Energy Tomorrow Blog
Posted July 30, 2015
Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Alaska. We started the week with a look at North Dakota. 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 Alaska, 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 July 6, 2015
USA Today (editorial) – Fracking — the practice of cracking open underground oil and gas formations with water, sand and chemicals — has rescued U.S. energy production from a dangerous decline. Any debate about banning it should take a hard look at what that would cost the nation and at facts that aren't always part of the discussion.
Those facts are spelled out in a recent report from the Environmental Protection Agency on fracking and groundwater. One of the harshest charges against fracking, often leveled with apocalyptic intensity by its foes, is that it indiscriminately contaminates vital drinking water supplies.
The EPA's timely report essentially said that's overblown.
Posted June 15, 2015
Last month President Obama defended administration policies on oil and natural gas development after opponents of Arctic drilling criticized a federal agency’s decision to give conditional approval to Shell’s exploratory drilling plans in the Chukchi Sea off Alaska. The president:
Until the U.S. transitions to other fuel “we are going to continue to be using fossil fuels. And when it can be done safely and appropriately, U.S. production of oil and natural gas is important. I would rather us – with all the safeguards and standards that we have – be producing our oil and gas, rather than importing it …
Posted June 2, 2015
The Huffington Post (Sean McGarvey): The American job market is the best it's been in six years, according to the latest government data. The jobless rate is below 6 percent for the first time since 2008.
And in 2013, the United States became the world's top producer of oil and natural gas – surpassing Russia and Saudi Arabia.
This U.S. energy boom is creating many new jobs here in America, and it's a leading contributor to American workers' vaulting out of the unemployment line and into the middle class. Our leaders must continue to support domestic energy exploration, which is proving our nation's strongest job-growth engine.
According to the American Petroleum Institute, investments in updating U.S. energy infrastructure alone could generate an estimated $1.14 trillion in capital investments – creating both jobs and energy savings from now until 2025.
Posted May 29, 2015
Reuters: The U.S. Congress could lift the 40-year old ban on domestic crude oil exports within a year as a drop in gasoline prices and the potential return of Iranian oil to global markets makes it an easier measure for politicians to support, Bank of America Merrill Lynch analysts said on Thursday.
U.S. gasoline prices have dropped since last year along with global crude prices, thanks to strong crude output from the United States, Saudi Arabia and Iraq. On Thursday, the U.S. average for regular gasoline at the pump was nearly $2.74 a gallon, down from $3.65 a year ago, according to the AAA motorist club.
If that remains the case, it has the potential to allay politicians' fears that they could be blamed any rise in gasoline prices if the crude oil export ban was lifted. If talks between six global powers and Tehran on Iran's nuclear program reach a deal on June 30, sanctions on Iran's oil exports could be removed soon after. That could also put pressure on global oil and U.S. gasoline prices.
Posted May 26, 2015
Reuters: U.S. Republicans have had to watch from the sidelines as the Obama White House has taken political credit for America's unexpected energy boom and tumbling gas prices. Now it has left their presidential candidates scrambling for a way to reclaim leadership on an issue the party once seemed to own.
Their apparent answer: calling time on a 40-year-old federal ban on crude oil exports and using the newfound energy bounty to strategic advantage.
"We've got an abundance of supply," Wisconsin Governor Scott Walker said this week in Oklahoma at a gathering of putative Republican candidates for next year's presidential election. Lifting the ban, he said, would allow exports to "our allies in Europe, where, instead of being dependent on (President) Vladimir Putin and the Russians, they could be dependent on Americans."
Posted May 15, 2015
Bloomberg BNA: The chairman of the Senate Energy and Natural Resources Committee said May 14 that she is inclined to include standalone legislation that would end the 40-year ban on the export of domestic crude oil as part of a broader energy package the committee is drafting.
“I’d like to have it in there,” Sen. Lisa Murkowski (R-Alaska) told reporters. “It just makes sense in there, as part of the bigger, broader energy updating our architecture.”
The bill, the Energy Supply and Distribution Act of 2015 (S. 1312), released May 13, is scheduled to be the subject of a June 4 hearing on “energy accountability and reform,” along with other bills that could end up in the broader energy package, which is expected to be unveiled later this summer.
Posted April 20, 2015
A couple of important points on Arctic energy development from U.S. Sen. Lisa Murkowski of Alaska at an event hosted recently by CSIS:
- The biggest obstacle to U.S. development of its Arctic energy reserves is the U.S.
- Development of Arctic energy resources will occur regardless of whether the United States engages in it.
- A discussion of Arctic energy must give weight to the needs and concerns of Alaskans, many of whom directly depend on energy development for the quality of their lives.
Posted April 1, 2015
News that the Interior Department has reaffirmed Shell’s right to drill in the Chukchi Sea off the Alaskan coast is an important step toward to Arctic energy development. While the company still must secure individual drilling permits and overall federal approval of its exploration plan, this week’s action advances the larger objective of safe and responsible development of an extremely valuable energy reserve. Interior Secretary Sally Jewell:
“The Arctic is an important component of the Administration’s national energy strategy, and we remain committed to taking a thoughtful and balanced approach to oil and gas leasing and exploration offshore Alaska.”
The oil and natural gas industry agrees. In official comments to the federal Bureau of Ocean Energy Management (BOEM), API and seven other industry-related associations argue that developing Arctic oil and natural gas off the coast of Alaska is essential to U.S. energy security. It’s also vital to the “long-term viability” of the Trans-Alaskan Pipeline System that connects Alaskan energy with the Lower 48. Developing Arctic energy is one of the keys to a robust offshore leasing program, which the federal government is drawing up right now.
Posted March 31, 2015
There are a number of main points in official comments submitted by API and seven other energy industry groups to the federal Bureau of Ocean Energy Management (BOEM) on its draft offshore oil and natural gas leasing program for the 2017-2022 time period.
Given how much offshore acreage was excluded from the proposed draft, BOEM should not remove any areas proposed in the draft from the final lease plan, the associations write. The government is missing key opportunities to harness U.S. offshore energy in the Atlantic, eastern Gulf of Mexico and off Alaska, as other countries are implementing robust offshore development programs. Energy development on the outer continental shelf (OCS) would generate significant job and economic benefits to the U.S., and industry continues to press ahead with technological, safety and environmental protection improvements – all designed to foster increased safety in offshore operations.
The comments are among those being collected by BOEM before it finalizes the five-year leasing program later this year. The leasing plan is a blueprint for offshore development; areas not listed in it won’t be offered for lease 2017 to 2022. Given the 10 to 15 years needed to develop offshore oil and natural gas – from the time the lease is sold to production – the federal plan is critically important.