Energy Tomorrow Blog
Posted December 14, 2020
That includes addressing the risks of climate change. Americans do not have to make the false choice between utilizing our nation’s energy resources and protecting the environment. We can do both.
Here are four ways natural gas and oil companies are stepping up.
Posted December 11, 2020
Despite the 2020 COVID-19 recession, the U.S. has reached milestones for energy security and trade, including its lowest imports of crude oil and reliance on OPEC in nearly three decades.
Achieving the milestones this year has enabled the U.S. to be on track to become a net exporter of petroleum and total energy on an annual basis for the first time in more than 60 years. At the same time, U.S. refiners have increasingly leveraged domestically-produced energy, ultimately benefiting households through lower spending on energy.
In short, record productivity has enabled abundant domestic oil and natural gas supplies, amped-up U.S. energy exports and displaced foreign energy imports to the benefit of American consumers. This is the backdrop for the imminent change of U.S. administration, as well as a heightened focus on U.S. energy security – see here and here – even though petroleum products and natural gas have remained abundant and at historically low prices.
Posted December 9, 2020
Let’s discuss the value of natural gas and oil to all Americans – the fundamental worth of abundant, affordable and reliable energy to modern, daily life, the economy and our nation’s security – which gets lost in two U.S. senators’ proposal to make producing energy on federal lands more costly.
U.S. Sens. Chuck Grassley of Iowa and Tom Udall of New Mexico want to increase the royalty rate for production on federal lands, which would discourage that critical production. We’ll get to that point down below. First, let’s zero in on the issue of fundamental value.
In a New York Times op-ed, Grassley and Udall call the American public “the big loser” under the current royalty arrangement. In doing so, the senators are so preoccupied with percentages they inadvertently make an afterthought of what current natural gas and oil production on federal lands means for U.S. economic growth, global leadership, strengthened security at home and significant environmental progress.
Posted December 8, 2020
Efficient, safe and responsible natural gas and oil development doesn’t just create jobs and produce the energy that powers our lives – it also funds the conservation programs and public services Americans across the country rely on.
Despite this year’s demand downturn, more than $8 billion from energy development on federal lands and waters in fiscal year 2020 will be disbursed to states and Native American mineral owners, providing funding for conservation programs, schools, infrastructure projects and other public services across the country, according to the latest report from the U.S. Department of the Interior’s Office of Natural Resources Revenue (ONRR).
For decades, the natural gas and oil industry has directly contributed to outdoor recreation and environmental conservation, and critical public programs, not only in high-producing states but in communities across the country.
Posted December 8, 2020
Although many uncertainties remain, oil market fundamentals have recently improved along with economic recovery from the 2020 COVID-19 recession, as we discussed here. If estimates from the U.S. Energy Information Administration (EIA) and others prove to be correct, 2021 could recoup much of the growth, spending, investment and energy demand that was forgone this year.
While 2020 has been an especially challenging year and business climate, what we’re seeing is that the U.S. natural gas and oil industry has resiliently increased its productivity to record levels, lowered its costs and expanded critical infrastructure to reposition for growth in a potential recovery.
A critical question for the United States — its economic growth, energy security and trade balance – concerns who will supply the market if it recovers as expected.
Posted December 4, 2020
Americans benefit daily from homegrown natural gas, an increasingly essential component of the global energy mix and an affordable, efficient resource available to meet our nation’s long-term energy needs.
Nearly two-thirds of America’s energy consumption is made possible by natural gas and oil, and natural gas remains the leading fuel for U.S. power generation, accounting for about 38% of the nation’s electricity in 2019.
Remarkably, the economic competitiveness of natural gas has endured throughout 2020. Such durability has positioned the fuel to balance the challenges of economic recovery with the necessity of climate progress.
Posted December 3, 2020
Post-election analysis says that the U.S. electorate is mostly moderate and expects moderate, sensible policy positions – an important point as Team Biden assembles and a new Congress prepares to convene.
There’s this from veteran Democratic pollster Mark Penn in the Wall Street Journal: The nation is largely moderate, practical and driven by common sense over ideology. … The message from the voters is that we are not divided into two extreme camps. Rather, they are more centrist in nature and outlook, and that a president who governs too far to the right or left is likely to be left behind in the next election.
And Daily Beast columnist Matt Lewis: If Biden wants to keep his winning streak alive, he will keep running the same winning play that got him this far: He will run right down the middle.
On energy, right down the middle, practical and common sense is best for the country’s energy security, economy and environmental protection. This acknowledges the primary role the U.S. energy revolution – made possible by safe, modern hydraulic fracturing and horizontal drilling technologies – has played in fundamentally changing the trajectory for U.S. security, global energy leadership, economic growth and emissions reduction.
Posted December 1, 2020
The year has brought extreme and at times contradictory information about the economy and our industry, making it increasingly difficult to determine whether the economic recovery has gained firm footing and ultimately traction, in which natural gas and oil will play a key role.
Importantly, we currently see well-grounded pillars for expected U.S. and global economic growth over the next two years – personal consumption expenditures and investment that generally represent the majority of GDP. These could kickstart new economic growth and prosperity that will not only require but fundamentally be enabled by oil and natural gas.
Posted November 26, 2020
Thanksgiving celebrations may look different for many Americans this year as gatherings are fewer and farther between, with social distancing and perhaps even remote family get-togethers. But as we adapt and adjust to ensure a safe holiday season, let’s still remember some of the many reasons to be thankful this Thanksgiving.
Posted November 24, 2020
The world changed on 9-11, mine and yours. ...
You’re probably like me. The vivid memories of that day make it hard to believe it happened two whole decades ago. We know now what we may have only sensed then – that 9-11 was an historic pivot point for the United States in terms of our economy, security and the way we approach life.
As president and CEO of the nation’s largest trade association representing the natural gas and oil industry, I’m reminded that 9-11 really helped galvanize our country’s focus on the security of our nation’s infrastructure to harden it against any future acts of terrorism, from our airlines to our supply chains to our energy grid. Natural gas and oil keep America running. After 9-11 we innovated and developed technologies to dramatically increase domestic production and become less dependent on foreign oil. We haven’t looked back; today, the U.S. is the world’s leading producer of the world’s more important energy sources.
9-11 is a big part of the reason that our industry’s approach to assessing risk shifted to a higher gear, to protect our facilities and networks against threats of terrorism – adding risk assessment to API’s body of work on standards that govern the way we operate.