Energy Tomorrow Blog
Posted August 27, 2015
For as long as most younger Americans can recall, the United States has been barred from exporting crude oil – a self-inflicted sanction that’s at odds with our historical role as a global leader in both free trade and oil production. For them, that’s the way it has always been – the U.S. unilaterally excluding itself from the world’s most important energy marketplace.
Yet, history, economics and security imperatives all argue that it shouldn’t stay that way. Rather, U.S. oil exports policy should be restored to its former posture, to realign policy with this reality: America’s shale energy revolution, the most recent in a series of world-changing energy events, affords the U.S. a great opportunity, and that the U.S. should pursue every means possible to harness that revolution’s benefits – including resuming the export of domestic crude.
To start, policymakers must acknowledge a couple of things: First, that maintaining the oil export ban that was imposed after the 1973 embargo is hurting U.S. competitiveness in the global economy and limiting the benefits that could and should accrue to an energy superpower.
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 20, 2015
Some observations on this week’s federal oil and natural gas lease sale in the Western Gulf of Mexico, reported with alarm by some media outlets because it wasn’t as large as other recent sales.
First, every lease sale is welcome. Access to U.S. offshore reserves represents opportunity for energy development, job creation, economic growth and greater American energy security. We need more offshore opportunities to support the strategic, long-term energy security of the United States – advanced by a robust offshore energy sector.
Posted August 17, 2015
Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with Hawaii. We started the series with Virginia on June 29 and continued with Montana, Iowa, Alabama, Arizona and Nebraska last week. All information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information across the country will be populated on this map as the series continues.
As we can see with Hawaii, the energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.
Posted July 23, 2015
At an event last month, API President and CEO Jack Gerard sketched the broad outlines for a national conversation on energy, connecting energy policy with the approaching 2016 elections. It’s an appropriate linkage.
Our country has become a global energy superpower thanks largely to private innovation and entrepreneurship, which have created a generational opportunity – “the American moment,” Gerard called it. Sustaining the energy revolution requires vision, right policies and action – and the right leadership, which is why the 2016 vote matters. The energy path to help spur economic growth and prosperity and to increase national security is one that should transcend party politics.
Posted July 16, 2015
Our series highlighting the economic and jobs impact of energy in each of the 50 states continues today with South Carolina. We started our focus on the state level with Virginia on June 29 and continued this week with Wisconsin, Connecticut and Delaware. The energy impacts of the states individually combine to form energy’s national economic and jobs picture: 9.8 million jobs supported and $1.2 trillion in value added.
Information covered in this series can be found online here, arranged on an interactive map of the United States. State-specific information will be populated on this map as the series continues.
Posted June 25, 2015
The U.S. Interior Department is out with its Economic Report for Fiscal Year 2014 – which doesn’t sound like it would be a whole lot of fun reading. But the report actually contains some pretty important bits of information.
For example, you get a clear sense that Interior Department activities support jobs and economic growth, which are good things. Interior Secretary Sally Jewell called her department a “powerful economic engine.” More Jewell:
“Our parks and public lands support outdoor recreation, promote renewable energy and allow us to harness other domestic energy resources, create jobs and promote economic development in communities across all 50 states.”
It’s the “other domestic energy resources” that caught our eye.
Posted June 25, 2015
Let’s get into some of the detail in the new Wood Mackenzie study that was released this week, starting with the implications for domestic energy supply, found in two vastly different energy paths that U.S. policymakers could take. As the study details, the path we choose will affect energy production, job creation, the economy and the lives of individual Americans.
For context, recall that Wood Mackenzie’s study compared two energy policy paths – one that embraces pro-development, and one that’s characterized by regulatory constraints. Certainly, the constrained path actually would just continue a number of the policies the current administration is advancing.
Posted June 18, 2015
Here’s the first of a series of posts sparked by speeches and presentations at this week’s U.S. Energy Information Administration (EIA) energy conference. U.S. Energy Secretary Ernest Moniz set the tone for EIA’s event, noting that the U.S. faces a set of energy challenges, vulnerabilities and opportunities. At the heart of the discussion: America’s energy resurgence. Moniz:
“By almost any simple measure for sure, our energy security position has been enhanced a great deal over the last several years: No. 1 producer of oil and gas, oil imports in terms of a fraction of crude plus products back at 1952 levels. In fact, our production increasing so substantially in the last five years that it has become a critical factor in global pricing dynamics, challenging decades-old assumptions by OPEC, for example. We have mothballed LNG import facilities are being repurposed for exports, likely to begin next year, and, frankly, likely to see us in several years at least become one of the major LNG players on the global scene.”
Moniz credited the energy revolution for rejuvenating U.S. manufacturing, particularly among energy-intensive industries that are capitalizing on affordable natural gas for power and/or as a feedstock for a variety of products. America’s increased use of natural gas also has helped lead U.S. efforts to reduce carbon dioxide emissions, he said.
In all of the above, the secretary certainly makes good point. Thanks to innovative, advanced hydraulic fracturing and horizontal drilling, the U.S. is the world’s energy-producing leader. America is stronger and its citizens are more prosperous because we’re producing more of the energy we use right here at home.
Posted May 28, 2015
We often call the United States a global energy superpower, and it is – No. 1 in the world in the production of petroleum and natural gas hydrocarbons in 2014, according to the U.S. Energy Information Administration.
This is the result of an ongoing energy revolution, harnessing vast oil and natural gas reserves found in shale and other tight-rock formations, thanks to advanced hydraulic fracturing and horizontal drilling. America has the energy and the technologies, but also the robust industrial sector necessary to completely rewrite our country’s energy story.
Here’s another way to look at it: A number of individual U.S. states now rival the world’s major energy-producing countries. In other words, as separate countries those states would be world leaders in energy output.