Energy Tomorrow Blog
Posted January 10, 2020
API’s new State of American Energy report illustrates how abundant U.S. natural gas and oil is empowering economic growth and opportunity across the country – and the potential harm to these benefits if fracking is banned, as some presidential candidates have promised to do.
The Washington Post’s Dino Grandoni has an analysis taking exception to the latter point, that banning hydraulic fracturing – the technology most responsible for launching the U.S. energy revolution – would seriously damage the U.S. economy, raise energy costs for American consumers and could likely trigger a recession at home and harm the global economy.
As an economist I would argue that an economic study isn’t needed to validate API’s point about a fracking ban. History shows what would happen if natural gas and oil production from the world’s leading producer was undercut by a fracking ban. According to independent studies, a sudden and enduring return to oil with triple-digit prices is the likely risk.
Posted January 10, 2020
The economic benefits of the nation’s energy revolution – empowering broad sector growth and opportunity – are tangible all across the United States, and are illustrated in API’s new annual report, “This is Energy Progress.”
Virginia’s Hampton Roads region is just one example, where households, businesses and military installations are helped by abundant domestic natural gas and oil. While Virginia isn’t a top producing state, plentiful and low-cost energy resources empower the shipping and tourism economy and strengthen the armed forces that are so visible locally.
Posted January 8, 2020
The U.S. is the global leader in energy production, carbon emissions reductions and environmental performance. In 2020, the State of American Energy is one of leadership in natural gas and oil development and ongoing progress toward global climate solutions.
For decades, U.S. energy policy has focused on reducing our dependence on foreign natural gas and oil – the outlook was often defined by scarcity, rather than abundance. Each of our last seven presidents understood that clean, affordable and reliable American energy is essential to both economic growth and national security. And today, our nation has achieved this hard-fought, bipartisan goal.
John D. Siciliano
Posted December 9, 2019
The recent box office success of 20th Century Fox’s “Ford vs Ferrari” helped moviegoers understand just what it took for the Ford Motor Company to build a world-class supercar and win the 24 Hours of Le Mans race in the 1960s.
But the movie also made me recall the oil industry’s ties to these champions. And the link between Ford and the energy sector when it comes to upping a car’s engine performance and making cars more environmentally sustainable.
Posted November 22, 2019
Our newest video reminds everyone how much the United States has gained from the energy revolution – record-breaking, world-leading production of natural gas and oil – with clips of presidents from both political parties over the years, urgently calling for lower oil imports. They knew America’s national security was tied to increasing the nation’s energy security. …
Presidents since Jimmy Carter in the late 1970s recognized that ever-increasing oil imports meant increasing dependency on others for energy. … That changed with the energy revolution. …
The question, as we’ve posed in recent posts (see here and here), is why anyone would erase these gains by banning hydraulic fracturing, as some candidates for president have advocated. Why would America reject its own natural gas and oil abundance and go back to an era of energy scarcity?
Posted October 28, 2019
America’s natural gas and oil industry continues to work for Americans – with revenues from production on federal and Native American-owned lands and offshore areas driving $11.69 billion in federal disbursements back to the states, counties, tribes and reclamation and conservation programs. That’s $2.76 billion more than the previous fiscal year and nearly double the disbursements in FY2016, the Interior Department said.
Recipients included: $2.44 billion to states and counties, $1.76 billion to the reclamation fund, $1.14 billion to Native American tribes and individual mineral owners, $1 billion to the Land and Water Conservation Fund and $4.9 billion to the U.S. treasury.
Posted October 16, 2019
Hydraulic fracturing – the technological breakthrough that launched the U.S. energy revolution – has taken a beating during the Democratic presidential derby.
The Washington Post ran a graphic recently, showing that the entire field would ban fracking altogether or restrict it in some capacity. Here’s the portion of the graphic showing the candidates who would ban fracking completely. The group includes some top-tier candidates, U.S. Sens. Elizabeth Warren, Bernie Sanders and Kamala Harris. Sen. Warren tweeted last month that she would ban fracking everywhere, while Sen. Sanders told the Post that safe fracking is a “pure fiction.”
Not fiction are the negative impacts throughout our society that could result from banning hydraulic fracturing: millions of job losses, trillions lost to the economy, significant increases in household spending on energy.
Posted October 4, 2019
The latest figures on U.S. crude oil exports show growing U.S. energy leadership, while the continued decline in net oil imports signals strengthened American energy security – with both stemming from the revolution in U.S. production. Charts from the U.S. Energy Information Administration (EIA) help illustrate.
First, EIA reports that U.S. crude oil exports rose to average 2.9 million barrels per day (b/d) in the first half of this year – an increase of 966,000 b/d over the same period in 2018. U.S. crude oil exports set a record in June of 3.2 million b/d, and EIA's graph vividly reflects the sea change in the United States’ oil exporting posture.
Posted September 19, 2019
At a time of energy uncertainty in the world, the U.S. natural gas and oil industry is producing at levels that have helped cushion domestic markets and American consumers against global supply disruptions that once would have put severe pressure on our economy here at home.
Each final month of the quarter marks the simultaneous release of API’s Monthly Statistical Report (MSR) and quarterly Industry Outlook, and this quarter has offered some remarkable milestones and insights – at a critical time for the world.
Posted September 16, 2019
An attack on a Saudi Arabian oil processing facility over the weekend has knocked out a significant part of Saudi production, at least temporarily, shaking oil markets. The precise amount and duration of the outage remains uncertain, and there are still unknowns about the attack that caused it, which in turn has inflated the risk premium on oil prices due to market fears about what may happen next within the region.
The market’s initial direction is clear, with Brent crude oil up more than $8 per barrel as of 3 p.m. Monday, per Bloomberg. Let’s break down what’s happened in context, recognizing that the U.S. energy revolution has fundamentally added to U.S. and global near-term deliverability of oil, natural gas and natural gas liquids, generally helping stabilize the global market against supply disruptions.