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Energy Tomorrow Blog

Lifting Oil Export Ban a Win for Economy, Security

crude oil exports  economic growth  oil production  jobs  us energy security 

Jack Gerard

Jack Gerard
Posted December 22, 2015

Almost exactly 40 years after it was instated, the ban on crude exports has been lifted. A relic of ‘70s-era energy scarcity, the ban makes no sense now that the United States leads the world in oil and natural gas production. Numerous studies have found that lifting the ban will help put downward pressure on gas prices, create jobs, grow our economy and lower our trade deficit.

Lifting the ban is also a security win for the U.S. and our allies. With the administration’s push to allow Iran to export its oil to the global market, it’s time for U.S. producers to have the same opportunity. Our allies around the world are eager to reduce their reliance on energy from less friendly nations.

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Energy Infrastructure is Key to Maintaining Winter Heating Savings

infrastructure  energy  hydraulic fracturing  electricity  gas prices  natural gas  heating fuels 

Jack Gerard

Jack Gerard
Posted December 16, 2015

In November, Americans were grateful for the lowest Thanksgiving gas prices in seven years. Thanks largely to the American energy resurgence, drivers continue to enjoy relief at the pump – with the national average close to $2.00, according to AAA.

As winter approaches, the good news continues with the U.S. Energy Information Administration’s (EIA) Winter Fuels Outlook. Due to a “combination of warmer weather and lower fuel prices,” EIA projects household heating costs will be lower than the previous two winters.

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Denying Access to Energy Denies Safety, Prosperity, Opportunity

access  oil and natural gas development  offshore oil production  alaska  regulation  us energy security 

Mark Green

Mark Green
Posted December 11, 2015

Then there’s this from Alaska: Falling oil revenues have the governor in that energy-rich state asking his legislature to plug a $3.5 billion hole in the state budget by imposing a small income tax (Alaska hasn’t had one for 35 years), other tax hikes, budget cuts and a reduction in the annual dividend Alaskans get from the state’s Permanent Fund.

Now, it might not bother you much that Alaskans soon could be paying higher taxes. But there’s another story playing out in Alaska and other places that should trouble all Americans: Access to U.S. energy is being restricted – by policy and regulation – in ways that could imperil America’s energy revolution and the generational opportunities that are being created by that revolution.

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U.S. Oil Exports and the Global Market

crude oil exports  crude markets  oil production  economic growth  us energy security 

Mark Green

Mark Green
Posted December 9, 2015

The U.S. shale energy revolution is a game-changer – for the United States and the world’s energy balance. The U.S. has become the No. 1 producer of oil and natural gas, resulting from a domestic energy renaissance driven by advanced hydraulic fracturing and horizontal drilling – fracking. And the positive impacts are all around us.

U.S. crude imports are down, and American energy self-sufficiency is up. An America that’s more energy self-sufficient is more secure. Meanwhile, the global crude market is better supplied and more stable – thanks to the availability of crude that would have been imported to the U.S. Domestic pump prices reflect this well-supplied market. At the same time, greater use of natural gas has increased each American household’s disposable income by $1,200, and IHS says the benefit will grow to more than $3,500 in 2025. Thanks, fracking.

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Regulators Gonna Regulate – Methane Edition

natural gas  methane  epa  emission reductions  hydraulic fracturing  shale energy  greenhouse gases 

Mark Green

Mark Green
Posted December 4, 2015

Part of the U.S. success in reducing greenhouse gas emissions is the significant drop in emissions of methane, the primary component in natural gas, from development operations. Since 2005, methane emissions from hydraulically fractured natural gas wells have plummeted 79 percent – with technology and innovation allowing industry to capture more of a product that can be delivered to consumers. This has occurred even as U.S. natural gas production has steadily climbed, thanks to shale, safe fracking and horizontal drilling.

It’s a shining chapter in a success story that shows how free market forces have taken the lead in reducing greenhouse gas emissions in this country. In turn, the U.S. is leading the world in reducing GHG emissions.

No matter. Despite these advances, EPA is proposing additional methane regulations on oil and gas wells and transmission. Unfortunately, more regulation could mean less – less fracking, less energy and, quite possibly, less progress in reducing emissions.

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America’s Climate and Energy Success Story

oil and natural gas development  energy growth  climate  greenhouse gas emissions  co2  methane  electricity 

Mark Green

Mark Green
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.

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A High-Energy Thanksgiving

affordable energy  american energy security  co2 emissions  consumer products  oil and natural gas production  economic benefits  gasoline prices  energy exports 

Mark Green

Mark Green
Posted November 25, 2015

Thanksgiving is about taking a moment to give thanks for our good fortune. A festival of gratitude with food, family and friends – maybe with a little football thrown in.  So here's a list of some of the things that we’re thankful for this holiday season, from A to Z.

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U.S. Energy Exports and Market Engagement

crude oil exports  energy markets  domestic energy production  economic growth  jobs  trade  lng exports 

Mark Green

Mark Green
Posted November 18, 2015

Interesting analysis on energy independence in the Wall Street Journal by Columbia University’s Jason Bordoff, a former energy adviser to President Obama. It’s a good thing the United States isn’t energy independent, Bordoff writes. That’ll get your attention, right?

As Bordoff explains, “energy independence” is a dusty concept from the 1970s and 80s, after policymakers made it a goal to end U.S. reliance on global crude suppliers after the 1973 oil embargo.  It didn’t happen. To the contrary, U.S. imports steadily climbed in the 1990s and 2000s before the significant increases in domestic production, thanks to abundant American shale energy reserves and advanced hydraulic fracturing.

Now, with U.S. energy output surging, the inclination among some is to keep that energy here at home by maintaining the 1970s-era ban on crude oil exports, believing that it lessens others’ ability to disrupt our oil supplies. But Bordoff writes that an “isolationist” approach on energy misunderstands the reality that today’s global energy market is highly integrated and that the interconnectedness of the market has helped the U.S. compensate for supply disruptions here at home and overseas. “Free trade in a highly integrated global energy market made us more secure,” he writes.

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Energy and Bipartisanship

energy policy  election  energy exports  oil and natural gas development  security  production  vote4energy 

Mark Green

Mark Green
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.

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U.S. Energy Exports Opportunity Knocks

energy exports  crude oil exports  lng exports  security  economic growth  domestic oil production 

Mark Green

Mark Green
Posted October 15, 2015

Reuters reports that Lithuania is in talks with U.S. liquefied natural gas company Cheniere Energy, seeking to reduce its dependence on Russia for LNG supplies. Lithuania opened an LNG import terminal last year, and its gas supply contract with Russian state-owned supplier Gazprom is scheduled to expire at the end of the year. Rokas Masiulis, Lithuania’s energy minister:

“We would love to have U.S. cargo in our region to have competition with Gazprom. … I believe negotiations with Gazprom now will be on competitive, reasonable terms and that will be just business and nothing else. … After we have built an LNG terminal, there is no possibility of blackmail. Since we think there is no possibility of blackmail, discussion will be rational and economical rather than political. This is a big step.”

The minister speaks diplomatically, so let’s read between the lines a bit. We suspect that Lithuania is trying to secure the diversification of its energy supply. The country wants options, additional sources of LNG so that it is beyond leveraging by Russia on natural gas. Russia did this with oil in 2006, Reuters reports.

At the same time, Masiulis told Reuters that Lithuania also would be open to buying U.S. crude oil if the United States repeals its current ban on the export of domestic crude.

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