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Energy Tomorrow Blog

Fuel Costs and the Driving Season

crude oil prices  gasoline prices  supply  consumers 

Dean Foreman

Dean Foreman
Posted April 2, 2018

The summer driving season is arriving, so it’s a good time to take stock of recent market dynamics that have raised per-barrel costs for crude oil and consequently gasoline and diesel fuel.

Nationwide, the American Automobile Association (AAA) reports that average prices currently are $2.64 per gallon for gasoline (up from $2.54 a month ago) and $2.95 per gallon for diesel fuel (unchanged from last month). While there is nothing particularly special about these figures from an economic perspective, consumers take notice when fuel prices are on the rise. Let’s look at the factors that have affected pump prices in recent years.

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Comparing Price Volatility in Equities, Crude Oil

crude oil  oil markets 

Dean Foreman

Dean Foreman
Posted March 15, 2018

The U.S. Energy Information Administration (EIA) recently noted that for the first time in since 2008, S&P 500 Index’s implied volatility briefly surpassed that of crude oil in February. In this context, “volatility” is a measure of the rate and magnitude of variations in prices. EIA’s observation could be important if it suggests stock prices are about to fall, like they did during the 2008-2009 financial crisis.

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U.S. Innovations Shift Global LNG Market

liquefied natural gas  lng exports  innovation  trade 

Dean Foreman

Dean Foreman
Posted March 12, 2018

Low U.S. natural gas prices have spurred liquefied natural gas (LNG) exports and major petrochemical projects that have become a springboard for U.S. jobs, wages, housing, education and services – everything that comes with major new capital projects and their broad-based boost to the economy. An important corollary is that U.S. technological innovation is translating into innovative business practices that are helping to increase the global trade, volumes and liquidity of natural gas markets while also advancing environmental goals by reducing greenhouse gas emissions in the power sector. 

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Natural Gas Abundance Generates Export Opportunities

lng exports  natural gas  consumers  economic growth 

Dean Foreman

Dean Foreman
Posted February 28, 2018

In the first API Chart of the Month, we looked at historical U.S. trade in oil and natural gas. This month, let’s examine global liquefied natural gas (LNG) prices, which increasingly have helped to anchor U.S. natural gas production and reinvigorate local jobs, wages, housing, education and services – everything that comes with major new capital projects and their broad-based boost to the economy.

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January MSR: Oil Scores Perfect ‘10.2’

oil and natural gas production  refining and distribution  economic impacts 

Dean Foreman

Dean Foreman
Posted February 16, 2018

U.S. crude oil production scored a perfect “10” in January – make that 10.2, to be precise, as in 10.2 million barrels per day (mbd). That record production, combined with a new high for refinery throughput and 6.3 mbd of crude oil and refined product exports, narrowed the price difference between U.S. and international crude prices last month and underscored the global impact of U.S. energy. All of this data and more may be found in API’s Monthly Statistical Report for January

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The Imperative of the U.S. Energy Trade [R]evolution

state of the union  trade  oil and natural gas  us energy security 

Dean Foreman

Dean Foreman
Posted January 30, 2018

For the first installment of my API Chart of the Month series, let’s look at a pair of charts that show the strengthening of U.S. trade positions for petroleum – crude oil and refined products – and natural gas – supported by trade pacts such as the North American Free Trade Agreement (NAFTA). This is especially timely given the possibility trade will come up during tonight’s State of the Union address. 

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Come and Get It: API’s Monthly Statistical Report

api monthly statistical report  oil and natural gas 

Dean Foreman

Dean Foreman
Posted January 26, 2018

API’s Monthly Statistical Report (MSR) is a goldmine of information about our industry – and now the public can access it for free. Responding to new and evolving marketplace needs, API is now sharing the MSR free of charge on its website beginning this month. The report includes analysis of recent developments for major products, imports, refineries and inventories – accompanied by API graphs.

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A deeper dive into New England’s self-imposed pipeline capacity problem

electricity  natural gas  infrastructure  pipelines  electric-grid  prices 

Dean Foreman

Dean Foreman
Posted January 12, 2018

U.S. infrastructure promises to be a top priority for the Trump administration in 2018. In his State of American Energy keynote address, API President and CEO Jack Gerard highlighted how resistance to infrastructure development has left New Englanders with some of the highest electricity costs in the nation, particularly so through extreme winters. 

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Energy, Technology Enable U.S. Prosperity.

economic growth  oil and natural gas  technology  energy policy 

Dean Foreman

Dean Foreman
Posted January 11, 2018

Metropolitan areas that are near natural gas, oil and mining activity have been exceptionally productive and able to sustain high productivity over time, according to a recent Brookings Institution study. While overall U.S. productivity has continued to slow, metro area participation in the energy and technology booms has become a precursor of high productivity and growth.

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Sound Policy Key to Ensuring Energy Security

us energy security  domestic production  federal leases  saudi arabia 

Dean Foreman

Dean Foreman
Posted January 1, 1

One of the great benefits of increased U.S. oil production over the past decade and a half is strengthened U.S. energy security – decreased reliance on foreign oil suppliers and insulation for American consumers against sudden price increases due to geopolitical events, such as last weekend’s attacks on Saudi Arabian oil facilities

Years ago, an episode like that could’ve caused serious alarm in the United States and globally. Yet, the apparent lack of significant or enduring oil price movement following last weekend’s attack shows the tremendous influence U.S. oil production has had on global markets. The same was true after missile attacks on Saudi facilities in 2019 (see here), which substantially reduced Saudi Arabia’s oil exports for a short period. Both events and their aftermath indicate that U.S. domestic production has largely mitigated the price volatility historically associated with serious geopolitical events.

Still, some cautions are in order. 

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