Energy Tomorrow Blog
Posted September 30, 2020
The wild thing about the electricity grid is that you can see when the laws of man succumb to the laws of physics.
California provided a case study in late August. The state’s first rolling blackouts in nearly two decades spotlighted its mandates for how much electricity certain technologies can provide. There was lots of blame to go around and, while there is no single culprit behind the blackouts, what happened showed just how vital natural gas generation is to maintain a fully functioning grid, because of its reliability and unique operating characteristics.
Posted September 21, 2020
America’s natural gas and oil industry is committed to reducing the risks of climate change by producing ever-cleaner fuels and continuously improving environmental performance. As a nation, we’ve made significant progress over the years, with national greenhouse gas emissions down 10% since 2005.
Tackling the challenge of climate change will require a collaborative, cross-sector effort, and API is prepared – with climate policy principles – to constructively engage to identify workable policy solutions that deliver economic and environmental progress.
This Climate Week, let’s recognize the ongoing role that energy operators will continue to play in safely developing resources in the U.S. and decreasing greenhouse gas emissions worldwide.
Posted August 31, 2020
Liquefied natural gas (LNG) is redefining the world’s modern energy mix. Even as the coronavirus and government responses to the pandemic have cut into natural gas demand, analysts project a progressive recovery and long-term growth for U.S. LNG – particularly in emerging markets – due to its enduring economic competitiveness and environmental benefits.
In South Asia, the affordability of American LNG is expected to increase consumption, displacing demand for coal, as countries such as India and Bangladesh seek out reliable, lower-carbon energy resources.
Posted August 28, 2020
Americans’ safety and security are critically linked to energy.
Whether it’s energy to power a growing economy or energy that keeps America free and strong in the world – and even reliable energy in the wake of a Category 4 hurricane – abundant domestic natural gas and oil are essential for our security. ...
Abundant and reliable natural gas and oil from America make the country safer and more secure in a number of ways.
Posted August 20, 2020
Natural gas as the essential partner for renewables such as wind and solar is something we’ve talked about a lot (see here, here and here). Californians have been schooled on this point recently, with millions suffering under rolling blackouts during soaring temperatures because electrical utilities couldn’t keep pace with skyrocketing demand.
The state’s renewables mandate has played a role in their misery. By requiring that 60% of California’s electricity must come from renewables by 2030 and through green energy subsidies, the state has seen the competitive balance tilt away from other, more flexible power sources, including cleaner natural gas.
Posted August 13, 2020
The U.S. oil and natural gas industry has long shared the Environmental Protection Agency’s (EPA) goal of reducing emissions from its operations and has consistently and successfully done so while meeting America’s energy needs every day. Specifically, methane is the natural gas we use in our homes and businesses, so operators have a strong incentive to bring it to market.
Methane emissions rates from five of the largest oil and natural gas producing regions across the U.S. – including the Permian and Marcellus basins in Texas, New Mexico, Ohio and Pennsylvania respectively – were down nearly 70% from 2011 to 2018, even as production in those regions increased dramatically. Industry is committed to building on these positive trends through voluntary initiatives like The Environmental Partnership.
Posted July 31, 2020
Former Vice President Joe Biden's camp says he wouldn’t completely ban hydraulic fracturing (see the New York Times and here) – the technology most responsible for a domestic energy revolution that has made the U.S. the world’s leading producer of natural gas and oil. While Biden’s proposal to end new federal fracking leases is misguided, the fact he wouldn’t try to ban it elsewhere may suggest a recognition that fracking is critically important to the U.S. economy and national security.
This could indicate some important common ground, which API President and CEO Mike Sommers addressed in the Times article.This is especially welcome news for the nation’s electricity grid operators. They’re on the front lines of the twin effort to provide affordable energy to American homes and businesses, while lowering carbon dioxide emissions from power generation. For them, clean and reliable natural gas is the cornerstone for succeeding on both fronts, which is why natural gas is the nation’s No. 1 fuel for power generation.
Posted July 30, 2020
There’s a basic principle in play in recent news developments in Massachusetts and Ohio – that public energy policy should serve people, not the other way around. In both states, access to clean natural gas, for affordable, reliable energy, means benefits for consumers.
Start in Massachusetts, where the state attorney general struck down the town of Brookline’s bylaw that would have barred new residences from installing natural gas infrastructure for space heating and hot water – mimicking similar restrictions imposed by Berkeley, California. That doesn’t necessarily mean Massachusetts AG Maura Healey has an affinity for natural gas; her decision was based on the primacy of state law and regulations.
No matter, consumers win. And in the process this point is elevated: Public bodies should ensure that dependable, affordable energy is available to consumers – instead of erecting artificial, market-distorting barriers to service.
John D. Siciliano
Posted July 24, 2020
Key Appalachian swing states continue to competitively produce the majority of America’s natural gas supply, despite a global pandemic that continues to pose major challenges for the industry.
Natural gas production in Ohio, Pennsylvania and West Virginia has skyrocketed in the last decade, making the Appalachian region the No. 3 natural gas producer globally behind Russia and the remainder of the United States. This has transformed the region into an energy powerhouse, one that continues to show room for growth.
Posted July 21, 2020
Through the recent COVID-19 pandemic and resulting shocks to energy markets around the world, U.S. natural gas has remained a relatively bright spot.
Record low prices have benefitted consumers, and at the same time many producers dedicated to natural gas in Pennsylvania, Ohio, West Virginia, Louisiana and East Texas have remained viable as cutbacks in oil and associated natural gas from other regions have taken effect. And now about 90% of U.S. drilling for natural gas is concentrated in these regions, that is Appalachia and the Haynesville areas.
The drilling activity has reflected two fundamental observations. The first is that, according to BTU Analytics, the recent breakeven price – that is, the Henry Hub wholesale market price needed to at least break even in drilling a new well – on average has remained near market prices despite COVID-19, a relatively warm winter and broad financial market concerns. The second observation is that natural gas well productivity, as reported by the U.S. Energy Information Administration, were resilient after some unexplained variation at the beginning of the year.