Energy Tomorrow Blog
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+).
Posted February 21, 2019
Update: Middleborough, Massachusetts, has joined parts of New York’s Westchester County on a list of places in the Northeast U.S. where they’ve announced moratoriums on new natural gas service.
As is true in Westchester, there’s not enough pipeline infrastructure to deliver natural gas to everyone in Middleborough who wants it. No question, the situation in Middleborough is unfortunate – as it is in sections of Westchester County affected by the natural gas moratorium there.
Blame short-sighted, agenda-driven opposition to constructing new natural gas pipelines or expand existing ones. Natural gas is near enough – in the Marcellus shale play in Pennsylvania that also extends into New York state.
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.”