Energy Tomorrow Blog
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 17, 2015
BloombergBusiness: The U.S. pumped crude last month at the fastest pace since February 1973, sending March inventories to the highest level in 85 years.
Crude output climbed 13 percent from a year earlier to 9.32 million barrels a day in March, the American Petroleum Institute said in a monthly report Thursday. Production of natural gas liquids, a byproduct of gas drilling, climbed 9.1 percent to 3.05 million, a record for March. The combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies from shale formations in the central U.S.
“Production of both crude oil and natural gas liquids last month remained at the highest levels in decades even as rig counts reached a five-year low,” John Felmy, chief economist at the API in Washington, said in an e-mailed statement.
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.
Posted March 18, 2015
The Hill: Business groups are waging war on the Obama administration’s proposal to reduce ozone pollution, arguing the regulations would cripple the U.S. economy.
In order to comply with the proposed rule, many areas of the country would have to all but shut down land development and oil and natural gas drilling, industry groups charged on the final day for comments.
The Environmental Protection Agency (EPA) is being spurred on by greens and health groups, who argue that lower ozone emissions would benefit public health. The agency, they contend, is obligated to adopt the stricter standards.
But the rules would translate to higher electric bills for American families, the American Coalition for Clean Coal Electricity is said in comments it filed Tuesday.
Posted February 2, 2015
Taking a look at the president’s new budget request for the Interior Department, we see the administration asking for $13.2 billion, an increase of nearly $1 billion over the enacted funding level for the current fiscal year.
Now take a look at data from Interior’s Office of Natural Resource Revenue, which tabulates federal revenues from energy developed in federal areas onshore and offshore.
It’s a lot of information, but check the bottom line: For fiscal year 2013, revenues from oil and natural gas developed in federal areas totaled about $12.9 billion. For FY2014 the total was about $11.7 billion. Federal revenues from oil and natural gas development in FY2014 were about $1.2 billion less than in FY2013.
Interestingly, the amount of lost revenue is just about equal to Interior’s requested budget increase for FY2016. In other words, Interior lost $1.2 billion in revenue from 2013 to 2014 and basically is looking to taxpayers to fill in the gap in the next budget.
oil and natural gas development safe operations leasing plan offshore drilling economic benefits atlantic ocs gulf of mexico alaska pacific outer continental shelf ocs interior department boem federal leases
Posted January 28, 2015
Three maps, two views of America’s offshore energy wealth.
One reflects vast offshore oil and natural gas resource potential – nearly 50 billion barrels of oil and more than 200 trillion cubic feet of natural gas. We say potential because these areas represent the 87 percent of America’s federal offshore acreage that has been closed to exploration and development, dwarfing the areas where development is allowed.
Nonetheless, what’s visible is the profile of an offshore energy giant, an offshore superpower. This is energy muscle waiting to be flexed. These are resources that could benefit Americans in terms of energy security, as more oil and natural gas is safely and responsibly produced right here at home, as well as job creation and economic stimulus.
That’s what energy superpowers do. They develop their resources to increase their security in a world where secure energy is fundamental to overall security. They develop their resources to fuel economic growth and to help ensure the prosperity of their citizens.
Posted January 15, 2015
Charting some of the latest Bureau of Land Management (BLM) data on federal oil and natural gas activity – which mostly shows continuing decline.
First, BLM issued fewer new oil and natural gas leases in fiscal year 2014 than in any year since FY1988. That year 9,234 new leases were issued, a number that fell to 1,157 in FY2014. Last year’s number was a retreat from FY2013, when 1,468 new leases were issued.
Other indicators also show declining oil and natural gas opportunity in areas controlled by the federal government.
Posted August 4, 2014
Members of the U.S. House and Senate are weighing in with Interior Secretary Sally Jewell on the administration’s new five-year oil and natural gas leasing program, and the message is fairly simple: open more of the outer continental shelf (OCS) for exploration and development.
Interior has begun work on the new leasing program that will cover 2017 to 2022. The plan is critical to offshore development because it lists areas where the federal government could hold auctions for oil and natural gas drilling leases. It lets energy companies know where to concentrate research efforts that guide bids on specific lease blocks. Currently, 87 percent of the offshore area under federal control is closed to development.
Posted June 16, 2014
With the Interior Department turning its attention to the next five-year offshore leasing plan, here’s a figure to keep in mind: 87 percent. That’s how much of our federal offshore acreage is off limits for energy development – and it’s costing us energy, jobs and economic growth.
Andy Radford, API senior policy advisor, set out some of the arguments for increasing access to energy reserves in the next five-year leasing plan during a conference call with reporters.
Posted April 8, 2014
On Monday, the U.S. Energy Information Administration (EIA) released a remarkable new projection showing that given certain conditions and with the right policies in place the United States could reach energy self-sufficiency within two decades. It’s the first time EIA has projected that net imports’ share of liquid fuels consumption could reach zero – basically, that domestic production would exceed imports. Key to EIA’s scenario: access to domestic reserves.
On Tuesday, new Bureau of Land Management data showed that if EIA’s projection is to be realized, a new approach to energy development on federal lands will be needed. BLM statistics show that leasing and permitting on federal lands in fiscal year 2013 both were down, hitting their lowest numbers in years. Also down: new wells drilled.