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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 When we remove outdated export restrictions, allowing U.S. energy to reach global markets, studies have detailed how domestic production will be stimulated – again, creating jobs and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 … Study after study shows that lifting outdated limits on crude exports will allow America to create more jobs, cut the trade deficit, grow the economy, and put downward pressure on fuel costs.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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With Ozone Levels Falling, Why Mess with Success?

analysis  ozone standards  economic impacts  american petroleum institute 

Mark Green

Mark Green
Posted May 14, 2015

Our new ad lays out key facts about EPA’s move to tighten U.S. ozone standards. Howard Feldman, API’s senior director of regulatory and scientific affairs, talked about the messages in a new multimedia advertising campaign – that stricter ozone standards aren’t necessary because existing standards are making the air cleaner and effectively protecting public health – during a conference call with reporters. Chief points:

Ozone levels are down – Our air is cleaner and continues to get cleaner under 2008 ozone standards – and those aren’t even fully implemented yet. EPA data shows ground-level ozone in the U.S. dropped 18 percent between 2000 and 2013.

“Air quality will continue to improve as we implement the existing standards. Further tightening of the standards wouldn’t necessarily improve air quality any faster, but it could significantly impact U.S. jobs and the economy. … A lower standard could, for little or no health benefit, significantly constrain our nation’s economy and eliminate thousands of jobs.”

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Talk Infrastructure – Build Keystone XL Pipeline

analysis  infrastructure  keystone xl pipeline  energy investment  economic benefits  american petroleum institute  Jack Gerard  canadian oil sands 

Mark Green

Mark Green
Posted May 11, 2015

Vice President Joe Biden underscored the administration’s call for infrastructure spending during a Bloomberg Government event that focused on the country’s deteriorating delivery and transportation systems.

Highlights include: The Washington politics of infrastructure spending is challenging. “The idea that there is a debate on the Hill on the need to invest in infrastructure is mind blowing,” Biden said. The world’s energy epicenter is North America, and the U.S. needs major investments in energy infrastructure. “We will face a national security dilemma” if we don’t enhance our energy infrastructure, he said. Companies need to have certainty that they can get their products to market efficiently.

Let’s pause a moment and consider these valid points on infrastructure from the vantage point of this administration’s crowning infrastructure decision (or non-decision): the Keystone XL pipeline.

In the Keystone XL, the administration has had the opportunity – for more than six years – to green light $5.4 billion in private infrastructure spending that would create jobs, boost the economy and transport oil from Canada and the U.S. Bakken region – reliably and safely – to our Gulf Coast refineries, enhancing America’s energy security. All with the simple stroke of the president’s pen.

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America’s Economic Opportunity

analysis  crude oil  crude markets  energy exports  economic benefits  oil and natural gas production  encana  american petroleum institute 

Mark Green

Mark Green
Posted May 6, 2015

The opportunity to stimulate increased domestic production of oil and natural gas, create jobs, spur the economy and enhance America’s ability to positively shape world events is at hand – waiting only on the stroke of a pen. Lifting the United States’ four-decades-old ban on crude oil exports could help advance all of the above, and it all could be launched with the stroke of a pen.

Encana President and CEO Doug Suttles and API President and CEO Jack Gerard emphasized the relative ease with which the 1970s-era export ban could be ended, as well as the building political momentum for action, during a conference call with reporters.

Gerard said the ban could be lifted through the exercise of presidential authority or by the president signing legislation from Congress. Gerard:

“There is a consensus building in the country. We see strong bipartisan support in the House and now rolling in the Senate. So overall, we think the momentum continues to build as people better understand all of the issues. … Job creation, benefit to our trade imbalance, revenues to government, lowering the price at the pump. … It’s just a matter of time now before that pen is deployed to allow this to happen.”

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New Rail Rules Do Little to Prevent Accidents

analysis  transportation  crude oil  federal government  regulations  american petroleum institute  Jack Gerard 

Mark Green

Mark Green
Posted May 5, 2015

During months of public discussion of improving the safety of transporting crude oil by rail, we’ve stressed the need to let science and fact-based analysis guide development of a holistic strategy that would have the best chance of producing tangible safety benefits.

Unfortunately, new rules published last week by the Transportation Department – featuring requirements for sturdier tank cars and electronically controlled pneumatic (ECP) brakes – are a mixed bag that will do little to prevent derailments in the first place.

Instead of working to ensure the integrity of the tracks and to eliminate human error as much as possible, both of which would help prevent accidents from occurring, it seems federal officials at times opted for the optics of appearing to make progress. In the case of the ECP brakes, it’s a technology that experts say doesn’t significantly improve safety – which is the goal. To add to the 99.99 percent safety record in the transport of hazardous materials by rail, a more comprehensive approach that focuses more attention on prevention is needed.

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Q&A: Bentley Working to Safely Harness Colorado Energy

analysis  oil and natural gas development  colorado  economic impacts  american petroleum institute  regulation 

Mark Green

Mark Green
Posted May 4, 2015

The Colorado Petroleum Council and its new executive director, Tracee Bentley, recently opened a new office in Denver, where the council will focus on growing energy priorities in the state. A Colorado native, Bentley served as Gov. John Hickenlooper’s legislative director and senior advisor on energy and agricultural issues before coming to API. Below, Bentley talks with Energy Tomorrow about opportunities and challenges facing the council and her role as the organization’s leader.

Q: What do Coloradoans think about the state’s energy potential? Is it something people are aware of, and what do you believe they want most from industry as it develops that energy? What are the key “education” points needed to build a strong partnership between industry and Coloradoans?

Bentley: Coloradans know their state is blessed in terms of energy.  And they’re aware of the importance of energy development to the state’s economy. Even with the recent downturn, oil and natural gas development remains a crucial contributor economic growth, adding $26 billion to the state economy and supporting 213,100 jobs – or nearly 7 percent of total state employment. School districts in Colorado received nearly $202 million from oil and gas production property taxes in 2012 alone, according to a study conducted by the University of Colorado Boulder’s Leeds School of Business.

Coloradoans want the same things people in other energy-producing states want. They want assurances that development will be safe, and that operators will hear and respond to their concerns. The Colorado Petroleum Council helps this relationship by providing factual information on safe energy development. One of our priorities is to demystify things like hydraulic fracturing. We’re here to explain it and to reassure communities and individuals that it has been going on for decades, is an advanced, precise technology and that the combination of state regulations and industry standards is keeping energy development safe to residents, water supplies and the local environment.

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Ozone Regulation and Real-World Impacts

ozone standards  epa  economic impacts  american petroleum institute  regulation 

Mark Green

Mark Green
Posted March 17, 2015

The job that could be lost could be yours, or the job that doesn’t materialize could be the one you had your heart set on. Both scenarios could result from lower federal standards on ground-level ozone, which EPA has proposed and is expected to finalize later this year.

A NERA Economic Consulting study lays out the big-picture impacts, that a stricter ozone regulation could reduce U.S. GDP by $270 billion per year and $3.4 trillion from 2017 to 2040, resulting in 2.9 million fewer jobs or job equivalents per year on average through 2040.

Big numbers, but abstract. Embedded in them are potential real-world impacts for lots of Americans in terms of economic opportunity lost or denied, illustrated here on a state-by-state basis. These include businesses that might not be launched or expanded, infrastructure plans that could be shelved, such as roads and bridges. It could entail activities that communities might restrict as they try to comply with stricter ozone standards.

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Growing Consensus On ‘Unworkable’ RFS

renewable fuel standard  rfs34  ethanol  biofuels  cellulosic biofuels  american petroleum institute  blend wall 

Mark Green

Mark Green
Posted March 11, 2015

To the chorus of voices sounding the alarm on the broken Renewable Fuel Standard (RFS) – AAA, automakers, outdoor power equipment manufacturers, marine manufacturers, turkey and chicken producers, restaurant companies, grocery manufacturers, environmental non-profits and anti-hunger groups – add another: the advanced biofuels industry.

Given the fact the RFS was designed to encourage development of advanced and cellulosic biofuels, the Advanced Biofuels Association’s call for significant RFS reform is a game-changer in the ongoing public policy debate. ABFA President Michael McAdams at this week’s Advanced Bioeconomy Leadership Conference:

“… the Renewable Fuels Standard (RFS) – the very tool that was created to foster our industry – has become one of the greatest obstacles to continued development of the advanced and cellulosic biofuel industry due to inconsistent and poor implementation.”

The issue is the way the RFS, through annual ethanol mandates, has resulted in ever-increasing production of ethanol made from corn – versus ethanol and other biofuels made from non-food feedstocks.

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The New Move to Regulate Methane

shale energy  methane emissions  emission reductions  regulation  epa ghg regulations  oil and natural gas development  american petroleum institute 

Mark Green

Mark Green
Posted January 15, 2015

As we look at the Obama administration’s plan to impose new regulations on methane emissions from oil and natural gas operations, some important points.

First, when it comes to methane emissions, the White House is focusing on a relatively small piece of the big picture. Data from EPA’s Greenhouse Gas Reporting Program shows that methane emissions from natural gas and petroleum systems (161.6 million metric tons of carbon dioxide equivalent) represent just 28.5 percent of total methane emissions (567.3 million metric tons CO2 equivalent). That’s a fairly small wedge in the overall pie.


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‘This Unique American Moment’

state of american energy  american energy  oil and natural gas development  economic benefits  infrastructure  american petroleum institute 

Mark Green

Mark Green
Posted January 6, 2015

The U.S. energy revolution is fundamentally empowering. There’s no better word for it. Because of resurgent American energy, our country has choices where the horizon once was filled with energy-based limitations.

Because domestic energy is more abundant, Americans have renewed mobility – literally, in the form of cheaper gasoline that’s largely the result of U.S. crude oil impacting global markets and economically, because of oil and natural gas industry-supported job creation and investment, and a manufacturing renaissance spurred by affordable fuels and feedstocks.

No less important: The United States is more secure in the world because we’re much less dependent on energy from adversarial sources. America's all-of-the-above energy potential is a powerful opportunity for the nation.

This is a special moment in U.S. history, the dawn of a new energy-driven reality that could sustain and grow American prosperity here at home and America’s influence in the world. It could – if we seize it.

Throughout his annual State of American Energy address, API President and CEO Jack Gerard struck the positive chords of possibility in an American energy era – possibilities dependent on our national leadership’s ability to support “smart, responsible and forward-looking energy policies that promote economic growth, job creation and U.S. energy security and leadership.” 

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