Energy Tomorrow Blog
Posted February 3, 2014
Posted January 17, 2014
David Ignatius has an important column in the Washington Post this week on America’s energy boom –the result of greatly expanded domestic oil and natural gas production and an “all of the above” approach to energy policy. Ignatius writes:
For decades, Americans have talked about “energy policy” as if it were the political equivalent of a migraine. The phrase connoted pain — in ever-rising gas prices, costly government schemes and dependence on imports from precarious Middle East regimes. But recent developments involving energy production and technology have been so astonishing that they should puncture this long-running pessimism. The amazing fact is that, on nearly every front, America’s energy prospects have improved in ways that would have been unimaginable just a decade ago. In the energy marketplace, President Obama’s vision of an “all of the above” strategy is actually happening. Production of oil, gas and alternative energy is rising, even as demand begins falling for these energy sources — all thanks to new technology. The market forces driving these changes are so powerful that even politicians probably can’t screw them up.
Ignatius highlights data we’ve previously seen from the U.S. Energy Information Administration (EIA), projecting that the U.S. will produce nearly 9.6 million barrels of oil per day by 2016, a level not seen since 1970 – thanks largely to vast shale deposits and advanced hydraulic fracturing and horizontal drilling.
Posted December 23, 2013
State Already Taxes Oil in many Ways
San Francisco Chronicle (Catherine Reheis-Boyd): Tom Steyer, the San Francisco billionaire environmentalist, has launched a campaign to increase taxes on energy production in California. He thinks oil companies are allowed to "siphon California resources without providing any meaningful return to Californians."
Beginning an education campaign on inaccurate claims doesn't bode well for the quality of the educational experience.
To claim Californians receive no meaningful return for the oil we produce is puzzling. Oil companies in California generate $6 billion in tax revenues for state and local governments, according to an analysis by Purvin & Gertz in 2011. While it's true California does not have an oil severance tax per se, California taxes oil companies and oil production in a variety of other ways.
Read more: http://bit.ly/1kzQ4aP
Posted December 17, 2013
U.S. Energy Outlook: More Oil, More Natural Gas, Less Carbon. Yay America!
Forbes: The federal government’s Energy Information Administration is out today with an early version of its Annual Energy Outlook for 2014. Their headline finding: that the United States will continue to grow less dependent on foreign oil as the miracle of our tight oil boom adds to supply and more efficient vehicles reduce demand. Yay America!
By their reckoning, domestic crude oil production will continue its surge, adding another 800,000 barrels per day in 2014 and about the same in 2015. By 2016 we should reach 9.5 million barrels per day, approaching the historical high of 9.6 million bpd back in 1970.
The boom won’t last forever, and will level off around 2020. But when domestic oil supplies do start slipping, we won’t feel it too much at first, because our vehicles will be using a lot less fuel.
Read more: http://onforb.es/1gEiWP8
Posted December 12, 2013
Shale Gas a Boon to Public Health
Breaking Energy (Dana Bohan): You’ve probably heard that the United States is experiencing an unprecedented energy boom that is transforming our economy, enhancing our energy security, and creating a manufacturing renaissance — all thanks to hydraulic fracturing and the development of America’s massive oil and natural gas resources. But what you probably haven’t heard is that shale development has an added bonus: it is rapidly reducing emissions of all kinds, which translates to massive public health benefits.
A new report by University of California-Berkeley climate scientist Richard Muller puts the health benefits of natural gas in the spotlight, concluding that “air pollution can be mitigated by the development and utilization of shale gas,” and because of this, “environmentalists who oppose the development of shale gas and fracking are making a tragic mistake.”
Read more: http://bit.ly/1gt6PnI
Posted December 9, 2013
Why Obama Should Thank the Oil and Natural Gas Industry
National Journal (Amy Harder): The oil and natural-gas industry probably won't ever get a thank-you card from President Obama, but he has a few big reasons to be grateful for the fossil-fuel boom.
America's vast resources of oil and natural gas have enabled Obama to move forward on aggressive policies, including tougher environmental rules and Iranian oil sanctions, which he would not have been able to do nearly as effectively without them.
The International Energy Agency predicts the U.S. will surpass Saudi Arabia as the world's biggest oil-producer in 2015; and, by the end of this year, the Energy Information Administration says we'll surpass Russia as the biggest natural-gas producer.
"I've joked before that for the last 30 years, our national energy policy has been implicitly predicated on a low-cost, trustable supply of natural gas," said Jason Grumet, president of the Bipartisan Policy Center, who advised Obama in his transition to the presidency in 2008. "It is incredibly fortunate that it showed up in time."
Read more: http://bit.ly/1aP7BDD
Posted December 2, 2013
The Remarkable Shale Oil Bonanza in ‘Saudi Texas’
AEI Carpe Diem Blog: The Energy Information Administration (EIA) released new state crude oil production data this week for the month of September, and one of the highlights of that monthly report is that oil output in America’s No. 1 oil-producing state – Texas – continues its phenomenal, meteoric rise. Here are some details of oil output in “Saudi Texas” for the month of September:
Oil drillers in Texas pumped out an average of 2.726 million barrels of crude oil every day (bpd) during the month of September, which is the highest daily oil output in the Lone Star State in any single month since at least January 1981, when the EIA started reporting each state’s monthly oil production.
Read more: http://bit.ly/1bdF6iQ
Posted November 25, 2013
The Telegraph: The once-sleepy town of Williston sits on the confluence of the Yellowstone and Missouri rivers in the US state of North Dakota.
Five years ago, Williston had a population of 12,000 and was slowly dying on its feet – an agricultural hub marked out from the plains only by the grain silos that stand silhouetted against the big North Dakota skies.
The fall-out from a brief oil boom in the mid-1980s had left the town with sky-high debts and a main street filled with empty shops and peeling facades. Young people looking for jobs skipped town at the first opportunity.
Today, Williston is booming once again. Its streets are filled with bustling commerce and trucks, its bars, restaurants and supermarkets groaning with customers.
Sudden advancements in the oil drilling techniques known as fracking have reinvigorated the small northern town, its population swelling to an estimated 30,000 as people pour in from across the United States in search of work in hard times.
Read more: http://bit.ly/17NWHRs
Posted October 28, 2013
With colder weather creeping across the country, we think of the energy the U.S. oil and natural gas industry is providing for Americans’ lives, including heating homes and businesses. So when the Energy Department blog highlighted ways to “energize your neighborhood” with a series of energy-themed pumpkin stencils in time for Halloween – but didn’t include any for the sources of 62 percent of the energy Americans use – we thought maybe it was some kind of holiday trick.
Never fear, we've got the treats: Energy Tomorrow’s own pumpkin-carving stencils to fill in the gaps. "Energyween" anyone?
Posted October 24, 2013
U.S. Carbon Emissions Hit Lowest Level Since 1994
USA Today: In a bit of encouraging climate news, the U.S. government reported Monday that U.S. emissions of heat-trapping greenhouse gases from the burning of fossil fuels were lower last year than at any time since 1994.
Driven by efficiency gains, an unusually warm winter and a switch from coal to natural gas, energy-related carbon dioxide emissions actually declined 3.8% in 2012 even though the U.S. economy grew 2.8% that year, according to new data by the U.S. Energy Information Administration, the statistical arm of the Department of Energy.
This emissions decline was the largest in any year that had positive growth in per capita gross domestic product (GDP) — its economic output — and the only drop when GDP rose at least 2%.Read more: http://ti.me/1eNNHNA