Energy Tomorrow Blog
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.
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.
Posted May 27, 2015
Wall Street Journal commentary (Engler and McGarvey): America’s business and labor leaders agree: President Obama and Congress can do more to modernize the permitting process for infrastructure projects—airports, factories, power plants and pipelines—which at the moment is burdensome, slow and inconsistent.
Gaining approval to build a new bridge or factory typically involves review by multiple federal agencies—such as the Environmental Protection Agency, the U.S. Forest Service, the Interior Department, the U.S. Army Corps of Engineers and the Bureau of Land Management—with overlapping jurisdictions and no real deadlines. Often, no single federal entity is responsible for managing the process. Even after a project is granted permits, lawsuits can hold things up for years—or, worse, halt a half-completed construction project.
Posted May 21, 2015
Consumers have felt some of the fruits of America’s energy revolution, API Chief Economist John Felmy told reporters in a pre-Memorial Day conference call.
Felmy noted that drivers are paying about $1 less per gallon of gasoline on average nationwide than they did at this time a year ago, according to AAA. He said that thanks to advanced hydraulic fracturing and horizontal drilling, the U.S. energy resurgence has offset production declines in other parts of the world, which has resulted in a more stable global market for crude oil – and relief at the gas pump. He added that the U.S. energy picture currently is characterized by strong domestic supply, moderate demand, increasingly efficient production and a refining sector that’s turning out record amounts of gasoline.
Felmy said the right energy choices by our country’s leaders can help continue the energy revolution.
Posted May 21, 2015
Fort Worth Star-Telegram (Weinstein): Thanks to what’s sometimes called the “shale revolution,” America has re-emerged as an energy superpower.
Even with prices 40 percent lower than a year ago, we remain the world’s No. 1 producer of crude oil and other liquid hydrocarbons. Imports of oil have dropped from 60 percent of consumption to about 35 percent just in the past five years. We’re also the world’s largest producer of natural gas.
Both our oil and natural gas output would be even higher if not for regulatory and infrastructure constraints.
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.”
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.”
Posted May 12, 2015
Encana President and CEO Doug Suttles participated in the U.S. Chamber of Commerce’s CEO Leadership Series last week with a luncheon address and a Q&A session with Linda Harbert of the Institute for 21st Century Energy. Highlights of the conversation below. Suttles joined Alberta-based Encana as president and CEO in June 2013. He has 30 years of oil and natural gas industry experience in various engineering and leadership roles. Before joining Encana, Suttles held a number of leadership posts with BP, including chief operating officer of BP Exploration & Production and BP Alaska president.
Q: You opened your talk by saying I’m a North American energy company. … Can you shed a little light on the differences and similarities between operating in Canada and the U.S.?
Suttles: They’re not as big as many people would think. First of all, in the places we operate – Colorado, Wyoming, New Mexico, Texas, Louisiana and Mississippi, and then Alberta and British Columbia – these are all natural resource states, and they understand that and I think the people and political leaders understand the importance, too. Both countries have high environmental expectations.
Probably the biggest difference you’d really see between them is the remoteness of operations, which creates a unique challenge in Canada. Many of our operations are away from large towns and cities … But you have an environment where I think people understand the benefits of our industry. They promote the industry, they support it.
Posted May 12, 2015
Wall Street Journal: The U.S. government Monday conditionally approved Royal Dutch Shell PLC’s plans to drill in the Arctic Ocean this summer, removing the biggest remaining obstacle before the company can explore for oil and natural gas in the Arctic’s frigid, isolated waters.
The announcement adds to a mix of decisions by the Obama administration that have restricted and granted new domestic fossil-fuel development.
Though affecting just one company, the approval is a victory for the oil-and-gas industry, which has criticized recent regulations affecting the sector, including tougher requirements on hydraulic fracturing and trains hauling flammable oil. Monday’s approval is tied to regulations proposed by the government in February for Arctic drilling operations off the coast of Alaska that could pave the way for additional companies exploring in the region.
Posted May 7, 2015
The oil and natural gas industry’s recent tax revenue and economic contributions to the Commonwealth of Pennsylvania look like this: more than $630 million through the state’s existing local impact fee since 2012, including $224 million in 2014 alone; more than $2.1 billion in state and local taxes; annual contributions to the state economy of $34.7 billion, boosting the bottom lines of more than 1,300 businesses in the energy supply chain.
Gov. Tom Wolf, who has proposed new industry taxes, says the state is “getting a bad deal.” We suspect a lot of states would like to have things so rough.
Nevertheless, the governor is pushing for an additional natural gas severance tax of 5 percent on the gross market value of production, plus a fixed fee of 4.7 cents per thousand cubic feet (Mcf) produced. The governor also wants an artificial floor of $2.97 per Mcf regardless of the actual price of natural gas. All suggest unfamiliarity with the story of the goose that laid golden eggs.