Energy Tomorrow Blog
Posted August 11, 2021
On Aug. 11 – National 811 Day – API is reminding Americans to call 8-1-1 before they dig.
The federally mandated call-before-you-dig number is available to Americans in every state. Expert-level professional contractors and DIY homeowners alike should use it to learn where utilities are located before breaking ground on home improvement or other construction projects.
The natural gas and oil industry is committed to improving the safety and security of America’s extensive infrastructure network. By promoting consensus-based standards, performance reporting guidelines and public awareness campaigns, we can accelerate progress toward a zero-incident future together.
Posted August 10, 2021
We’ve previously noted some of the non-fuel uses of natural gas and oil, many of which were highlighted in a 50-state series from a few years ago. More recently, we posted on the ground-breaking role natural gas and oil play in developing carbon nanotubes, microscopic structures that can be used in any of a number of applications, from electronics to construction.
So, while people commonly think of natural gas and oil as fuels for transportation, generating electricity and heating homes, they are significant in crafting synthetic fabrics, detergents, asphalt, lubricants, some skin care products, and a host of other products. Without oil and gas, you’d find it more difficult to travel on a smooth road (asphalt), launder your dirty clothes, maintain your cars or even keep your skin clear.
Here’s another emerging technology – using a new natural gas technology to make plastics in a process that is more efficient than current processes and could help reduce greenhouse gases.
Posted August 5, 2021
This summer, Americans saw gasoline prices rise to their highest level since 2014 as Congress debated infrastructure policy and economies worldwide continued their recovery.
Gasoline prices primarily reflect the local balance between gasoline supply and demand. Notably, the cost of crude oil is the largest component in the price of regular gasoline, accounting for 55% of the per-gallon cost, according to the U.S. Energy Information Administration. Right now, demand for crude oil is outpacing supply across the U.S. ...
Given these conditions, it’s no time to restrict or discourage U.S. natural gas and oil production. Instead, government and industry should work together to expand the safe and responsible development of American energy resources. Unfortunately, while America’s natural gas and oil are in high demand, the Biden administration has advanced misguided policies that could exacerbate the crude imbalance and further affect consumers.
Posted August 4, 2021
President Biden’s announcement last week that more of a product must be made in the U.S. to conform to the federal Buy American Act – in support of American jobs – provides an opportunity to double down on a point we made in January, when the president advanced “Made in America” concepts via executive order.
In the same spirit, why not advance American-made natural gas and oil and American natural gas and oil jobs?
Natural gas and oil are the leading energy sources used by Americans – and the rest of the world – every day. You’d think that as the world’s leading producer of the world’s leading energy sources, the U.S. would capitalize on that leadership by fostering more safe and responsible development. Unfortunately, not.
Posted July 21, 2021
It’s great for the U.S. economy that, with urban re-openings and the onset of the summer driving season, petroleum demand returned to over 20 million barrels per day (mb/d) in June, according to API’s primary data presented in our latest Monthly Statistical Report (MSR).
However, domestic oil supplies have not been able keep pace, and consequently U.S. crude oil imports and consumer prices have suddenly risen, which ultimately could contribute to the list of expenses stressing household budgets, such as higher costs for housing, vehicles and many other goods and services.
Posted July 20, 2021
Natural gas and oil are the energy foundation for U.S. economic growth, job creation and the opportunity for Americans to prosper all across the country. This is seen in a new analysis of our industry’s economywide and countrywide impacts: 11.3 million jobs supported in 2019 across all 50 states and the District of Columbia – generating 3.5 additional jobs elsewhere in the economy for each direct industry job, accounting for 5.6% of total U.S. employment; supported nearly $1.7 trillion to U.S. gross domestic product, or nearly 8% of the national total; supported nearly $900 billion in labor income or 6.8% of U.S. national labor income.
The analysis by PwC commissioned by API is based on the latest available government data (2019). Like other industry and business sectors, our industry was hard hit by the economic effects of the 2020 pandemic, but the 2019 data – generated during a period of robust U.S. growth, indicates the importance of the natural gas and oil industry post-pandemic, as the U.S. and global economies and petroleum demand ramp up. The U.S. Energy Information Administration projects (EIA) that 2022 global oil and liquid fuels demand will eclipse 2019 levels.
Given EIA’s forecast, it’s critically important that national policy supports – and doesn’t hinder – domestic natural gas and oil production.
Posted July 15, 2021
As we await the Biden administration’s report on the federal natural gas and oil leasing program, let’s note the welcome news that oil and gas permitting approvals this year are on track to reach their highest levels since George W. Bush was president.
Permitting at that pace is good for near-term U.S. production, no question. In January, when the administration suspended new oil and gas leasing on federal lands and waters, it said permitting would continue, and it has. The country benefits from safe, responsible and robust domestic natural gas and oil production.
Americans shouldn’t conflate permitting and leasing. Drilling permits are issued when companies are ready to develop from acreages, onshore and offshore, previously leased from the federal government. Put another way, leases typically are secured years before development occurs. We’re seeing permits go through at a significant rate because investment and planning have been completed and acreages are ready to go into production. Permitting is about production that’s imminent; leases represent energy in the future.
Posted July 14, 2021
A good cybersecurity discussion in the Wall Street Journal this week, featuring API’s Suzanne Lemieux, Accenture’s Jim Guinn and the University of Houston’s Chris Bronk. The conversation was a follow-up to the cyberattack on the Colonial Pipeline in May, which caused serious fuel disruptions along the East Coast.
We’ve previously pointed out that protecting the nation’s natural gas and oil infrastructure is critically important to maintaining U.S. energy affordability and economic competitiveness. Our industry recognizes this and has been deeply engaged with government agencies and a broad range of private sector stakeholders facing similar cyber threats, while pointing out that the Colonial attack underscores our country’s need for more energy infrastructure.
Posted July 12, 2021
There’s a good deal of discussion in Washington about a national clean electricity standard, which would use government mandates to set targets for reducing carbon emissions from the power sector.
Such an approach is one way to go, but there’s another – one that already has achieved significant greenhouse gas emissions by using the power of the marketplace to effect change: U.S. natural gas.
The increased use of natural gas is the leading reason for reduced U.S. emissions in recent years, including carbon dioxide. At the same time, technologies and industry innovation have helped reduce methane emissions associated with natural gas and oil production, and new advances are on the horizon. This pathway leads to a lower-carbon future and the ability to meet growing world demand for energy.
Posted July 8, 2021
The Biden administration says it is keeping a close eye on the OPEC+ talks on crude oil production because, as White House Press Secretary Jen Psaki said, it wants “Americans to have access to affordable and reliable energy at the pump.”
Unfortunately, the U.S. is mostly a spectator as OPEC+ debates crude oil supply, which continues to be outpaced by demand, putting upward pressure on crude costs. Because the cost of crude is the biggest factor in gasoline prices, U.S. pump prices have reflected this mismatch between demand and supply.