Energy Tomorrow Blog
Posted December 10, 2014
Two U.S. energy production updates and a new Congressional Budget Office (CBO) report showing the economic impacts of America’s shale energy revolution – which is driving overall U.S. production.
A chart from energy/economics blogger Mark J. Perry shows the impact of U.S. energy production on energy imports – measuring net petroleum imports as a share of products supplied. The chart shows steady increases in imports from the mid-1980s to an apex of more than 60 percent in 2005. Today, we’re looking at a percentage share that’s as low as it has been in four decades.
Posted October 23, 2014
The U.S. Energy Information Administration’s new report on U.S. energy-related carbon dioxide emissions details the major role in reducing CO2 emissions that’s being played by increased use of clean-burning, affordable natural gas.
While U.S. energy-related CO2 emissions ticked up slightly last year (2.5 percent), mainly because colder weather led to greater heating demand over 2012, EIA says 2013 emissions still were 10 percent lower than they were in 2005. Wider use of natural gas in electricity generation is a key reason.
Posted August 29, 2014
Supply matters. The impact of the U.S. energy revolution on global supply, with real benefits reaching consumers, is seen we head into the Labor Day weekend. The U.S. Energy Information Administration (EIA) reports the U.S. average retail price for gasoline on Aug. 25 was the lowest price on the Monday before Labor Day since 2010. EIA explains:
The recent decline in gasoline prices largely reflects changes in crude oil prices. In June of this year, the Brent spot price reached its year-to-date high of $115/barrel (bbl), then fell to $102/bbl on August 22. Current Brent prices are below their August average level over the past three years, which ranged between $110/bbl and $113/bbl.
This parallels another EIA report, crediting the surge in U.S. crude oil production with a more stabilized global crude market:
Record-setting liquid fuels production growth in the United States has more than offset the rise in unplanned global supply disruptions over the past few years … U.S. liquid fuels production, which includes crude oil, hydrocarbon gas liquids, biofuels, and refinery processing gain, grew by more than 4.0 million barrels per day (bbl/d) from January 2011 to July 2014, of which 3.0 million bbl/d was crude oil production growth. During that same period, global unplanned supply disruptions grew by 2.8 million bbl/d. U.S. production growth, the main factor counterbalancing the supply disruptions on the global oil market, has contributed to a decrease in crude oil price volatility since 2011.
More simply, supply matters. Because crude oil is traded globally, every additional barrel of U.S. production going into that market has impact.
Posted July 15, 2014
Three keys to a true, all-of-the-above energy policy: increasing access to U.S. energy reserves, implementing sound regulatory policies and creating an environment that fosters investment in energy innovation and development.
Government has an important role to play in all three. While it can’t create an energy revolution like the one occurring in the United States today, it can help sustain and grow it. Unfortunately, government also can hinder it – with limited vision, misplaced priorities and poor policy choices.
Thus, “architecture of energy abundance” remarks by U.S. Rep. Fred Upton at this week’s U.S. Energy Information Administration (EIA) energy conference are particularly timely.
Posted July 15, 2014
A couple of highlights from the first day of the U.S. Energy Information Administration’s (EIA) annual energy conference, both of which can be used to underscore the need for policies that help sustain and grow America’s energy revolution.
First, International Energy Agency (IEA) Executive Director Maria van der Hoeven suggested exuberance over the U.S. energy boom has risks because energy security is more than just ample supply:
“In periods of abundance we must challenge ourselves with questions. And so I ask you, is your energy security as security as you or I think? … Energy security is about much more than supply. … Although things look bright at first sight, there’s no time for complacency.”
Posted June 23, 2014
It’s hard to overstate the revolution that’s under way in American Energy. In just a few years we’ve gone from a scenario of energy scarcity to energy abundance – thanks in large part to the innovations and investments of America’s oil and natural gas industry. As the White House noted in its May report, “The All-Of-The-Above Energy Strategy as a Path to Sustainable Economic Growth,” dramatic increases in domestic oil and natural gas production have brought jobs, energy security and economic growth. ...
“All-Of-The-Above” is not just a strategy, or a simple catch-phrase. It represents our reality. Analysis by EIA as well as international and private analyses show that oil and natural gas provide the bulk of the energy we use today (62 percent) and will continue to provide the majority of the energy we use for many years to come (60 percent in 2040).
Posted June 20, 2014
Let’s make a couple of points with the juxtaposition of the newest U.S. report on energy production on federal lands and a pair of new analyses people are talking about this week.
First, there’s this piece by the Manhattan Institute’s Jared Meyer on the Real Clear Energy website, asserting that surging U.S. crude oil production is playing a big role in keeping global crude prices stable despite turmoil around the world:
The most important contribution to oil's price stability has been the substantial increase in U.S. production. U.S. crude oil production has risen 50 percent since 2008, to 7,443 thousand barrels a day. This increase has been driven by advances in drilling technology. Hydraulic fracturing has opened up previously-known reserves that were either inaccessible or too cost-prohibitive for drilling.
Posted September 25, 2013
A few words of support for Adam Sieminski and his professional team at the U.S. Energy Information Administration (EIA). When it comes to collecting data about our energy past, analyzing trends and projecting future energy supply and demand, no one does it better than EIA. Which is why reported grousing over EIA’s forecasts for renewable energy raise an eyebrow, or two.
POLITICO picks up on the grousing in Sieminski’s response to an earlier letter from some groups, in which it’s clear some in the environmental community are concerned that EIA’s renewable projections are lower than recent growth trends. Again, from Sieminski’s response, some have suggested that EIA’s projections haven’t been grounded in science.
EIA has a reputation for calling them as it sees them, so the complaint is a little surprising
Posted August 15, 2013
Posted June 24, 2013
More from last week’s energy conference hosted by the U.S. Energy Information Administration ...
The Big Takeaway: Analysts, statisticians, academics, producers – the U.S. Energy secretary – all acknowledge the unfolding of a significant, American revolution in oil and natural gas production, which is reflected in EIA’s chart showing decreasing U.S. dependence on imported liquids: