Energy Tomorrow Blog
Posted February 2, 2015
Posted January 26, 2015
Posted July 9, 2014
Hydraulic fracturing is a proven, safe technique that has been used since 1949 in over one million wells right here in the U.S. As a result, America is now the number one producer of natural gas in the world, and by 2015, it is expected that we will take the top spot in crude oil production. Of course, with this success, come both benefits and challenges.
Posted February 20, 2014
Welcome to ‘Saudi Texas’
U.S. News & World Report (Laskoski): To fully appreciate what many of us may simply take for granted — that the Lone Star state produces oil as easily as McDonald’s produces hamburgers — it sometimes helps to look elsewhere to appreciate the actual scale by which we should view such things.
The Associated Press reported this month that North Dakota produced 313 million barrels of oil in 2013, a record amount, and about 70 million more than it produced in 2012. For North Dakota, that’s six consecutive years of record oil production. State data shows that the 185 oil rigs working there now double the amount from four years ago. And you’ve certainly heard about the economic boom and jobs growth that has drawn thousands from all across the country seeking their fortune.
But when your attention is drawn to the Texas oil boom, that discussion takes place on another plane because of the previously inaccessible shale wealth that transforms state economies via fracking. Jonathan Cogan of the Energy Information Administration noted this week that production in the Eagle Ford formation in South Texas reached 1.2 million barrels per day in December. Additionally, production from the Permian Basin averaged 1.3 million bpd and is projected to grow more than any other U.S. region through 2015.
Posted December 23, 2013
State Already Taxes Oil in many Ways
San Francisco Chronicle (Catherine Reheis-Boyd): Tom Steyer, the San Francisco billionaire environmentalist, has launched a campaign to increase taxes on energy production in California. He thinks oil companies are allowed to "siphon California resources without providing any meaningful return to Californians."
Beginning an education campaign on inaccurate claims doesn't bode well for the quality of the educational experience.
To claim Californians receive no meaningful return for the oil we produce is puzzling. Oil companies in California generate $6 billion in tax revenues for state and local governments, according to an analysis by Purvin & Gertz in 2011. While it's true California does not have an oil severance tax per se, California taxes oil companies and oil production in a variety of other ways.
Read more: http://bit.ly/1kzQ4aP
Posted December 5, 2013
America’s vast offshore energy reserves present an opportunity to improve our economy, increase our energy security and create tens of thousands of jobs. According to a new study, opening the U.S. Atlantic Outer Continental Shelf (OCS) to offshore oil and natural gas development could turn that opportunity into reality. API’s Director of Upstream Erik Milito and the National Ocean Industries Association’s Randall Luthi outlined the study for reporters today. Milito:
“Oil and natural gas production off our Atlantic coast is a potential gold mine. Developing oil and natural gas in the Atlantic could put hundreds of thousands of Americans to work, make us more energy secure, and bring in needed revenue for the government. But none of these benefits will appear unless the federal government follows pro-development energy policies.”
According to the study, oil and natural gas development in the Atlantic OCS between 2017 and 2035 could:
- Create nearly 280,000 new jobs along the East Coast and across the country.
- Result in an additional $195 billion in new private investment.
- Contribute up to $23.5 billion per year to the U.S. economy.
- Add 1.3 million barrels of oil equivalent per day to domestic energy production, which is about 70 percent of current output from the Gulf of Mexico.
- Generate $51 billion in new revenue for the government.
Posted October 29, 2013
Here’s what Americans are thinking about tax reform discussions that potentially could include hiking taxes on U.S. oil and natural gas companies, according to a new Harris Interactive poll
Posted October 22, 2013
Domestic oil and natural gas development is a key driver of America’s economy and global energy security, API’s director of upstream and industry operations Erik Milito told reporters yesterday. Access to offshore resources currently off-limits in the Atlantic, Pacific and Eastern Gulf of Mexico could supply even more of the energy and jobs Americans need. Milito:
“Americans are eager to put more of our offshore energy resources to work. If exploration and development is allowed to safely expand to new areas, domestic oil and natural gas could provide more energy, jobs and government revenue than ever before.”
Posted October 22, 2013
Working in Washington D.C. big numbers (trillions and trillions) are thrown around casually, which can sometimes distort what these numbers actually mean in the real world. An example from yesterday’s Washington Post:
The shale-gas boom will provide a modest boost to the U.S. economy. On average, the models in the Stanford study predicted that the natural-gas boom would raise GDP by about $70 billion per year over the next several decades (in current dollars).
$70 billion a year! While, as the article notes, it is not an overwhelming percentage of GDP, ours is a big economy and $70 billion a year is nothing to be modest about. There is a great breadth of industries contributing to our great economy so for comparison let’s pick one, and since I’m a big movie fan, let’s look at motion pictures.
Posted September 11, 2013