Posted June 30, 2015
Wood Mackenzie’s study comparing the effects of pro-development energy policies with those of regulatory-constrained energy policies is really not much of a comparison at all. Pro-development policies would boost U.S. domestic energy supplies and job creation while benefiting American households, the study found. Pro-development policies also would add to economic growth and generate increased revenues for government. Let’s look at those today.
Posted June 9, 2015
With another hurricane season upon us, it’s timely to briefly review the ways the oil and natural gas industry is prepared for conditions that could impact industry operations, particularly in the Gulf Coast region and Gulf of Mexico – home to more than 45 percent of U.S. refining capacity and about 17 percent of the nation’s oil and 5 percent of its natural gas production.
While the National Oceanic and Atmospheric Administration (NOAA) is predicting below-normal activity in the Atlantic region (which includes the Gulf), industry still takes a number precautions and has response plans in place in the event of a serious storm – wise, considering the potential impacts to facilities, regional and national economies and the environment.
You can read about this in detail in this hurricane fact sheet.
Posted May 11, 2015
Breaking Energy Opinion (Thorning): The Department of Energy recently approved an application from Alaska LNG to export natural gas. But there’s a catch: these exports can only go to nations where the United States has a free-trade agreement in place.
Never mind the fact that the top markets for LNG are India, China, and Japan, where we don’t have free-trade agreements set up.So essentially, the company is stuck alongside the 20-plus U.S. natural gas companies that are awaiting approval to sell abroad. Some have been waiting for nearly three years.
Despite the rapid expansion of the American energy sector, the American regulatory apparatus hasn’t kept pace with the industry’s growth. New exploration techniques like fracking have opened up giant swaths of underground energy reserves in places like North Dakota and Pennsylvania. And the operations established to dig up the embedded oil and natural gas have created hundreds of thousands of new jobs and driven billions in new economic activity.
But now, unnecessary regulations are stifling firms with outdated rules. Most notably, the federal approval process energy producers have to navigate in order to sell in foreign markets is extremely restrictive. It’s needlessly difficult for firms to ship surplus oil and gas to eager customers abroad.
Posted April 24, 2015
To identify members of API’s second Emerging Leaders Program as “millennials” would really be oversimplifying things. Sure, they generally fit that age demographic, but they’re not being defined by such a generalized label. Rather, they’re defining themselves in the professional world – which surely is a reason their companies nominated them to participate in a program that focuses on future industry leadership, which included joining API at IHS Energy’s annual CERAWeek conference in Houston.
This year’s program centered on how modern politics impacts the oil and natural gas industry. Specifically, the curriculum examined the growing importance of public policy, advocacy and mobilization within daily industry operations and underscored the importance of political participation.
Still, much of the context for these discussions involves the career expectations and experiences of the emerging leader cohort – which in some ways reflect the aspirational trends of the larger generational grouping. Just don’t pigeon-hole them as “millennials.”
During our conversation at CERAWeek there was agreement that the oil and natural gas industry fits with younger career people (whatever you call them) who are adaptable, appropriately ambitious and invested in the notion of making a difference.
Posted April 21, 2015
The theme of this year’s CERAWeek mega-conference in Houston is “Turning Point: Energy’s New World.” It is a new world, with the United States producing more energy from oil and natural gas – the lead fuels of the U.S. and the world’s economies – than any other country. Just a decade ago few could have imagined the possibilities.
Posted February 12, 2015
API President and CEO Jack Gerard spoke to students at Texas Southern University in Houston this week about America’s energy revolution and career opportunities in the industry. Highlights from the speech (as prepared for delivery):
Today, the United States is first in natural gas production, petroleum refining and soon to be the No. 1 producer of crude oil as early as this year, with some projecting we are already there. We have surpassed all expectations and achieved a level of domestic energy production that was unthinkable even five years ago. … North American energy production is expected to increase for many years to come and as a result (and) so are the number of jobs available within the industry.
As an example, with one change to U.S. energy policy, lifting the prohibition on crude exports, the oil and natural gas industry within five years could create up to 300,000 jobs, almost 41,000 of them right here in Texas. Already, this new era of energy abundance has not only set production and refining records, it has also added 600,000 jobs between 2009 and 2011 to the nation’s economy at a time when it was needed the most. …
It will be up to the next generation of Americans, your generation, to expand and maintain our nation’s energy abundance and global energy leadership. It is up to my generation to make sure that you have skills, knowledge and information needed to make the most of that opportunity.
Posted October 27, 2014
Ever heard of the broken window fallacy? In economic circles, it’s a common parable used to dismiss arguments that damage – like the breaking of a window – has a silver lining: spending to fix the window boosts the window repairman, which boosts the folks who make panes of glass and so forth.
Yet, that argument (and the one depicted in the broken window parable) misses a big unseen – there’s no free lunch in spending to repair or rebuild property. The money comes from somewhere. The person who must buy a new window spends money he or she might have invested or spent elsewhere in the economy, with greater economic impact. Likewise with government spending. Those dollars came from taxpayers who might have invested or spent elsewhere in the economy, with greater economic impact.
We say all of this because another common argument being heard is that tossing bricks of energy regulation will invigorate the energy sector.
Posted September 26, 2014
Let’s talk energy infrastructure, focusing on the pipelines and the fuel storage and dispensing facilities in this country that keep commercial jetliners in the air and our vehicles moving on the roads and highways.
Part of that system is visible in suburban Washington, D.C., at the terminus for Kinder Morgan’s 3,100-mile Plantation Pipeline network (left) and the neighboring Newington Terminal, which API staff members toured recently.
Posted May 5, 2014
Posted January 27, 2012
One of the most important things to know about producing oil on federal lands is that it takes time. Lots of it. As this chart developed by API illustrates, it’s up to a decade from the time a lease is won at auction to the first actual production of oil. If you include pre-lease sale studies and evaluation, which have to be done before companies bid on federal leases, that’s a couple more years.