Energy Tomorrow Blog
Posted March 29, 2019
The U.S. energy revolution remains a feat to behold. Benefits to the economy, consumers and manufacturing and a boost to America’s stature in the world and our national security. API President and CEO Mike Sommers touched on a number of these points during a conversation at the National Review Institute’s 2019 Ideas Summit. …
Abundant natural gas and oil reserves, technology and innovation created this revolution and, with the right policies, the U.S. can sustain and grow its energy leadership. “For our future energy needs,” Sommers said, “that’s how we’re going to supply the world.”
Posted March 27, 2019
We’ve focused on the numerous domestic benefits from liquefied natural gas (LNG) exports, which follow the United States’ emergence as a major LNG supplier to the world market. Now let’s explore the ways U.S. LNG can help other countries meet their most pressing energy and environmental challenges.
First, let’s note that U.S. LNG exports have grown rapidly in just a few years, with cargoes reaching 34 countries across five continents.
At the same time, global LNG demand has skyrocketed. As recently as 2009, demand totaled only 182 million metric tons per annum (MMTPA). In 2018, it hit a record 319 MMTPA, a 75 percent increase.
Posted March 26, 2019
Natural gas is playing a lead role in meeting rapidly increasing global energy demand, and its growing use in electricity generation has resulted in significant savings in carbon dioxide emissions worldwide. These points were echoed by the International Energy Agency (IEA) in its Global Energy and CO2 Status Report released this week.
Posted March 25, 2019
For U.S. natural gas, the fourth quarter of 2018 ended with consumers benefiting from the lowest prices in nearly a year – despite the weakest inventories and coldest winter since 2014.
Indeed, recently we’ve seen natural gas prices as low as $2.56 per million Btu (Feb. 5, Bloomberg) corresponding with record high demand of 96.3 billion cubic feet per day (bcf/d) of marketed production for February 2019 and low inventories – 415 billion cubic feet below the five-year average range as of Feb. 1.
It’s remarkable, because this combination of factors ordinarily would raise natural gas prices. The fact that prices fell illustrates the vigor of domestic production, which has soared during the U.S. energy revolution.
Domestic abundance and affordability have been at the heart a truly amazing U.S. natural gas story – one that has seen U.S. producers meet domestic needs and also increase liquefied natural gas (LNG) exports to friends and allies around the world.
Posted March 21, 2019
Earlier this year we noted federal projections that U.S. liquefied natural gas export capacity would reach almost 9 billion cubic feet per day (Bcf/d) in 2019, with exports averaging 5.1 Bcf/d. Add to that crude oil and other liquids, and the U.S. Energy Information Administration (EIA) projects that the U.S. will export more energy than it imports by 2020 – for the first time since the 1950s.
The numbers take on even more significance as the context for U.S. energy leadership around the world. At the CERAWeek conference earlier this month, U.S. Secretary of State Mike Pompeo talked about the unique opportunity for U.S. energy to transform geopolitical realities and in the process make Americans safer.
Posted March 20, 2019
Though Colorado has set the gold standard for state regulation of natural gas and oil, some don’t think that’s enough.
Opponents of oil and natural gas are pushing state legislation to let local governments have regulatory authority over industry – “local control” – which in other states has been a way to curtail energy development. If enacted in a state that ranks top 10 in the country in natural gas and oil production, it could have big negative impacts for the state and nation.
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 18, 2019
In light of last week’s comment deadline for the U.S. Bureau of Land Management (BLM) Draft Environmental Impact Statement (DEIS) for Alaska’s Coastal Plain Oil and Gas Leasing Program, it’s important to remember just how critical natural gas and oil development is to the Alaskan economy, the Alaskan people, and the long-term energy security of the United States.
Posted March 14, 2019
The natural gas and oil industry continues to develop the workforce of the future, with women playing an increasingly prominent role in industry’s success. This important shift was celebrated by industry leaders at IHS Markit and API’s Women in Energy reception on Monday, as the IHS CERAWeek conference kicked off.
Posted March 13, 2019
A recent analysis from the Baker Institute sheds light on the implications of H.R. 948, the No Oil Producing and Exporting Cartels (NOPEC) Act, that was recently reported by the House Committee on the Judiciary as well as related legislation, S. 370, that has been introduced in the Senate. The daunting takeaway: The Act’s extraterritorial overreach would harm core U.S. economic and energy interests.