Energy Tomorrow Blog
Posted November 12, 2014
Newly published API recommended practices for offshore structures supporting oil and natural gas drilling and production operations – reflecting technological advances and updated design applications – can help improve planning, construction and maintenance of important energy infrastructure. They are intended to work together to enhance the approach to offshore structural design.
Posted September 3, 2014
Following up on last week’s rebuttal of a truth-challenged attack on hydraulic fracturing in a USA Today op-ed, in which we detail how federal and state regulation, combined with industry standards are protecting the environment, water supplies and communities.
The op-ed by the Natural Resources Defense Council’s Amy Mall opens by posing a false choice for Americans: economic and energy security from development using fracking or safety. It continues:
… a controversial new extraction technology known as "fracking" — combined with unprecedented exemptions for the industry from bedrock federal environmental and public health laws — has fueled a recent explosion in domestic oil and gas development. And safeguards have not kept pace.
Fracking isn’t new. Earlier this year the U.S. marked the 65th anniversary of the first commercial use of hydraulic fracturing. Fracking pre-dates McDonald’s, diet soft drinks, credit cards and more – even Barbie. It’s a fact, and saying otherwise is dishonest.
Posted August 22, 2014
The national standard for ground-level ozone hardly needs tinkering. As noted earlier this year by Howard Feldman, API’s director of scientific and regulatory affairs, air quality in the U.S. has been steadily improving in recent years, and the health case for a more stringent ozone standard, which EPA may propose, hasn’t been made:
“We recognize that EPA has a statutory duty to periodically review the standards. However, the current review of health studies has not identified compelling evidence for more stringent standards. Tightened standards could impose unachievable emission reduction requirements on virtually every part of the nation, including rural and undeveloped areas. These could be the costliest EPA regulations ever.”
Costly nationally and to the states individually. A report for the National Association of Manufacturers says the U.S. could see a $270 billion per year reduction in GDP and 2.9 million fewer job equivalents per year on average through 2040. We’ve looked at potential state impacts in North Carolina, Ohio, Louisiana, Kentucky and Michigan. Today, Arkansas:
Posted August 21, 2014
As with other states we’ve recently highlighted – North Carolina, Ohio, Louisiana and Kentucky – the impacts of more stringent standards for ground-level ozone on Michigan could be wide and significant. According to a recentreport from the National Association of Manufacturers (NAM), Michigan could see $75.3 billion gross state product loss from 2017 to 2040 and 83,092 lost jobs or job equivalents per year.
Posted August 19, 2014
We’ve posted recently on potential roadblocks to the progress America’s energy revolution is providing – posed by administration policies and new regulatory proposals (infographic). Among them are proposed stricter standards for ground-level ozone that could put 94 percent of the country out of compliance, potentially impacting the broader economy and individual households.
Looking at the possible state-level effects of a more stringent ozone proposal in North Carolina, Ohio and Louisiana reveals a clearer picture of potential impacts on Americans’ lives. Kentucky, already at the forefront of a coal-related regulatory push, could see significant economic harm from a new ozone standard, according to a National Association of Manufacturers (NAM) report.
Posted August 18, 2014
Louisiana is an important energy-producing state – the country’s No. 2 crude oil producer at nearly 1.45 million barrels per day when federal offshore output is included. The state also is No. 2 in petroleum refining capacity.
Energy development is boosting Louisiana’s economy. Oil and natural gas extraction, refining and the pipeline industries support 287,000 state jobs and billions in household earnings and sales to state businesses, according to arecent study. At the same time, energy activity is part of the reason new, stricter ground-level ozone standards could have major impacts in Louisiana.
Posted August 15, 2014
Every county in Ohio would be in nonattainment or non-compliance with an ozone standard of 60 parts per billion (ppb), which EPA is considering to replace the current 75 ppb standard. Counties in red are those with ozone monitors located in them; those in orange are unmonitored areas that could be expected to violate the 60 ppb standard, based on spatial interpolation.
The potential economic costs to Ohio would be significant. The state could see $204.3 billion in gross state product loss from 2017 to 2040 and 218,415 lost jobs or job equivalents per year. On a practical level, manufacturers wouldn’t be able to expand to counties in red or orange unless other businesses shut down, and federal highway funds could be frozen.
Posted August 14, 2014
Wall Street Journal (Jay Timmons, NAM): In a town famous for inaction, Washington is gearing up to take action on a major policy issue. But there's a hitch: The outcome could be the most expensive regulation in the nation's history, possibly tanking the economy and costing jobs at a time when businesses, manufacturers and families are making a comeback.
Later this year, the Environmental Protection Agency will decide whether it should tighten the air-quality standard for ground-level ozone. There are several things about this possible new standard that are alarming.
Posted August 14, 2014
Earlier this month the National Association of Manufacturers issued a report measuring the potential impacts of a new, stricter ground-level ozone air quality standard that’s being proposed by EPA. The estimated national results are economically devastating: reduction of U.S. GDP by $270 billion per year, 2.9 million fewer job equivalents per year on average through 2040 and potentially increased natural gas and electricity costs for manufacturers and households.
The picture is the same on a state-by-state basis. Over the next few days we’ll highlight some of the individual state impacts from the report, starting with North Carolina.
Posted August 11, 2014
API has put together a new infographic that captures the breadth of this administration’s policies – especially an ongoing regulatory push from EPA – that could slow progress that’s being built on America’s energy revolution. (Click here to pull up the PDF.)
Here’s the thrust: The administration’s policies and regulatory efforts are hindering needed energy and economic progress. It is delaying infrastructure, such as pending liquefied natural gas export projects and the Keystone XL pipeline. It is sustaining the broken Renewable Fuel Standard and its ethanol mandates, which could negatively affect consumers and the larger economy. It’s threatening new regulation that would needlessly impact the refining sector, while advancing a stricter ozone standard that would put virtually the entire country out of compliance.