban on crude exports could create up to 300,000 American jobs, well beyond oil-producing states. Eighteen states could gain more than 5,000 jobs each in 2020 from the export of U.S. crude oil. Every other major study agrees. …
Posted October 9, 2015
We’re still more than a year from the next presidential election, but already we’re hearing attacks on energy company earnings, rhetoric calibrated for the sole purpose of riling up the party base. It’s bad political theater that misleads the American public to score political points, distracting from a substantive debate on the right energy path for the country. This has come up most recently in the debate over lifting the 1970s-era ban on U.S. crude oil exports -- which was advanced with bipartisan U.S. House passage of a bill ending the export ban.
Yesterday, we looked at problems with the White House’s opposition to lifting the ban. Goodness knows, export opponents on Capitol Hill have their own faulty reasons. We’ve covered most of these before, including consumer impacts, national security and the oil imports vs. exports muddle.
Some of the biggest confusion comes from those who find it convenient to flay the oil and natural gas industry. Certainly, running around and repeating “Big Oil” over and over again plays well with people who don’t like fossil fuels and/or progress in general. Unfortunately, in their rush to attack those who supply products that the American people actually want and demand – products that power our economy and modern way of life – it’s the American people who take the hit.
Posted October 8, 2015
These things are true:
- The U.S. gets the majority of its energy from oil and natural gas, and is projected to continue to do so for decades.
- Since 2005 U.S. production of natural gas is up 43 percent.
- Since 2008 U.S. production of crude oil is up 88 percent.
- U.S. air quality continues to improve, with concentrations of carbon monoxide down 60 percent, ozone down 18 percent, lead 87 percent, nitrogen dioxide 43 percent, particulate matter 35 percent and sulfur dioxide 62 percent since 2000.
- The federal U.S. budget deficit for FY2015 was $435 billion.
- The U.S. trade deficit rose in August as exports hit a three-year low.
- Since 2008 our working age population has grown by over 16 million, while employment is up 8.5 million, leaving the U.S. at odds with trends in other countries.
- U.S. poverty and wages are stagnant, and it is getting harder for people to move beyond a minimum-wage job.
- Americans' trust in the federal government's ability to handle domestic problems has reached a new low.
These things are true, and thus, when presented with bipartisan legislation to reduce consumer fuel costs and the trade deficit while increasing U.S. investment, domestic crude oil production, GDP and government revenues and creating good paying jobs – all via U.S. crude oil exports – the White House obviously had no choice but to … threaten to veto it.
Posted September 30, 2015
America’s energy revolution means … a United States that’s more energy self-sufficient – less dependent on others, more secure in the world and better positioned to help friends abroad; economic growth and job creation – and with the right policy choices, a golden opportunity to secure American prosperity well into the future; and a stronger U.S. trading posture that, with energy exports, could benefit consumers
Let’s look at some charts that illustrate this American energy renaissance – which is based on the surge in domestic production that has accompanied the growth of safe, advanced hydraulic fracturing and horizontal drilling since the mid-2000s.
Posted September 29, 2015
U.S. oil and natural gas companies continue to lead in investing in the domestic economy, with five companies among the Progressive Policy Institute’s top 25 in 2014 U.S. capital expenditures.
ExxonMobil, Chevron, ConocoPhillips, Occidental Petroleum and Hess lead an energy production/mining sector that invested $43.6 billion in 2014, closely following the $48.7 invested by telecom/cable.
That’s great news for the U.S. economy which, as the PPI report details, needs investment to expand. PPI calls the top 25 its “investment heroes” because “their capital spending is helping to raise productivity and wages across the economy.”