Energy Tomorrow Blog
Posted June 26, 2015
More from the new Wood Mackenzie study comparing the effects on the U.S. energy picture from pro-development policies versus a regulatory-constrained path. We’ve looked at the implications for energy supplies. Today we’ll zero in on two very different scenarios affecting individual American households.
Once again, the study compared impacts on key areas, depending on the energy policy path our country chooses. The pro-development path includes increased access to oil and natural gas reserves, approaches to regulation and permitting that encourage accelerated energy production and export policies that allow U.S. oil and natural gas to reach global markets, stimulating domestic output. The constrained path would pretty much maintain the status quo on access, regulation and exports – costing the United States, as the study shows.
Posted June 26, 2015
Forbes (Clemente) – The short answer to the question posed is … a lot. Or at least way more than many groups and people out there want you to believe. Today, the world is swimming in oil, and prices have been sliced in half over the past year. “Peak oil” theory for production is predicated on the work of legendary geologist M.King Hubbert, who in 1956 employed his now famous/infamous “Hubbert curve” to predict U.S. petroleum production would peak in 1970. For many years he appeared to be correct, but the “shale revolution” is on the verge of proving him premature.
False pessimistic predictions regarding future oil production dates back to the beginning of the modern oil era in the mid-1850s, and can quickly ensnare the best experts with the most resources available. To illustrate, the Joint Operating Environment 2010 report (“the JOE report”) from the U.S. Joint Forces Command, the leader for the transformation of U.S. military capabilities from 1999-2011, projected a 10 million b/d global supply shortfall for 2015. Now, just five years later, we have a 2-3 million b/d surplus.
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 24, 2015
Houston Chronicle – The oil industry’s leading trade group on Tuesday kicked off its 2016 political campaigning, with plans to air issue advertising and hold events in battleground states.
The American Petroleum Institute launched its “Vote 4 Energy” with a pledge to stay above the partisan fray while ensuring that energy policy is part of the political discussion leading up to the November 2016 elections.
The group released a Wood Mackenzie study that it said illustrated the stark choice facing voters, by modeling how two different regulatory approaches to oil and gas would affect domestic production of those fossil fuels and economic activity related to them.
Under a relatively hands-off scenario with “pro-development” policies, the United States would gain 2.3 million U.S. jobs and $443 billion in economic activity by 2035, according to the API-commissioned analysis. Oil and natural gas production, meanwhile, would jump by 8 million barrels of oil equivalent per day, the study predicted.
Posted June 23, 2015
We spend a good deal of time trying to highlight the enormous potential of American energy – in terms of jobs, growth to our economy, greater energy security and more. It’s a big deal. The ongoing U.S. energy revolution is a game-changer – built on safe, responsible domestic oil and natural gas development.
Yet, there’s a caveat: Energy development hinges on energy policy. And as the 2016 election cycle nears, it’s difficult to overstate the importance of choosing policymakers who: (a) recognize the generational opportunities being afforded by American energy, and (b) understand the need for policy paths and regulatory approaches that will sustain and grow our country’s energy renaissance.
The major findings in a new Wood Mackenzie study show in clear terms the stakes for all Americans in choosing the right leadership for the country’s energy future. Wood Mackenzie analyzed and compared the impacts in seven major areas of a future characterized by pro-development policies and also one characterized by regulatory constraints.
Posted June 19, 2015
The issue was energy infrastructure – where the United States is and where things are headed. At the U.S. Energy Information Administration’s (EIA) annual conference this week, one discussion honed in on the challenges to infrastructure approval and construction – as well as government’s best role in developing projects that are key to U.S. energy transport and overall energy security. The latter produced some friction between speakers not often seen at conferences like EIA’s. More below.
The U.S. Energy Department’s Melanie Kenderdine talked about some of the details in the department’s recently issued Quadrennial Energy Review (QER), which focused on ways to modernize the nation’s infrastructure.
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 June 10, 2015
BloombergBusiness – The U.S. has taken Russia’s crown as the biggest oil and natural-gas producer in a demonstration of the seismic shifts in the world energy landscape emanating from America’s shale fields.
U.S. oil production (green line in chart, left) rose to a record last year, gaining 1.6 million barrels a day, according to BP Plc’s Statistical Review of World Energy released on Wednesday. Gas output also climbed, putting America ahead of Russia as a producer of the hydrocarbons combined.
The data showing the U.S.’s emergence as the top driller confirms a trend that’s helped the world’s largest economy reduce imports, caused a slump in global energy prices and shifted the country’s foreign policy priorities.
“We are truly witnessing a changing of the guard of global energy suppliers,” BP Chief Economist Spencer Dale said in a presentation. “The implications of the shale revolution for the U.S. are profound.”
Posted June 8, 2015
David McGowan was named executive director of the North Carolina Petroleum Council in 2013. Previously, McGowan served as director of regulatory affairs for the North Carolina Association of Realtors. He is a graduate of the University of North Carolina. Below, he talks with Energy Tomorrow about the potential for energy development in North Carolina, as well as the challenges for industry in his state.
Q: What do North Carolinians think about the state’s onshore and offshore energy potential? Is it something people are aware of, and what do you believe they want most from industry as it develops that energy?
McGowan: An overwhelming bipartisan majority of North Carolinians support more domestic exploration and production for oil and natural gas resources, both onshore and offshore. According to a Harris poll in January, 91 percent of the state’s citizens believe that we should produce more energy here at home to strengthen our energy security. Furthermore, 90 percent believe that increased oil and natural gas production will lead to more jobs here in the state. North Carolinians also understand that our country and our state need oil and gas resources for our economy to grow. They understand that more domestic production increases global supplies, putting downward pressure on costs and benefiting consumers.
Finally, most people in the state understand that energy production and environmental stewardship are not mutually exclusive. They know that we can safely and responsibly develop our natural resources, create jobs and stimulate the economy – all the while ensuring that the health of our citizens and environment are protected.