Energy Tomorrow Blog
Posted June 11, 2014
Having read the U.S. National Energy Technology Laboratory (NETL) report, “Life Cycle Greenhouse Gas Perspective on Exporting Liquefied Natural Gas from the United States,” published on May 29, 2014, we are puzzled by the skewed conclusions reached by the Washington Post:
“That U.S. exports of LNG to China could end up being worse from a greenhouse gas perspective than if China simply built a new power plant and burned its own coal supplies.”; and that “the benefits of cleaner, more efficient combustion of natural gas are largely offset by methane leakage in U.S. production and pipelines and by methane leaks and energy used in the process of liquefying and transporting the LNG.”
A correct reading of the report reaches a completely different conclusion. After accounting for all the methane leakage factors mentioned by the Post, the NETL study clearly demonstrates that life cycle GHG emissions from LNG exports from the U.S. are significantly less than emissions from coal generated electricity in China and in Europe.
Posted June 6, 2014
America has a clear choice on energy. An historic American energy revolution is in progress -- thanks to vast shale reserves safely developed with advanced drilling technologies, industry innovation and leadership. This revolution is creating jobs, strengthening our economy and making our country more secure and muscular in the world. With the right energy choices the revolution can continue and grow.
Yet, somehow, Washington is conflicted. While the Obama administration embraces the shale revolution as integral to its all-of-the-above energy strategy, it advances policies fraught with the potential to needlessly hinder it. Instead of taking actions to enhance America’s energy renaissance, the administration is engaged in a regulatory march that quite likely could diminish it. Sustaining this energy revolution should be a no-brainer – not the brain-bender the administration is fostering with muddled vision and contradictory statements.
During a conference call with reporters this week, API President and CEO Jack Gerard discussed inconsistencies between what top administration officials say about U.S. energy development and what the agencies under them are doing to U.S. energy development.
Posted June 5, 2014
The Wall Street Journal (ROBERT PROFUSEK): Since the 1970s, multinational companies regularly relocated manufacturing outside the U.S., chasing what GE’s Jeff Immelt coined “labor arbitrage,” and the conventional wisdom was that U.S. manufacturing was heading to an inexorable death. The conventional wisdom has, however, proven untrue, as so often is the case.
Some of the reasons for the rebirth of manufacturing in the U.S. were the inevitable consequences of the rapid rise in industrialization in emerging market countries–think of the pollution and daily rolling brownouts in India, labor unrest and increased wage and work rule demands in China and unpredictable legal systems in many emerging market countries. But the fundamental factor driving manufacturing back to the U.S. is technology–computers and robots have further eroded the labor arbitrage, and the U.S. is the undeniable global leader in technology and innovation. At the same time, the U.S. is in the midst of an energy boom, itself technology-enabled, producing an enormous cost and reliability advantages. While this particular advantage can be expected to diminish over time, it is real and the catch-up time is likely to be long, as evidenced by China’s inability to date to exploit its own shale gas reserves cost-effectively.
Posted June 3, 2014
Reuters: Rising U.S. imports of crude oil from Canada's oil sands have not increased greenhouse gas emissions from the country's oil refineries because they have been offset by refining of cleaner domestic crudes, a report from a private sector think tank said on Monday.
The report, from industry consultants IHS CERA, comes as the Obama administration moves to cut greenhouse gas emissions from the U.S. power sector by 30 percent from 2005 levels by 2030, under new rules aimed at reducing America's longstanding reliance on burning coal to generate electricity.
The oil sands sector has faced frequent criticism from environmentalists concerned about greenhouse gas emissions. U.S. imports of carbon-rich Canadian oil-sands crudes grew by 900,000 barrels per day to more than 2 million bpd between 2005 and 2012, according to the IHS CERA report.
It said they did not result in higher greenhouse-gas intensity from the energy sector, however, as other crudes imported from abroad were supplanted by so-called tight oil from domestic shale-oil deposits.
Posted June 2, 2014
Posted May 30, 2014
In announcing plans to revamp the way it considers permit applications for projects to export U.S. liquefied natural gas (LNG) to non-free trade agreement countries, the Energy Department said changes would help streamline the process and increase efficiency.
Unfortunately, the revisions could mean more Washington delay and inject additional uncertainty for multi-billion-dollar investments – hampering efforts to harness America’s game-changing opportunity to create new jobs, boost the economy and stimulate domestic production with LNG exports.
In a DOE blog post, Christopher Smith, principal deputy assistant secretary for fossil energy, writes that the department will review export applications and make final public interest determinations only after environmental reviews are completed. It would end the department’s procedure of the past year and a half of issuing conditional approvals pending environmental review.
Posted May 30, 2014
The Hill: The Department of Energy (DOE) released two reports Thursday with favorable conclusions about the environmental impacts of exporting liquefied natural gas (LNG).
The department said it is not “reasonably foreseeable” that there would be any domestic environmental impacts from the increased natural gas drilling and hydraulic fracturing, or fracking. And in Europe and Asia, the natural gas would have much lower greenhouse gas emissions than coal when used for power generation.
The DOE is publishing the reports to gather comments on them and eventually use them in determining whether individual LNG export applications are in the country’s interest. Neither report is required by law, the agency said.
The reports came the same day the DOE proposed a new, streamlined process for considering applications to export LNG to countries with which the United States does not have a free trade agreement.
Posted May 29, 2014
Individual states would see significant job creation and economic growth from exporting U.S. crude oil, according to anew state-by-state report by ICF International and EnSys Energy. Specifically, 18 states could realize more than 5,000 new jobs each in 2020 from crude oil exports, with state economies growing by hundreds of millions of dollars each.
Kyle Isakower, API vice president for regulatory and economic policy, talked about the study during a conference call with reporters:
“There is a growing realization that this is a new era for American energy. Scarcity is giving way to abundance, and restrictions on exports only limit our potential as a global energy superpower. Additional exports could prompt higher production, generate savings for consumers, and bring more jobs to America. The economic benefits are well-established, and policymakers are right to reexamine 1970s-era trade restrictions that no longer make sense.”
Posted May 23, 2014
Bloomberg Businessweek: Mark Hiduke recently raised $100 million to build his three-week-old company. The 27-year-old isn’t a Silicon Valley technology entrepreneur. He’s a Texas oilman.
Now that a breakthrough in shale drilling technology has U.S. oil and gas production booming, an aging workforce is welcoming a new generation of wildcatters, engineers, and aspiring oil barons. After years of failing to attract and retain young talent, the industry is suddenly brimming with upstart millennials such as Hiduke—oil and gas veterans call it “the great crew change.” “I’ve never seen an industry do what the oil and gas industry has done in the last 10 years,” says T. Boone Pickens, the 86-year-old oilman. “Ten years ago I could not have made this statement that you have picked the right career.”
Posted May 22, 2014
Energy and economic prosperity go together – on that most Americans agree. New polling finds strong majorities ofregistered voters connect exporting natural gas and new job creation, trade deficit reduction and a stronger economy.
The results mirror findings in other recent surveys on energy infrastructure investment and construction of the Keystone XL pipeline. All together, they tell decision makers to choose pro-energy development and investment policies to put more Americans to work and to make America stronger in the world today.