Energy Tomorrow Blog
Posted January 22, 2021
“The risks of climate change are real. Our companies have played and will continue to play a significant role in reducing greenhouse gas emissions (GHG) that contribute to climate change.”
Above is a quick summary of the natural gas and oil industry’s climate position (more detail here). Basically, industry recognizes significant climate risks and is committed to working to further reduce GHG emissions – both especially relevant with President Biden’s announcement that the U.S. is rejoining the Paris Climate Agreement.As the leading provider of the energy that powers the U.S. economy and Americans’ everyday lives, our industry has a key role to play in the national climate conversation and in developing climate solutions – even as it supports economic growth and U.S. energy security.
Posted January 19, 2021
Addressing the challenge of global climate change will require the collective efforts of the U.S. government and the business community, and America’s natural gas and oil industry is committed – through public policies and private-sector initiatives – to delivering climate solutions.
API supports the ambitions of the Paris Climate Agreement, including the call for global action to reduce greenhouse gas emissions. By encouraging the development of groundbreaking technologies, like carbon capture, utilization and storage, and promoting the uptake of cleaner-burning natural gas, our members are driving environmental progress while meeting the world’s long-term energy needs.
Posted January 13, 2021
We’re ready, and we’re able.
After a difficult year in which too many were lost, economic hardship was palpable and creeping doubt dogged the national psyche, Americans are right to look to the future. And America’s natural gas and oil industry is ready and able to help build that future.
It takes energy – affordable, reliable energy – to move people and things, to build, heat, manufacture, innovate and grow today and tomorrow. Natural gas and oil are America’s leading energy sources, by far, and our industry is ready to provide the dependable foundation for the country’s next great chapter.
Like every other business sector, ours took some lumps in 2020, but we proved our resilience, our staying power and capacity, despite significant challenges, to power recovery and drive new opportunity on a nationwide scale.
Those are a few of the key themes from today’s API’s annual State of American Energy event. Emerging from the trials of 2020, all of us can be thankful that the state of American energy – the state of the U.S. natural gas and oil industry – is good, very good.
Posted January 11, 2021
Making energy more affordable for Americans is one of the biggest benefits of the U.S. natural gas and oil revolution. Over the past decade or so, abundant domestic reserves, unlocked by modern hydraulic fracturing and horizontal drilling, lowered consumer energy costs – even as household expenses for health care, education and food increased.
The challenge for everyone is not to take affordable, reliable energy for granted. Not too long ago the country was beset with rising annual costs for gasoline, ever-growing oil imports and dwindling domestic natural gas supplies. The natural gas situation was so alarming, lots of smart people believed the U.S. would need to build natural gas import facilities to help meet domestic demand.
Again, the shale energy revolution changed that storyline. We have plentiful supplies of natural gas here at home and increased energy security. The U.S. has become a leading natural gas exporter and was on track in 2020 to be a net exporter of petroleum and total energy on an annual basis for the first time in 60 years. That’s what energy security looks like.
This leads back to consumer benefits – reflected in a new U.S. Energy Information Administration (EIA) report showing that last year natural gas prices were at their lowest levels in decades.
Posted December 4, 2020
Americans benefit daily from homegrown natural gas, an increasingly essential component of the global energy mix and an affordable, efficient resource available to meet our nation’s long-term energy needs.
Nearly two-thirds of America’s energy consumption is made possible by natural gas and oil, and natural gas remains the leading fuel for U.S. power generation, accounting for about 38% of the nation’s electricity in 2019.
Remarkably, the economic competitiveness of natural gas has endured throughout 2020. Such durability has positioned the fuel to balance the challenges of economic recovery with the necessity of climate progress.
Posted December 1, 2020
The year has brought extreme and at times contradictory information about the economy and our industry, making it increasingly difficult to determine whether the economic recovery has gained firm footing and ultimately traction, in which natural gas and oil will play a key role.
Importantly, we currently see well-grounded pillars for expected U.S. and global economic growth over the next two years – personal consumption expenditures and investment that generally represent the majority of GDP. These could kickstart new economic growth and prosperity that will not only require but fundamentally be enabled by oil and natural gas.
Posted November 20, 2020
As the deadly coronavirus pandemic cripples business activity and depresses consumer spending, American energy continues to power the nation’s economy and enable the delivery of essential products and services.
Despite this year’s demand downturn, natural gas and oil are still vital to the world’s energy mix and will remain indispensable for decades to come.
Posted October 19, 2020
There’s an interesting subplot the International Energy Agency’s (IEA) recent report on the technology push that’s needed to reach sustainability targets: the empowering, essential role of natural gas.
It bears repeating: Abundant, affordable natural gas is critical to the growth of renewable energy, supplying reliable fuel for power generation when intermittent sources aren’t available. Natural gas and petroleum are used in the manufacturing of renewable technologies and in the development of potential game-changers such as hydrogen.
Even if the United States alone were to meet the aggressive sustainability goals of the Paris Climate Agreement, natural gas and oil would still make up 46% of the energy mix in 2040. Indeed, IEA expects natural gas demand to rebound by almost 3% in the next year, and oil demand should similarly recover within coming years. In another report, IEA indicates that those who herald oil’s demise are doing so prematurely.
Meanwhile, natural gas provides reliable and affordable energy that we will depend on for the foreseeable future. In fact, natural gas will be essential in helping the world reach its sustainability goals.
Posted October 2, 2020
Growing natural gas use in the U.S. power sector continues to be an important factor in decreasing the country’s energy-related carbon dioxide emissions, a critical greenhouse gas in the climate conversation.
This is seen in the latest U.S. Energy Information Administration (EIA) emissions report, which showed that these CO2 emissions decreased 2.8% in 2019 compared to 2018, largely thanks to changes in the electricity fuel mix.
Coal-related emissions declined 15% last year, reflecting a decline in coal’s share of U.S. power generation (falling from 27% to 23%). Natural gas is the leading fuel for generating electricity, its share of the mix rising to 38.4% in 2019 from 35% in 2018. (Nuclear accounted for 19.6% of generation while 9% was generated by wind and solar). Coal’s downward trend continued and even accelerated through the first two quarters of 2020, while natural gas’ share in the generating mix remained steady despite falling overall power demand.
Posted September 30, 2020
Sifting through what was a rollicking presidential debate Tuesday night, searching for important takeaways … Let’s look at the discussion near the end of the event that focused on climate, energy policy and energy jobs – in which safe and responsible natural gas and oil production here at home is a critical player.
As was accurately noted during the debate, U.S. carbon dioxide emissions from the power sector are at their lowest levels in a generation – primarily because of growing use of natural gas to fuel electricity generation. Natural gas is the leading fuel for U.S. power generation and is projected to continue leading for decades to come.