Energy Tomorrow Blog
Posted November 7, 2019
Safe and responsible energy development drives economic growth and environmental progress, and by expanding exploration on federal lands and along the Outer Continental Shelf, the U.S. stands to generate billions of dollars in funding for infrastructure, education and conservation.
Posted October 23, 2019
Given bipartisan consensus on the importance of trade to America and our allies, finalization and approval of the U.S.-Mexico-Canada Agreement (USMCA) in Congress is long overdue. Because North American markets are highly interdependent, maintaining the tariff-free, intracontinental flow of natural gas, oil and refined products will help ensure that American families have continued access to affordable and reliable energy, and to our export markets in Canada and Mexico.
When it comes to the U.S. economy, the advantages of the USMCA are clear. Trade with Canada and Mexico supports 12 million American jobs across every state, according to the Business Roundtable, and totaled nearly $1.3 trillion in 2017. A U.S. International Trade Commission report estimates that approving USMCA could raise real GDP by $68.2 billion and create 176,000 jobs, relative to a baseline, six years after the trade deal enters into force.
Posted July 18, 2019
Domestic oil production continues to benefit the U.S. – increasing energy security and driving economic growth – and cushion the economy as well as American consumers against global events that in the past impacted energy supplies, costs and prices.
Strength stemming from the U.S. energy revolution is seen in API’s latest Monthly Statistical Report (MSR), with U.S. crude oil exports setting a new record in June at 3.3 million barrels per day (mb/d), which represents growth of 1.1 mb/d over June 2018. Moreover, U.S. petroleum net imports fell to 1.3 mb/d in June from 2.9 mb/d in June 2018 – a major step closer to the U.S. becoming a net exporter of oil.
In other words, the U.S. has continued to supply virtually all of the world’s growing oil needs for transportation and industry, which has increased the stability of the global supply while generally lessening energy-related tensions.
Posted July 3, 2019
This July 4th, as a record-breaking 41 million Americans hit the roads to celebrate our nation’s independence, let’s take a moment to remember that the energy we use isn’t just the gasoline that gets us to the barbeque.
Here are just a few fun facts about the energy that goes into America’s Independence Day.
Posted June 20, 2019
API’s latest Monthly Statistical Report (MSR) underscores just how much recent oil production growth exceeded the pace of record U.S. domestic needs and crude oil exports, resulting in higher inventories. This production and cushion for the market have kept oil and fuel prices low, and all these factors have contributed to a stronger economy with greater U.S. energy security.
Along with the separate Industry Outlook presentation, covering energy market developments for the second quarter of 2019, we see U.S. oil and natural gas output continuing to set records, helped by low breakeven prices and productivity that underpin the longevity of the domestic energy revolution –as we discussed here.
Posted March 27, 2019
We’ve focused on the numerous domestic benefits from liquefied natural gas (LNG) exports, which follow the United States’ emergence as a major LNG supplier to the world market. Now let’s explore the ways U.S. LNG can help other countries meet their most pressing energy and environmental challenges.
First, let’s note that U.S. LNG exports have grown rapidly in just a few years, with cargoes reaching 34 countries across five continents.
At the same time, global LNG demand has skyrocketed. As recently as 2009, demand totaled only 182 million metric tons per annum (MMTPA). In 2018, it hit a record 319 MMTPA, a 75 percent increase.
Posted March 5, 2019
The International Energy Agency’s Fatih Birol regularly heralds the positive impacts of the American shale energy revolution (see here, here and here). All good, but U.S. shale’s global impact is just now starting to be felt, IEA’s executive director said last week.
During a global markets update at the U.S. Energy Department with Secretary Rick Perry, Birol said the United States will be responsible for about two-thirds of the growth in the global liquefied natural gas (LNG) export market. Of course, this reflects the abundance of domestic natural gas, largely produced from shale formations. Big-time global impact lies ahead, Birol said. Add to that environmental and climate progress, which we’ll get to in a bit.
Certainly, there’s every reason to believe U.S. natural gas and oil can meet or exceed global expectations. Soaring U.S. crude oil production has increased global supply, supporting the stability of global markets – while reducing weekly U.S. crude imports to their lowest level in 23 years (as of Feb. 22), according to the U.S. Energy Information Administration.
Posted February 26, 2019
When the U.S.-Mexico-Canada Agreement (USMCA) was announced last fall, we pointed out that it would be good for North American energy security and continue flourishing energy trade between the United States and its neighbors by providing market access and zero tariffs for U.S. natural gas and oil and related products.
The agreement would sustain and expand the gains made under its predecessor, NAFTA, which created a North American energy market, helped make the U.S. more energy secure and benefited U.S. consumers.
Congress should approve USMCA as soon as possible to lock in the critically important energy relationship between the U.S., Mexico and Canada – as well as the general flows of goods and services so vital to good economic health in this country.
Posted February 26, 2019
In case you missed it, let’s echo a recent official U.S. Energy Department projection that the United States should “not only maintain its lead spot as top oil producer, but will greatly exceed what it produced last year in both 2019 and 2020.”
The trajectory of U.S. oil production is significant for U.S. economic growth, energy security and global leadership, and – as we recently discussed oil exports in this post – potentially raises the stakes in the market share battle between the United States and OPEC plus Russia (OPEC+).
Posted February 14, 2019
API’s Monthly Statistical Report (MSR), based on January data, is a good news/challenging news proposition.
First the good. January data tell us the U.S. has never produced more oil (11.9 million barrels per day, mb/d) and natural gas liquids (4.9 mb/d).
At the same time, U.S. refineries ran at their highest rates (93 percent capacity utilization) and produced the most they ever have for the month of January (17.3 mb/d). Moreover, domestic gasoline demand also was the greatest on record for the month of January (8.9 mb/d). These are terrific milestones. ... But some interesting challenges also emerged.