Energy Tomorrow Blog
Posted December 30, 2013
As 2013 nears its end, noting some of the year's most popular Energy Tomorrow Blog posts:
Jobs = Job 1
PwC’s latest detailing of the economic impacts of oil and natural gas activity ranked the highest in readership. And why not: It’s a great story. PwC found that in 2011, the last year for which complete data is available, the industry recorded these key numbers:
- 9.8 million full- and part-time jobs supported, directly and indirectly.
- $1.2 trillion added to the economy, accounting for 8 percent of the national total.
- Nearly $600 billion contributed in associated labor income – including wages, salaries, benefits and proprietors’ income.
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 19, 2013
Mexico’s Energy Reform Will Benefit U.S.
USA Today (Peter Schechter and Jason Marczak): Last Thursday, Mexico's Congress passed the final hurdle to approve amendments to its constitution that herald a deep, positive change for the country. With all the bad news coming out of most everywhere else in the world, it is a relief to see a part of the western world where politics remain constructive.
The energy reform proposal will bring dramatic advances to Mexico's energy market, allowing private investment in the country's oil and gas sector for the first time since former President Lázaro Cárdenas nationalized oil in 1938. The reform will have profound economic implications for Mexico and the international energy supply equation.
It is also a coup for President Enrique Peña Nieto,47, who successfully built a coalition with his main political rivals to pass the reform. In a move reminiscent of Nixon's trip to China, this youthful president of the same party that 75 years ago nationalized Mexico's natural resources accomplished a reform previously considered the third rail of Mexican politics. Indeed, the Peña Nieto administration is able to provide the United States and Europe with a Harvard Case Study on leadership, partnership and putting citizenship before partisanship.
Read more: http://usat.ly/19VwttE
Posted December 12, 2013
Shale Gas a Boon to Public Health
Breaking Energy (Dana Bohan): You’ve probably heard that the United States is experiencing an unprecedented energy boom that is transforming our economy, enhancing our energy security, and creating a manufacturing renaissance — all thanks to hydraulic fracturing and the development of America’s massive oil and natural gas resources. But what you probably haven’t heard is that shale development has an added bonus: it is rapidly reducing emissions of all kinds, which translates to massive public health benefits.
A new report by University of California-Berkeley climate scientist Richard Muller puts the health benefits of natural gas in the spotlight, concluding that “air pollution can be mitigated by the development and utilization of shale gas,” and because of this, “environmentalists who oppose the development of shale gas and fracking are making a tragic mistake.”
Read more: http://bit.ly/1gt6PnI
Posted December 11, 2013
Remember the Energy Crisis? Fracking Fixed It
Newsday (Paul Greenberg): Energy Crises used to come as regularly as flu seasons, some years or whole eras worse than others. Let's see, there was the Energy Crisis of 1973 and of 1979 and of the years in between and after ... till the whole era, aka the Carter Years, might as well have been one long Energy Crisis.
Why? Largely because each successive wave of shortages was only aggravated by government-supplied remedies that were going to cure them -- from price controls to tighter regulations on the oil industry and on a once free market.
Daniel Yergin is one of the more prescient students of the oil industry, and of the American economy in general. He's one expert whose analyses have proven so reliable over the years that they almost restore the once assuring connotations of the word Expertise, which has acquired a suspect sound over the years. And no wonder. One after another, the experts' "solutions" for the Energy Crisis did nothing but make it worse.
Read more: http://bit.ly/1bEvJNC
Posted December 9, 2013
Why Obama Should Thank the Oil and Natural Gas Industry
National Journal (Amy Harder): The oil and natural-gas industry probably won't ever get a thank-you card from President Obama, but he has a few big reasons to be grateful for the fossil-fuel boom.
America's vast resources of oil and natural gas have enabled Obama to move forward on aggressive policies, including tougher environmental rules and Iranian oil sanctions, which he would not have been able to do nearly as effectively without them.
The International Energy Agency predicts the U.S. will surpass Saudi Arabia as the world's biggest oil-producer in 2015; and, by the end of this year, the Energy Information Administration says we'll surpass Russia as the biggest natural-gas producer.
"I've joked before that for the last 30 years, our national energy policy has been implicitly predicated on a low-cost, trustable supply of natural gas," said Jason Grumet, president of the Bipartisan Policy Center, who advised Obama in his transition to the presidency in 2008. "It is incredibly fortunate that it showed up in time."
Read more: http://bit.ly/1aP7BDD
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 December 4, 2013
A Pivotal Moment in U.S. Energy History
Global Energy Initiative (Jason Bordoff): We are at a transformational moment in energy history. Just a few years ago, all energy projections forecast increased imports, increased scarcity, and increased natural gas prices. Today, we’ve shifted from scarcity to abundance. U.S. oil production has increased by 2.5 million barrels per day (B/D) since 2010. This year, the United States overtook Saudi Arabia as the largest producer of liquid fuels (including crude oil, natural gas, and biofuels) in the world. U.S. oil imports are at their lowest level in 25 years and are projected to continue declining. The natural gas outlook is even more striking. New geological surveys and production data continue to surprise to the upside. And multi-billion-dollar terminals proposed not long ago to import natural gas are being flipped to export instead.
This transformation is not only a U.S. story. New technologies mean that what were once challenging sources of oil and gas can now be tapped economically from the oil sands in Canada (and potentially Venezuela), the ultra-deepwater “presalt” off the coast of Brazil, and many other parts of the world. Iraq, parts of Africa, and elsewhere are poised for sharp increases in production.
Read more: http://bit.ly/1gk7ms9
Posted December 2, 2013
The Remarkable Shale Oil Bonanza in ‘Saudi Texas’
AEI Carpe Diem Blog: The Energy Information Administration (EIA) released new state crude oil production data this week for the month of September, and one of the highlights of that monthly report is that oil output in America’s No. 1 oil-producing state – Texas – continues its phenomenal, meteoric rise. Here are some details of oil output in “Saudi Texas” for the month of September:
Oil drillers in Texas pumped out an average of 2.726 million barrels of crude oil every day (bpd) during the month of September, which is the highest daily oil output in the Lone Star State in any single month since at least January 1981, when the EIA started reporting each state’s monthly oil production.
Read more: http://bit.ly/1bdF6iQ
Posted November 26, 2013
Here’s wishing everyone a happy Thanksgiving while offering a few of the reasons we can all feel blessed because of America’s energy present and future – which the men and women of the oil and natural gas industry help deliver.
Let’s start with the fact America is enjoying a renaissance in home-grown energy production, thanks to advances in technologies and techniques, such as hydraulic fracturing and horizontal drilling. Last month these played a big role in helping domestic oil output to exceed imports for the first time since 1995. Because of fracking and other technologies, more of America’s vast oiland natural gas reserves can be developed to generate fuels that provide about 62 percent of the energy Americans currently use. That’s energy that makes our lives possible – that will power our lifestyles and economy in the future, according to government projections.