Energy Tomorrow Blog
John D. Siciliano
Posted April 5, 2021
API took an important step to extending its safety and environmental protection programs to the continent of Africa, signing a new collaborative agreement with the business group African Energy Chamber (AEC), to expand use of API world-class standards, certifications and training programs.
The memorandum of understanding (MOU) with the AEC – API’s first agreement with an African partner – is the latest in a series of similar agreements in the past year between API and organizations in nearly every region of the world. Such agreements arise from the global recognition API standards have earned for enhancing safety, efficiency and environmental protection across the natural gas and oil industry.
John D. Siciliano
Posted April 2, 2021
Not as noticed in the Biden administration’s halt in new federal natural gas and oil leasing is the possible impact on U.S. offshore production. If the pause were to become a permanent leasing and development ban, nearly 15% of total U.S. oil production could be affected – with significant potential consequences for our country’s energy security and economic growth.
Offshore development not only is critical for our country’s future, it’s safer than ever – underscored by a report issued late last year by the U.S. Bureau of Safety and Environmental Enforcement (BSEE).
Posted March 31, 2021
API’s new Climate Framework touched off predictable reaction from certain circles – ranging from groups that oppose industry’s very existence to others focused on a single aspect of the framework, carbon pricing.
Frankly, API’s action plan speaks to the vast majority of Americans who support commonsense approaches for lowering greenhouse gas emissions and further improving environmental protections – while also providing the energy from natural gas and oil that our country needs to grow and prosper.
Through the Climate Framework our industry is offering substantive leadership on the climate/energy challenge, with the overarching goal of meaningful progress.
Posted March 25, 2021
API’s new Climate Action Framework is much more than a list of policies and actions to address the risks of climate change. It’s a values statement, the natural gas and oil industry’s commitment to lead on the twin necessities of cleaner energy and lower greenhouse gas emissions.
We can achieve both. The natural gas and oil industry details in this framework an action plan to get it done, working together with government and other stakeholders. As the plan states in its opening sentences, it’s the opportunity of our time.
Posted March 18, 2021
It’s not surprising that New Mexico’s governor, both U.S. senators and other elected officials are concerned with the Biden administration’s halt in new federal natural gas and oil leasing. In 2020, New Mexico was the nation’s No. 3 crude oil producer and No. 8 natural gas producer, and the administration’s policy could affect billions of dollars in state revenues and thousands of jobs.
Gov. Michelle Lujan Grisham, a Democrat, penned a letter to President Biden earlier this week cautioning that potential lost revenues as a result of the policy could mean significant hardship for her state. New Mexico receives more than 40% of its total revenue – nearly $4 billion annually – from taxes and royalties paid by the natural gas and oil industry.
Posted March 18, 2021
API’s latest industry outlook affirms the extent of recoveries in the U.S. and global economies, as well as rising demand for oil and natural gas.
For the past two quarters, API’s data and analysis have indicated these comebacks were underway, and this is visible in the March Monthly Statistical Report (MSR™), based on February data, and API’s quarterly Industry Outlook.
The recoveries come on the tailwind provided by nearly $20 trillion of economic stimulus around the world. We could be poised for the largest two-year oil demand increase (9.2 million barrels per day, mb/d) on record since 1950 and new record highs of demand (102.4 mb/d) by the fourth quarter of 2022.
Posted March 17, 2021
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 the recent attacks on Persian Gulf 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. First, U.S. energy security can’t be assumed. It takes long-range planning and investments, safe access to domestic resources, the ability to expand pipeline and export facility infrastructure, and a policy-level approach that anticipates unforeseen events that could affect global energy supply and have dire impacts on U.S. security, economic growth, and consumers.
Posted March 16, 2021
The natural gas and oil industry is committed to working with America’s energy stakeholders, including U.S. government regulators, to deliver affordable, reliable fuels and shape a lower-carbon future.
The Biden administration has taken office at a time when the U.S. leads the world in energy production and emissions reductions. The President’s nominees to oversee the Department of Energy, Department of the Interior and Environmental Protection Agency – Secretary Jennifer Granholm, Secretary Debra Haaland and Administrator Michael Regan, respectively – have signaled readiness to tackle the dual challenge of strengthening U.S. energy security and addressing the risks of climate change.
Stephanie Catarino Wissman
Posted March 16, 2021
Pennsylvania Gov. Tom Wolf is again proposing a severance tax on the commonwealth’s natural gas industry – the seventh such tax proposal in as many years. Like the others before it, this is a bad idea that could harm the benefits of energy production to the state and nation.
Wolf has teed up his latest tax proposal as a “commonsense” solution to the state’s economic recovery efforts. But it’s really a tax-and-spend scheme that could have negative consequences for all Pennsylvanians.
The fact is the effects of a natural gas severance tax would extend beyond industry. Because natural gas production boosts the commonwealth’s broader economy and supports technical education, infrastructure and many other public services, everyone would be impacted.
Posted March 10, 2021
Every March, Women’s History Month celebrates the countless women who have changed the course of history through social movements and technological innovations. In the natural gas and oil space, women scientists, educators and other leaders have pioneered advancements that have helped drive economic growth, increased energy security and furthered environmental progress.
For example, the late MIT Professor Mildred Dresselhaus – dubbed the “Queen of Carbon Science” – was renowned for her work in carbon-nanotechnology, which has since improved the industry’s exploration and oil recovery operations.
Today, women play key roles across the industry, empowering their colleagues and preparing for a better, brighter energy future. During remarks at CERAWeek’s Women in Energy Reception, Amanda Eversole, API executive vice president and chief operating officer, highlighted the forward-looking, problem-solving approach women have brought to industry.