Energy Tomorrow Blog
Posted March 18, 2021
It’s not surprising that New Mexico’s governor, both U.S. senators and other elected officials are concerned with the Biden administration’s halt in new federal natural gas and oil leasing. In 2020, New Mexico was the nation’s No. 3 crude oil producer and No. 8 natural gas producer, and the administration’s policy could affect billions of dollars in state revenues and thousands of jobs.
Gov. Michelle Lujan Grisham, a Democrat, penned a letter to President Biden earlier this week cautioning that potential lost revenues as a result of the policy could mean significant hardship for her state. New Mexico receives more than 40% of its total revenue – nearly $4 billion annually – from taxes and royalties paid by the natural gas and oil industry.
Posted March 17, 2021
One of the great benefits of increased U.S. oil production over the past decade and a half is strengthened U.S. energy security – decreased reliance on foreign oil suppliers and insulation for American consumers against sudden price increases due to geopolitical events, such as the recent attacks on Persian Gulf oil facilities.
Years ago, an episode like that could’ve caused serious alarm in the United States and globally. Yet, the apparent lack of significant or enduring oil price movement following last weekend’s attack shows the tremendous influence U.S. oil production has had on global markets. The same was true after missile attacks on Saudi facilities in 2019 (see here), which substantially reduced Saudi Arabia’s oil exports for a short period. Both events and their aftermath indicate that U.S. domestic production has largely mitigated the price volatility historically associated with serious geopolitical events.
Still, some cautions are in order. First, U.S. energy security can’t be assumed. It takes long-range planning and investments, safe access to domestic resources, the ability to expand pipeline and export facility infrastructure, and a policy-level approach that anticipates unforeseen events that could affect global energy supply and have dire impacts on U.S. security, economic growth, and consumers.
Posted March 16, 2021
The natural gas and oil industry is committed to working with America’s energy stakeholders, including U.S. government regulators, to deliver affordable, reliable fuels and shape a lower-carbon future.
The Biden administration has taken office at a time when the U.S. leads the world in energy production and emissions reductions. The President’s nominees to oversee the Department of Energy, Department of the Interior and Environmental Protection Agency – Secretary Jennifer Granholm, Secretary Debra Haaland and Administrator Michael Regan, respectively – have signaled readiness to tackle the dual challenge of strengthening U.S. energy security and addressing the risks of climate change.
Posted March 2, 2021
The natural gas and oil industry is foundational to the U.S. economy and security today and will be for decades to come. That’s reality – and a welcome one, given U.S. world leadership in natural gas and oil production. Natural gas and oil frame the issues of energy and environmental progress – the priorities of safely producing the affordable reliable energy Americans use every day and boosting the economy, while also reducing emissions and our industry’s environmental footprint. We can do both, together.
API President and CEO Mike Sommers underscored these themes at this week’s CERAWeek energy conference – virtual this year because of the pandemic. Sommers’ key points: The natural gas and oil industry will work with the Biden administration as much as possible to achieve progress on climate goals – including technology and regulation; natural gas and oil are fundamental to U.S. security and world leadership; and natural gas and oil is supporting U.S. and world growth, as well as the high-paying jobs of millions of Americans.
Posted February 26, 2021
In introducing U.S. Rep. Debra Haaland – President Biden’s choice to be Interior Department secretary – to the Senate’s Energy and Natural Resources Committee, Congressman Don Young of Alaska, a staunch Republican, predicted this about his House colleague: “You’ll find out that she will listen to you.”
Given the political polarization in Washington, that’s pretty significant – and hugely important in building a bipartisan approach to energy, infrastructure and other issues associated with national economic growth, security and the environment.
The natural gas and oil industry welcomes the opportunity – if Rep. Haaland is confirmed by the full Senate – to work with her as her department manages millions of acres of federal lands and waters that are key to our country’s energy present and future.
Posted February 10, 2021
Natural gas and oil will remain central to meeting our nation’s energy needs well into the future. So says the nonpartisan U.S. Energy Information Administration (EIA) in its 2021 Annual Energy Outlook.
The analysis is critically important given the Biden administration’s apparent shift away from the previous administration’s focus on building American energy dominance through homegrown natural gas and oil – seen in the president’s executive order halting new federal leasing.
EIA’s forecast and the administration’s energy position are incompatible with each other, raising a simple question: If we aren’t allowed access to key federal natural gas and oil reserves, onshore and offshore, where will our energy supply come from?
Posted January 27, 2021
As the Biden administration takes the first step toward a complete ban on federal natural gas and oil development – including the offshore that accounted for more than one-fifth of U.S. oil production in 2019 – turning America’s energy strength into weakness by launching a new era of increased dependence on foreign oil, let’s see how out of step the approach is with the American people.
From polling of voters last summer in key battleground and other states: 93% said it’s important the U.S. produce enough energy to avoid being reliant on foreign oil; 90% said it’s important to create access to domestic energy; 69% said safe domestic natural gas and oil production makes the U.S. less reliant on foreign energy and has increased U.S. security. (Just 16% disagreed.)
All three viewpoints sharply contrast with where the Biden administration appears to be going with its announced halt on natural gas and oil leasing on federal lands and waters – which many believe will become a full ban on federal development.
Put simply, the White House is advancing an import-more-oil policy – one that would discard the hard-earned security, economic and environmental gains from a decade and a half of domestic energy resurgence.
Posted January 25, 2021
It’s unfortunate that the Biden administration’s first couple of energy decisions – effectively canceling the Keystone XL pipeline and signaling it will halt new federal natural gas and oil leasing – work against economic growth and could undermine the nation’s energy security.
With the U.S. economy struggling to recover from the pandemic, there could hardly be a worse time for actions that kill jobs, potentially increase energy costs and cause the U.S. to import more oil.
Sure, the president promised these things during the campaign. Yet, it’s disappointing nonetheless that thousands of U.S. workers associated with building the Keystone XL are now without jobs and that a federal leasing ban could start a new era of increasing U.S. energy dependence. Coincidentally, the administration just unveiled its “Buy American” initiative. What about energy? How about “Buy American Energy”?
Posted January 6, 2021
An important point for consideration by opponents of the scheduled natural gas and oil lease sale for the coastal plain of the Arctic National Wildlife Refuge (ANWR) in Alaska: World demand for energy will continue rising into the future as far as we can see.
Both the U.S. Energy Information Administration and the International Energy Agency project that – the effects of the pandemic aside – demand for energy, led by natural gas and oil is going to increase. IEA estimates that even with the U.S. participating in the Paris Climate Agreement, natural gas and oil will supply about half, and perhaps more, of the world’s energy in 2040.
Posted December 11, 2020
Despite the 2020 COVID-19 recession, the U.S. has reached milestones for energy security and trade, including its lowest imports of crude oil and reliance on OPEC in nearly three decades.
Achieving the milestones this year has enabled the U.S. to be on track to become a net exporter of petroleum and total energy on an annual basis for the first time in more than 60 years. At the same time, U.S. refiners have increasingly leveraged domestically-produced energy, ultimately benefiting households through lower spending on energy.
In short, record productivity has enabled abundant domestic oil and natural gas supplies, amped-up U.S. energy exports and displaced foreign energy imports to the benefit of American consumers. This is the backdrop for the imminent change of U.S. administration, as well as a heightened focus on U.S. energy security – see here and here – even though petroleum products and natural gas have remained abundant and at historically low prices.