Energy Tomorrow Blog
Posted July 15, 2015
While the potential negative impacts of E15 fuel on machines that weren’t designed to use it – from vehicles to outboard marine engines and weed-eaters – isn’t funny, some humor can help illustrate important points in that key public policy debate.
API has three new cartoons that take a light-hearted look at the potential harm from using E15 – containing up to 50 percent more ethanol than E10 gasoline that’s standard across the country – in outdoor equipment, boat motors and motorcycles. Today, outdoor power equipment.
Kris Kiser, president and CEO of the Outdoor Power Equipment Institute (OPEI), has warned against using E15 in lawnmowers and other outdoor gear because they can cause permanent damage.
Posted July 13, 2015
Another data point in the continuing public discussion of EPA’s plan to make the nation’s standards for ozone more restrictive, even as the existing standards have ozone levels falling 18 percent from 2000 to 2013 – and giving every indication levels will continue to fall. A new study by the Center for Regulatory Solutions (CRS) details how more restrictive ozone standards would impact where a lot of people live: Chicago and the state of Illinois.
According to the study, 21 counties in Illinois would be out of compliance or in “non-attainment” if EPA tightens ground-level standards from the existing 75 parts per billion (ppb) to 65 ppb, as it may do. (The fact is EPA is considering a national level as low as 60 ppb.)
Those 21 counties represent nearly 80 percent of Illinois’ gross domestic product, or $613.4 billion. The CRS study says Cook County and five other counties that surround Chicago would be “ground zero” for the most dramatic ozone reductions, potentially affecting 65 percent of the state’s population, nearly 70 percent of its employment and 73 percent of its GDP.
Posted July 10, 2015
The compelling case for lifting America’s decades-old ban on exporting domestic crude oil is multi-faceted.
There's the economic case, with NERA Economic Consulting estimated that lifting the ban could add $200 billion to $1.8 trillion to the U.S. economy between now and 2039. There's the case for consumers, with a variety of studies indicating that lifting the ban could lower prices at the fuel pump from 1.7 cents per gallon to up to 12 cents per gallon. There's the foreign policy case and the way home-grown crude oil could affect global relationships, helping allies and potentially neutralizing the ability of adversaries to use energy as a diplomatic weapon. Then there's the energy case. Domestic production, spurred by greater access to global crude markets, could grow by 2.1 million barrels per day to 4.3 million barrels per day over levels under the status quo, according to NERA.
Certainly, each of these was argued again at a pair of Capitol Hill hearings, one by the House Agriculture Committee (video) and another by the Energy and Commerce Committee’s Energy and Power Subcommittee (video).
Posted July 8, 2015
Before getting into the latest in a series of research studies on energy-related methane emissions, it’s important to stay focused on the big picture.
Data from EPA’s Greenhouse Gas Inventory Report published this spring shows that net methane emissions from natural gas production fell 38 percent from 2005 to 2013 – even as natural gas production rose dramatically. Also: Methane emissions from hydraulically fractured natural gas wells declined 79 percent from 2005 to 2013, EPA found.
That’s the appropriate context for 11 new studies just published in the scientific journal Environmental Science & Technology, reporting research in the Barnett Shale play in North Texas. The studies follow others coordinated by the Environmental Defense Fund (EDF). One released in 2013 found that methane emissions from natural gas drilling were a fraction of previous estimates. Another released earlier this year found that that vast majority of natural gas facilities – from the production phase to distribution via inter- and intra-state pipeline networks – recorded methane loss rates of below 1 percent.
Posted July 8, 2015
A barrel of crude oil or petroleum product shipped by pipeline is safely delivered to its destination more than 99.999 percent of the time, but the industry’s objective remains: zero releases, zero incidents.
Toward that goal, API has just released a new standard to guide operators in the development of a systems approach to safety management – helping them to continuously evaluate their efforts and constantly improve safety. API Midstream Director Robin Rorick:
“Pipelines are safe and efficient, but we are always looking for new ways to make them better, which is why industry is embracing this new standard. It’s also a great example of what can be done when industry, regulators and all key stakeholders work together to achieve a common objective, which is to protect the public, the environment and provide the fuels Americans need.”
Posted June 26, 2015
More from the new Wood Mackenzie study comparing the effects on the U.S. energy picture from pro-development policies versus a regulatory-constrained path. We’ve looked at the implications for energy supplies. Today we’ll zero in on two very different scenarios affecting individual American households.
Once again, the study compared impacts on key areas, depending on the energy policy path our country chooses. The pro-development path includes increased access to oil and natural gas reserves, approaches to regulation and permitting that encourage accelerated energy production and export policies that allow U.S. oil and natural gas to reach global markets, stimulating domestic output. The constrained path would pretty much maintain the status quo on access, regulation and exports – costing the United States, as the study shows.
Posted June 24, 2015
Houston Chronicle – The oil industry’s leading trade group on Tuesday kicked off its 2016 political campaigning, with plans to air issue advertising and hold events in battleground states.
The American Petroleum Institute launched its “Vote 4 Energy” with a pledge to stay above the partisan fray while ensuring that energy policy is part of the political discussion leading up to the November 2016 elections.
The group released a Wood Mackenzie study that it said illustrated the stark choice facing voters, by modeling how two different regulatory approaches to oil and gas would affect domestic production of those fossil fuels and economic activity related to them.
Under a relatively hands-off scenario with “pro-development” policies, the United States would gain 2.3 million U.S. jobs and $443 billion in economic activity by 2035, according to the API-commissioned analysis. Oil and natural gas production, meanwhile, would jump by 8 million barrels of oil equivalent per day, the study predicted.
Posted June 18, 2015
Here’s the first of a series of posts sparked by speeches and presentations at this week’s U.S. Energy Information Administration (EIA) energy conference. U.S. Energy Secretary Ernest Moniz set the tone for EIA’s event, noting that the U.S. faces a set of energy challenges, vulnerabilities and opportunities. At the heart of the discussion: America’s energy resurgence. Moniz:
“By almost any simple measure for sure, our energy security position has been enhanced a great deal over the last several years: No. 1 producer of oil and gas, oil imports in terms of a fraction of crude plus products back at 1952 levels. In fact, our production increasing so substantially in the last five years that it has become a critical factor in global pricing dynamics, challenging decades-old assumptions by OPEC, for example. We have mothballed LNG import facilities are being repurposed for exports, likely to begin next year, and, frankly, likely to see us in several years at least become one of the major LNG players on the global scene.”
Moniz credited the energy revolution for rejuvenating U.S. manufacturing, particularly among energy-intensive industries that are capitalizing on affordable natural gas for power and/or as a feedstock for a variety of products. America’s increased use of natural gas also has helped lead U.S. efforts to reduce carbon dioxide emissions, he said.
In all of the above, the secretary certainly makes good point. Thanks to innovative, advanced hydraulic fracturing and horizontal drilling, the U.S. is the world’s energy-producing leader. America is stronger and its citizens are more prosperous because we’re producing more of the energy we use right here at home.
Posted June 17, 2015
Quick rewind to 2007, when Congress enacted the Renewable Fuel Standard (RFS): The U.S. faced energy challenges – declining domestic production leading to greater dependence on imports and ever-increasing consumer costs. The RFS was conceived as a way to spur production of advanced biofuels that would help on imports and costs.
Today the energy landscape has completely changed. Thanks to surging domestic production from shale and other tight-rock formations with advanced hydraulic fracturing and horizontal drilling, the United States is No. 1 in the world in the production of petroleum and natural gas hydrocarbons. Our imports are falling, and consumers have enjoyed lower prices at the pump.
Yet, the RFS remains – with its mandates for increasing use of ethanol in the fuel supply, seemingly impervious to the changed energy landscape, even as increased domestic oil production has checked off RFS objectives one by one. Even EPA’s latest proposal for ethanol use, while acknowledging that the RFS has serious flaws, continues to try to manage the behavior of markets and consumers, ironically leaving both on the sidelines.
That was the message in a telephone briefing with reporters hosted by API President and CEO Jack Gerard. Joining the call were Wayne Allard of the American Motorcyclist Association (AMA), Heather White of the Environmental Working Group (EWG) and Rob Green of the National Council of Chain Restaurants (NCCR).
Posted June 10, 2015
The video below was featured during last week’s Big Brothers Big Sisters (BBBS) National Conference in Philadelphia, which highlighted the organization’s efforts to mentor at-risk youth. Take a look. “Darryl’s Story” is a compelling example of the positive effects of adult role-modeling – the good that can result when kids learn to dream big and then to work on their dreams. The energy connection: For Darryl, the journey took him to the oil and natural gas industry.
As an industry that’s creating opportunities that can be the realization of aspirations for fulfilling, well-paying careers, API is proud to partner with BBBS. The great news is that the oil and natural gas industry needs more Darryls, more young men and women who want to be geologists, engineers, chemists and the other specialties that comprise our modern workforce.