Energy Tomorrow Blog
Posted January 21, 2016
“Gas under two bucks a gallon ain’t bad, either,” he continued.
The New York Times was quick with a rebuttal, writing: “Private oil and gas companies, however, were a driving force behind the most important changes in the United States’ energy landscape over the past seven years: lower fossil fuel emissions and a reduction in dependence on imported oil. … A glut of domestic oil has helped lower prices and imports. The new supply of domestic natural gas has helped lower greenhouse gas emissions. Electric utilities have traditionally relied on coal as the cheapest fuel source, but turned to natural gas as it became cheaper.”
Posted January 15, 2016
Federal officials followed President Obama’s State of the Union pledge to change Washington’s management of fossil fuel resources by announcing the government will stop issuing new coal leases on federal lands. The president’s keep-it-in-the-ground energy strategy, first voiced when he rejected the Keystone XL pipeline last fall, continues unfolding.
Unfortunately, the president doesn’t seem aware that his administration could blow a generational opportunity for America, one that’s being provided by the ongoing revolution in domestic oil and natural gas production. That he doesn’t see it helps explain the disconnect in his connecting of these thoughts during the State of the Union:
“… we’ve cut our imports of foreign oil by nearly 60 percent, and cut carbon pollution more than any other country on Earth. Gas under two bucks a gallon ain’t bad, either. Now we’ve got to accelerate the transition away from old, dirtier energy sources.”
Respectfully, Mr. President, falling oil imports, reduced U.S. carbon emissions and $2 gasoline are reasons to sustain and grow America’s energy revolution – not reasons to kneecap it.
Posted January 12, 2016
During his last State of the Union address, President Obama could declare victory – an energy victory that has seen surging domestic production, lower consumer costs, economic growth and environmental progress, all happening together, on his watch. The president can say this U.S. model is winning the day, because it is. He should say this model is exportable to the world, because it is.
Fact: The U.S. is the world’s No. 1 producer of oil and natural gas. The domestic revolution in the production of oil and gas has reduced net oil imports and positioned the U.S. to claim its place as a major player in global energy markets. At the same time, the U.S. is leading the world in reducing greenhouse gas emissions.
Fact: Affordable natural gas – the average price at the national benchmark Henry Hub in 2015 was the lowest since 1999 – is largely the reason wholesale electricity prices at major trading hubs (on a monthly average for on-peak hours) were down 27 percent to 37 percent across the U.S. last year compared to 2014. That’s a real benefit for consumers.
Fact: Natural gas is winning in the marketplace. This is reflected in data from the U.S. Energy Information Administration showing the change in annual U.S. energy consumption by fuel source over the past decade.
These are all characteristics of the U.S. model, a market-driven model for energy growth, consumer benefits and climate progress. The president can own it. We wouldn’t mind a bit.
Posted January 6, 2016
During this week’s State of American Energy event API President and CEO Jack Gerard described the economic and energy security gains generated by the U.S. energy revolution and the policies needed to create opportunities for the oil and natural gas industry to continue them.
Today let’s focus on some of the things Gerard identified as potential impediments to American energy. These include ideological opposition to progress, anti-consumer initiatives like the Renewable Fuel Standard (RFS), anti-market programs like the administration’s Clean Power Plan, government red tape and regulatory overreach.
Posted January 5, 2016
There are many ways to gauge the current strength of American energy. The U.S. is producing nearly twice as much oil as it did less than a decade ago, which, combined with natural gas output, has made America the world’s leading producer.
Yet, the real-world impact of America’s energy revolution offers a more meaningful picture. New tensions are roiling the Middle East, yet global crude markets have remained relatively calm – unimaginable a few years ago. Meanwhile, a tanker carrying U.S. crude oil left port headed for Europe – the first since the lifting of America’s 40-year-old ban on domestic exports. There’s the reach of our energy revolution.
In his State of American Energy remarks, API President and CEO Jack Gerard focused on the growth of U.S. energy and its benefits – and also the opportunity to sustain them with sound energy policies based on facts and science.
Posted January 4, 2016
As we write, the United States is once again an exporter of crude oil. Sure, in the past the federal government has allowed limited crude exports. The oil tanker that left the Port of Corpus Christi, Texas, late last week is the bearer of the first freely traded U.S. crude in about four decades – made possible by congressional legislation that President Obama signed to end a 1970s-era ban on exports. It’s a new day indeed.
But wait, there’s more. Cheniere Energy says it has begun liquefying natural gas at its new export terminal in Louisiana, setting the stage for its first LNG export cargo this month.
Both are big-time energy developments for the United States – opportunities created by a domestic energy revolution largely driven by safely harnessing vast shale reserves with advanced hydraulic fracturing and horizontal drilling.
Posted December 29, 2015
2015 ends on a high note for U.S. energy policy as Congress voted to repeal the obsolete, ‘70s-era ban on crude exports. Dozens of studies agree that lifting the restrictions will put downward pressure on gas prices, reduce the trade deficit, and provide a boost to economic growth and U.S. energy production.
Throughout the year, our status as the world’s leading producer of oil and natural gas continued to provide savings to American families and businesses while significantly enhancing our energy security. A review of the year’s energy developments shows how the American energy renaissance is paying off for consumers while also demonstrating that policymakers have some work to do in 2016.
Posted December 22, 2015
Lifting the ban is also a security win for the U.S. and our allies. With the administration’s push to allow Iran to export its oil to the global market, it’s time for U.S. producers to have the same opportunity. Our allies around the world are eager to reduce their reliance on energy from less friendly nations.
Posted December 15, 2015
That Congress soon may act to end the United States’ 40-year-old ban on domestic crude oil exports is signaled in the number of reports and posts on exports-related themes.
The Wall Street Journal has a report that talk of lifting the export ban is narrowing the difference between U.S. and global crude prices. The Council on Foreign Relations’ Michael Levi has this post discussing the impact of an exports deal on markets, the recent climate deal and geopolitics. National Journal reports on the legislative horse-trading some think could be part of lifting the exports ban. And there’s more.
Posted December 9, 2015
The U.S. shale energy revolution is a game-changer – for the United States and the world’s energy balance. The U.S. has become the No. 1 producer of oil and natural gas, resulting from a domestic energy renaissance driven by advanced hydraulic fracturing and horizontal drilling – fracking. And the positive impacts are all around us.
U.S. crude imports are down, and American energy self-sufficiency is up. An America that’s more energy self-sufficient is more secure. Meanwhile, the global crude market is better supplied and more stable – thanks to the availability of crude that would have been imported to the U.S. Domestic pump prices reflect this well-supplied market. At the same time, greater use of natural gas has increased each American household’s disposable income by $1,200, and IHS says the benefit will grow to more than $3,500 in 2025. Thanks, fracking.