Energy Tomorrow Blog
Posted January 27, 2021
As the Biden administration takes the first step toward a complete ban on federal natural gas and oil development – including the offshore that accounted for more than one-fifth of U.S. oil production in 2019 – turning America’s energy strength into weakness by launching a new era of increased dependence on foreign oil, let’s see how out of step the approach is with the American people.
From polling of voters last summer in key battleground and other states: 93% said it’s important the U.S. produce enough energy to avoid being reliant on foreign oil; 90% said it’s important to create access to domestic energy; 69% said safe domestic natural gas and oil production makes the U.S. less reliant on foreign energy and has increased U.S. security. (Just 16% disagreed.)
All three viewpoints sharply contrast with where the Biden administration appears to be going with its announced halt on natural gas and oil leasing on federal lands and waters – which many believe will become a full ban on federal development.
Put simply, the White House is advancing an import-more-oil policy – one that would discard the hard-earned security, economic and environmental gains from a decade and a half of domestic energy resurgence.
Posted January 25, 2021
It’s unfortunate that the Biden administration’s first couple of energy decisions – effectively canceling the Keystone XL pipeline and signaling it will halt new federal natural gas and oil leasing – work against economic growth and could undermine the nation’s energy security.
With the U.S. economy struggling to recover from the pandemic, there could hardly be a worse time for actions that kill jobs, potentially increase energy costs and cause the U.S. to import more oil.
Sure, the president promised these things during the campaign. Yet, it’s disappointing nonetheless that thousands of U.S. workers associated with building the Keystone XL are now without jobs and that a federal leasing ban could start a new era of increasing U.S. energy dependence. Coincidentally, the administration just unveiled its “Buy American” initiative. What about energy? How about “Buy American Energy”?
Posted January 22, 2021
“The risks of climate change are real. Our companies have played and will continue to play a significant role in reducing greenhouse gas emissions (GHG) that contribute to climate change.”
Above is a quick summary of the natural gas and oil industry’s climate position (more detail here). Basically, industry recognizes significant climate risks and is committed to working to further reduce GHG emissions – both especially relevant with President Biden’s announcement that the U.S. is rejoining the Paris Climate Agreement.As the leading provider of the energy that powers the U.S. economy and Americans’ everyday lives, our industry has a key role to play in the national climate conversation and in developing climate solutions – even as it supports economic growth and U.S. energy security.
Posted January 21, 2021
Any discussion of addressing the risks of climate change should include a focus on reducing methane emissions from natural gas and oil production. While affordable, reliable energy provided by natural gas and oil is essential to our modern economy and Americans’ everyday lives, lowering methane emissions from that production also is essential.
Our industry has and will continue to broadly support methane emissions reduction – through technology, innovation and industry-led initiatives such as The Environmental Partnership, which is laser-focused on bringing down emissions, including a brand-new program to reduce flaring.
Cost-effective public policy also plays a critical role, which is why API is announcing its support for the direct regulation of methane from new and existing sources, as well as its desire to work with the new Biden administration to develop durable regulation that follows the law.
Posted January 19, 2021
Addressing the challenge of global climate change will require the collective efforts of the U.S. government and the business community, and America’s natural gas and oil industry is committed – through public policies and private-sector initiatives – to delivering climate solutions.
API supports the ambitions of the Paris Climate Agreement, including the call for global action to reduce greenhouse gas emissions. By encouraging the development of groundbreaking technologies, like carbon capture, utilization and storage, and promoting the uptake of cleaner-burning natural gas, our members are driving environmental progress while meeting the world’s long-term energy needs.
Posted January 14, 2021
API’s latest Monthly Statistical Report (MSR) underscores the importance to industry of producing essential materials during the pandemic – including sterile packaging, medical plastics and antimicrobial coatings, including polymers.
Naphtha and gasoil in refining and petrochemicals increased 10.3% year over year (y/y) in December to a record-high of 5.9 million barrels per day (mb/d), or 31.3% of total U.S. petroleum demand. Again, industry benefited from this demand and in the process helped the nation respond to the pandemic. The technical term for that is “win-win.”
December also produced an important milestone – confirmation that the U.S. was a petroleum net exporter on an annual basis for the first time in more than 60 years. It’s remarkable given the headwinds of COVID-19 and increased pressure for nations to become self-reliant. The abundance, affordability and empowering nature of U.S. petroleum has helped cut through pessimism about global trade.
Posted January 13, 2021
We’re ready, and we’re able.
After a difficult year in which too many were lost, economic hardship was palpable and creeping doubt dogged the national psyche, Americans are right to look to the future. And America’s natural gas and oil industry is ready and able to help build that future.
It takes energy – affordable, reliable energy – to move people and things, to build, heat, manufacture, innovate and grow today and tomorrow. Natural gas and oil are America’s leading energy sources, by far, and our industry is ready to provide the dependable foundation for the country’s next great chapter.
Like every other business sector, ours took some lumps in 2020, but we proved our resilience, our staying power and capacity, despite significant challenges, to power recovery and drive new opportunity on a nationwide scale.
Those are a few of the key themes from today’s API’s annual State of American Energy event. Emerging from the trials of 2020, all of us can be thankful that the state of American energy – the state of the U.S. natural gas and oil industry – is good, very good.
Posted January 11, 2021
Making energy more affordable for Americans is one of the biggest benefits of the U.S. natural gas and oil revolution. Over the past decade or so, abundant domestic reserves, unlocked by modern hydraulic fracturing and horizontal drilling, lowered consumer energy costs – even as household expenses for health care, education and food increased.
The challenge for everyone is not to take affordable, reliable energy for granted. Not too long ago the country was beset with rising annual costs for gasoline, ever-growing oil imports and dwindling domestic natural gas supplies. The natural gas situation was so alarming, lots of smart people believed the U.S. would need to build natural gas import facilities to help meet domestic demand.
Again, the shale energy revolution changed that storyline. We have plentiful supplies of natural gas here at home and increased energy security. The U.S. has become a leading natural gas exporter and was on track in 2020 to be a net exporter of petroleum and total energy on an annual basis for the first time in 60 years. That’s what energy security looks like.
This leads back to consumer benefits – reflected in a new U.S. Energy Information Administration (EIA) report showing that last year natural gas prices were at their lowest levels in decades.
Posted January 6, 2021
An important point for consideration by opponents of the scheduled natural gas and oil lease sale for the coastal plain of the Arctic National Wildlife Refuge (ANWR) in Alaska: World demand for energy will continue rising into the future as far as we can see.
Both the U.S. Energy Information Administration and the International Energy Agency project that – the effects of the pandemic aside – demand for energy, led by natural gas and oil is going to increase. IEA estimates that even with the U.S. participating in the Paris Climate Agreement, natural gas and oil will supply about half, and perhaps more, of the world’s energy in 2040.
Posted January 5, 2021
As we begin the new year, it’s worth recognizing that the challenges facing our lawmakers are immense. But with consensus-driven approaches, we believe the public and private sectors can partner to deliver post-pandemic recovery and long-term economic growth for America.
Of course, rebuilding the nation’s economy will require realistic and workable energy solutions – ones that prioritize resource development and infrastructure expansion. Here’s why investing in modern energy infrastructure can build pathways for economic and environmental progress.