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Energy Tomorrow Blog

Informing Voters on Energy

news  vote4energy  economic benefits  oil and natural gas development  american petroleum institute  fracking  offshore safety  renewable fuel standard 

Mark Green

Mark Green
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.

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Meeting Our Energy Challenges

analysis  access  oil and natural gas development  global markets  oil imports  american petroleum institute  Jack Gerard 

Mark Green

Mark Green
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.

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Growing Groundswell Against the RFS

analysis  renewable fuel standard  rfs34  ethanol  e15  e85  epa  american petroleum institute  Jack Gerard 

Mark Green

Mark Green
Posted June 17, 2015

Quick rewind to 2007, when Congress enacted the Renewable Fuel Standard (RFS): The U.S. faced energy challenges – declining domestic production leading to greater dependence on imports and ever-increasing consumer costs. The RFS was conceived as a way to spur production of advanced biofuels that would help on imports and costs.

Today the energy landscape has completely changed. Thanks to surging domestic production from shale and other tight-rock formations with advanced hydraulic fracturing and horizontal drilling, the United States is No. 1 in the world in the production of petroleum and natural gas hydrocarbons. Our imports are falling, and consumers have enjoyed lower prices at the pump.

Yet, the RFS remains – with its mandates for increasing use of ethanol in the fuel supply, seemingly impervious to the changed energy landscape, even as increased domestic oil production has checked off RFS objectives one by one. Even EPA’s latest proposal for ethanol use, while acknowledging that the RFS has serious flaws, continues to try to manage the behavior of markets and consumers, ironically leaving both on the sidelines.

That was the message in a telephone briefing with reporters hosted by API President and CEO Jack Gerard. Joining the call were Wayne Allard of the American Motorcyclist Association (AMA), Heather White of the Environmental Working Group (EWG) and Rob Green of the National Council of Chain Restaurants (NCCR).  

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Video: Hopes, Dreams and a Career in Energy

analysis  oil and natural gas jobs  workforce  women in energy industry  american petroleum institute  Jack Gerard 

Mark Green

Mark Green
Posted June 10, 2015

The video below was featured during last week’s Big Brothers Big Sisters (BBBS) National Conference in Philadelphia, which highlighted the organization’s efforts to mentor at-risk youth. Take a look. “Darryl’s Story” is a compelling example of the positive effects of adult role-modeling – the good that can result when kids learn to dream big and then to work on their dreams. The energy connection: For Darryl, the journey took him to the oil and natural gas industry.

As an industry that’s creating opportunities that can be the realization of aspirations for fulfilling, well-paying careers, API is proud to partner with BBBS. The great news is that the oil and natural gas industry needs more Darryls, more young men and women who want to be geologists, engineers, chemists and the other specialties that comprise our modern workforce.

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EPA Water Study Supports Safe Fracking

analysis  epa  hydraulic fracturing  horizontal drilling  water  shale energy  oil and natural gas development  american petroleum institute 

Mark Green

Mark Green
Posted June 4, 2015

After five years and millions of taxpayer dollars, EPA says what we in industry and others have said for some time: Safe hydraulic fracturing doesn’t threaten our drinking water. The salient quote from EPA’s draft report about fracking and associated operational components:

“We did not find evidence that these mechanisms have led to widespread, systemic impacts on drinking water resources in the United States.”

EPA’s findings discredit scaremongering used by fracking opponents and should help focus attention where industry is and has been focused – on continuous improvements in operational skill, guided by a set of rigorous best practices, and on technological advances.

EPA’s findings also effectively endorse the strong environmental stewardship that is being exercised by state regulators, who have been busy while EPA studied.

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‘Women in Power’ Highlights Industry Career Opportunities

analysis  women in energy industry  workforce  colorado  american petroleum institute  oil and natural gas development 

Mark Green

Mark Green
Posted June 4, 2015

A big event in Denver this week, highlighting the career opportunities for women in the oil and natural gas industry. “Women in Power” was attended by about 150 of Denver’s most influential female leaders and launched a larger Colorado initiative designed to help attract women to the industry and to retain them for life-long careers.

The Denver event was keynoted by Democratic strategist Celinda Lake and Republican strategist Linda DiVall, co-authors of a study released earlier this year  that found the chief factor in increasing female representation in the oil and natural gas industry workforce is making them aware of the benefits of industry employment – including pay and security benefits and the chance for career advancement.

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Consumer Interests Ahead of Ethanol Interests

analysis  renewable fuel standard  rfs34  ethanol blends  epa  consumers  american petroleum institute  Jack Gerard  e85  e15  e10 blend wall 

Mark Green

Mark Green
Posted May 29, 2015

With EPA already embarrassingly late in setting requirements for ethanol in the fuel supply for 2014 (due 18 months ago) and 2015 (due six months ago), the agency finally has proposals for those years and 2016 that would continue to drive ethanol use – though not at levels dictated by the Renewable Fuel Standard (RFS).

Top EPA official Janet McCabe called the proposals “ambitious, but responsible.” We’ll agree on the ambitious part – in that it takes a whole lot of something to thread the needle between marketplace realities and the flawed RFS – difficult for the nimblest of bureaucracies, much less a regulatory colossus like EPA.

Unfortunately, EPA comes up short, particularly for 2016. An RFS program that long ago went awry remains lost in the tall weeds of process over substance.

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Briefing: The Potential Downsides of EPA’s Ozone Proposal

analysis  ozone standards  epa  economic impacts  air quality  american petroleum institute 

Mark Green

Mark Green
Posted May 28, 2015

We’ve written quite a bit recently about EPA’s proposal to impose stricter ozone standards on the U.S. (see here, here and here) – and the reason is there’s so much at stake.

If implemented, the stricter ozone standards could be the costliest regulation ever, potentially reducing U.S. GDP by $270 billion per year and $3.4 trillion from 2017 to 2040, according to a study by NERA Economic Consulting for the National Association of Manufacturers. The U.S. could see 2.9 million fewer jobs or job equivalents per year on average through 2040.

Yeah, that’s big.

Certainly, for those kinds of impacts Americans would expect them to be justified. But EPA’s proposal is starkly lacking in terms of the science and public health.

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The States as Energy Powerhouses

analysis  oil and natural gas development  production  hydraulic fracturing  horizontal drilling  access  texas  american petroleum institute 

Mark Green

Mark Green
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.

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On Ozone, the Science and Impacts of Regulation Speak Loudly

analysis  ozone standards  epa  regulation  air quality  science  economic impacts  american petroleum institute 

Mark Green

Mark Green
Posted May 27, 2015

With national ozone levels falling, some activists argue for stricter federal standards the best way they can – by pointing to the relatively few areas in the United States where ozone levels remain above the current standard of 75 parts per billion (ppb).

Yet, think about that. If an urban area like Los Angeles or Houston currently is out of attainment with the standard set at 75 ppb, how will lowering the national standard to 65 or 60 ppb – which EPA is considering – make a difference in those and other non-compliant areas? Good question.

The fact remains that the current standards are working. EPA data shows ozone levels declined 18 percent between 2008 and 2013.

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