Energy Tomorrow Blog
Posted June 20, 2019
API’s latest Monthly Statistical Report (MSR) underscores just how much recent oil production growth exceeded the pace of record U.S. domestic needs and crude oil exports, resulting in higher inventories. This production and cushion for the market have kept oil and fuel prices low, and all these factors have contributed to a stronger economy with greater U.S. energy security.
Along with the separate Industry Outlook presentation, covering energy market developments for the second quarter of 2019, we see U.S. oil and natural gas output continuing to set records, helped by low breakeven prices and productivity that underpin the longevity of the domestic energy revolution –as we discussed here.
Posted June 19, 2019
Another big indication of the global impact of the U.S. energy revolution comes in the International Energy Agency’s (IEA) oil market report and its outlook for 2020, which says the United States will be responsible for virtually all of this year’s increase in oil supply. …
The fact that the U.S. is projected to fill this role is significant in terms of global market stability and the world’s security – that is, the United States as this growth supplier, versus less stable and/or less friendly regimes.
Posted June 13, 2019
John Watson, then the chairman and CEO of Chevron, once was asked how the natural gas and oil industry is perceived since so much of the climate discussion is aimed solely at producing fossil fuels.
Unflinchingly, Watson countered that his industry is a noble one – delivering light, heat, transportation, food, clothing and other benefits to people every day – and that natural gas and oil are foundational for almost everything that we use and do. Simply put, Watson asserted that natural gas and oil are forces for good in human development and far from a deterrent (and instead an enabler) of climate progress.
It was an argument for the societal value of natural gas and oil and the opportunities they create, thanks to U.S. energy abundance.
Posted June 13, 2019
The administration’s back-and-forth trade policies and near-constant threat of tariffs have left many American businesses and consumers uneasy.
We received some good news last week as President Trump ultimately decided against imposing a new 5 percent tariff on all imported goods from Mexico. But while trade with Mexico might be on even ground for now, the already tense U.S.-China trade relations have shown no sign of letting up. Now, the Administration has threatened a fourth round (subscription publication) of tariffs on Chinese imports, this time on List 4 goods, if a trade deal with China is not reached at the G20 summit later this month.
Let’s take a moment to remember that U.S. consumers are the ones hurt by tariffs, which are a tax on goods that millions of U.S. families and businesses use every day.
Posted June 6, 2019
Following past White House precedent, President Trump recently designated June 2019 as National Ocean Month in recognition of the ocean’s role in supporting the U.S. economy, national security and environment, while recommitting to safeguard its vital resources.
The U.S. offshore energy industry wholeheartedly supports the sentiments in the president’s proclamation and demonstrates this day in and day out.
Posted June 4, 2019
Some important points as the U.S. House Select Committee on Intelligence meets this week to talk about the impacts of climate change on U.S. security interests, global humanitarian conditions and other issues.
First, U.S. security is the responsibility of the U.S. military, which is the largest government user of energy, ranking ahead of many countries in overall energy use. More than any other energy sources and by a wide margin, natural gas and oil power America’s military.
Second, U.S. national security is directly tied to having access to safe, reliable, abundant energy and also decreasing dependence on energy supplied by other nations. Thanks to the U.S. energy revolution, resulting in record oil production, America’s dependence on others has fallen significantly since 2006.
Third, on the humanitarian issue, U.S. natural gas and oil offer a golden opportunity to lift regions and even entire countries out of energy poverty – with power for electricity that’s unavailable to nearly 1 billion people on earth and clean fuel for home heating and cooking, which about 2.7 billion people currently live without.
Posted May 31, 2019
The stage and podium banners at the Alaska Oil and Gas Association Conference in Anchorage this week had a simple, direct message – “Alaska: Back On The Map.” Certainly, the U.S. will be stronger, more secure and prosperous if the energy in Alaska and the Arctic offshore are developed to their potential.
This was the main point of keynote remarks by API President and CEO Mike Sommers (speech video here) – that an energy-strong Alaska makes America energy strong. The critical factor, Sommers said, is securing access to reserves – in the Alaskan offshore, the designated development zone of the Arctic National Wildlife Refuge’s (ANWR) coastal plain and the National Petroleum Reserve-Alaska (NPR-A).
Posted May 29, 2019
The headline of the opinion piece in the Orange County Register caught my eye – and should get the attention of everyone in this country:
“Fracking saves low-income Americans’ lives”
The article is based on research published earlier this year, which calculated that lower heating costs associated with surging domestic natural gas production averted 11,000 winter deaths in the U.S. each winter from 2005 to 2010.
Read on for details, but this research makes the critically important connection between abundant energy and Americans’ well-being.
Posted May 14, 2019
Winning on trade looks like this: 12 million U.S. jobs supported in all 50 states; commerce with neighbors Mexico and Canada was nearly $1.3 trillion in 2017 – four times what it was 25 years ago; in the energy space, trade helps the U.S. natural gas and oil industry, which supports 10.3 million jobs – many of which exist thanks to free North American trade
For these reasons and more, Congress should approve the U.S.-Mexico-Canada Agreement (USMCA), the successor to the North American Free Trade Agreement (NAFTA). From an energy standpoint, the case for USMCA approval is strong.
Posted May 10, 2019
Headlines announcing big oil discoveries in the U.S. Gulf of Mexico (GOM) – such as the Blacktip deepwater find last month – are something we’ve come to expect. Gulf production long has been strategically important to the United States, accounting for 17 percent of total U.S. crude oil production, and it’s easy to take for granted that the basin will just keep producing and producing.
Yet, two recent analyses, IHS Markit’s report for the U.S. Bureau of Ocean Energy Management and a Crystol Energy report, caution that the Central and Western Gulf, currently open to oil and natural gas development, are maturing, having been developed for several decades, and production could begin to decline before long. GOM development must compete globally with other offshore and onshore prospects or face declining interest in exploration, falling investment and decommissioning of critical infrastructure.