Energy Tomorrow Blog
Posted July 1, 2015
This weekend our country celebrates 239 years of independence, as well as our collective belief in equality and unalienable rights – enumerated in the Declaration of Independence as “Life, Liberty and the pursuit of Happiness.” Heading into Independence Day 2015, it’s fitting to draw some connections between American energy and American life, liberty and the pursuit of happiness. Today: life.
It’s hard to imagine modern life – in America or anywhere else for that matter – without liberal access to energy. It’s fundamental to sustaining life as we know it, while also providing fundamental opportunity to people across the globe for whom life is a daily struggle. Let’s take a look at some charts from Max Roser’s Our World In Data project. First is global energy use, with energy use starting to grow slowly around the 1900 and then taking off after World War II.
Posted June 12, 2015
Wall Street Journal – Low oil prices and economic growth have helped drive up consumer demand for energy across the world in 2015, the International Energy Agency said Thursday, a phenomenon seen from U.S. gasoline stations to Chinese auto dealerships.
The IEA’s closely watched oil-market report lent some support to an idea pushed by the Organization of the Petroleum Exporting Countries and other producers: that collapsing oil prices would spur more consumer demand and eventually send prices back up. The benchmark U.S. oil price hit a six-month high on Wednesday.
The IEA said world demand for oil would increase by 1.4 million barrels a day this year, 300,000 barrels a day faster than it previously forecast, to a daily average of 94 million barrels this year. Global demand in 2014 was about 92.6 million barrels a day, the IEA said.
Posted June 2, 2015
With EPA last week proposing ethanol-use requirements for 2014, 2015 and 2016 under the Renewable Fuel Standard (RFS), the ethanol industry no doubt will keep lobbying to foist increasing amounts of higher-ethanol blend fuels like E15 and E85 on the motoring public. This, despite studies that have shown E15 can harm engines and fuel systems in vehicles that weren’t designed to use it – potentially voiding manufacturers’ warranties – and historically small consumer demand for E85.
A subset of the argument for increased use of higher-ethanol blend fuels is the dismissing of concern that E15 also could damage existing service station infrastructure, including storage tanks, fuel lines and dispensers. Though service station owners and operators indicate otherwise, ethanol supporters say that a new National Renewable Energy Laborary (NREL) report – commissioned by the Renewable Fuels Association (RFA), a big ethanol advocate – found that E15 is compatible with existing equipment. It’s simply not true, and the report has some challenges. Let’s look at a few.
Posted April 22, 2015
Today, the United States leads in petroleum products, refining and natural gas production, and we’re on track to lead in the production of crude oil; facts reinforced by last week’s EIA Annual Energy Outlook.
The report confirmed that our nation is more energy secure than ever before. And it said in part that domestic production of natural gas is projected to grow through 2040 eventually reaching 35.45 tcf; and domestic oil production is projected to exceed 10 mbd in a few years and remain at that level through 2030. Keeping pace with our nation’s increased development of our energy resources are the 139 operating refineries that produce more fuel than ever before and support roughly 540,000 good paying jobs and 1.9 percent of our nation’s economy.
Posted March 16, 2015
Denver Business Journal: The boom in oil and natural gas production in North America, largely due to the new technologies of horizontal drilling and hydraulic fracturing, is changing the balance of power across the world, former Secretary of State Condoleeza Rice told attendees at the Vail Global Energy Forum.
Rice opened a two-day forum, which continues through Sunday, with remarks on Friday evening at the Beaver Creek Ski Resort in Vail. The forum, now in its third year, is growing. Nearly 400 people registered for the 2015 event, a 20 percent increase over the previous year, organizers said.
Posted February 12, 2015
Posted January 16, 2015
Pacific Standard magazine (PS) has an interesting longread on honeybees in its January issue. While this is not our area of expertise and we can’t judge the veracity of the entire article, there was one part that we had, unfortunately, seen before:
Over a million acres of grassland were converted to crops in five Midwestern states from 2006 to 2011, according to a study by South Dakota State University. … Across the region more than 99 percent of what was originally prairie has been converted, mostly to corn and soy for animal feed, ethanol, and sweetener … Now the entire Midwest, several beekeepers told me, has become a “corn desert.” This has wrought devastation on most anything that used to live in the fields. Monarch butterflies no longer have milkweed for laying eggs. Birds no longer have insects to eat or prairie to shelter in. Native bees are disappearing.
The years 2006 to 2011 are not a coincidence, as the Environmental Working Group (EWG) explains:
After the federal Renewable Fuel Standard was signed into law in 2007, many corn growers decided to plant corn year after year to profit from higher prices, rather than switching between corn and soybeans, for example. This transition has greatly harmed air and water quality.
And apparently bees. But not to worry, the federal government is on the case.
Posted December 24, 2014
The gift that is American energy is seen in some key numbers: domestic crude oil production reaching more than 9 million barrels per day last month, the highest level in more than two decades, according to the U.S. Energy Information Administration (EIA); total U.S. net imports of energy as a share of energy consumption falling to their lowest level in nearly 30 years during the first six months of this year; gasoline prices dropping to an average of $2.47 per gallon last week, their lowest point since May 2009, according to the Lundberg Survey Inc.
The first two numbers might not fully register with a lot of Americans. We’ll come back to them. The last one, gasoline prices, does so loudly.
Retail gasoline prices fell after crude oil prices dropped for the fourth straight week – a product of weaker-than-expected global demand and increasing production, which EIA says will save American households $550 next year, Bloomberg News reports. Trilby Lundberg, president of Lundberg Survey to Bloomberg:
“It is a dramatic boon to fuel consumers. (Gasoline) is a modest portion of our giant gross domestic product and yet it does have a pervasive and festive benefit to motorists.”
During this season of gift-giving and receiving, Americans should give thanks for the gifts of plentiful domestic oil and natural gas, modern technologies to harness them and an industry robust and innovative enough to bring the two together, resulting in surging, home-grown production. Indeed, the dramatic increase in U.S. oil production is the key addition to global supply that’s putting downward pressure on the cost of crude, the No. 1 factor in pump prices.
Posted September 26, 2014
Let’s talk energy infrastructure, focusing on the pipelines and the fuel storage and dispensing facilities in this country that keep commercial jetliners in the air and our vehicles moving on the roads and highways.
Part of that system is visible in suburban Washington, D.C., at the terminus for Kinder Morgan’s 3,100-mile Plantation Pipeline network (left) and the neighboring Newington Terminal, which API staff members toured recently.
Posted August 15, 2014