Energy Tomorrow Blog
Posted March 14, 2019
The natural gas and oil industry continues to develop the workforce of the future, with women playing an increasingly prominent role in industry’s success. This important shift was celebrated by industry leaders at IHS Markit and API’s Women in Energy reception on Monday, as the IHS CERAWeek conference kicked off.
Posted March 13, 2019
A recent analysis from the Baker Institute sheds light on the implications of H.R. 948, the No Oil Producing and Exporting Cartels (NOPEC) Act, that was recently reported by the House Committee on the Judiciary as well as related legislation, S. 370, that has been introduced in the Senate. The daunting takeaway: The Act’s extraterritorial overreach would harm core U.S. economic and energy interests.
Posted March 13, 2019
The administration is considering doubling down on its trade war despite repeated warnings and thorough evidence that tariffs and quotas are negatively impacting American consumers, even while failing to lower the U.S. trade deficit. We can now add one more report to that long list of evidence with the release of a new analysis from the National Bureau of Economic Research (NBER) with all-too-familiar findings: the economic impact of trade restrictions is falling solely on consumers – not the countries that they target – despite the Administration’s claims. This serves as an unfortunate reminder that tariffs are a tax on imported goods that is paid for not only by American businesses but potentially consumers.
Posted March 9, 2019
To mark International Women’s Day, we have a new video featuring leading women from the natural gas and oil industry, including Susan Dio, chairman and president of BP America; Gretchen Watkins, president and U.S. country chair for Shell; and Stacey Nachbaur, Hess senior operations manager for upstream assets. Of course, the things these women say about the natural gas and oil industry are true every day of the year.
Our industry is high tech and critically important to the economy and powering modern life. Natural gas and oil are center stage in most geopolitical discussions, and natural gas is leading the way in reducing greenhouse emissions.
Posted March 7, 2019
In this post last week we explained how alternative measures, approved by federal officials, may be used to comply with the 2016 well control rule, as well as all regulatory requirements associated with offshore oil and natural gas development. …
Now the federal Bureau of Safety and Environmental Enforcement (BSEE) is chiming in – not surprising, since the agency’s integrity was besmirched. In a letter to members of Congress this week, Lars Herbst, BSEE’s Gulf of Mexico Outer Continental Shelf regional director, called the regulatory provision for alternative procedures or equipment “long-standing,” having been granted by the previous administration as well as the current one. Herbst writes that “zero” waivers have been granted by BSEE regarding the well control rule.
Posted March 5, 2019
The International Energy Agency’s Fatih Birol regularly heralds the positive impacts of the American shale energy revolution (see here, here and here). All good, but U.S. shale’s global impact is just now starting to be felt, IEA’s executive director said last week.
During a global markets update at the U.S. Energy Department with Secretary Rick Perry, Birol said the United States will be responsible for about two-thirds of the growth in the global liquefied natural gas (LNG) export market. Of course, this reflects the abundance of domestic natural gas, largely produced from shale formations. Big-time global impact lies ahead, Birol said. Add to that environmental and climate progress, which we’ll get to in a bit.
Certainly, there’s every reason to believe U.S. natural gas and oil can meet or exceed global expectations. Soaring U.S. crude oil production has increased global supply, supporting the stability of global markets – while reducing weekly U.S. crude imports to their lowest level in 23 years (as of Feb. 22), according to the U.S. Energy Information Administration.
Posted February 28, 2019
Months before the federal offshore well control rule went into effect in July 2016, API told Congress the safety regulation could actually increase risks associated with offshore oil and natural gas development – that its rigid requirements could stifle innovation and thwart the effectiveness of new operational technologies.
The 2016 rule is an example of “prescriptive” regulation, a one-size-fits-all approach that requires certain processes, procedures and tests. It was and is the wrong approach for offshore safety – mainly because every oil and natural gas well has different characteristics: geology, depth, water pressure and temperature and other variables that factor into developing the best safety plan for a particular well.
In that context offshore operators seek government-approved alternative compliance paths – which they’ve done since the rule’s launch in 2016, when the Obama administration was in charge of the Bureau of Safety and Environmental Enforcement (BSEE), the overseer of offshore safety. Indeed, the requests show the rule needs fixing.
Posted February 27, 2019
EPA’s proposal to reform a key component of the Renewable Fuel Standard (RFS) would only worsen the already broken RFS, a new study finds. The analysis by Covington & Burling for API affirms that the administration’s proposal to reform the market for Renewable Identification Numbers (RINs) under the RFS misdiagnoses the problem with the RINs market and provides misguided and counterproductive changes.
Posted February 26, 2019
When the U.S.-Mexico-Canada Agreement (USMCA) was announced last fall, we pointed out that it would be good for North American energy security and continue flourishing energy trade between the United States and its neighbors by providing market access and zero tariffs for U.S. natural gas and oil and related products.
The agreement would sustain and expand the gains made under its predecessor, NAFTA, which created a North American energy market, helped make the U.S. more energy secure and benefited U.S. consumers.
Congress should approve USMCA as soon as possible to lock in the critically important energy relationship between the U.S., Mexico and Canada – as well as the general flows of goods and services so vital to good economic health in this country.
Posted February 26, 2019
In case you missed it, let’s echo a recent official U.S. Energy Department projection that the United States should “not only maintain its lead spot as top oil producer, but will greatly exceed what it produced last year in both 2019 and 2020.”
The trajectory of U.S. oil production is significant for U.S. economic growth, energy security and global leadership, and – as we recently discussed oil exports in this post – potentially raises the stakes in the market share battle between the United States and OPEC plus Russia (OPEC+).