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Energy Tomorrow Blog

High Court Supports Certainty in Natural Gas Pipeline Approval Process

natural gas pipelines  ferc  consumers 

Mark Green

Mark Green
Posted July 7, 2021

To serve consumers, support economic growth and help protect the environment, the U.S. needs more natural gas pipeline infrastructure. Last week’s U.S. Supreme Court decision – that states do not have an outsized authority to block federally approved projects from obtaining the land for those pipeline routes – is a significant step forward for those purposes.

The decision underscores the authority of the Federal Energy Regulatory Commission (FERC) under the federal Natural Gas Act (NGA) to review and approve pipeline projects that demonstrate a public necessity and cross state lines, such as the 116-mile PennEast natural gas pipeline from Pennsylvania to New Jersey.

The NGA delegates the federal government’s eminent domain authority to private parties once FERC has approved and certified the pipeline project, which allows those who invest in and build pipelines to have regulatory certainty and a clear permitting process. 

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Growing Momentum for Carbon Capture

carbon capture  emission reductions  climate  technology 

Mark Green

Mark Green
Posted July 2, 2021

Carbon capture, utilization and storage (CCUS) is a rarity in Washington: a technology that apparently is liked by just about everyone – Democrats, Republicans and Independents alike. It certainly looks like the future for CCUS – identified in API’s Climate Action Framework as key in addressing the risks of climate change while also developing the energy America needs to grow and be safe – is bright.

That’s the big takeaway from this week’s webinar by Our Energy Policy, a non-profit facilitator of civil dialogue on energy policy issues. Event panelists agreed that CCUS generally and specifically, the 45Q tax credit to spur CCUS projects, has lawmakers on Capitol Hill practically locking arms in support.

Fast-tracking the commercial scale-up of CCUS is a major industry priority, because it allows continued robust natural gas and oil development while simultaneously reducing carbon dioxide associated with that development. 

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Q&A: The Demand/Supply Dilemma, Consumer Impacts and the Need for Sound Policy

demand  supply  us energy security  production  consumers  gasoline prices 

Mark Green

Mark Green
Posted July 1, 2021

In recent weeks API Chief Economist Dean Foreman has noted the return of petroleum demand, as economies strengthen in the U.S. and globally, to a level that’s outpacing supply (see here). In the Q&A that follows, Dr. Foreman discusses the impacts of the supply-demand mismatch on American consumers and markets, as well as the consequences of the Biden administration’s energy policy signals.

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America’s Energy ‘Inflection Point’

oil and natural gas production  texas  policy  us energy security  economic growth 

Mark Green

Mark Green
Posted June 29, 2021

During a speech to the Houston Economics Club last week, API President and CEO Mike Sommers talked about the United States reaching an “inflection point” in terms of its energy and economic future. Choices made today could have impact far into the future.

As the world’s leading producer of the world’s leading energy – natural gas and oil – the U.S. can choose the market-based approach that over the past decade led to abundant domestic energy, supporting economic growth, reducing reliance on foreign oil and building greater security.

The other choice is the apparent approach of the Biden administration to curtail domestic production of natural gas and oil, swapping their reliability and affordability for aspirational fuels that could take the U.S. back to a period of energy uncertainty.

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World Leaders: Natural Gas Essential to the Future Energy Mix

natural gas  liquefied natural gas  emission reductions 

Sam Winstel

Sam Winstel
Posted June 25, 2021

America’s natural gas and oil industry is committed to delivering access to affordable, reliable energy to power modern life and empower emerging economies around the world. At the same time, API supports the ambitions of the Paris climate agreement – our member companies are building a lower-carbon future with cleaner energy options for businesses and consumers.

Over the past decade, our abundant natural gas resources have contributed to meaningful emissions reductions in the U.S. power sector, which has been the primary source of demand growth for the fuel. The availability of low-cost natural gas – and our growing capacity to export liquefied natural gas (LNG) – presents the unique opportunity for America to help nations around the world achieve ambitious Nationally Determined Contributions (NDCs) and carbon-neutral commitments by reducing greenhouse gas emissions while also supporting economic development.

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Q&A: Transparency and Standardization in ESG Reporting

Environment  ESG  climate change policy 

Mark Green

Mark Green
Posted June 24, 2021

As an integral of its Climate Action Framework, API has developed a template of core greenhouse gas (GHG) indicators to guide individual natural gas and oil companies in their climate-related reporting. The template will help standardize reporting on a base set of specific indicators. Companies that use the template will do so in 2022 to report 2021 data. In the Q&A below, Dr. Aaron Padilla, API manager of climate and ESG policy, explains what the template is, how it was developed and its role in industry’s efforts to address the risks of climate change.

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End the Federal Leasing Pause – Unleash American Energy

federal leases  president  us energy security  imports 

Lem Smith

Lem Smith
Posted June 21, 2021

Last week, the U.S. District Court for the Western District of Louisiana issued a preliminary injunction blocking President Biden’s policy pausing new natural gas and oil leases on federal lands and waters. The decision identified major limits on the federal government’s ability to restrict energy access and concluded that the Department of the Interior must resume lease sales, both onshore and offshore.

On behalf of U.S. natural gas and oil operators, API urges the administration to move quickly to comply with the court order and end the federal leasing pause.

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Oil Demand Back, But Supply Remains Key Question

monthly-stats-report  supply  oil demand 

Dean Foreman

Dean Foreman
Posted June 17, 2021

The expectations and real prospects for global and U.S. economic recovery – and energy markets along with them – have accelerated and appear bright. That’s the overarching point in API’s quarterly Industry Outlook for Q2 2021 and Monthly Statistical Report (MSR), echoing what we have said since the third quarter of last year (see here, here and here). 

 

Yet, while API’s primary data for May 2021 show the recoveries in U.S. economic growth and petroleum demand have continued to go hand-in-hand, potential record global oil demand growth this year and the next, per the U.S. Energy Information Administration (EIA), could be overshadowed by the lowest industry-wide real capital expenditures on record for any quarter, by API estimates.

 

Demand up and capital investment down by record amounts is a concerning combination.

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American Energy and the Biden-Putin Summit

russia  president  us energy security  oil and natural gas production  infrastructure 

Frank Macchiarola

Frank Macchiarola
Posted June 16, 2021

Here are three things to consider as President Biden and Russian President Vladimir Putin have their first in-person meeting today in Geneva, Switzerland: Energy is at the heart of Russia's influence and power; new U.S. policies put American energy leadership at risk; and U.S. oil and natural gas should be strengthened, not weakened. ...

There is no question the U.S. relationship with Russia is complicated and will be difficult for years to come. The last thing the U.S. needs is to try to deal with Russia while it is at the same time actively weakening its own energy position. It is an unforced error, an opening that cannot be handed over to formidable adversaries such as Mr. Putin.

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Actions to Reduce Emissions Continue to be Led by Natural Gas

emission reductions  carbon dioxide  natural gas benefits  electricity 

Mark Green

Mark Green
Posted June 14, 2021

Among U.S. efforts to address the risks of climate change, the dramatic shift to natural gas to fuel electricity generation stands out over everything else.

That includes renewables, electric vehicles and the seemingly endless target-setting by various bodies. In terms of measurable progress, none of those has reduced greenhouse gas emissions in this country as much as increased use of natural gas for power generation.

The U.S. Energy Information Administration (EIA) reports that over the past 15 years, the shift in power generation fuel to natural gas from coal is largely responsible for 2019 sector carbon dioxide emissions that were 32% lower than those of 2005. 

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