Energy Tomorrow Blog
Posted April 7, 2015
Following on yesterday’s post on increased domestic energy production that is backing out imports, we see that the U.S. remained No. 1 in the world in the production of petroleum and natural gas hydrocarbons last year, according to the U.S. Energy Information Administration (EIA).
The government agency responsible for quantifying all things energy says that U.S. oil and natural gas production has been trending higher than the output of Russia and Saudi Arabia, the second- and third-largest producers:
Since 2008, U.S. petroleum production has increased by more than 11 quadrillion British thermal units (Btu), with dramatic growth in Texas and North Dakota. Despite the 50% decline in crude oil prices that occurred in the second half of last year, U.S. petroleum production still increased by 3 quadrillion Btu (1.6 million barrels per day) in 2014. Natural gas production—largely from the eastern United States—increased by 5 quadrillion Btu (13.9 billion cubic feet per day) over the past five years. Combined hydrocarbon output in Russia increased by 3 quadrillion Btu and in Saudi Arabia by 4 quadrillion Btu over the past five years.
Posted April 6, 2015
Statistics in the U.S. Energy Information Administration’s Monthly Energy Review for March show U.S. domestic energy production meeting about 89 percent of the country’s total energy demand. That’s up from 84 percent in 2013 and 2012 and reflects a key result of the domestic energy revolution: growing U.S. self-sufficiency.
EIA data shows U.S. energy production as a percentage of total demand. Total energy production (fossil fuels, nuclear electric power and renewables – again, as a percentage of total U.S. energy demand -- was about 69 percent in 2005, and it grew to about 89 percent last year. The share of fossil fuels (oil, natural gas and coal) accounted for approximately 55 percent in 2005, growing to about 70 percent last year.
Posted April 3, 2015
A couple of data points and some observations on energy security.
First data point: The U.S. Energy Information Administration (EIA) reports that last year the United States enjoyed the largest volume increase in crude oil production since record keeping began in 1900. That’s right, the largest increase in 115 years!
Production of crude (including lease condensate) increased during 2014 by 1.2 million barrels per day to 8.7 million barrels/day. EIA says that on a percentage basis 2014’s output increased 16.2 percent, the highest growth rate since 1940.
You can thank shale and fracking.
Posted February 10, 2015
EIA Today in Energy: The increase in U.S. shale and tight crude oil production has resulted in a decrease of crude oil imports to the U.S. Gulf Coast area, particularly for light-sweet and light-sour crude oils. These trends are visualized in EIA's crude import tracking tool, which allows for time-series analysis of crude oil imported to the United States.
Historically, Gulf Coast refineries have imported as much as 1.3 million barrels per day (bbl/d) of light-sweet crude oil, more than any other region of the country. Beginning in 2010, improvements to the crude distribution system and sustained increases in production in the region (in the Permian and Eagle Ford basins) have significantly reduced light crude imports. Since September 2012, imports of light-sweet crude oil to the Gulf Coast have regularly been less than 200,000 bbl/d. Similarly, Gulf Coast imports of light crude with higher sulfur content (described as light-sour) have declined and have been less than 200,000 bbl/d since July 2013.
Posted December 10, 2014
Two U.S. energy production updates and a new Congressional Budget Office (CBO) report showing the economic impacts of America’s shale energy revolution – which is driving overall U.S. production.
A chart from energy/economics blogger Mark J. Perry shows the impact of U.S. energy production on energy imports – measuring net petroleum imports as a share of products supplied. The chart shows steady increases in imports from the mid-1980s to an apex of more than 60 percent in 2005. Today, we’re looking at a percentage share that’s as low as it has been in four decades.
Posted October 23, 2014
The U.S. Energy Information Administration’s new report on U.S. energy-related carbon dioxide emissions details the major role in reducing CO2 emissions that’s being played by increased use of clean-burning, affordable natural gas.
While U.S. energy-related CO2 emissions ticked up slightly last year (2.5 percent), mainly because colder weather led to greater heating demand over 2012, EIA says 2013 emissions still were 10 percent lower than they were in 2005. Wider use of natural gas in electricity generation is a key reason.
Posted August 29, 2014
Supply matters. The impact of the U.S. energy revolution on global supply, with real benefits reaching consumers, is seen we head into the Labor Day weekend. The U.S. Energy Information Administration (EIA) reports the U.S. average retail price for gasoline on Aug. 25 was the lowest price on the Monday before Labor Day since 2010. EIA explains:
The recent decline in gasoline prices largely reflects changes in crude oil prices. In June of this year, the Brent spot price reached its year-to-date high of $115/barrel (bbl), then fell to $102/bbl on August 22. Current Brent prices are below their August average level over the past three years, which ranged between $110/bbl and $113/bbl.
This parallels another EIA report, crediting the surge in U.S. crude oil production with a more stabilized global crude market:
Record-setting liquid fuels production growth in the United States has more than offset the rise in unplanned global supply disruptions over the past few years … U.S. liquid fuels production, which includes crude oil, hydrocarbon gas liquids, biofuels, and refinery processing gain, grew by more than 4.0 million barrels per day (bbl/d) from January 2011 to July 2014, of which 3.0 million bbl/d was crude oil production growth. During that same period, global unplanned supply disruptions grew by 2.8 million bbl/d. U.S. production growth, the main factor counterbalancing the supply disruptions on the global oil market, has contributed to a decrease in crude oil price volatility since 2011.
More simply, supply matters. Because crude oil is traded globally, every additional barrel of U.S. production going into that market has impact.
Posted July 15, 2014
Three keys to a true, all-of-the-above energy policy: increasing access to U.S. energy reserves, implementing sound regulatory policies and creating an environment that fosters investment in energy innovation and development.
Government has an important role to play in all three. While it can’t create an energy revolution like the one occurring in the United States today, it can help sustain and grow it. Unfortunately, government also can hinder it – with limited vision, misplaced priorities and poor policy choices.
Thus, “architecture of energy abundance” remarks by U.S. Rep. Fred Upton at this week’s U.S. Energy Information Administration (EIA) energy conference are particularly timely.
Posted July 15, 2014
A couple of highlights from the first day of the U.S. Energy Information Administration’s (EIA) annual energy conference, both of which can be used to underscore the need for policies that help sustain and grow America’s energy revolution.
First, International Energy Agency (IEA) Executive Director Maria van der Hoeven suggested exuberance over the U.S. energy boom has risks because energy security is more than just ample supply:
“In periods of abundance we must challenge ourselves with questions. And so I ask you, is your energy security as security as you or I think? … Energy security is about much more than supply. … Although things look bright at first sight, there’s no time for complacency.”
Posted June 23, 2014
It’s hard to overstate the revolution that’s under way in American Energy. In just a few years we’ve gone from a scenario of energy scarcity to energy abundance – thanks in large part to the innovations and investments of America’s oil and natural gas industry. As the White House noted in its May report, “The All-Of-The-Above Energy Strategy as a Path to Sustainable Economic Growth,” dramatic increases in domestic oil and natural gas production have brought jobs, energy security and economic growth. ...
“All-Of-The-Above” is not just a strategy, or a simple catch-phrase. It represents our reality. Analysis by EIA as well as international and private analyses show that oil and natural gas provide the bulk of the energy we use today (62 percent) and will continue to provide the majority of the energy we use for many years to come (60 percent in 2040).