Energy Tomorrow Blog
Posted June 26, 2015
More from the new Wood Mackenzie study comparing the effects on the U.S. energy picture from pro-development policies versus a regulatory-constrained path. We’ve looked at the implications for energy supplies. Today we’ll zero in on two very different scenarios affecting individual American households.
Once again, the study compared impacts on key areas, depending on the energy policy path our country chooses. The pro-development path includes increased access to oil and natural gas reserves, approaches to regulation and permitting that encourage accelerated energy production and export policies that allow U.S. oil and natural gas to reach global markets, stimulating domestic output. The constrained path would pretty much maintain the status quo on access, regulation and exports – costing the United States, as the study shows.
Posted June 25, 2015
Let’s get into some of the detail in the new Wood Mackenzie study that was released this week, starting with the implications for domestic energy supply, found in two vastly different energy paths that U.S. policymakers could take. As the study details, the path we choose will affect energy production, job creation, the economy and the lives of individual Americans.
For context, recall that Wood Mackenzie’s study compared two energy policy paths – one that embraces pro-development, and one that’s characterized by regulatory constraints. Certainly, the constrained path actually would just continue a number of the policies the current administration is advancing.
Posted June 23, 2015
We spend a good deal of time trying to highlight the enormous potential of American energy – in terms of jobs, growth to our economy, greater energy security and more. It’s a big deal. The ongoing U.S. energy revolution is a game-changer – built on safe, responsible domestic oil and natural gas development.
Yet, there’s a caveat: Energy development hinges on energy policy. And as the 2016 election cycle nears, it’s difficult to overstate the importance of choosing policymakers who: (a) recognize the generational opportunities being afforded by American energy, and (b) understand the need for policy paths and regulatory approaches that will sustain and grow our country’s energy renaissance.
The major findings in a new Wood Mackenzie study show in clear terms the stakes for all Americans in choosing the right leadership for the country’s energy future. Wood Mackenzie analyzed and compared the impacts in seven major areas of a future characterized by pro-development policies and also one characterized by regulatory constraints.
Posted June 19, 2015
The issue was energy infrastructure – where the United States is and where things are headed. At the U.S. Energy Information Administration’s (EIA) annual conference this week, one discussion honed in on the challenges to infrastructure approval and construction – as well as government’s best role in developing projects that are key to U.S. energy transport and overall energy security. The latter produced some friction between speakers not often seen at conferences like EIA’s. More below.
The U.S. Energy Department’s Melanie Kenderdine talked about some of the details in the department’s recently issued Quadrennial Energy Review (QER), which focused on ways to modernize the nation’s infrastructure.
Posted June 12, 2015
For some time we’ve been talking about EPA’s bid to make the nation’s ozone standards more restrictive.
We’ve expressed puzzlement that the agency wants to impose more stringent standards when the existing ones are working – lowering ozone levels 18 percent between 2000 and 2013 according to EPA’s own data. We’ve noted the lack of scientific and public health justification for stricter standards while highlighting potential risks to the economy. If this week’s House Energy and Commerce subcommittee hearing on ozone was any measure, the issue has the attention of many in Congress.
Top EPA official Janet McCabe was peppered with questions about economic impacts, the arguable wisdom of stricter standards when areas like Los Angeles don’t meet existing standards and EPA’s push for more stringent standards before the current standards are fully implemented in the states.
Posted June 10, 2015
BloombergBusiness – The U.S. has taken Russia’s crown as the biggest oil and natural-gas producer in a demonstration of the seismic shifts in the world energy landscape emanating from America’s shale fields.
U.S. oil production (green line in chart, left) rose to a record last year, gaining 1.6 million barrels a day, according to BP Plc’s Statistical Review of World Energy released on Wednesday. Gas output also climbed, putting America ahead of Russia as a producer of the hydrocarbons combined.
The data showing the U.S.’s emergence as the top driller confirms a trend that’s helped the world’s largest economy reduce imports, caused a slump in global energy prices and shifted the country’s foreign policy priorities.
“We are truly witnessing a changing of the guard of global energy suppliers,” BP Chief Economist Spencer Dale said in a presentation. “The implications of the shale revolution for the U.S. are profound.”
Posted May 27, 2015
With national ozone levels falling, some activists argue for stricter federal standards the best way they can – by pointing to the relatively few areas in the United States where ozone levels remain above the current standard of 75 parts per billion (ppb).
Yet, think about that. If an urban area like Los Angeles or Houston currently is out of attainment with the standard set at 75 ppb, how will lowering the national standard to 65 or 60 ppb – which EPA is considering – make a difference in those and other non-compliant areas? Good question.
The fact remains that the current standards are working. EPA data shows ozone levels declined 18 percent between 2008 and 2013.
Posted May 21, 2015
Fort Worth Star-Telegram (Weinstein): Thanks to what’s sometimes called the “shale revolution,” America has re-emerged as an energy superpower.
Even with prices 40 percent lower than a year ago, we remain the world’s No. 1 producer of crude oil and other liquid hydrocarbons. Imports of oil have dropped from 60 percent of consumption to about 35 percent just in the past five years. We’re also the world’s largest producer of natural gas.
Both our oil and natural gas output would be even higher if not for regulatory and infrastructure constraints.
Posted May 7, 2015
Oil & Gas Journal: North American businesses and governments must work together toward the collective goal of advancing the continent’s energy aspirations. That was the message delivered by producers and government officials during a May 5 panel discussion at the Offshore Technology Conference in Houston.
The US and Canada represent two of the world’s top five oil producers, and Mexico hopes to ramp up its production in the coming years once its energy reforms are fully realized.
Gustavo Hernandez Garcia, general director of Petroleos Mexicanos (Pemex), said a primary challenge faced by his country is rising technical commercial complexity including deepwater, heavy oil, unconventional, and LNG. To attract the players capable of developing these resources, Mexico must offer attractive contractual and fiscal terms; transparent and clear roles for regulators and operators; an agile and competitive national oil company; and minimal political intervention, he said.
Pemex benefits from its geographic proximity to major producers and their unique skillsets in the US. Paula Gant, deputy assistant secretary for oil and natural gas in the Department of Energy’s Office of Fossil Energy, said there’s “a tremendous need” to build on public data, statistics, and mapping in North America; for modern and resilient infrastructure; and for best practices for unconventional oil and gas.
Gant emphasized the necessity of constant and clear communication among government agencies in the three countries, and boasted that the US is “the envy of the world” with its existing natural gas pipeline system. Building out infrastructure and sustaining output growth in the US also relies on public confidence, she noted, adding that the office of oil and gas at DOE “provides scientific base from which politicians can make decisions.”
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.