The People of America's Oil and Natural Gas Indusry

Energy Today - June 16, 2011

Rayola Dougher

Rayola Dougher
Posted June 16, 2011

ExxonMobil's Perspectives Blog: Is North America a Land of Opportunity for Energy?: Last week, we announced a major oil and natural gas discovery in the Gulf of Mexico - one of the largest there in the last decade. For those who assume that oil only comes from the Middle East or other overseas locations, this find might come as a surprise. It shouldn't. North America has enormous untapped energy potential that we could develop for American consumers - if governments provide access and uphold sound, stable regulatory frameworks. Deepwater oil and gas exploration and production in the Gulf of Mexico is just one of several sources of growth in North American energy supplies. A report last year from Cambridge Energy Research Associates found that in 2009, deepwater activity in the Gulf of Mexico helped the United States grow its domestic oil production for the first time since 1991. In addition, so-called "unconventional" supplies of energy - including shale gas and Canada's oil sands - have helped revolutionize North America's energy landscape. For example, just take a look at the bar graph at left. It shows the geographical breakdown of ExxonMobil's global oil and natural gas resource base. You'll see that about half of our company's resources are found in the Americas. A sizable part of our resource base is right here in the United States, which isn't surprising given a 2010 study by the Congressional Research Service that concluded the U.S. "remains among the top nations in proved reserves of all fossil fuels." This is positive news for the United States. It means that the U.S. energy industry - which fueled America's economic rise over the past century, not to mention generations of technological innovation, good jobs and tax revenue - still has lots of room to grow. PennEnergy: US panel passes bill to fast-track Keystone XL Pipeline decision: The US House Energy and Commerce Subcommittee on Energy and Power Wednesday approved a bill to help fast-track the construction of Transcanada's (TSX:TRP) (NYSE:TRP) proposed Keystone XL Pipeline. The North American-Made Energy Security Act (H.R. 1938) requires the Obama administration to issue a final order by Nov. 1, 2011, on whether the Keystone XL Pipeline can be built to transport oil from Western Canada to Texas. The bipartisan bill will now move to the full Energy and Commerce Committee for consideration. "With Canada's oil sands coming online and the enormous untapped resources residing here in the US, North America appears to have the capacity to break free from unfriendly sources of oil and bring down prices at the pump. There's only one thing standing in the way - the Obama administration," said Energy and Commerce Committee Chairman Fred Upton (R-MI). "This legislation will end the delays and require this administration to make a timely decision on this pipeline. I look forward to advancing this bill through the full committee and the House."

The Chattanoogan: Solving Our Energy Crisis With An All-of-the-Above Approach: It is time that we embrace a comprehensive and balanced approach to domestic energy production. In order for us to develop alternative energy sources, we have to be able to utilize our nation's existing oil and natural-gas reserves. If we continue to hold off on accessing these valuable resources, we will continue to see higher energy prices, which will continue to lead to jobs being lost. These combined factors will only further inhibit our nation's economic recovery. It is imperative that we act now in solving our nation's energy crisis.

Additional Resources:

The Intelligencer: Wheeling News-Register: Getting the 'Appalachian Gold Rush' Right

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.