Energy Tomorrow Blog
Posted June 3, 2015
The Hill: House Republicans have found reasons to agree with some parts of the Obama administration’s energy infrastructure proposal.
GOP leaders in the House Energy and Commerce Committee told Energy Secretary Ernest Moniz that they are largely in agreement on the need to improve pipelines, electric transmission lines, energy storage and other pieces of infrastructure.
Moniz testified at the hearing to promote the Quadrennial Energy Review, which the administration released in April to call for comprehensive infrastructure improvements worth billions of dollars.
“Many people are even asking — not surprisingly — is there enough common ground between our efforts and the Obama administration to enact meaningful energy legislation,” Rep. Ed Whitfield (R-Ky.), chairman of the energy and power subcommittee, said at the Tuesday hearing.
Posted June 2, 2015
With EPA last week proposing ethanol-use requirements for 2014, 2015 and 2016 under the Renewable Fuel Standard (RFS), the ethanol industry no doubt will keep lobbying to foist increasing amounts of higher-ethanol blend fuels like E15 and E85 on the motoring public. This, despite studies that have shown E15 can harm engines and fuel systems in vehicles that weren’t designed to use it – potentially voiding manufacturers’ warranties – and historically small consumer demand for E85.
A subset of the argument for increased use of higher-ethanol blend fuels is the dismissing of concern that E15 also could damage existing service station infrastructure, including storage tanks, fuel lines and dispensers. Though service station owners and operators indicate otherwise, ethanol supporters say that a new National Renewable Energy Laborary (NREL) report – commissioned by the Renewable Fuels Association (RFA), a big ethanol advocate – found that E15 is compatible with existing equipment. It’s simply not true, and the report has some challenges. Let’s look at a few.
Posted June 1, 2015
Pittsburgh Post-Gazette op-ed (Eberhart): ... Since 2000, global LNG demand has grown an estimated 7.6 percent per year. And that rate is expected to increase: Ernst & Young predicts that by 2030 global demand will reach 500 million metric tons, doubling 2012 levels.
At the same time, because of the surge of natural gas from American shale, the United States is awash in the stuff, with domestic natural gas production increasing 41 percent in the past decade alone.
Ten years ago we were an LNG importer. Today we’re the world’s largest natural gas producer.
And with the amount of technically recoverable natural gas in the United States 100 times greater than our current consumption, we have a boon to the economy that is expected to contribute up to 665,000 net jobs and $115 billion to GDP by 2035. We are expected to have enough gas to meet our own needs while also helping to satisfy staggering demand in places like Japan, Korea, India, China and Taiwan.
Clearly, this is an opportunity we don’t want to miss. But a protracted, redundant and expensive approval process could put it just out of reach.
Posted May 29, 2015
With EPA already embarrassingly late in setting requirements for ethanol in the fuel supply for 2014 (due 18 months ago) and 2015 (due six months ago), the agency finally has proposals for those years and 2016 that would continue to drive ethanol use – though not at levels dictated by the Renewable Fuel Standard (RFS).
Top EPA official Janet McCabe called the proposals “ambitious, but responsible.” We’ll agree on the ambitious part – in that it takes a whole lot of something to thread the needle between marketplace realities and the flawed RFS – difficult for the nimblest of bureaucracies, much less a regulatory colossus like EPA.
Unfortunately, EPA comes up short, particularly for 2016. An RFS program that long ago went awry remains lost in the tall weeds of process over substance.
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 April 23, 2015
Posted April 22, 2015
Today, the United States leads in petroleum products, refining and natural gas production, and we’re on track to lead in the production of crude oil; facts reinforced by last week’s EIA Annual Energy Outlook.
The report confirmed that our nation is more energy secure than ever before. And it said in part that domestic production of natural gas is projected to grow through 2040 eventually reaching 35.45 tcf; and domestic oil production is projected to exceed 10 mbd in a few years and remain at that level through 2030. Keeping pace with our nation’s increased development of our energy resources are the 139 operating refineries that produce more fuel than ever before and support roughly 540,000 good paying jobs and 1.9 percent of our nation’s economy.
Posted April 16, 2015
The Wall Street Journal: A former White House economic adviser is calling for changes to a 2005 law mandating increased use of alternative fuels in the nation’s transportation supply, adding a key voice to a growing chorus of people who say the policy is not working.
In a report published Thursday, Harvard University professor Jim Stock, who served on President Barack Obama’s Council of Economic Advisers in 2013 and 2014, proposes several reforms to the biofuels mandate, known as the renewable fuel standard, including some requiring congressional approval.
The report adds to a growing body of politicians and experts who are questioning the law’s effectiveness amid regulatory uncertainty and lower oil prices.
Posted April 8, 2015
NOLA.com: Five years after the BP oil spill in the Gulf of Mexico, the oil and gas industry can respond and contain well blowouts offshore faster than ever before, said Don Armijo, CEO of the Marine Well Containment Co. But he said work remains to make sure containment equipment keeps pace with industry's push to drill in deeper waters.
Armijo, who spoke Tuesday (April 7) at a business lunch at The Roosevelt Hotel in downtown New Orleans, said Marine Well Containment Co. has the equipment to respond to oil gushers in up to 10,000 feet of water. The industry will outgrow that equipment, he said.
"We know there has been drilling proposed in areas much deeper than 10,000 feet of water," Armijo said. "That's the big thing. How do we actually get the technology put together so we can be deeper? These are the kind of things that are on our minds all the time."
Posted March 24, 2015
Last week’s release of the federal Bureau of Land Management’s new hydraulic fracturing rule suggests it’s time to update an infographic we posted last summer on the administration’s regulatory march that could impede America’s energy revolution.
Unfortunately, the administration’s plans for energy regulation aren’t encouraging – not if you truly grasp the historic opportunity that surging domestic production of oil and natural gas is providing the United States.
We’re talking about the complete rewrite of America’s energy narrative, from one of scarcity – limiting America’s economic possibilities and overshadowing its national security concerns – to one of abundance in which the U.S. is more self-sufficient, more prosperous and more secure in the world.
We call that historic, revolutionary, a true renaissance in American energy.