Energy Tomorrow Blog
Posted November 18, 2014
While the U.S. Senate fell just short of the votes needed to pass legislation advancing the long-delayed Keystone XL pipeline, the issue likely will reach President Obama’s desk when the new Congress is seated in January. API President and CEO Jack Gerard:
“Keystone XL is not going away. The president will have to deal with it, if not now then next year – when existing bipartisan majority support for Keystone XL in both the House and Senate will only be stronger. We will work with the new Congress to focus on getting this important jobs project approved. We will not give up until the pipeline is built. The significant gains in jobs, economic growth, energy security and national security – which have been firmly established during six years of study – prove beyond any reasonable doubt that Keystone XL is in our national interest. The national interest question is the sole consideration before President Obama, and his failure to answer it is the sole factor standing between Americans and this shovel-ready infrastructure project.”
As the Keystone XL saga continues, opponents continue to offer up a familiar grab bag of myths, half-baked goods and distortions – all designed to keep the pipeline obstructed.
Nothing new, of course. Keystone XL’s merits have been established over more than six years of close public scrutiny, including five thorough environmental reviews by the U.S. State Department – all of which have similarly concluded that the pipeline would have minimal effect on the environment and that the crude oil it will deliver to the Gulf Coast would have no material impact on U.S. greenhouse gas emissions.
The fact is Keystone XL has been studied, probed, examined, researched and analyzed like no other energy infrastructure project before it. There have been public hearings and hours of congressional debate. Through it all, Keystone XL has maintained strong support from the American people – 60 percent in a new USA Today poll.
Posted November 11, 2014
America’s trading relationship with Canada is key to U.S. energy security but also to the U.S. economy, as discussed in this recent post.
Some numbers from the International Trade Administration (ITA) help make a couple of finer points. First, while the United States imports more crude oil from Canada than any other country, our goods exports to Canada supported nearly 1.3 million jobs here in 2013 – and that number is on the rise. Second, U.S. oil and natural gas sector goods exports account for more than half of the growth in overall jobs supported by goods exports to Canada from 2010 to 2013 – and that number also is increasing.
Posted October 21, 2014
Sonecon’s updated look at ownership of the U.S. oil and natural gas industry shows that the benefits of a successful, rigorous industry sector continue to accrue to a broad range of Americans – who are the industry’s true owners. Here’s what we mean by broad:
- Public and private pension and retirements plans, including 401(k)s and IRAs, hold 46.8 percent of all shares of U.S. oil and natural gas companies in 2014.
- Asset management companies, including mutual funds, hold 24.7 percent of oil and natural gas shares.
- Individual investors hold 18.7 percent of all oil and natural gas company shares.
Combined, that’s 97 percent of all oil and natural gas company stock – held by millions of Americans across the country.
Posted October 16, 2014
Early in a panel discussion of energy policy and politics hosted by Real Clear Politics, the question was asked whether U.S. voters pay much attention to energy issues in an election year. RCP tweeted panelist/Wall Street Journal energy reporter Amy Harder’s response - that voters only notice energy when the prices are high.
Certainly, that’s generally been an accurate analysis. Less than a decade ago energy issues were challenging for U.S. policymakers staring at flat or declining domestic oil and natural gas production
But the U.S. energy picture has been dramatically altered by surging production here at home – an energy revolution made possible by advanced hydraulic fracturing and horizontal drilling and vast resources in shale and other tight-rock formations. Result: Good news in the absence of challenging energy developments – for U.S. consumers (if not for hosts of events on the intersection of energy and politics).
Posted October 14, 2014
A new study by the Aspen Institute joins a series of analyses concluding that one benefit from exporting U.S. crude oil would be lower gasoline prices here at home. Aspen’s projected reduction of between 3 and 9 cents per gallon parallels findings in previous major studies by ICF International (3.8 cents per gallon), IHS (8 cents) and Brookings/NERA (7 to 12 cents) that exports would lower pump prices.
Aspen and the other studies project other benefits from exporting crude oil, including broad job creation, economic growth and increased domestic energy production. Yet the solidifying consensus that consumers also would benefit is critically important as the public policy debate on oil exports continues.
Posted October 10, 2014
A new University of Colorado study affirms the dynamic and critical role energy development is playing in the state – in terms of support for public schools, job creation and the economy.
Just looking at 2012, oil and natural gas activity generated more than $200 million for Colorado schools, supported nearly 94,000 jobs in the state and created more than $23 million in state economic activity, according to the report conducted by the university’s Leeds School of Business and commissioned by API.
Posted October 10, 2014
The U.S. Energy Information Administration (EIA) has another report on oil imports that underscores the incredible sea change in America’s energy picture – due to increased domestic production of oil and natural gas. EIA says net imports of energy as a share of energy consumption fell their lowest level in 29 years for the first six months of 2014.
This is a snapshot of America’s energy revolution – the fundamental shift from energy scarcity to abundance that would have been unthinkable less than a decade ago. The shift is the result of surging oil and natural gas production using advanced hydraulic fracturing and horizontal drilling, harnessing oil and gas reserves in shale and other tight-rock formations. Safe, responsible energy development has made the United States the world’s No. 1 natural gas producer, and the U.S. could become the world’s top producer of crude oil related liquids before the year is out, the International Energy Agency reports (h/t Financial Times.com).
Posted October 6, 2014
We’ve posted a number of times on the merits of U.S. energy exports, because whether the subject is exporting crude oil or natural gas, there are compelling economic and energy reasons to lift restrictions on America’s ability to be a major player in global markets. While those restrictions remain, America and Americans lose.
A number of studies have said that energy exports will benefit our economy and stimulate more domestic production – here, here and here on liquefied natural gas (LNG) and here and here on crude oil. A new report from Columbia University’s Center for Global Energy Policy added that LNG exports could help strengthen the United States’ foreign policy hand.
Thanks to abundant oil and natural gas reserves, advanced hydraulic fracturing and horizontal drilling and investments by a robust industry sector, the U.S. is the world’s No. 1 producer of natural gas and is about to become No. 1 in oil output (subscription required). Yet, because of self-imposed and outdated (in the case of the crude oil) export restrictions, the U.S. isn’t harnessing its energy potential as it could and should.
Posted October 1, 2014
Earlier this month Oilprice.com’s Nick Cunningham wrote this piece explaining that the debate over exporting U.S. liquefied natural gas (LNG) has been won – citing the openness of the Obama administration and leading Democrats to exports. Cunningham writes:
In fact the Obama administration and Congressional Democrats have received little blowback for the LNG projects that have received approval. And with tacit or overt support from Democrats, the LNG issue has largely been won by export supporters.
Still, some export opponents try to gain traction despite the findings of a number of studies (NERA, ICF, Brookings) that project broad economic benefits to the United States from LNG exports, with minimal effect on domestic prices. Earlier this year NERA updated its 2012 study:
LNG exports provide net economic benefits in all the scenarios investigated, and the greater the level of exports, the greater the benefits. The market for LNG exports is self-limiting, in that little or no natural gas will be exported if the price of natural gas in the US increases much above current expectations. High levels of exports can be expected only if natural gas is plentiful and inexpensive enough to produce so that prices remain below current levels, even with high levels of exports. (Emphasis added)
The issue of domestic prices is important because export opponents have been using an apples-to-oranges argument trying to scare up unfounded concern about the domestic effects of exports, citing conditions in Australia’s natural gas market.
Posted September 10, 2014
A new report from Brookings’ Energy Security Initiative adds more scholarly weight to the analytical case for lifting America’s decades-old ban on crude oil exports. Echoing earlier studies by IHS and ICF International, the Brookings research finds that allowing the export of domestic crude would stimulate more oil production here at home, provide broad economic benefits and strengthen U.S. energy security. Brookings:
… we believe that the U.S. should allow the market to determine where crude oil will go and move immediately to lift the ban on all crude oil exports. … After 40 years of perceived oil scarcity, the United States is in a position to help maximize its own energy and economic security by applying the same principles to free trade in energy that it applies to other goods. By lifting the ban on crude oil exports, the United States also will help mitigate oil price volatility while alleviating the negative impacts of future global oil supply disruptions.