Energy Tomorrow Blog
Posted October 24, 2018
From prepared remarks at this week at the Lone Star Energy Forum in Houston, hosted by the Texas Oil & Gas Association (TXOGA):
It’s great to be back in Texas. And it’s a privilege to share a stage with some of the most steadfast advocates for U.S. energy leadership starting right here in Texas. TXOGA and API have the same goal, and it’s based on this event’s theme: “Energy Dominance Starts in Texas.” The goal is to make sure that the Energy Dominance that starts in Texas, doesn’t end in Washington, D.C.
Posted October 3, 2018
Announcement of the United States, Mexico and Canada Agreement (USMCA) – locking in Canada and Mexico as our nation’s closest trading partners – is good news for the U.S. energy renaissance. Attention now turns to Congress, which should ratify the deal....
Because zero or reduced tariffs, market access between the three countries and trade liberalization all worked to the benefit of U.S. energy under NAFTA, our industry’s chief goal was an updated agreement was to keep in place features that have supported U.S. energy. USMCA does that – and Americans will be the beneficiaries.
Posted September 20, 2018
In API’s latest Industry Outlook and Monthly Statistical Report, we have shifted from recognizing risks on the horizon to having a line of sight on some of them. The effects of trade disputes in particular have become tangible.
Most notably, at the same time as the U.S. celebrated another new record for crude oil production of 10.8 million barrels per day (mb/d), U.S. petroleum exports decreased by 1.3 mb/d over the past two months.
Posted August 28, 2018
API’s Kyle Isakower is featured in a CNBC report that estimates new steel tariffs are adding $40 million to Permian Basin pipeline costs. At issue is Plains All-American’s $1.1 billion pipeline project that would bring crude oil from the Permian to the Gulf Coast. As detailed in this post, Plains requested an exclusion from the tariff for its project, but it was denied by the Commerce Department. …
Far from being part of an “energy dominance” strategy, the administration’s tariffs on steel – including an onerous, opaque exclusions process – and other recent trade-related policies could hinder domestic natural gas and oil development, as well as infrastructure such as pipelines that is needed to fully benefit U.S. consumers.
Posted August 21, 2018
The U.S. is leading the world in the production and refining of natural gas and oil which is boosting our economy, keeping energy affordable for consumers and benefitting American workers. Despite these facts the Trump administration continues to push policies that work against domestic energy production. Proposed additional Section 301 tariffs – and the retaliatory tariffs from China that they could provoke – follow a similar pattern.
Posted August 16, 2018
Lots of positive energy data points in API’s newest Monthly Statistical Report – and one that’s potentially concerning.
The good is that the U.S. tied its record for crude oil production in July at 10.7 million barrels per day (b/d) and set a new one for natural gas liquids, 4.4 million b/d. With total liquids production up by more than 2 million b/d compared to July 2017, the U.S. has accounted for almost all of the growth in world oil production so far in 2018 – more than compensating for production losses elsewhere around the world.
Now the potential point of concern. The U.S. petroleum trade balance retreated in July, perhaps the result – at least in part – of trade tensions prompted by new U.S. tariffs. Crude export were down 240,000 b/d last month, and refined products exports decreased 220,000 b/d.
Posted August 8, 2018
A couple of observations on China’s announcement late last week that it may impose a 25 percent tariff on U.S. shipments of liquefied natural gas (LNG) to that country – which would be in retaliation for announced U.S. tariffs on certain Chinese goods coming into this country.
First, China was the third-largest importer of U.S. LNG in 2017, accounting for nearly 15 percent of our LNG exports, according to the U.S. Energy Information Administration (EIA). As those numbers indicate, this exchange of tariffs could leave a mark as far as U.S. energy exports are concerned. ...
If U.S. energy exports are restricted – at the same time trade policies have been adopted that increase the cost of the steel our industry uses – there’s a risk of significantly affecting a sector that has been a driving force for economic growth. It’s a big price to pay.
Posted August 7, 2018
Recently, we discussed how natural gas and oil production and energy exports were major contributors to robust second-quarter growth by the U.S. economy – by themselves generating nearly half of the increase in U.S. real exports in Q2.Yet, there’s concern that escalating U.S. trade restrictions and looming disputes could threaten global trade and economic growth. We’ve talked about tariffs and quotas directly impacting the natural gas and oil industry – China last week announced a 25 percent tariff on U.S. liquefied natural gas – but the potential effect is broader than just our industry, as indicated in last week’s post on possible food price impacts.
Posted July 27, 2018
The U.S. gross domestic product (GDP) increased 4.1 percent in the second quarter at a seasonally-adjusted annualized rate, its best pace since 2014, driven by strong consumer and business spending as well as a surge in exports ahead of retaliatory tariffs from China. As the energy renaissance has continued to raise U.S. natural gas and oil production and exports to record levels, these abundant and affordable fuels and feedstocks contribute to the economy and — by themselves — generated nearly half of the growth in U.S. real exports in Q2.
Posted July 26, 2018
The Trump administration has long touted its commitment to U.S. energy production but continues to push policies that directly counter these efforts, hurting U.S. workers and consumers in the process. The proposed Section 301 tariffs – and the retaliatory tariffs from China that they will provoke – are no exception.