Energy Tomorrow Blog
Posted December 2, 2014
U.S. News (Lamont Colucci): OPEC met on Nov. 27, and openly recognized that the United States' oil technological revolution – driven by enhanced oil recovery methods including hydraulic fracturing (known as fracking) and horizontal drilling – has undermined the cartel's economic and political power. This constitutes one of the major geopolitical and economic shifts of the 21st century in America’s favor. This meeting has been characterized as OPEC abandoning its role as a “swing producer” or simply the arbiter of oil supply and demand. Some are now suggesting that the new swing producer will be the United States.
Enhanced oil recovery technology was consistently denigrated as unworkable and unprofitable, and there will be many more articles restating this as the old wine in a new bottle. These technologies have made the U.S. the world's number one oil producer, surpassing Saudi Arabia and Russia. OPEC’s strategy of allowing the market to decide oil prices is designed to hurt American enhanced oil recovery activities, with the assumption that American producers need a higher profit margin per barrel than it does. This may be a horrible miscalculation on OPEC's part due to continual advances in technology and innovation.
According to a 2013 report, hydraulic fracking and horizontal drilling have the potential to increase the global reserve of oil from 1.6 billion barrels to 10.2 billion barrels. Domestically, we are already witnessing the 21st century oil boom generate prosperity for states like Colorado, Oklahoma, North Dakota, Texas, West Virginia and Wyoming. Current estimates indicate that by 2020 the United States will be the dominant worldwide producer of both natural gas and oil and achieve energy independence.
However, this energy issue has been dominated by the wrong people: economists, businessmen, engineers and environmentalists. They all have their required expertise, but all of this is really an issue of foreign policy and national security. There are four ways that this new situation can be welcomed by conservatives, liberals, realists and environmentalists.
Posted November 18, 2014
While the U.S. Senate fell just short of the votes needed to pass legislation advancing the long-delayed Keystone XL pipeline, the issue likely will reach President Obama’s desk when the new Congress is seated in January. API President and CEO Jack Gerard:
“Keystone XL is not going away. The president will have to deal with it, if not now then next year – when existing bipartisan majority support for Keystone XL in both the House and Senate will only be stronger. We will work with the new Congress to focus on getting this important jobs project approved. We will not give up until the pipeline is built. The significant gains in jobs, economic growth, energy security and national security – which have been firmly established during six years of study – prove beyond any reasonable doubt that Keystone XL is in our national interest. The national interest question is the sole consideration before President Obama, and his failure to answer it is the sole factor standing between Americans and this shovel-ready infrastructure project.”
As the Keystone XL saga continues, opponents continue to offer up a familiar grab bag of myths, half-baked goods and distortions – all designed to keep the pipeline obstructed.
Nothing new, of course. Keystone XL’s merits have been established over more than six years of close public scrutiny, including five thorough environmental reviews by the U.S. State Department – all of which have similarly concluded that the pipeline would have minimal effect on the environment and that the crude oil it will deliver to the Gulf Coast would have no material impact on U.S. greenhouse gas emissions.
The fact is Keystone XL has been studied, probed, examined, researched and analyzed like no other energy infrastructure project before it. There have been public hearings and hours of congressional debate. Through it all, Keystone XL has maintained strong support from the American people – 60 percent in a new USA Today poll.
Posted November 18, 2014
Posted November 14, 2014
Friday’s bipartisan U.S. House vote to advance the Keystone XL pipeline, the ninth time the House has voted to support the project, sets up next week’s expected vote in the Senate – and most likely a big decision point for President Obama. API President and CEO Jack Gerard:
“The strong, bipartisan support for the Keystone XL pipeline demonstrates lawmakers from both parties in the House, as well as the Senate, are listening to the American people. A vote for KXL tells Americans their jobs matter, their futures matter and that our nation’s energy and national security are a clear priority.”
Now the question: Is President Obama listening?
Posted November 14, 2014
The Fix (Washington Post): President Obama is fond of telling Congress that it should pass things with the overwhelming support of the American people, including (among other things) comprehensive immigration reform, increasing the minimum wage, and increasing gun background checks.
And yet, Obama could soon be in a position of vetoing something with a similar amount of support: the Keystone XL pipeline.
Poll after poll has shown support for Keystone is somewhere between very strong and overwhelming. A Pew Research Center survey this month showed support for the project at nearly two-to-one, 59 percent to 31 percent. And that was about the lowest level of support we've seen to date. Support has registered as high as two-thirds of Americans.
Posted November 11, 2014
America’s trading relationship with Canada is key to U.S. energy security but also to the U.S. economy, as discussed in this recent post.
Some numbers from the International Trade Administration (ITA) help make a couple of finer points. First, while the United States imports more crude oil from Canada than any other country, our goods exports to Canada supported nearly 1.3 million jobs here in 2013 – and that number is on the rise. Second, U.S. oil and natural gas sector goods exports account for more than half of the growth in overall jobs supported by goods exports to Canada from 2010 to 2013 – and that number also is increasing.
Posted November 6, 2014
Over the past few years it has been difficult to know President Obama’s true position on the long-delayed Keystone XL pipeline, now under federal review more than six years. That’s likely to change in the new Congress, with Republicans saying Keystone XL legislation will be a top priority soon after the first of the year. North Dakota Sen. John Hoeven talked to Fuel Fix.com:
“The president opposes the project and has tried to defeat it with delay,” Hoeven said, but “given the clear vote from the American public and strong bipartisan support, he may decide it’s time to start working with Congress, and this is a good example of a place to start and why you’ll see us advance the measure early on.”
Given the mid-term election results, President Obama soon will be called to make a decision on Keystone XL – one that will indicate his willingness to work with the new Congress on an issue that has strong public support and one that also will show whether he’s serious about an all-of-the-above approach to energy and American energy security.
Posted October 31, 2014
Here’s what we know about U.S. energy security, with much credit due to our partnership with Canada, America’s No. 1 source of imported oil:
In 2013, U.S. crude oil imports were 541 million barrels lower than in 2010, a 16 percent decrease, according to the U.S. Energy Information Administration (EIA).Also in 2013, U.S. imports of crude oil from Canada were 222 million barrels higher than in 2010, an increase of nearly 31 percent.
Put the two together and what you see is a more energy-secure America: increased domestic energy – largely from shale development – more oil from our neighbor and ally and reduced imports overall.
Posted September 19, 2014
Posted September 16, 2014
This week the Keystone XL pipeline reaches a dubious anniversary – six years waiting for the Obama administration to approve a shovel-ready, privately financed infrastructure project that would create jobs while strengthening America’s energy, economic and national security.
It has been an unfortunate, unnecessary wait. Such projects historically are approved by Washington in one to two years. In the six years Keystone XL has been left on hold by this White House, 10,000 miles of oil and natural gas pipelines have been built in the United States.
While Keystone XL languishes, Canada – our neighbor, friend and largest supplier of imported oil – gets the cold shoulder from an administration that has dithered, delayed and dumbfounded its way into obstructing a vital piece of energy infrastructure – pleasing a small minority instead of advancing the national interest.