Posted April 30, 2014
Albany Business Review: Some New York farmers, particularly those living in the state's Southern Tier, are in favor of high-volume hydraulic fracturing. Steuben County dairy farmer Terry Waters, 60, said it would "pull us out of the hole."
As farmers like Waters continue to face financial hardship due to rising costs, they are seeing their counterparts in Pennsylvania benefiting from the natural gas resources located underneath their properties.
Posted April 15, 2014
Yesterday we looked started looking at the oil and natural gas industry’s economic impact on individual states with a focus on Kentucky. Today, let’s talk about the importance of having the right energy policies in place to avoid negative impacts on local economies and individual consumes. Again, we’ll consider Kentucky.
Last month White Castle restaurant chain CEO Lisa Ingram wrote an op-ed piece for the Louisville Courier-Journalthat explained how the federal Renewable Fuel Standard (RFS) is having local, negative impact. Though the first White Castle opened in Wichita, Kan., nearly a century ago, Ingram writes, the chain has deep ties to Kentucky and serves more customers in Louisville than all but a few other markets. The city is home to one of the company’s frozen food plants, which employs nearly 200.
Yet the RFS – energy policy that has become obsolete and counter-productive in the midst of the U.S. domestic energy revolution – is putting upward pressure on food prices by requiring ever-increasing use of ethanol in the fuel supply.
Posted April 11, 2014
Posted March 21, 2014
With winter grudgingly giving way to spring, the guess here is discussion of the flawed Renewable Fuel Standard’s ethanol mandates, higher ethanol-blend fuels like E15 and the “blend wall” will rekindle debate in Congress.
Lawmakers must act, because while EPA has proposed lowering ethanol-mandate levels from 2013, the rule still isn’t final (it was due at the end of November last year) and would only temporarily address potentially harmful impacts of the blend wall – to consumers and the broader economy.
Posted February 19, 2014
The Geopolitical Consequences of the Shale Revolution
Foreign Affairs (Blackwell and O’Sullivan): Only five years ago, the world’s supply of oil appeared to be peaking, and as conventional gas production declined in the United States, it seemed that the country would become dependent on costly natural gas imports. But in the years since, those predictions have proved spectacularly wrong. Global energy production has begun to shift away from traditional suppliers in Eurasia and the Middle East, as producers tap unconventional gas and oil resources around the world, from the waters of Australia, Brazil, Africa, and the Mediterranean to the oil sands of Alberta. The greatest revolution, however, has taken place in the United States, where producers have taken advantage of two newly viable technologies to unlock resources once deemed commercially infeasible: horizontal drilling, which allows wells to penetrate bands of shale deep underground, and hydraulic fracturing, or fracking, which uses the injection of high-pressure fluid to release gas and oil from rock formations.
Posted February 3, 2014
Posted January 31, 2014
We’ve written quite a bit about bad things that could occur because of the Renewable Fuel Standard’s (RFS) mandates for ever-increasing ethanol use in the fuel supply – from potential damage to vehicle engines and small power equipment engines tobroader impacts in the economy. A study by NERA Economic Consulting warned that RFS mandates could lead to fuel rationing and supply shortages that by 2015 could drive up gasoline costs 30 percent and the cost of diesel by 300 percent.
Now EPA is in the last lap in the process to set ethanol use levels for 2014. The agency’s proposal is reduced from where it was in 2013. EPA even acknowledged the ethanol “blend wall” – the point where, to satisfy the RFS, refiners have to blend fuel with higher ethanol content than millions of vehicles are designed to use.
EPA should follow through and set this year’s mandate so we avoid the blend wall and its onerous impacts this year. For a permanent solution, Congress should repeal the RFS.
Posted January 6, 2014
API hosts its annual State of American Energy event on Tuesday at the Newseum in Washington, D.C., and the discussion will focus on choices our country can make to increase energy development, grow jobs and the economy and make us more secure in the world. The event will be streamed live beginning at noon. Join in the conversation on Twitter by using the #SOAE14 hashtag.
The event comes at a time when policymakers are considering important energy issues, some of them framed in recent posts by the National Journal and Politico. At the top of our list of key energy issues:
Keystone XL pipeline
Federal consideration of TransCanada’s application for a cross-border permit passed the five-year mark last fall – which means the Keystone XL could have been built twice in the time the pipeline has been held up by Washington.
Posted December 18, 2013
The U.S.’s Crude Oil Policy
Washington Post: The United States again is one of the world’s great energy powers. On Monday, the U.S. Energy Information Administration projected that American crude oil output will peak at nearly 10 million barrels per day by mid-decade, up from 6.5 million last year. Last month, the International Energy Agency figured that the United States would overtake Saudi Arabia as the top oil producer, at least for a time. Yet some politicians remain unwilling to let the country reap the full benefits of this boon.
For decades, the government has imposed restrictions on exporting domestically produced crude oil but not on refined petroleum products such as gasoline and diesel fuel. This arrangement seemed sensible; the country’s crude business wasn’t booming, but its refining industry was an economic powerhouse deeply embedded in world energy markets.
Now, however, new drilling techniques have resulted in a revitalization of U.S. crude production. But oil firms export only a tiny fraction of the roughly 8 million barrels they extract daily, even though the oil often isn’t the sort U.S. refineries are set up to process. Understandably, they’d like a wider market in which to sell.
Read more: http://wapo.st/18RWgmz
Posted December 13, 2013
Bloomberg Poll: 56 Percent Say Keystone XL Would Help U.S. Energy Security
Bloomberg Businessweek: More Americans view the Keystone XL oil pipeline as a benefit to U.S. energy security than as an environmental risk, even as they say Canada should do more to reduce greenhouse gases in exchange for approval of the project.
A Bloomberg National Poll shows support for the $5.4 billion link between Alberta’s oil sands and U.S. Gulf Coast refineries remains strong, with 56 percent of respondents viewing it as a chance to reduce dependence on oil imports from less reliable trading partners. That compares with the 35 percent who say they see it more as a potential source of damaging oil spills and harmful greenhouse gas emissions.
Read more: http://buswk.co/1gwdBJq