Energy Tomorrow Blog
Posted January 22, 2014
EIA Today in Energy: The 2014 Annual Energy Outlook projects declines in U.S. oil and natural gas imports as a result of increasing domestic production from tight oil and shale plays. U.S. liquid fuels net imports as a share of consumption is projected to decline from a high of 60% in 2005, and about 40% in 2012, to about 25% by 2016. The United States is also projected to become a net exporter of natural gas by 2018.
Conversely, other major economies are likely to become increasingly reliant on imported liquid fuels and natural gas. China, India, and OECD Europe will each import at least 65% of their oil and 35% of their natural gas by 2020—becoming more like Japan, which relies on imports for more than 95% of its oil and gas consumption.
The reasons for these shifts are different between emerging and developed economies. In China and India, oil demand growth from emergent middle classes will likely outpace domestic production, while OECD Europe will likely become more import reliant as a result of declining oil production in the North Sea.
Read more: http://1.usa.gov/1g1pCqW
Posted January 21, 2014
In the interview clip below, Paula Jackson of the American Association of Blacks in Energy talks about the importance of the United States making the right choices on energy policy.
Posted January 17, 2014
David Ignatius has an important column in the Washington Post this week on America’s energy boom –the result of greatly expanded domestic oil and natural gas production and an “all of the above” approach to energy policy. Ignatius writes:
For decades, Americans have talked about “energy policy” as if it were the political equivalent of a migraine. The phrase connoted pain — in ever-rising gas prices, costly government schemes and dependence on imports from precarious Middle East regimes. But recent developments involving energy production and technology have been so astonishing that they should puncture this long-running pessimism. The amazing fact is that, on nearly every front, America’s energy prospects have improved in ways that would have been unimaginable just a decade ago. In the energy marketplace, President Obama’s vision of an “all of the above” strategy is actually happening. Production of oil, gas and alternative energy is rising, even as demand begins falling for these energy sources — all thanks to new technology. The market forces driving these changes are so powerful that even politicians probably can’t screw them up.
Ignatius highlights data we’ve previously seen from the U.S. Energy Information Administration (EIA), projecting that the U.S. will produce nearly 9.6 million barrels of oil per day by 2016, a level not seen since 1970 – thanks largely to vast shale deposits and advanced hydraulic fracturing and horizontal drilling.
Posted January 13, 2014
The United States is the world’s leading producer of natural gas, according to the U.S. Energy Information Administration. As early as next year, the U.S. could be No. 1 in oil output as well, estimates the International Energy Agency. We’re on the verge of energy superpower status – dependent on policy choices that will help boost domestic oil and natural gas development, a point underscored in one of API’s newest ads:
It’s about choosing energy – choosing to develop more energy right here at home. Read more at ChooseEnergy.org.
Posted January 8, 2014
Below is a video clip from API President and CEO Jack Gerard’s State of American Energy speech this week, detailing strong support from Americans for increased production of U.S. oil and natural gas – because this development translates into millions of good jobs.
Posted January 6, 2014
Fracking 101: Breaking Down the most Important Part of Today’s Oil, Gas Drilling
Greeley Tribune: Fracking, the two- to three-day process of hydraulic fracturing for oil and gas, is perhaps one of the most misunderstood drilling practices, becoming as bad of a word in some circles as a racial slur.
Entire countries have banned the process. Some Colorado towns have placed moratoriums to study it further.
Environmentalists storm capitals over it, demanding increased regulations, and oil and gas company employees and officials scratch their heads — they’ve been using the same process in oil and gas drilling for 60 years without widespread incidents.
“It’s a perplexing issue,” said Collin Richardson, vice president of operations for Mineral Resources Inc., who opened up a company fracking job last fall to a student tour from the University of Northern Colorado. “People go to a light switch and expect energy to be there, but they don’t think about where it comes from. I don’t think most people understand that without hydraulic fracturing, we wouldn’t have natural gas to provide electricity to our homes or gas in our cars.
Read more: http://bit.ly/1gc41Z7
Posted January 2, 2014
Shale-Oil Boom Puts Spotlight on Crude Export Ban
Wall Street Journal: The U.S. government virtually banned the export of crude oil in the wake of the mid-1970s energy crisis. But as America pumps more crude, 2014 could be the year those constraints are lifted.
For decades, even discussing the possibility of exporting domestic oil was a political nonstarter in Washington. Now, surging U.S. production has led to the beginning of a glut along the Gulf Coast, home to the largest refinery complex in the world. Too much crude is driving down prices there, making producers eager to export some of their oil to places like Europe where prices are higher.
Read more (subscription publication): http://on.wsj.com/1d2nGfN
Posted December 30, 2013
Vaclav Smil’s Graph of the Year: The Natural Gas Boom
Washington Post: "[There are] too many choices possible, but here is one epoch-making trend: as the post-2008 rise of hydraulic fracturing drove U.S. natural gas prices down and increased the supply (in 2013 the U.S. will be again the world’s largest natural gas producer) oil and gas prices, traditionally moving in tandem, have diverged significantly. History is being made."
Posted November 20, 2013
Future of U.S. Energy Production is Bright
KAAL ABC Rochester 6: The U.S. is entering a new era of energy production said former national security advisor General James Jones who made a stop in Rochester Tuesday. He says the future of U.S. energy is bright.
Most people have noticed a change when they go to fill up.
"Gas being $3.20 instead of $3.80," said Scott Heck.
Rochester Area Chamber of Commerce member Scott Heck knows a lot more is happening with the U.S. energy industry than what we can see at the gas pump.
"Certainly being from North Dakota I know people that have been dramatically affected by the abundance of energy up there," said Heck.
North Dakota is just one of the areas that has seen the effects of the U.S. oil boom.
"The U.S. is now the largest producer of oil and gas," said General Jones.
General Jones is a former national security advisor to President Obama. He say with recent innovations and technologies the United States is now in a position where it may soon no longer have to rely on foreign oil.
"This is a whole different ball game, we need to develop our resources widely, this energy leverage gives us a role of influence in the world that we haven't enjoyed for a long time," said General Jones.
Read more: http://bit.ly/18QwkqR
Posted March 20, 2013
Associate editor at The Atlantic Jordan Weissmann had a provocatively titled piece yesterday on taxes and the oil natural gas industry which may have generated some traffic, but it certainly did nothing to contribute to an honest debate. His premise was to identify tax increases on the oil and natural gas industry as a: “safe ground to set up camp for the budget negotiations.”
The US imposes tax on net income, not gross income, which means that all businesses, whether they are farmers, manufacturers or oil companies, are allowed to deduct their normal business expenses from income in calculating their tax due. Accordingly, the oil and gas industry is eligible for business deductions that are the same as or similar to those available to other taxpayers. Contrary to what others may say, the industry does not receive credits, does not benefit of mandates and is not directly subsidized by the federal government. Weissmann’s one-sided opinion piece attempts to state otherwise by identifying specific items – so let’s look at them:
Expensing Intangible Drilling Costs ($13.9 billion): Since 1913, this tax break has let oil companies write off some costs of exploring for oil and creating new wells.