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Energy Tomorrow Blog

U.S. Energy – It’s All About Supply

analysis  access  energy exports  energy supply  oil and natural gas development  senate  american petroleum institute  economic growth 

Mark Green

Mark Green
Posted May 19, 2015

Solid bipartisan support for important energy legislation is on display in the U.S. Senate, with members of a key committee considering a number of ways to increase access to domestic supplies of oil and natural gas – as well as bills ending 1970s-era restrictions on U.S. crude oil exports.

Energy security is about having secure, reliable energy supplies to fuel broad economic expansion and create opportunity for individual Americans. When we remove outdated export restrictions, allowing U.S. energy to reach global markets, studies have detailed how domestic production will be stimulated – again, creating jobs and economic growth here at home. API Executive Vice President Louis Finkel talks about new legislation offered by Democrat Heidi Heitkamp, similar to legislation offered last week by Republican Lisa Murkowski, that would lift the crude export ban and boost U.S. energy:

“Bipartisan leadership on this issue keeps the focus on the consumers and workers that will benefit from free trade in crude oil. … Study after study shows that lifting outdated limits on crude exports will allow America to create more jobs, cut the trade deficit, grow the economy, and put downward pressure on fuel costs. Exports will help keep U.S. production strong in a tough market, and they will provide our allies with an important alternative to energy from less friendly regimes.”

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Energy for America’s Today and Tomorrow

news  shale energy  oil and natural gas development  access  north dakota  energy exports  hydraulic fracturing  lng exports  new york drilling moratorium 

Mark Green

Mark Green
Posted May 14, 2015

Wall Street Journal: After slashing production for months, U.S. shale-oil companies say they are ready to bring rigs back into service, setting up the first big test of their ability to quickly react to rising crude prices.

Last week, EOG Resources Inc. EOG, -0.08%  said it would ramp up output if U.S. prices hold at recent levels, while Occidental Petroleum Corp. OXY, +0.93%  boosted planned production for the year. Other drillers said they would open the taps if U.S. benchmark West Texas Intermediate CLM5, -0.88%   reaches $70 a barrel. WTI settled at $60.50 Wednesday, while global benchmark Brent LCOM5, -0.13% settled at $66.81.

An increase in U.S. production, coupled with rising output by suppliers such as Russia and Brazil, could put a cap on the 40% rally in crude prices since March and even push them lower later in the year, some analysts say.

“U.S. supply could quickly rebound in response to the recent recovery in prices,” said Tom Pugh, a commodities economist at Capital Economics. “Based on the historical relationship with prices, the fall in the number of drilling rigs already looks overdone, and activity is likely to rebound over the next few months.”

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The Soundness of Investments in Oil and Natural Gas

analysis  oil and natural gas investments  stocks  pension plans  api  access  regulation 

Mark Green

Mark Green
Posted April 28, 2015

New analysis of the performance of oil and natural gas stocks in public pension funds shows the importance of a healthy energy sector to the futures of millions of Americans – as well as the misguided nature of efforts to force institutions to end investments in oil and natural gas.

The first strengthens our country’s economy and makes more secure the future for a broad swath of people – starting with retired teachers, police officers and firefighters, among others – while the second most likely would do harm to a lot of regular Americans. ...

“In short, returns on state pension funds from investments in oil and natural gas companies provide strong earnings for public pension retirees, including America’s teachers, firefighters and police officers, according to the study,” said Kyle Isakower, API vice president of regulatory and economic policy, who briefed reporters during a conference call.

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U.S. Energy’s ‘Turning Point’

cera  exports  exxonmobil  horizontal drilling  hydraulic fracturing  oil and natural gas industry  refineries  access  oil sands 

Mark Green

Mark Green
Posted April 21, 2015

The theme of this year’s CERAWeek mega-conference in Houston is “Turning Point: Energy’s New World.” It is a new world, with the United States producing more energy from oil and natural gas – the lead fuels of the U.S. and the world’s economies – than any other country. Just a decade ago few could have imagined the possibilities. 

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Fueled by Oil and Natural Gas – Now and in the Future

oil and natural gas development  access  eia forecast  imports  economic growth  shale energy  hydraulic fracturing  horizontal drilling  emissions 

Mark Green

Mark Green
Posted April 14, 2015

The U.S. Energy Information Administration’s (EIA) new Annual Energy Outlook for 2015 contains a number of stats, charts and projections, but you could boil them down to a couple of important points.

First, oil and natural gas are and will continue to be the foundation of an all-of-the-above energy approach that’s key to continued U.S. economic growth, energy security and overall security. EIA says oil (36 percent) and natural gas (27 percent) supply 63 percent of America’s energy now, and EIA projects they will supply 62 percent in 2040 (oil 33 percent and natural gas 29 percent). This is because oil and natural gas are high in energy content, portable and reliable. They’re the workhorse fuels of the broader economy, making modern living possible as fuels and as the building blocks for a number of products Americans depend on every day. America is and will be dependent on a variety of energies, but oil and natural gas are and will play leading roles.

The great news is the U.S. is in the midst of a revolution in domestic oil and natural gas production, leading to a second big takeaway from EIA’s report – that domestic output is and will continue to reduce U.S. dependence on imported energy.

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Growing U.S. Energy Self-Sufficiency

oil and natural gas production  domestic energy access  eia  offshore energy  onshore development  shale energy  hydraulic fracturing  horizontal drilling 

Mark Green

Mark Green
Posted April 6, 2015

Statistics in the U.S. Energy Information Administration’s Monthly Energy Review for March show U.S. domestic energy production meeting about 89 percent of the country’s total energy demand. That’s up from 84 percent in 2013 and 2012 and reflects a key result of the domestic energy revolution: growing U.S. self-sufficiency.

EIA data shows U.S. energy production as a percentage of total demand. Total energy production (fossil fuels, nuclear electric power and renewables – again, as a percentage of total U.S. energy demand -- was about 69 percent in 2005, and it grew to about 89 percent last year. The share of fossil fuels (oil, natural gas and coal) accounted for approximately 55 percent in 2005, growing to about 70 percent last year.


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Fracking, the U.S. Energy Revolution and Energy Security

oil and natural gas development  gallup poll  eia  access  fracking  horizontal drilling  shale energy  imports  domestic energy production 

Mark Green

Mark Green
Posted April 3, 2015

A couple of data points and some observations on energy security.

First data point: The U.S. Energy Information Administration (EIA) reports that last year the United States enjoyed the largest volume increase in crude oil production since record keeping began in 1900. That’s right, the largest increase in 115 years!

Production of crude (including lease condensate) increased during 2014 by 1.2 million barrels per day to 8.7 million barrels/day. EIA says that on a percentage basis 2014’s output increased 16.2 percent, the highest growth rate since 1940. 

You can thank shale and fracking.

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Strengthen the Draft Offshore Leasing Plan

offshore leasing plan  offshore access  oil and natural gas development  boem  economic benefits  atlantic ocs  eastern gulf  pacific  alaska 

Mark Green

Mark Green
Posted March 31, 2015

There are a number of main points in official comments submitted by API and seven other energy industry groups to the federal Bureau of Ocean Energy Management (BOEM) on its draft offshore oil and natural gas leasing program for the 2017-2022 time period.

Given how much offshore acreage was excluded from the proposed draft, BOEM should not remove any areas proposed in the draft from the final lease plan, the associations write. The government is missing key opportunities to harness U.S. offshore energy in the Atlantic, eastern Gulf of Mexico and off Alaska, as other countries are implementing robust offshore development programs. Energy development on the outer continental shelf (OCS) would generate significant job and economic benefits to the U.S., and industry continues to press ahead with technological, safety and environmental protection improvements – all designed to foster increased safety in offshore operations.

The comments are among those being collected by BOEM before it finalizes the five-year leasing program later this year. The leasing plan is a blueprint for offshore development; areas not listed in it won’t be offered for lease 2017 to 2022. Given the 10 to 15 years needed to develop offshore oil and natural gas – from the time the lease is sold to production – the federal plan is critically important.   

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Roadblocking America’s Energy Revolution

energy regulation  oil and natural gas development  epa  boem  blm  fracking  economic growth  ozone  renewable fuel standard  methane  offshore drilling  access 

Mark Green

Mark Green
Posted March 24, 2015

Last week’s release of the federal Bureau of Land Management’s new hydraulic fracturing rule suggests it’s time to update an infographic we posted last summer on the administration’s regulatory march that could impede America’s energy revolution. 

Unfortunately, the administration’s plans for energy regulation aren’t encouraging – not if you truly grasp the historic opportunity that surging domestic production of oil and natural gas is providing the United States.

We’re talking about the complete rewrite of America’s energy narrative, from one of scarcity – limiting America’s economic possibilities and overshadowing its national security concerns – to one of abundance in which the U.S. is more self-sufficient, more prosperous and more secure in the world.

We call that historic, revolutionary, a true renaissance in American energy.

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The Energy Revolution – The View From the White House

oil and natural gas development  access  president obama  congress  energy policy  economic benefits  trade  regulation 

Mark Green

Mark Green
Posted February 26, 2015

The president’s Council of Economic Advisers (CEA) understands the significance of the U.S. energy revolution quite well – reflected in the energy chapter of its recent 2015 Economic Report of the President.

The chapter should be widely read by policymakers, from the president and Congress on down, because it notes the role of surging domestic oil and natural gas production in the ongoing energy revolution. From there it’s possible to identify needed policies for the future.

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