Energy Tomorrow Blog
Posted October 30, 2014
Reuters: U.S. chocolate demand may get an extra boost from an unlikely source this Halloween: the U.S. shale revolution.
With an abundance of crude oil due to the country's fracking boom pushing average U.S. retail gasoline prices to their lowest in four years, consumers have spare change to buy sweets at gas station stores, Hershey President and Chief Executive Officer John Bilbrey said on Wednesday.
"You could say that we benefit because people aren't spending as much at the pump and they're going inside," Bilbrey said in a conference call with investors to discuss quarterly earnings.
Posted October 29, 2014
The Wall Street Journal: A planned Trans- Canada Corp. oil pipeline designed to ship crude from Western Canada to Eastern Canadian refineries could also be used to access the Gulf Coast, creating an end-run around U.S. permitting delays for the Keystone XL pipeline, according to the company’s chief executive.
TransCanada’s proposed 1.1 million-barrel-a-day Energy East pipeline has been positioned in Canada as a nation-building project to connect Alberta’s landlocked oil sands with refineries in Quebec and coastal New Brunswick. But Chief Executive Russ Girling said it would also open up a new route to ship heavy crude by tanker to refineries on the Gulf Coast without requiring U.S. approval, unlike the more direct Keystone XL route from Alberta to Texas.
“We can actually go all the way to the Gulf Coast without a presidential permit,” he said in an interview. “Once we’re on the water, we’ll show up just like any other crude oil in the world in the Houston ship channel.”
Posted October 21, 2014
Forbes (Robert Bradley Jr.): The environmentalist campaign to block the Keystone XL pipeline has run out of gas.
Canada’s largest energy firm, TransCanada, has announced plans to create an alternative to KXL that lies entirely within Canada’s borders – a pipeline that would transport crude from Alberta’s oil sands to our northern neighbor’s east coast.
Known as Energy East, the new project presents clear proof that, even without a U.S. pipeline, the Canadian oil sands will continue to be developed. By blocking KXL, the fourth and final leg of a 2,151-mile transnational project, green activists are simply denying Americans the project’s wide-ranging benefits. The U.S. State Department counts42,000 new jobs, plus the opening of a new way to get oil from Montana and North Dakota to Gulf Coast refineries.
If the Obama Administration doesn’t approve the 800,000 barrels/day, Alberta–U.S. Gulf Coast pipeline soon, an historic opportunity to improve the American economy and strengthen our country’s energy infrastructure will be squandered.
Posted October 9, 2014
Columbus Dispatch: Consumers are starting to catch a serious break for a change on energy costs.
Gasoline prices in central Ohio are at their lowest level in nearly four years, while the outlook for home-heating costs this winter is better than a year ago.
“There’s definitely more money in my pocket,” said Kathy Bury, 58, of Blacklick, in eastern Franklin County.
She tends to buy gasoline $20 at a time. At current prices, that’s three-fourths of a tank, which is much more than a month ago, a contrast that “makes me happy,” she said.
Posted October 2, 2014
Real Clear Energy (David Holt, CEA): When Americans hit the polls in a few weeks, job growth and the overall economy will be the most important issue in deciding whom they vote for Congress, a recent CBS News/New York Times polls says.
A CNN/ORC poll echoed similar sentiments, as did a Bloomberg national poll, NBC News/Wall Street Journal poll, and Kaiser Family Foundation Health Tracking Poll. Trepidations about the economy, these polls show, are shared by all Americans – Democrats, Republicans, Independents, blue states, red states. We all have these worries.
Posted October 1, 2014
The Washington Post: Is a four-year college degree worth it? Generally yes, but the results vary quite a bit across majors — and can even vary widely within majors.
That’s the takeaway from new research by Brad Hershbein and Melissa Kearney at The Hamilton Project. The authors analyzed Census Bureau data to find out which college majors earned the most and the least. Topping the list are the engineering fields, to no one’s surprise. Some of the least-earning majors are related to education, theater and art. Over a lifetime, the median expected earnings for a drama or theater arts major is lower than that of someone with a two-year associate’s degree.
But the report found that regardless of major, “median earnings of bachelor’s degree graduates are higher than median earnings of high school graduates for all 80 majors studied. This is true at career entry, mid-career and end of career,” the authors write.
Posted September 24, 2014
The Washington Post: The crude oil boom in the western United States has changed the way states do business. North Dakota is growing so rapidly that the legislature is considering returning to special session to make big investments in new infrastructure. Wyoming now receives more than half its tax dollars from oil and gas companies paying to extract fuel. And big parts of Colorado, California, Texas, Oklahoma and a handful of other states increasingly rely on the energy industry for jobs.
Domestic production peaked in 1986, at 283 million barrels per month, according to the Energy Information Administration. In September 2005, domestic production hit a nadir of just 126 million barrels a month. In the last decade, technological advances, including the increasing production from hydraulic fracturing, has reversed that 20-year decline in crude oil production.
Today, production is back up to 256 million barrels a month, according to the latest EIA figures.
Posted August 25, 2014
Because she relies so much on her lease checks from Greka Energy, she's concerned about Measure P and how it could affect her income. The voter-driven initiative to ban oil extraction methods of hydraulic fracturing, better known as fracking, cyclic steaming and well acidization in Santa Barbara County is on the November ballot.
Posted August 21, 2014
Wall Street Journal: U.S. economic growth accelerated in the second half of 2013 before unexpectedly contracting early this year. But growth late last year was uneven across the nation, with some energy-rich states leading the pack while economies slowed in New England and on the Plains.
That’s according to new data released Wednesday by the Commerce Department. The agency already reported gross domestic product for the nation on a quarterly basis and at the state level annually. Now, it has offered a quarterly breakdown for state-level GDP data through the end of 2013. The data are volatile from quarter to quarter, but allow a finer understanding of the ups and downs in regional economies.
Posted July 14, 2014
CNBC: The United States is swimming in oil and gas. But processing the new-found bounty is posing a challenge to U.S. refiners, which can't come to grips with the abundance in domestic supply.
A production renaissance has catapulted the United States into the upper strata of global energy producers. Yet with fewer than 150 refineries, the U.S. has a surprisingly limited capacity to process the bounty.
"Some refineries are better suited for light sweet crude," while others—primarily on the Gulf Coast—are better optimized for the heavier, international variety of oil, said Bob Greco, director of upstream operations for the American Petroleum Institute.
The huge increase in shale production in places like North Dakota is helping to revitalize East Coast refineries, Greco said in an interview.