Energy Tomorrow Blog
Posted February 13, 2019
The Green New Deal is getting quite a bit of attention in Washington right now, and naturally, people want to know what the natural gas and oil industry thinks about the proposal to revolutionize America’s economy and way of life – since it appears the plan aims to eliminate natural gas and oil, the nation’s leading fuels, right when there’s record energy demand by consumers.
My reaction is that any proposal that would fundamentally reorder American energy – and the way of life in this country – should first be measured by its impacts on American consumers, the economy and the country’s opportunity for future prosperity.
Especially this one. There’s little question that GND would significantly alter America as we know it.
Posted February 8, 2019
The nonpartisan Congressional Budget Office’s new report, “The Budget and Economic Outlook: 2019 to 2029,” says what we’ve been saying for some time now – the administration’s tariff policies are a drag on the broader economy.
CBO projects that “the recent changes in trade policy in the United States and its trading-partner countries will reduce the level of U.S. real GDP by about 0.1 percent by 2022
Now, 0.1 percent might not sound like a lot over that time period, but potentially we’re talking about hundreds of billions of dollars subtracted from the economy. Dean Foreman, API chief economist, says it’s particularly concerning in the context of an economy that’s decelerating.
Posted February 5, 2019
Back in 2015, Pennsylvania Gov. Tom Wolf’s first year in office, we first likened his bid to hike taxes on natural gas production to killing the goose that lays golden eggs. That’s because over the years natural gas production has significantly benefited Pennsylvania – the nation’s No. 2 natural gas producer – in jobs, economic lift and impact fees paid by industry that have helped support public infrastructure, storm and water systems, public safety, housing and more, all over the commonwealth.
Negatively impacting a key Pennsylvania industry doesn’t make sense. Yet, in this new year, Wolf is back with a new tax scheme that could hamper natural gas production and its benefits – a proposal to borrow money to invest in infrastructure that would be paid back through a new natural gas production tax. Again, a tax on top of the impact fees industry already pays.
Posted January 23, 2019
Con Edison’s moratorium on new natural gas service to homes and businesses in the southern part of affluent Westchester County, just north of New York City, is a wakeup call to the entire state on the folly of stalling or blocking needed pipeline infrastructure.POLITICO has the story. Basically, the natural gas utility says there’s insufficient pipeline capacity to meet the area’s growing need for natural gas, which is underscored during peak heating periods. You know, like right now.
Posted January 22, 2019
Natural gas and oil are integral in all parts of modern life, every hour of every day. They serve as the building blocks for products and components associated with health care, clean water, education, entertainment, communications, art, agriculture and more. They fuel our transportation and power our 21st-century electricity grid – while making possible so many products that make life easier, healthier and safer.This message was one of the takeaways from API’s recent State of American Energy event, and is captured in our latest video, “America’s Generation Energy.”
Posted January 15, 2019
The U.S. natural gas and oil pipeline network spans 2.7 million miles. And while that may sound like a lot, a recent Wall Street Journal article reminds us that U.S. energy infrastructure is still failing to keep up with production and demand. Americans in some parts of the country remain under-served while companies in high-production areas are forced to offload excess natural gas resources – all because of a lack of adequate infrastructure, and regulatory barriers to new development.
Posted December 11, 2018
As debates continue over the Renewable Fuel Standard (RFS) and its ethanol mandates, let’s remember that when the RFS was enacted more than a decade ago it was supposed to jumpstart a commercially viable cellulosic ethanol industry – ethanol made from the leaves, stems and other fibrous parts of a plant.
This has not happened. Far from it. Despite increased mandates under the RFS for cellulosic ethanol, those mandates have dwarfed actual production. The result is a costly proposition for American consumers and an object lesson on what can happen when government tries to use policy to favor a certain technology. Let’s explore the issue.
Posted November 30, 2018
With the Edison Electric Institute celebrating 1 million electric vehicles on U.S. roads with a forum event in Washington, D.C., let’s talk, again, about some EV realities – which is important as the buzz around EVs grows. Let’s discuss subsidies, real consumer costs, emissions and batteries.
Posted November 21, 2018
Recent headlines on natural gas prices may leave Americans feeling whipsawed by marketplace fluctuations (see here and here). So, let’s look at what’s been going on with natural gas this year. But first, four points to keep in mind:Affordable natural gas has saved the average household more than $100 per year in recent years; (2) most consumers are typically insulated from wholesale price variations – the focus of recent news coverage; (3) price increases this month to date are mainly the result of lower inventories coupled with cold weather forecasts that, of course, can change suddenly; and (4) recent price movements in natural gas futures are well within the ranges seen during the resurgence in U.S. energy production
Posted November 20, 2018