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Energy Tomorrow Blog

Ready for Recovery: The Economic Importance of Natural Gas and Oil

oil and natural gas  economic recovery 

API CEO Mike Sommers

Mike Sommers
Posted November 20, 2020

As the deadly coronavirus pandemic cripples business activity and depresses consumer spending, American energy continues to power the nation’s economy and enable the delivery of essential products and services.

Despite this year’s demand downturn, natural gas and oil are still vital to the world’s energy mix and will remain indispensable for decades to come.

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Data Indicate Continuing U.S. Demand Recovery

monthly-stats-report  oil demand  economic recovery 

Dean Foreman

Dean Foreman
Posted November 19, 2020

While the International Energy Agency and OPEC recently lowered their expectations for global oil demand for this year and the next, the United States has continued to make measured progress, according to API’s latest primary data.

In October, U.S. petroleum markets reflected a U.S. economic recovery in progress. Demand increased broadly among fuels – diesel, jet fuel, other oils and gasoline among urban areas.

While these offer solid indications of domestic activity, international trade – particularly the pull for U.S. refined products – picked up in October. Moreover, the U.S. Energy Information Administration (EIA) projects record high U.S. exports of liquefied natural gas (LNG) in November.  

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Federal Leasing Ban Would Add to Wyoming's Pain

wyoming  federal leases  economic losses  jobs 

Mark Green

Mark Green
Posted November 17, 2020

If President-elect Joe Biden follows makes good on his campaign promise to ban new natural gas and oil leasing on federal lands and waters, a recent OnLocation analysis sees the U.S. weakened on the world stage – forced to import more foreign oil – with crippling jobs and economic impacts as well.

Losses at the state level would touch Americans where they live. We’ve looked at New Mexico and Louisiana.

In Wyoming, another producing state, the impacts would be especially devastating. The federal government controls nearly half of the acreage in Wyoming, and the state’s energy economy has been rocked by pandemic-related forces, losing about 20% of its energy-related jobs through the second quarter, according to this NBC News report. Banning new federal leasing and development would have dire effects, OnLocation’s analysis projected.

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Energy Policy in the New Administration

federal leases  offshore development  regulation  infrastructure  president 

Mark Green

Mark Green
Posted November 13, 2020

Some initial thoughts on energy policy as we look ahead to a new administration and Congress.

First, as API President and CEO Mike Sommers said over the weekend, natural gas and oil will continue to play an important role in the United States’ continued economic recovery – recognizing that, as the leading energy sources for the U.S. economy, the two are essential for growth. ...

Our country needs Washington focused on economic recovery and forward-thinking about energy and climate change, factoring in how much energy will be needed when the U.S. and global economies ramp up (see API Chief Economist Dean Foreman’s post, here), while building on reductions in emissions to date and fostering innovation that will enable a safe, secure and cleaner future. To that point, our industry supports continued development and wider deployment of carbon capture, utilization and storage as a tool to further reduce emissions, which the president-elect also supports.

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When The Messenger is Biased – New York Times Misses the Mark

news 

Megan Barnett Bloomgren

Megan Bloomgren
Posted November 13, 2020

Journalism plays a vital role in society – today more than ever.  While the business of news has changed, it remains an essential medium and messenger for Americans’ right to know. 

Arming journalists with data and information, answers, and analysis is a role we take seriously.  API has been quoted in more than 1,100 news stories this year alone and we’ve worked with hundreds of reporters. 

That right to know is why we took issue with recent comments by a New York Times reporter who covers our industry.  Hiroko Tabuchi – a Times’ climate reporter – recently tweeted an unfounded and offensive claim, with no evidence.

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Build Back Better ... Now

keystone xl  pipelines  jobs  canada 

Mark Green

Mark Green
Posted November 6, 2020

Building new pipelines means jobs. Good jobs. That’s the takeaway from a recent announcement that $1.6 billion in contracts have been awarded to six U.S. union contractors to build 800 miles of the Keystone XL pipeline in three states.

TC Energy, the pipeline’s builder, said the awards represent more than 7,000 union jobs in 2021, with additional 2021 contracts to be announced that will push the jobs number north of 8,000. ...  This is good work for American workers who value employment associated with the natural gas and oil industry.

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Industry Reporting Guidance Improves Sustainability Performance

ESG  Environment  climate change 

Sam Winstel

Sam Winstel
Posted November 6, 2020

The natural gas and oil industry has advanced sector-wide guidance for sustainability reporting for over fifteen years, reinforcing its longstanding commitment to energy and environmental progress.

Earlier this year, three international natural gas and oil industry associations – API, IPIECA and IOGP – released an updated version of the “Sustainability Reporting Guidance for the Oil and Gas Industry,” which provides a common framework for assessing environmental, social and governance (ESG) issues.

In September, IPIECA released the results of its annual reporting survey, identifying widely used performance indicators and emerging trends. The findings, which include answers from 27 of the world’s largest energy companies, highlight the progress of industry leaders and partner organizations.

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France’s Faux Pas on Importing U.S. LNG

lng exports  emission reductions 

Mark Green

Mark Green
Posted October 30, 2020

Natural gas has been the key to lowering U.S. energy-related carbon dioxide emissions, through coal-to-natural gas fuel switching in the power sector – no other nation has reduced them more since 2000. Coupled with the progress of U.S. operators in reducing production-related emissions, it’s unfortunate that the French government recently decided to delay a potential $7 billion deal for U.S. liquefied natural gas (LNG), citing emissions.

The deal between French trading firm Engie and U.S. provider NextDecade for West Texas natural gas (converted to LNG in Brownsville) still might be signed, and let’s hope that happens.

Natural gas has been the critical difference-maker in cutting CO2 emissions in the U.S., lowering them to their lowest levels in a generation. It’s happening globally as well ...

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Academia and Industry Partner to Drive Down Methane Emissions

the-environmental-partnership  methane emissions  technology  innovation 

Lem Smith

Lem Smith
Posted October 27, 2020

With a high-tech workforce and a future-focused approach, America’s natural gas and oil industry is delivering on its commitment to sustainability and climate solutions. Energy operators are continuously improving environmental performance and working to lower greenhouse gas emissions – and groundbreaking technologies are making the difference.

API member companies are driving research and development on innovative concepts, like carbon capture, utilization and storage (CCUS), and industry leaders are collaborating to address emissions of methane and volatile organic compounds in America’s largest energy producing regions.

Since 2017, The Environmental Partnership has provided leadership on  industry-driven efforts to tackle the dual challenges of supplying affordable, reliable energy while making significant environmental progress. The program encourages the phase out of high-bleed, gas-driven pneumatic controller use to mitigate methane emissions in natural gas production.

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Singling Out Natural Gas and Oil for Higher Taxes is Bad Policy

taxes  investment  economic growth  subsidies 

Mark Green

Mark Green
Posted October 27, 2020

Three points about Vice President Joe Biden’s pledge, if elected, to deny the natural gas and oil industry the use of growth and investment provisions in the tax code that are available to virtually the entire U.S. manufacturing sector – basically, singling out our industry for higher taxes.

1. Our industry is strongly invested in the U.S. economy, its infrastructure and workforce through spending today and in the future.

2. The ability through tax deductions to recover costs associated with job creation and other operational investments is critically important to seed energy development in the future, to create new jobs and help drive economic growth.

3. The U.S. natural gas and oil industry pays its fair share in taxes – and then some – while delivering safe, affordable and reliable energy that Americans count on every day.

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