Energy Tomorrow Blog
Posted September 10, 2015
An important step forward this week for legislation to end America’s outdated, 1970s-era ban on domestic oil exports: passage of the bill by a U.S. House subcommittee. Next a full committee vote and, perhaps before too long, a vote by the entire House. Yet, challenges remain.
No doubt the full Energy and Commerce Committee debate will be more vigorous. But that doesn’t diminish this week’s historic progress on lifting the export ban – a true relic from America’s energy past. “This has been a long day coming,” said Rep. Joe Barton of Texas, the bill’s author.
As Barton explained, we’re at this point largely because of America’s energy revolution – the surge in domestic oil and natural gas production resulting from American innovation, technology, shale reserves and hydraulic fracturing and horizontal drilling.
Posted September 9, 2015
API has a pair of new ads that drive home the economic and national security reasons for lifting America’s 1970s-era ban on exporting domestic crude oil.
The television and online campaign launched this week in a dozen states – including Colorado, Florida, Illinois, Pennsylvania and Virginia – and the District of Columbia. The campaign is part of a broader push emphasizing the importance of updating U.S. energy policies to reflect America’s rise as a global energy superpower.
Posted September 8, 2015
It looks like last week’s U.S. Energy Information Administration (EIA) report pointing out the benefits of exporting domestic crude oil is pushing Washington policymakers closer to ending the 1970s-era ban on exports. McClatcheyDC reports:
Momentum is growing to lift the 40-year ban on exporting U.S. oil to foreign nations, with a federal report concluding that doing so wouldn’t raise gasoline prices. Congress could vote on proposals when it returns from its summer vacation after Labor Day. Rep. Joe Barton, R-Texas, said he has “green lights” from the House Republican leadership, and is confident the House will pass a bill on ending the ban this fall. “It is up to this Congress to examine the issue and move towards a better policy that reflects the reality of America today, not the America of 1975,” Barton said in an email.
It may be that EIA’s report marks “critical mass” in terms of how much research backing crude exports is needed to move the needle in Washington – saying, as a number of previous studies projected – that exporting U.S. oil won’t negatively affect consumers and will spur domestic production. EIA’s report addresses the White House’s chief concern, about the impact of a policy change on U.S. energy prices. And this week an important House subcommittee is scheduled to vote on legislation that would lift the export ban.
Posted September 4, 2015
The U.S. Energy Information Administration (EIA) reports that the average retail price for regular gasoline on Aug. 31 was $2.51 per gallon – the lowest price for the Monday before Labor Day since 2004 and 95 cents lower than the Monday before Labor Day last year. EIA explains:
Declines in crude oil prices are the main driver behind falling U.S. gasoline prices. Lower crude oil prices reflect concerns about economic growth in emerging markets, expectations of higher oil exports from Iran, and continuing actual and expected growth in global crude oil inventories.
Certainly, the global markets for a variety of commodities may be influenced by concerns, feelings and inklings of one kind or another. Let’s focus on the tangible reason EIA cites for lower global crude prices – hence, lower prices at U.S. pumps: growth in global crude oil inventories. That refers to production and supply to the market. The story behind that story is that over the past six or seven years, the United States has led the world’s top suppliers of petroleum and other liquids in production and rate of production growth.
Posted September 1, 2015
Some quick points from the new crude oil exports study from the U.S. Energy Information Administration (EIA):
First, like a series of other studies before it, EIA’s study finds that lifting America’s 1970s-era ban on exporting domestic crude oil would not negatively affect U.S. consumers. EIA says:
Petroleum product prices in the United States, including gasoline prices, would be either unchanged or slightly reduced by the removal of current restrictions on crude oil exports.
EIA projects that ending the export ban – which would allow shut-in domestic crude to access global crude oil markets – would spur more domestic production. Then the global supply/demand would become “looser,” putting downward pressure on global crude prices, resulting in “lower petroleum product prices for U.S. consumers.
Posted August 31, 2015
More about last week’s Commerce Department decision to allow U.S. crude oil swaps with Mexico – basically, a positive step in the direction of lifting America’s 1970s-era ban on exporting domestic crude.
An analysis by the U.S. Energy Information Administration (EIA) says the exchange of light U.S. oil for heavier Mexican oil will generate economic and environmental benefits. The economic piece certainly is consistent with a number of studies that say lifting the ban and exporting domestic crude will generate broad benefits for our economy and savings at the pump for U.S. consumers, while spurring domestic production.
Posted August 28, 2015
There’s a new report out this week that says energy infrastructure constraints have cost New England at least $7.5 billion over the past three winters – while cautioning that failing to expand natural gas and electricity infrastructure will cost the region’s households and businesses $5.4 billion in higher energy costs between 2016 and 2020.
Other key findings in the report by the New England Coalition for Affordable Energy show that without additional infrastructure, higher energy costs will lead to the loss of 52,000 private-sector jobs over the same time period. In all, a lack of infrastructure investment could mean 167,000 jobs lost or not created. The report also found that the region could see a reduction in household spending of $12.5 billion and $9 billion in foregone infrastructure construction.
Posted August 28, 2015
Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Wyoming. We started the series with Virginia and Colorado earlier this summer and reviewed Kentucky, Tennessee , Utah and Georgia to begin this week. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.
As we can see with Wyoming, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.
Posted August 27, 2015
For as long as most younger Americans can recall, the United States has been barred from exporting crude oil – a self-inflicted sanction that’s at odds with our historical role as a global leader in both free trade and oil production. For them, that’s the way it has always been – the U.S. unilaterally excluding itself from the world’s most important energy marketplace.
Yet, history, economics and security imperatives all argue that it shouldn’t stay that way. Rather, U.S. oil exports policy should be restored to its former posture, to realign policy with this reality: America’s shale energy revolution, the most recent in a series of world-changing energy events, affords the U.S. a great opportunity, and that the U.S. should pursue every means possible to harness that revolution’s benefits – including resuming the export of domestic crude.
To start, policymakers must acknowledge a couple of things: First, that maintaining the oil export ban that was imposed after the 1973 embargo is hurting U.S. competitiveness in the global economy and limiting the benefits that could and should accrue to an energy superpower.
Posted August 27, 2015
Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Georgia. We started the series with Virginia on June 29 and began this week with a review of Kentucky, Tennessee and Utah. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.
As we can see with Georgia, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.