Energy Tomorrow Blog
Posted March 11, 2015
Posted March 3, 2015
ConocoPhillips Chairman and CEO Ryan Lance applies some uncomplicated logic to the question of whether the United States should lift its 1970s-era ban on exporting domestic crude oil. “We should treat crude oil like any other potential product export,” Lance said at an event hosted by the U.S. Chamber of Commerce.
As he did during a January visit to Washington, Lance laid out compelling reasons for lifting the crude oil export ban: An abundance of domestic light crude produced from shale is mismatched for a U.S. refining sector that’s largely configured to process heavier crudes, exporting crude would give producers access to the global market, helping to sustain domestic production and U.S. industry jobs, and exports would add supply to the global market, helping stabilize it and affording the U.S. new opportunities to exert positive influences in the world.
Posted February 10, 2015
EIA Today in Energy: The increase in U.S. shale and tight crude oil production has resulted in a decrease of crude oil imports to the U.S. Gulf Coast area, particularly for light-sweet and light-sour crude oils. These trends are visualized in EIA's crude import tracking tool, which allows for time-series analysis of crude oil imported to the United States.
Historically, Gulf Coast refineries have imported as much as 1.3 million barrels per day (bbl/d) of light-sweet crude oil, more than any other region of the country. Beginning in 2010, improvements to the crude distribution system and sustained increases in production in the region (in the Permian and Eagle Ford basins) have significantly reduced light crude imports. Since September 2012, imports of light-sweet crude oil to the Gulf Coast have regularly been less than 200,000 bbl/d. Similarly, Gulf Coast imports of light crude with higher sulfur content (described as light-sour) have declined and have been less than 200,000 bbl/d since July 2013.
Posted December 31, 2014
Business Day: For years, Organisation of Petroleum Exporting Countries (OPEC) pulled the strings set the price of oil and controlled the supply. After dictating the course of oil prices for more than 50 years, OPEC is finding its influence diminished.
Right now, OPEC represents about 40 percent of global daily production. The organization still has a say in what the energy market looks like. But for OPEC, oil can no longer be used as either a weapon or as a lever. There is simply too much production arising beyond the control of OPEC.
For 2015, US will emerge as dominant player. OPEC member countries are gradually losing the largest energy market in the world and the irony is that they will soon be competing for the markets that used to be theirs for the taking. Projections from recent happenings reveal that in 2015 the US will start dictating to the market. With the advent in 2015 of large US exports of liquefied natural gas (LNG), the effect is even larger, and with it comes the hastening of OPEC’s decline.
Posted December 30, 2014
UPI: House Republicans will work to create the "architecture of abundance" needed to take advantage of North American energy leadership, a lawmaker said.
The House Energy and Commerce Committee published a 105-page strategy document meant to highlight the agenda of the incoming Republican-led Congress. It says federal policies are ill-suited to develop the infrastructure needed to take advantage of the oil and gas production boost in the United States.
"Creating this architecture of abundance is slowed at every step by archaic federal rules that can cause years of delays and even block some pipeline and power line projects outright," the paper reads.
Rep. Fred Upton, the committee's chairman, said the new Congress would work to advance its blueprint when it comes into power in January.
Posted December 1, 2014
There’s a new global energy order – with the United States at the hub. That’s the assessment in a number of articles following last week’s meeting of oil-exporting countries.
The benefits to America are manifold. The U.S. as global energy’s new center of gravity means economic strength here at home through jobs, consumer benefits and greater energy security, and the opportunity to project positive American values abroad – by impacting global markets as discussed above and by helping friends overseas through energy exports. All result from America’s energy revolution, built on safe development of oil and natural gas reserves from shale and other tight-rock with advanced hydraulic fracturing and horizontal drilling.
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 8, 2014
New York Times: HOUSTON — The Singapore-flagged tanker BW Zambesi set sail with little fanfare from the port of Galveston, Tex., on July 30, loaded with crude oil destined for South Korea. But though it left inauspiciously, the ship’s launch was another critical turning point in what has been a half-decade of tectonic change for the American oil industry.
The 400,000 barrels the tanker carried represented the first unrestricted export of American oil to a country outside of North America in nearly four decades. The Obama administration insisted there was no change in energy trade policy, perhaps concerned about the reaction from environmentalists and liberal members of Congress with midterm elections coming. But many energy experts viewed the launch as the curtain raiser for the United States’ inevitable emergence as a major world oil exporter, an improbable return to a status that helped make the country a great power in the first half of the 20th century.
“The export shipment symbolizes a new era in U.S. energy and U.S. energy relations with the rest of the world,” said Daniel Yergin, the energy historian. “Economically, it means that money that was flowing out of the United States into sovereign wealth funds and treasuries around the world will now stay in the U.S. and be invested in the U.S., creating jobs. It doesn’t change everything, but it certainly provides a new dimension to U.S. influence in the world.”
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 3, 2014
Here’s the president, lauding the lift America’s domestic energy revolution has provided the nation’s economy in a speech this week in Illinois:
“The first cornerstone is new investments in the energy and technologies that make America a magnet for good, middle-class jobs. So right off the bat, as soon as I came into office, we upped our investments in American energy to reduce our dependence on foreign oil and strengthen our own energy security. And today, the number-one oil and gas producer in the world is no longer Russia or Saudi Arabia. It’s America. For the first time in nearly two decades, we now produce more oil than we buy from other countries. We’re advancing so fast in this area that two years ago I set a goal to cut our oil imports by half by – in half by 2020, and we’ve actually – we will meet that goal this year, six years ahead of schedule.”
It’s good to hear the president talking about the benefits to America of resurgent oil and natural gas production here at home. He’s right: The United States is the world’s No. 1 producer of natural gas and is poised to be No. 1 in oil production. He’s also right that this domestic output has cut imports significantly, putting America on a path to zero net imports in the foreseeable future – a good bench mark for something everyone wants: genuine U.S. energy security.
Now let’s talk plainly.
These energy developments and their benefits have occurred without much help from this White House. They’ve happened even as the president’s actions and those of his administration have fallen well short of his “all-of-the-above” rhetoric on energy.