Energy Tomorrow Blog
Posted April 26, 2019
Over the past few weeks, we’ve published a series of posts on the United States’ emergence as a major global natural gas exporter, including discussion of the benefits both at home and abroad (see here and here).
In this post, we’ll look at how the business of liquefied natural gas (LNG) is changing in exciting ways—ways that give customers around the world unprecedented flexibility and access to clean and reliable natural gas.
We’ll see that while some of these trends have been in motion for years, it’s been the introduction of U.S. LNG into the market that has really accelerated this shift. With multiple project developers pursuing a wide range of structures and technologies, it’s clear that the U.S. is once again at the forefront of innovation in this critical part of the world’s energy sector.
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 10, 2019
Connecting the renaissance in U.S. energy exports and chemical production with barbeques and turkey might not seem automatic, but hear me out. Thanks to the U.S. energy revolution, propane that’s widely used as a fuel for vital heating and cooking has never been more abundant and affordable.
Certainly, the need for affordable energy – available on-demand when and where you need it – is universal and something people I met recently during travels from Washington, D.C. to Minnesota and the Gulf Coast are talking about.
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 13, 2019
The administration is considering doubling down on its trade war despite repeated warnings and thorough evidence that tariffs and quotas are negatively impacting American consumers, even while failing to lower the U.S. trade deficit. We can now add one more report to that long list of evidence with the release of a new analysis from the National Bureau of Economic Research (NBER) with all-too-familiar findings: the economic impact of trade restrictions is falling solely on consumers – not the countries that they target – despite the Administration’s claims. This serves as an unfortunate reminder that tariffs are a tax on imported goods that is paid for not only by American businesses but potentially consumers.
Posted February 26, 2019
When the U.S.-Mexico-Canada Agreement (USMCA) was announced last fall, we pointed out that it would be good for North American energy security and continue flourishing energy trade between the United States and its neighbors by providing market access and zero tariffs for U.S. natural gas and oil and related products.
The agreement would sustain and expand the gains made under its predecessor, NAFTA, which created a North American energy market, helped make the U.S. more energy secure and benefited U.S. consumers.
Congress should approve USMCA as soon as possible to lock in the critically important energy relationship between the U.S., Mexico and Canada – as well as the general flows of goods and services so vital to good economic health in this country.
Posted February 26, 2019
In case you missed it, let’s echo a recent official U.S. Energy Department projection that the United States should “not only maintain its lead spot as top oil producer, but will greatly exceed what it produced last year in both 2019 and 2020.”
The trajectory of U.S. oil production is significant for U.S. economic growth, energy security and global leadership, and – as we recently discussed oil exports in this post – potentially raises the stakes in the market share battle between the United States and OPEC plus Russia (OPEC+).