Energy Tomorrow Blog
Posted January 23, 2014
What The Captain & Tennille Teach Us About Energy Policy
Forbes: Love apparently didn’t keep the ’70s pop duo Captain & Tennille together.Toni Tennille has filed for divorce from Daryl Dragon after 39 years of marriage. Just as the pair’s most famous standard now rings false, so does our 1970′s notion of energy security. For the past 40 years, U.S. energy policy has been married to the idea of scarcity. Following the oil embargoes of the 1970s, we built policies, from export bans to ethanol mandates, based on the idea that we would forever be at the mercy of other oil-producing nations.
The hydraulic fracturing boom, however, has changed all that. North America is undergoing an energy renaissance. Domestic crude oil production has reached parity with imports, and the International Energy Agency predicts the U.S. may become the world’s largest energy producer as early as next year. Yet our policies remain stuck in the dark ages of scarcity. Lawmakers on both sides of the aisle are resisting efforts to lift the 1970s-era ban on crude exports, citing issues of “energy security.”
As Sen. Edward Markey, D-Mass., told the Wall Street Journal: “If we overturn decades of law and send our oil to China and other markets, oil companies might make more money per barrel, but it will be American consumers and our national security that will pay the price.”
There’s a difference between ensuring our energy security and hoarding resources. With our newfound abundance, security comes through continued development of domestic reserves.
Read more: http://onforb.es/KMM7kV
Posted January 22, 2014
EIA Today in Energy: The 2014 Annual Energy Outlook projects declines in U.S. oil and natural gas imports as a result of increasing domestic production from tight oil and shale plays. U.S. liquid fuels net imports as a share of consumption is projected to decline from a high of 60% in 2005, and about 40% in 2012, to about 25% by 2016. The United States is also projected to become a net exporter of natural gas by 2018.
Conversely, other major economies are likely to become increasingly reliant on imported liquid fuels and natural gas. China, India, and OECD Europe will each import at least 65% of their oil and 35% of their natural gas by 2020—becoming more like Japan, which relies on imports for more than 95% of its oil and gas consumption.
The reasons for these shifts are different between emerging and developed economies. In China and India, oil demand growth from emergent middle classes will likely outpace domestic production, while OECD Europe will likely become more import reliant as a result of declining oil production in the North Sea.
Read more: http://1.usa.gov/1g1pCqW
Posted January 21, 2014
The Washington Post had an interesting article last week on a letter sent by 18 environmental groups to the White House. Interesting because it shows the extreme disconnect between their acknowledgement of reality and their demands. First the reality, from their letter:
“We understand that the U.S. cannot immediately end its use of fossil fuels and we also appreciate the advantages of being more energy independent.”
This is a huge, and welcome, admission of the energy reality that oil and natural gas provide and will continue to provide the energy the American people and American economy need.
Posted January 17, 2014
David Ignatius has an important column in the Washington Post this week on America’s energy boom –the result of greatly expanded domestic oil and natural gas production and an “all of the above” approach to energy policy. Ignatius writes:
For decades, Americans have talked about “energy policy” as if it were the political equivalent of a migraine. The phrase connoted pain — in ever-rising gas prices, costly government schemes and dependence on imports from precarious Middle East regimes. But recent developments involving energy production and technology have been so astonishing that they should puncture this long-running pessimism. The amazing fact is that, on nearly every front, America’s energy prospects have improved in ways that would have been unimaginable just a decade ago. In the energy marketplace, President Obama’s vision of an “all of the above” strategy is actually happening. Production of oil, gas and alternative energy is rising, even as demand begins falling for these energy sources — all thanks to new technology. The market forces driving these changes are so powerful that even politicians probably can’t screw them up.
Ignatius highlights data we’ve previously seen from the U.S. Energy Information Administration (EIA), projecting that the U.S. will produce nearly 9.6 million barrels of oil per day by 2016, a level not seen since 1970 – thanks largely to vast shale deposits and advanced hydraulic fracturing and horizontal drilling.
Posted January 16, 2014
Oil Boom Brings Cash and iPads to School District
USA Today: COTULLA, Texas — In Cindy Ochoa's fourth-grade reading class, a dozen students peer quietly into their iPads, perusing an online version ofEncyclopedia Britannica for a research paper on U.S. states.
"You see how quiet it is?" Ochoa says. "They're in their own worlds."
A few years ago, the iPads would have been unthinkable, an unreachable expense in a dirt-poor school district. Today, all 1,300 students in the Cotulla Independent School District have access to new iPads. Their parents no longer have to spend money on school supplies. They ride around in new buses.
Once one of the poorest districts in Texas, Cotulla is today one of the richest because of the state's oil boom.
Read more: http://usat.ly/1dzv3vz
Posted January 16, 2014
The U.S. Chamber of Commerce’s Institute for 21st Century Energy laid out a road map for energy policy yesterday. Energy Works for US focuses on nine energy areas including removing barriers to increased domestic oil and natural gas production, modernizing the federal permitting process, regulation reform, and ensuring a competitive workforce.
Chamber CEO Tom Donohue spoke on America’s energy renaissance and opportunities for the future:
“Energy is absolutely essential. We have an opportunity to transform our country from one that is dependent on imports to an energy exporter. The U.S. has such energy reserves; we shouldn’t be reliant on foreign sources.”
Posted January 15, 2014
America’s Energy Boom
Real Clear Politics: WASHINGTON -- For decades, Americans have talked about "energy policy" as if it were the political equivalent of a migraine. The phrase connoted pain -- in ever-rising gas prices, costly government schemes and dependence on imports from precarious Middle East regimes.
But recent developments involving energy production and technology have been so astonishing that they should puncture this long-running pessimism. The amazing fact is that on nearly every front, America's energy prospects have improved in ways that would have been unimaginable just a decade ago.
In the energy marketplace, President Obama's vision of an "all of the above" strategy is actually happening. Production of oil, gas and alternative energy is rising, even as demand begins falling for these energy sources -- all thanks to new technology. The market forces driving these changes are so powerful that even politicians probably can't screw them up.
Read more: http://bit.ly/1b47dCg
Posted January 13, 2014
For Some Counties, Natural Gas Drilling Brings a Windfall
San Francisco Gate: PITTSBURGH (AP) — Even as some cities around the nation have voted to ban fracking for natural gas, other rural areas are quietly embracing the boom by allowing drilling under public parks and land and reaping millions in royalties.
In Washington County, just outside Pittsburgh, officials say the unexpected revenue stream is letting them make improvements that otherwise might not have been possible.
"Having that funding source has been a tremendous boom to us," said Lisa Cessna, the executive director of the local planning commission. The county has received about $10 million directly from drilling companies since 2007, and royalty payments are still coming in. That's helped build fishing piers, playgrounds and walking trails.
Read more: http://bit.ly/1eP9ofQ
Posted January 13, 2014
The United States is the world’s leading producer of natural gas, according to the U.S. Energy Information Administration. As early as next year, the U.S. could be No. 1 in oil output as well, estimates the International Energy Agency. We’re on the verge of energy superpower status – dependent on policy choices that will help boost domestic oil and natural gas development, a point underscored in one of API’s newest ads:
It’s about choosing energy – choosing to develop more energy right here at home. Read more at ChooseEnergy.org.
Posted January 10, 2014
America is experiencing an energy renaissance thanks to abundant domestic oil and natural gas, much of it developed from shale and other tight-rock formations through advanced hydraulic fracturing and horizontal drilling. As API President and CEO Jack Gerard outlined earlier this week, energy is at the heart of freedom and opportunity, and U.S. energy wealth could be the driver of a new era of American prosperity:
“Energy is fundamental to our society, and thanks to American innovation and entrepreneurial spirit, our nation stands among the world’s leaders in energy production and is poised to be THE leader if we get American energy policy right. The question before us today is whether we have the vision and wisdom to take full advantage of our vast energy resources. The energy policy choices we make today are among the most important and far reaching policy decisions we will make in the 21st century. We have a once in a lifetime opportunity to reshape, realign and reorder the world’s energy market and improve domestic prosperity to an unprecedented degree. But only if we get our nation’s energy policy right today.”