Energy Tomorrow Blog
Posted December 11, 2015
Then there’s this from Alaska: Falling oil revenues have the governor in that energy-rich state asking his legislature to plug a $3.5 billion hole in the state budget by imposing a small income tax (Alaska hasn’t had one for 35 years), other tax hikes, budget cuts and a reduction in the annual dividend Alaskans get from the state’s Permanent Fund.
Now, it might not bother you much that Alaskans soon could be paying higher taxes. But there’s another story playing out in Alaska and other places that should trouble all Americans: Access to U.S. energy is being restricted – by policy and regulation – in ways that could imperil America’s energy revolution and the generational opportunities that are being created by that revolution.
Posted December 2, 2015
A couple of important takeaways from this week’s Capitol Hill hearing on a proposed federal well control rule for offshore drilling:
First, offshore drilling is safer today than it has ever been – for the Gulf of Mexico, Alaska and Pacific regions. In coordination with federal regulators, industry has improved the safety of offshore development – in terms of safety systems management, prevention and response – while advancing the nation’s energy security through continued offshore oil and natural gas production.
This is seen in the approximately 275 API exploration and production standards that include offshore operations, more than 100 of which have been incorporated into federal regulation.
Posted October 22, 2015
Recent reports assert that some of the world’s oil suppliers have had a strategy to curtail the U.S. energy revolution – and that the strategy has worked, citing U.S. Energy Information Administration data showing U.S. production in decline. Bloomberg this week:
After a year suffering the economic consequences of the oil price slump, OPEC is finally on the cusp of choking off growth in U.S. crude output. The nation’s production is almost back down to the level pumped in November 2014, when the Organization of Petroleum Exporting Countries switched its strategy to focus on battering competitors and reclaiming market share.
Market decisions by major suppliers certainly have impact. Yet, focusing attention on factors beyond U.S. control misses factors under U.S. control that have a clear bearing on the trajectory of domestic oil production, economic growth and American security.
We’ll name a couple: continuing the outdated ban on U.S. oil exports and regulatory and process roadblocks that limit access to energy reserves and production. What we have is an administration whose self-sanctioning approach to U.S. energy is hurting American competitiveness in the global marketplace, to the benefit of other producers.
Posted October 2, 2015
A number of Americans may look at some of the mixed reaction to the Obama administration’s release of new, more restrictive ozone standards and conclude that if industry and business groups and environmental activists all are unhappy with the final standards, then the administration must be congratulated for splitting the difference.
As measured as that sounds, it’s simply the wrong approach for setting air quality policy – and lots of Americans are likely to be caught up in the impacts.
As noted in this post, changing national ozone standards from the current 75 parts per billion (ppb) to 70 ppb could impact job growth in nearly one-third of the country’s counties or county equivalents, according to an API analysis of EPA data. Instead of 217 counties out of compliance with ozone standards, 958 could be in violation and potentially subject to constraints that could affect business expansion, infrastructure development, transportation projects and other activities in those localities. Shorter: These impacts could be coming to a neighborhood near you – affecting economic growth and job creation.
Posted October 1, 2015
Here’s probably the most important thing to know about new, more restrictive ozone standards announced by the Obama administration: They could impact job growth in nearly one-third of all counties or county equivalents in the United States, according to a recent API analysis of EPA data. That’s 958 counties – up from just 217 under the current standards – projected to be in non-attainment with ozone standards set at 70 parts per billion (ppb).
So, unless Congress acts (as it should), get ready. These new standards will pretty much hit a lot of Americans right where they live – potentially hurting jobs, chilling investment and curbing business activity, for little or no public health benefit.
Posted September 2, 2015
Finalized federal requirements for ethanol use in 2014, 2015 and 2016 under the Renewable Fuel Standard (RFS) are scheduled to come out later this year. As EPA completes work on them, the interests of American consumers should be put ahead of special ethanol interests. At the same time, policymakers should recognize that the RFS is broken, out of date and should be repealed.
Ethanol supporters argue that RFS mandates can be met by pushing out more E15 and E85 fuel, which contain higher levels of ethanol than E10 gasoline that’s standard across the country. But this would disregard potential risks to consumers and small businesses. A number of organizations argue that point in official comments to EPA on the RFS, which can be found here.
Posted September 1, 2015
Surely, more state governors soon will echo the concern of Colorado’s John Hickenlooper for the potential economic impacts on his state of stricter ozone standards proposed by EPA. That is, any governor concerned about what it could mean for growth and progress if large chunks of his or her state were declared out of compliance.
In Colorado, that could be more than $19 billion in gross state product losses from 2017 to 2040 and nearly 11,000 lost jobs or job equivalents, according to a study by NERA Economic Consulting.
Posted August 25, 2015
Earlier this year at the U.S. Energy Information Administration’s (EIA) annual conference in Washington, ClearView Energy Partners’ Christine Tezak described the Obama administration’s energy policy as “give a little, take a little,” further characterizing it as “transitioning from scarcity to adequacy.”
It’s accurate. Handed a generational opportunity by America’s energy revolution to advance U.S. economic and security interests, the administration has responded by alternately embracing oil and natural gas development (in limited ways) and working to corral it. Given the chance to build a comprehensive, long-term energy strategy to carry the United States safely into mid-century, the administration has played “small ball” on the energy development side while unleashing a flood of unnecessary, self-limiting proposals largely untethered to scientific and economic analysis.
Posted August 24, 2015
Two items from the weekend help sharpen the focus a strategic choice before Americans as they look to the future: Which energy path will we take?
One path leads to increased domestic energy development. It’s typified by safe and responsible oil and natural gas production that harnesses America’s energy wealth to create jobs, grow the economy and make the U.S. more secure in the world.
Another path likely would lead to very little of the above. It’s characterized by unnecessary regulation and self-limiting policies that hinder or block domestic development. America would be less secure, economically and in the world, and our allies, too.
The two paths, two very different futures – for American energy and America.
Posted August 18, 2015
So, the EPA looked at declining methane emissions …
Down 79 percent from hydraulically fractured wells since 2005; down 38 percent from natural gas production overall from 2005 to 2013; and emissions down – while natural gas production soared ...
... and decided new methane regulations were the thing to do anyway.