Energy Tomorrow Blog
Posted December 29, 2014
The Week: One of the biggest stories of 2014 has been the astonishing drop in global oil prices. The price of the benchmark Brent crude went from over $100 per barrel at the beginning of the year to the $60 range as of this writing.
It's worth noting how massive and completely unexpected this price drop has been.
And it's worth noting how good it is for the U.S. economy. The price of oil is one of the biggest drags on consumer demand, the largest driver of the economy.
And to what do we owe this miraculous event?
In a word: fracking.
Posted December 24, 2014
The gift that is American energy is seen in some key numbers: domestic crude oil production reaching more than 9 million barrels per day last month, the highest level in more than two decades, according to the U.S. Energy Information Administration (EIA); total U.S. net imports of energy as a share of energy consumption falling to their lowest level in nearly 30 years during the first six months of this year; gasoline prices dropping to an average of $2.47 per gallon last week, their lowest point since May 2009, according to the Lundberg Survey Inc.
The first two numbers might not fully register with a lot of Americans. We’ll come back to them. The last one, gasoline prices, does so loudly.
Retail gasoline prices fell after crude oil prices dropped for the fourth straight week – a product of weaker-than-expected global demand and increasing production, which EIA says will save American households $550 next year, Bloomberg News reports. Trilby Lundberg, president of Lundberg Survey to Bloomberg:
“It is a dramatic boon to fuel consumers. (Gasoline) is a modest portion of our giant gross domestic product and yet it does have a pervasive and festive benefit to motorists.”
During this season of gift-giving and receiving, Americans should give thanks for the gifts of plentiful domestic oil and natural gas, modern technologies to harness them and an industry robust and innovative enough to bring the two together, resulting in surging, home-grown production. Indeed, the dramatic increase in U.S. oil production is the key addition to global supply that’s putting downward pressure on the cost of crude, the No. 1 factor in pump prices.
Posted November 27, 2014
Happy Thanksgiving everybody.
When it comes to energy there’s much for which Americans can give thanks.
We have plentiful and accessible reserves of oil and natural gas that fuel healthy, mobile, modern lifestyles.
We enjoy safe and secure crude oil imports from Canada, our neighbor and ally and No. 1 source of imported oil.
Our country is served by a vibrant, modern industry – one that’s second to none in the use of safe, hydraulic fracturing and horizontal drilling, offshore development and environmental awareness.
America keeps running thanks to a vast pipeline network and the world’s biggest, most-efficient refineries. And there’s more.
Posted August 28, 2014
A USA Today op-ed this week on hydraulic fracturing by the Natural Resources Defense Council’s Amy Mall is such an achievement in dishonesty it’ll take multiple posts to unpack it all. So stay tuned. For now, let’s look at the opening, tone-setting paragraph of Mall’s piece and the way it deploys a false choice to try to undercut public support for fracking, the very basis of America’s ongoing energy revolution. Mall writes:
We all want economic and energy security. But recklessly ramping up U.S. oil and gas production is not the answer.
Mall starts with a truth – in an otherwise seriously truth-challenged piece. Yes, Americans very much want economic and energy security.
Posted August 27, 2014
The U.S. Energy Information Administration (EIA) has a chart showing what a number of experts have been saying – that America’s domestic energy surge has countered a rise in unexpected supply disruptions around the globe in recent years.
EIA says U.S. liquid fuels production – including crude oil, hydrocarbon gas liquids, biofuels and refinery processing gain – grew by more than 4 million barrels per day (bpd) from January 2011 to July 2014. Of that total, 3 million bpd was growth in crude output. Over the same period unplanned global supply disruptions as calculated by EIA grew by 2.8 million bpd. The result is a more stable global market for crude.
Posted August 14, 2014
Energy figures to be an important voting issue come November in a number of key states, new polling indicates. In separate surveys conducted by Harris Poll registered voters in Florida, Missouri, New York, New Jersey and Pennsylvania – 70 percent or more in each state – said they are more likely to favor a candidate who supports increasing oil and natural gas production and energy infrastructure.
Another result that could generate traction in this fall’s elections: More than 60 percent of registered voters in each of the states said they think the federal government doesn’t do enough to encourage the development of the nation’s energy infrastructure.
Posted July 25, 2014
Posted June 18, 2014
Here’s a link to a well-done video produced by Fortune magazine, showing a little bit about what it’s like to work on an oil and natural gas production platform more than 100 miles out in the Gulf of Mexico. The video’s producers visited Chevron’s Tahiti platform and interviewed a couple of the facility’s workers to gain insight into the two-weeks-on, two-weeks-off nature of life on the platform.
Posted June 4, 2014
If you run a business that sells things produced from raw materials – manufacturers, retailers, wholesale distributors and car and equipment dealers and other industries – chances are good you’re familiar with “LIFO” accounting. The IRS first approved the “last-in, first-out” method for use by taxpayers with inventories in the 1930s. Repealing LIFO, as some in Congress are proposing, could impact the more than 30 percent of U.S. companies, large and small, that use it, as well as the larger economy.
That’s the message a bipartisan group of 113 U.S. House members conveyed in a recent letter to Ways & Means Committee Chairman Dave Camp, who has proposed LIFO repeal as part of his larger tax reform package.
Posted May 14, 2014
A couple of charts from energy/economics blogger Mark J. Perry really show the fundamental rewriting of the United States’ energy narrative – as a result of surging domestic oil and natural gas production. Both charts, developed from data in the U.S. Energy Information Administration’s (EIA) annual energy outlook, indicate that the U.S. is rapidly moving toward energy self-sufficiency – the point at which domestic output lowers net imports to zero.