Energy Tomorrow Blog
Posted March 18, 2019
The oil and natural gas industry is laser-focused on reducing methane emissions from production for two very important reasons.
First, the risks of climate change are real, requiring real solutions. Our industry takes these risks seriously, and we are driving solutions – evident in our innovation and technical work and in our long working relationship with the EPA.
Second, our members are in the business of providing natural gas, of which methane is the chief component, for clean electricity generation, to heat Americans’ homes and to supply manufacturers and other businesses that have realized billions in cost savings as a result. There’s no question that industry is highly motivated to capture as much methane as possible for progress on climate goals and for its customers. The results speak for themselves.
Posted March 9, 2019
To mark International Women’s Day, we have a new video featuring leading women from the natural gas and oil industry, including Susan Dio, chairman and president of BP America; Gretchen Watkins, president and U.S. country chair for Shell; and Stacey Nachbaur, Hess senior operations manager for upstream assets. Of course, the things these women say about the natural gas and oil industry are true every day of the year.
Our industry is high tech and critically important to the economy and powering modern life. Natural gas and oil are center stage in most geopolitical discussions, and natural gas is leading the way in reducing greenhouse emissions.
Posted March 5, 2019
The International Energy Agency’s Fatih Birol regularly heralds the positive impacts of the American shale energy revolution (see here, here and here). All good, but U.S. shale’s global impact is just now starting to be felt, IEA’s executive director said last week.
During a global markets update at the U.S. Energy Department with Secretary Rick Perry, Birol said the United States will be responsible for about two-thirds of the growth in the global liquefied natural gas (LNG) export market. Of course, this reflects the abundance of domestic natural gas, largely produced from shale formations. Big-time global impact lies ahead, Birol said. Add to that environmental and climate progress, which we’ll get to in a bit.
Certainly, there’s every reason to believe U.S. natural gas and oil can meet or exceed global expectations. Soaring U.S. crude oil production has increased global supply, supporting the stability of global markets – while reducing weekly U.S. crude imports to their lowest level in 23 years (as of Feb. 22), according to the U.S. Energy Information Administration.
Posted February 21, 2019
Update: Middleborough, Massachusetts, has joined parts of New York’s Westchester County on a list of places in the Northeast U.S. where they’ve announced moratoriums on new natural gas service.
As is true in Westchester, there’s not enough pipeline infrastructure to deliver natural gas to everyone in Middleborough who wants it. No question, the situation in Middleborough is unfortunate – as it is in sections of Westchester County affected by the natural gas moratorium there.
Blame short-sighted, agenda-driven opposition to constructing new natural gas pipelines or expand existing ones. Natural gas is near enough – in the Marcellus shale play in Pennsylvania that also extends into New York state.
Posted February 20, 2019
Earlier this month we talked about the unforced error of the administration’s tariff and quota policies that hamstring the economy, detailing the findings of recent report from the nonpartisan Congressional Budget Office. Now, new modeling has reviewed those suspicions in the context of the energy trade, and the indications are clear: The escalating trade wars could significantly limit the U.S. energy revolution and the benefits to Americans that it would otherwise bring.
The recent report, part of BP’s annual “Outlook,” a macro-look at the global energy system over the next 30 years, models a number of different scenarios including one in which global trade disputes persist and worsen. The results of this “less globalization” scenario indicate that the continuation of these policies would slow global GDP growth by 6 percent and energy demand growth by 4 percent in 2040. To make matters worse, the effect could be intensified in countries and regions most exposed to foreign trade – like the U.S.
Posted February 12, 2019
Recent tweet from the American Enterprise Institute’s Mark Perry includes a chart that vividly illustrates one of the biggest benefits of the U.S. energy revolution. First, it plots soaring U.S. net petroleum imports, which peaked at 60.3 percent in 2005, and then logs the plunge to just 12.1 percent last year. The thing that caught my eye in Perry’s tweet is that the time frame for his graph, 1957-2018, is pretty much the span of this blogger’s life.
Most importantly, in one generation, the United States has gone from steadily growing energy dependency to a nation that’s largely in control of its energy destiny. It’s a turnabout many of Americans never thought possible. Remarkable. Breathtaking. Or, as Perry tweets, amazing.
Posted February 6, 2019
Tuesday night’s State of the Union message was aimed at Washington finding common ground to work for the American people. President Trump said policymakers should embrace the “boundless potential of cooperation, compromise and the common good.” It struck a chord; more than seven in 10 Americans said they liked the speech’s approach and tone.
The challenge now is to move beyond rhetorical flourishes to action. Think: energy. In the quest for the common ground to do the common good, lawmakers can start with energy.Energy is America’s strong suit.
Posted February 5, 2019
Back in 2015, Pennsylvania Gov. Tom Wolf’s first year in office, we first likened his bid to hike taxes on natural gas production to killing the goose that lays golden eggs. That’s because over the years natural gas production has significantly benefited Pennsylvania – the nation’s No. 2 natural gas producer – in jobs, economic lift and impact fees paid by industry that have helped support public infrastructure, storm and water systems, public safety, housing and more, all over the commonwealth.
Negatively impacting a key Pennsylvania industry doesn’t make sense. Yet, in this new year, Wolf is back with a new tax scheme that could hamper natural gas production and its benefits – a proposal to borrow money to invest in infrastructure that would be paid back through a new natural gas production tax. Again, a tax on top of the impact fees industry already pays.
Posted January 31, 2019
As millions of Americans tune in this Sunday to watch football’s Big Game, many (myself included) are mostly watching for what comes during breaks in the action – the notorious Super Bowl commercials. And if you’ve watched a Super Bowl at any point in the last 40 years then you probably know the beer brand Budweiser as a longtime fixture, with ads featuring the Budweiser Clydesdales running since at least 1975, and this year will be no different. Budweiser has previewed a 2019 Super Bowl ad that has just about everything: Clydesdales, April the Dalmatian, Bob Dylan…and wind turbines.
Posted January 24, 2019
On a day when the U.S. Energy Information Administration (EIA) published its new Annual Energy Outlook – forecasting that the U.S. will become a net energy exporter next year through 2050, growing natural gas share in fueling electricity and rising liquid natural gas exports – API President and CEO Mike Sommers talked about sustaining and growing the engine of all these trends and more: the U.S. energy revolution.
The reason is simple: Where U.S. energy is and where it could go hinge on extending that revolution – to support economic growth, increase U.S. security in the world and help advance environmental and climate goals.
Sommers’ remarks at the U.S. Energy Association’s State of the Energy Industry Forum outlined the key goals for the American energy sector.