The People of America's Oil and Natural Gas Indusry

Energy Today - February 28, 2011

Rayola Dougher

Rayola Dougher
Posted February 28, 2011

The Calgary Herald: Opinion: U.S. must build on its oil ties with Canada: Perhaps no two countries have a stronger - and more special - partnership than do the United States and Canada. It is the world's largest trading relationship, and Canada plays a tremendous role in our nation's economic and energy security. Canada is already our country's largest supplier of imported oil. As Americans watch the unsettling events unfolding in Egypt and elsewhere in the Middle East, it should be comforting to note that most of the oil we import comes from our friendly and reliable next-door neighbour. And that neighbour is poised to provide even more of the energy America needs as it develops its vast oilsands resources. Canadian oilsands can support significant U.S. economic growth and job creation, at a time when both are needed desperately. That can only happen, however, if we have adequate means to transport that oil to refineries in the United States. That is where the Keystone XL Pipeline project comes in. When completed, it will bring Canadian oil to refineries in the Gulf Coast, replacing millions of barrels of oil now imported from elsewhere. The economic impact of oilsands development in Canada is expected to lead to the creation of more than 342,000 new U.S. jobs between 2011 and 2015 and add an estimated $34 billion to U.S. gross domestic product in 2015, according to the Canadian Energy Research Institute. This was a preliminary analysis and the actual number of jobs for Americans could be far larger. In addition, many U.S. jobs already rely on Canadian oilsands exploration and production. A recent analysis by the Canadian Association of Petroleum Producers found that almost 1,000 U.S. companies in 47 states are suppliers of materials, equipment, training, consulting or inspection services to support Canadian oilsands production operations: from Apopka, Fla., to Norwich, Conn., from New York to San Francisco. The Wall Street Journal: This Is No Time to Discourage U.S. Oil and Gas Production: Of all the times for the U.S. to be discouraging domestic production of oil and natural gas, right now might be the worst. Libya's descent into chaos is fueling a rapid rise in oil prices, and unrest in other oil-producing countries in the Middle East and North Africa has led some analysts to predict unprecedented oil-price spikes may be looming. Nevertheless, President Barack Obama's administration has not only stopped issuing permits for deep water drilling in the Gulf of Mexico, it also wants to stop "subsidizing yesterday's energy" so that the federal government can boost revenues and spend more on ...

The Pittsburgh Post-Gazette: A boom without a bust? For now, the future is bright for shale economics: The problem with a boom, at least historically, is that a bust often follows. But advocates of the natural gas industry say the Marcellus Shale gas field could create a boom without a bust -- a long-term operation providing jobs for decades to come. The ancillary benefits will remain intact as well -- royalties to landowners, cheap and plentiful fuel for the region, and jobs in related industries, much as the automakers in Detroit sustain a spiderweb of interconnected glass, paint and steel companies. And even though the gas industry is more fragmented than King Coal, there is enough stability among top producers that the natural gas rush won't devolve into a free-for-all that depresses prices below what is profitable.

Additional Resources:

West Virginia Metro News: Trying To Predict The Unknown

The Pittsburgh Post-Gazette: Scope of Marcellus Shale drilling job creation a matter of conjecture

The Los Angeles Times: GlassPoint Solar uses the sun's heat to extract oil

ABOUT THE AUTHOR

Rayola Dougher is senior economist at The American Petroleum Institute (API), where she analyzes information, manages projects and develops briefing materials on energy markets and oil industry policy issues. She is the author or co-author of economic research studies covering a diverse range of topics including crude oil and petroleum product markets, gasoline taxes, energy conservation and competition in retail markets. In addition to testifying before federal and state legislators, she has participated in numerous newspaper, radio and television interviews on a wide range of issues affecting the oil industry, including crude oil and gasoline prices, industry taxes and earnings, exploration and production, and refining and marketing topics.

Prior to joining API, Rayola worked at the Institute for Energy Analysis where her research focused on carbon dioxide related issues and international energy demand and supply forecasts. Rayola holds a Masters degree in Economic Development and East Asian studies from the American University and a degree in History and Political Science from the State University of New York at Brockport.