Energy Tomorrow Blog
Posted January 20, 2015
API’s new national television ad underscores the ramifications of the United States as the world’s No. 1 producer of natural gas and its likely ascendance this year to No. 1 status in oil production. America is the world’s newest energy superpower.
As the ad notes, the domestic energy revolution that has elevated the U.S. the energy superpower status is because of safe, advanced hydraulic fracturing and horizontal drilling, which have unlocked vast oil and natural gas reserves held in shale and other tight-rock formations.
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.
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 December 18, 2014
Some interesting perspective on New York’s decision to ban hydraulic fracturing – from neighboring Pennsylvania, where safe fracking has lifted the state economy while directly benefiting cities and towns all across the commonwealth.
Jeffrey Sheridan, press secretary for Governor-elect Tom Wolf’s transition team (to the Philadelphia Business Journal):
“Governor-elect Wolf opposes a ban, and he will work hard to make sure the process is safe. … Pennsylvania's natural resources should help the commonwealth become an energy leader, including renewable energy and energy efficiency, as well as a magnet for investment and job creation. Governor-elect Wolf's priority is to ensure that Pennsylvania is an energy leader with all Pennsylvanians sharing in the prosperity.”
Pennsylvanians are indeed sharing in prosperity that’s being generated by shale energy development, via responsible hydraulic fracturing and horizontal drilling: More than $2.1 billion in state and local taxes paid by industry, more than $630 million distributed to communities since 2012 – including more than $224 million in 2014. Plus billions in royalties paid by operators to private landowners.
Posted December 4, 2014
National Journal: World oil producers have put oil prices into a free fall, refusing to pare back global supplies in the hopes that low prices will derail the fracking-backed production boom in the U.S. and preserve OPEC's power over world energy markets.
But global analysts are skeptical that the move will work.
The basic reason: Prices remain high enough to keep pumping. "Looking out there, it seems like there's a huge amount of oil that can be produced at $60, $70 per barrel," said Michael Lynch, president of consulting firm Strategic Energy and Economic Research, referring to the prices for Brent crude oil, a global reference point.
Posted December 2, 2014
Maryland Gov. Martin O’Malley’s recent announcement – that he plans to lift the state’s three-year moratorium on hydraulic fracturing, possibly clearing the way for future natural gas development – is potentially good news for the state, its citizens and America’s broader energy picture.
A new report by the state’s Department of the Environment and the Department of Natural Resources details some of the possible benefits:Garrett County in western Maryland could gain as many as 2,425 new jobs while realizing $3.6 million in tax revenues and $13.5 million in severance tax revenues.Neighboring Allegany County could see as many as 908 new jobs, $1.8 million in tax revenues and $2.3 million in severance tax revenues over 10 years. “Royalty payments to the owners and lessors of mineral rights could provide significant income,” the report says.
Significantly, the department concludes what a number of other states have found and are demonstrating – that advanced hydraulic fracturing and horizontal drilling to develop natural gas and oil from shale and other tight-rock formations can be conducted safely and efficiently.
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 November 13, 2014
A good deal of the buzz generated by America’s ongoing energy revolution has centered on the way surging domestic production is changing the crude oil imports picture. No question, it’s a pretty one, with net imports as a share of consumption falling to levels not seen in nearly three decades. That’s great news for job creation, the economy, our balance of trade and America’s energy security.
But here’s another pretty picture: declining imports of liquefied natural gas (LNG). Actually, “declining” is too mild a term for what we’re seeing. Thanks to energy developed from shale using hydraulic fracturing and horizontal drilling, the U.S. has become the world’s No. 1 natural gas producer – which has dramatically cut the need to shop the world market for supplies of natural gas, illustrated in plummeting LNG imports.
Posted November 12, 2014
EIA Today in Energy Blog: Increased natural gas production is projected to satisfy 60% to 80% of a potential increase in demand for added liquefied natural gas (LNG) exports from the Lower 48 states, according to recently released EIA analysis. The report, Effect of Increased Levels of Liquefied Natural Gas Exports on U.S. Energy Market, considered the long-term effects of several LNG export scenarios specified by the Department of Energy's Office of Fossil Energy (FE). The study also considered implications for natural gas prices, consumption, primary energy use, and energy-related emissions. Effects on overall economic growth were positive but modest. A discussion of caveats and limitations of the analysis is also included.
Posted November 6, 2014
National Journal: Republicans' midterm victory means a Keystone XL pipeline is coming front-and-center to Congress's energy agenda, but that doesn't mean President Obama wants to talk about it.
Obama got a question during his Wednesday presser about a bill that ascendant Republicans plan to send him on approving the Keystone XL oil-sands pipeline. Obama didn't say point blank whether he'd reject the bill, instead saying he would let the "process play out" with the ongoing State Department review. He added that his parameters for evaluating the project are whether it would be good for U.S. pocketbooks, would really create jobs, and would not worsen climate change.