Energy Tomorrow Blog
Posted July 30, 2014
The quest to encourage better behavior from Russia continues. President Obama and the European Union this week announced new sanctions to protest Russia’s involvement in Ukraine, measures that focus on Russia’s energy, arms and finance sectors. The president:
“Today … the United States is imposing new sanctions in key sectors of the Russian economy: energy, arms, and finance. We’re blocking the exports of specific goods and technologies to the Russian energy sector. We’re expanding our sanctions to more Russian banks and defense companies. And we’re formally suspending credit that encourages exports to Russia and financing for economic development projects in Russia. At the same time, the European Union is joining us in imposing major sanctions on Russia – its most significant and wide-ranging sanctions to date.”
Meanwhile, former Secretary of State Hillary Clinton says Europe needs to stand up to Russia, which will be easier to do if Europe diversifies its energy supplies:
“They need to understand they must stand up to [Russian President] Vladimir Putin. The reluctance has to do with European dependence on energy from Russia.”
Laudable sentiments and goals, but America can do more than impose targeted and inherently limited sanctions. The U.S. can do more than talk. America can do more to provide effective help for her friends and to diminish the influence of adversaries. Through energy, American energy.
Posted July 23, 2014
There are three connected points in a new poll of registered U.S. voters on domestic oil and natural gas development that should resonate in Washington: Strong majorities of registered voters support more domestic drilling and production, they don’t think the federal government does enough to encourage development of domestic resources and they’re inclined to vote for political candidates who support oil and natural gas development here at home.
AP Upstream Group Director Erik Milito talked about the survey of 1,012 registered voters and issues related to increasing access to domestic oil and natural gas reserves during a conference call with reporters:
“Voters from across the political spectrum want to find and tap the vast oil and natural gas resources waiting to be discovered off our shores. Our industry stands ready to do the job safely and responsibly, and the benefits to our economy and our national security are impossible to deny. All the federal government needs to do is say, ‘Yes.’”
Posted July 15, 2014
A couple of highlights from the first day of the U.S. Energy Information Administration’s (EIA) annual energy conference, both of which can be used to underscore the need for policies that help sustain and grow America’s energy revolution.
First, International Energy Agency (IEA) Executive Director Maria van der Hoeven suggested exuberance over the U.S. energy boom has risks because energy security is more than just ample supply:
“In periods of abundance we must challenge ourselves with questions. And so I ask you, is your energy security as security as you or I think? … Energy security is about much more than supply. … Although things look bright at first sight, there’s no time for complacency.”
Posted July 3, 2014
It looks like a pretty solid national jobs report for June, with the 288,000 positions that were added exceeding the hiring rate over the year’s first five months and unemployment dipping to 6.1 percent. That’s a good story. There’s an even better one deeper in the Labor Department data: The oil and natural gas industry and its supporting activities are setting the pace in job creation.
Consider: Comparing numbers in this report with those from a year ago, the oil and natural gas extraction and supporting sectors outperformed the private sector as a whole in terms of job growth and a number of other relevant measurements, according to the Bureau of Labor Statistics.
Posted July 2, 2014
An inspector general’s report issued this week really underlines what industry has been telling Washington over the past couple of years: Permitting for oil and natural gas drilling on federal lands takes too long, generates too much uncertainty and is a hindrance to developing reserves that are critical to the country’s energy security today and tomorrow.
The Interior Department inspector general’s assessment of the effectiveness and efficiency of the Bureau of Land Management’s (BLM) onshore drilling permit process basically shows that the process is neither very effective nor efficient.
Posted June 26, 2014
It’s good to see the U.S. House of Representatives advancing a true all-of-the-above energy strategy with legislation that would help increase access to domestic reserves, promote common-sense regulation and reasonable permitting policies, foster development of key energy infrastructure and capitalize on America’s energy superpower status.
All are elements in a working, all-of-the-above approach to energy. Combined with energy from coal, nuclear and renewables, increased development of American oil and natural gas and associated infrastructure will keep our economy and country running – today and tomorrow.
Posted June 20, 2014
Let’s make a couple of points with the juxtaposition of the newest U.S. report on energy production on federal lands and a pair of new analyses people are talking about this week.
First, there’s this piece by the Manhattan Institute’s Jared Meyer on the Real Clear Energy website, asserting that surging U.S. crude oil production is playing a big role in keeping global crude prices stable despite turmoil around the world:
The most important contribution to oil's price stability has been the substantial increase in U.S. production. U.S. crude oil production has risen 50 percent since 2008, to 7,443 thousand barrels a day. This increase has been driven by advances in drilling technology. Hydraulic fracturing has opened up previously-known reserves that were either inaccessible or too cost-prohibitive for drilling.
Posted June 16, 2014
With the Interior Department turning its attention to the next five-year offshore leasing plan, here’s a figure to keep in mind: 87 percent. That’s how much of our federal offshore acreage is off limits for energy development – and it’s costing us energy, jobs and economic growth.
Andy Radford, API senior policy advisor, set out some of the arguments for increasing access to energy reserves in the next five-year leasing plan during a conference call with reporters.
Posted June 10, 2014
New York Times columnist Thomas Friedman’s Sunday piece highlighted a conversation he had a few weeks ago with President Obama, during which the president talked about energy and climate change. A few things stand out:
The president signaled that climate policy should consider the real-world roles that are being played by various energy sources, saying:
“… we’re not going to suddenly turn off a switch and suddenly we’re no longer using fossil fuels, but we have to use this time wisely, so that you have a tapering off of fossil fuels replaced by clean energy sources that are not releasing carbon.”
Sounds reasonable, given the forecast of the U.S. Energy Information Administration (EIA) in its 2014 Annual Energy Outlook – that fossil fuels’ share of total U.S. energy use will be 80 percent in 2040, down only slightly from where it was in 2012 (82 percent). Oil and natural gas, which supplied 63 percent of the energy we used in 2012, are projected to supply 61 percent in 2040. Oil and natural gas are America’s energy today and tomorrow.
Posted June 6, 2014
America has a clear choice on energy. An historic American energy revolution is in progress -- thanks to vast shale reserves safely developed with advanced drilling technologies, industry innovation and leadership. This revolution is creating jobs, strengthening our economy and making our country more secure and muscular in the world. With the right energy choices the revolution can continue and grow.
Yet, somehow, Washington is conflicted. While the Obama administration embraces the shale revolution as integral to its all-of-the-above energy strategy, it advances policies fraught with the potential to needlessly hinder it. Instead of taking actions to enhance America’s energy renaissance, the administration is engaged in a regulatory march that quite likely could diminish it. Sustaining this energy revolution should be a no-brainer – not the brain-bender the administration is fostering with muddled vision and contradictory statements.
During a conference call with reporters this week, API President and CEO Jack Gerard discussed inconsistencies between what top administration officials say about U.S. energy development and what the agencies under them are doing to U.S. energy development.