Energy Tomorrow Blog
Posted April 16, 2019
Patagonia’s limiting sales of its popular vests, excluding corporate clients judged not to be onboard with the outdoor clothier’s environmental and climate positions, apparently including natural gas and oil (see the last few sentences in this tweeted email from a certified Patagonia seller) – seems odd and inconsistent, given how much petroleum is used to make those products.
More on that below. First, let’s point out that, contrary to Patagonia’s impression of the natural gas and oil, our industry cares a great deal about environmental and climate progress – even as it supplies the energy that empowers modern life and growth in the United States. We need both, and they’re not mutually exclusive.
In this 21st century economy, Americans want access to affordable energy. You need energy for prosperity, mobility and good health, and Industry is committed to developing that energy safely and responsibly.
At the same time, industry is leading in important environmental and climate progress, by producing record amounts of clean natural gas – the chief reason U.S. energy-related carbon dioxide emissions have fallen to their lowest levels in a generation.
Posted April 11, 2019
Cutting bureaucratic red tape and making federal decisions on energy infrastructure more efficient and timely are important steps toward ensuring that Americans in all parts of the country may be connected to the benefits of the U.S. energy revolution.
That’s what we see in the president’s two new executive orders affecting energy infrastructure – greater efficiency and timeliness in federal reviews, without compromising thorough environmental scrutiny.
The United States leads the world in natural gas and oil production, yet not every American, not every manufacturer and not every region of the country is adequately connected to America’s energy abundance – and won’t be without new and/or expanded pipelines and other infrastructure to deliver energy to markets and consumers.
Posted April 9, 2019
America’s energy revolution is decidedly pro-consumer. Indeed, surging U.S. natural gas and oil production has significantly helped individual Americans and their families with their budgets, plan travel and more.
We’ll go mostly visual to absorb this – in a handful of charts from API’s Quarterly Industry Outlook, prepared by Chief Economist Dean Foreman. …
America’s natural gas and oil resurgence has played a major role in that when you think about the average family’s needs for driving, home heating and keeping the lights on (remembering that natural gas is the leading U.S. fuel for power generation). It follows, then, that families spending less on energy had more of their disposable income available for other needs.
Posted April 4, 2019
A pair of graphics prepared by API Chief Economist Dean Foreman help underscore the impacts of bad, consumer-impacting policies blocking needed natural gas infrastructure in New York and New England.
First, because New York and New England don’t have enough natural gas pipeline capacity to meet the needs of consumers, especially during peak-demand months in the winter, the two have had to import liquefied natural gas (LNG) to help fill in the gaps.
As Dean’s graphic shows, 90 percent of the $1.2 billion in LNG the U.S. has imported since 2016 went to NY/NE. The bad news for consumers is that they paid about $670 million more for the imported LNG than they would have paid for domestic natural gas – that should have been available from the nearby Marcellus shale play with sufficient infrastructure to deliver it.
Posted April 1, 2019
We get it: Folks with some environmental groups don’t like plentiful, affordable natural gas. It doesn’t fit their definition of “clean energy” – which is odd, given the fact that clean natural gas is the main reason U.S. carbon dioxide emissions from the power sector are at their lowest level in a generation. And natural gas is winning in the marketplace because it’s plentiful and affordable, which consumers like.
Posted March 29, 2019
The U.S. energy revolution remains a feat to behold. Benefits to the economy, consumers and manufacturing and a boost to America’s stature in the world and our national security. API President and CEO Mike Sommers touched on a number of these points during a conversation at the National Review Institute’s 2019 Ideas Summit. …
Abundant natural gas and oil reserves, technology and innovation created this revolution and, with the right policies, the U.S. can sustain and grow its energy leadership. “For our future energy needs,” Sommers said, “that’s how we’re going to supply the world.”
Posted March 21, 2019
Earlier this year we noted federal projections that U.S. liquefied natural gas export capacity would reach almost 9 billion cubic feet per day (Bcf/d) in 2019, with exports averaging 5.1 Bcf/d. Add to that crude oil and other liquids, and the U.S. Energy Information Administration (EIA) projects that the U.S. will export more energy than it imports by 2020 – for the first time since the 1950s.
The numbers take on even more significance as the context for U.S. energy leadership around the world. At the CERAWeek conference earlier this month, U.S. Secretary of State Mike Pompeo talked about the unique opportunity for U.S. energy to transform geopolitical realities and in the process make Americans safer.
Posted March 20, 2019
Though Colorado has set the gold standard for state regulation of natural gas and oil, some don’t think that’s enough.
Opponents of oil and natural gas are pushing state legislation to let local governments have regulatory authority over industry – “local control” – which in other states has been a way to curtail energy development. If enacted in a state that ranks top 10 in the country in natural gas and oil production, it could have big negative impacts for the state and nation.
Posted March 7, 2019
In this post last week we explained how alternative measures, approved by federal officials, may be used to comply with the 2016 well control rule, as well as all regulatory requirements associated with offshore oil and natural gas development. …
Now the federal Bureau of Safety and Environmental Enforcement (BSEE) is chiming in – not surprising, since the agency’s integrity was besmirched. In a letter to members of Congress this week, Lars Herbst, BSEE’s Gulf of Mexico Outer Continental Shelf regional director, called the regulatory provision for alternative procedures or equipment “long-standing,” having been granted by the previous administration as well as the current one. Herbst writes that “zero” waivers have been granted by BSEE regarding the well control rule.
Posted March 5, 2019
The International Energy Agency’s Fatih Birol regularly heralds the positive impacts of the American shale energy revolution (see here, here and here). All good, but U.S. shale’s global impact is just now starting to be felt, IEA’s executive director said last week.
During a global markets update at the U.S. Energy Department with Secretary Rick Perry, Birol said the United States will be responsible for about two-thirds of the growth in the global liquefied natural gas (LNG) export market. Of course, this reflects the abundance of domestic natural gas, largely produced from shale formations. Big-time global impact lies ahead, Birol said. Add to that environmental and climate progress, which we’ll get to in a bit.
Certainly, there’s every reason to believe U.S. natural gas and oil can meet or exceed global expectations. Soaring U.S. crude oil production has increased global supply, supporting the stability of global markets – while reducing weekly U.S. crude imports to their lowest level in 23 years (as of Feb. 22), according to the U.S. Energy Information Administration.